Friday, March 15, 2019

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PSC slashes O&R’s rate request by 80 percent

ALBANY – The state Public Service Commission approved a three-year rate plan for electric and gas service for customers of Orange and Rockland Utilities on Thursday. The ruling reduces the rate request by 80 percent.

Under its last proposal, O&R sought a total electric revenue increase of $30 million, or 3.3 percent, and a $2.2 million gas revenue increase, or about 1.0 percent.

Instead, the commission approved a first-year electric rate increase of $8.6 million, or 0.4 percent, and a first-year gas rate decrease of $5.9 million, or negative 2.5 percent.

In the second year, electric rates will increase by $12.1 million, or 1.9 percent, and will increase $12.2 million, or 1.9 percent in the third year.

The typical residential electric customer would see a total monthly bill increase of $2.90, or 2.4 percent, in the first year, starting in January 2019; $3.07, or 2.5 percent in the second year starting in January 2020; and $3.04 or 2.4 percent in the third year starting in January 2021.

A typical natural gas heating customer would see an average bill decrease by $1.99 in the first year, or -1.5 percent; an $0.83 increase in the second year, or 0.6 percent; and a $1.07 increase in the third year, or 0.8 percent.

Eligible how-income electric customers will see an electric bill reduction of up to 44 percent.

“This progressive plan we have adopted – endorsed with stakeholder support by environmental groups, large business customers, and municipalities in the region – benefits customers and includes provisions that further important state and commission objectives,” said Commission Chairman John Rhodes.

“O&R is required to pursue important energy efficiency initiatives and non-wires alternatives, update aging infrastructure, and implement important electric reliability and gas pipeline safety programs, while mitigating the potential economic impact of the recommended rate increases on ratepayers, including a nation-leading affordability policy that substantially lowers bills for most low-income customers,” Rhodes said.

 


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