ROCHESTER, N.Y. — State regulators have approved temporary utility rate increases for RG&E and NYSEG customers while continuing to review the companies’ requests for much larger hikes over the next three years.
RG&E and NYSEG argue they need more money to upgrade and expand aging infrastructure, meet state mandates and to be better prepared for storms and emergencies.
The New York State Public Service Commission approved temporary increases last week that go into effect June 1st. RG&E customers will see a 2.9% increase in electric delivery rates and a 1.2% hike for gas delivery. NYSEG customers will see a 0.2% increase for electric and a 1.7% increase for natural gas.
The utilities originally asked to raise delivery rates by more than 35% over the next three years. “It is in fact one of the largest increases this commission has seen in recent history,” said Rory Christian, the chair of the New York State Public Service Commission.
The Public Service Commission said it needs more time to review the request.
At its monthly meeting last week, the commission approved the temporary, much smaller increase for now, allowing utilities to start work on some infrastructure projects. “There are real reliability needs, particularly in the Rochester area that if those can be solved, businesses can better be equipped to grow and to meet the needs of employing the community and reaching out,” Dakin Lecakes, chief administrative law judge for the New York State Department of Public Service, said.
The June 1st increase is likely just the start as one of the PSC commissioners pointed out just before approving it. “I’m a little concerned that the justified and right attention to the cost of living and affordability does not lead us to kick the can on necessary reliability expenses that just make the cost impact worse down the line,” Commissioner John Maggiore said.
More than 26,000 people have filed public comments in this rate case. Most are asking state regulators to hold the line.
The PSC said this will give them more time to parse out what’s needed versus what’s wanted. “It (temporary rate hike) recognizes that there is a substantial public outcry against the company’s initial rate request that deserves the commission’s full attention and consideration in any final rate,” Lecakes said.
State Regulators Approve Temporary RG&E and NYSEG Rate Increases While Considering Larger Hikes WHEC.com.
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