PEARL RIVER – Orange and
Rockland utilities has asked the state Public Service Commission for permission
to increase its electricity and natural gas delivery rates to take effect
in January 2019.
If approved, the utility would see a $20.3 million increase in revenues
on the electricity side of the business with the typical residential customer
using a monthly average of 600 kWh seeing an approximate increase of $6
per month from $122.03 to $128.21.
O&R seeks an increase in revenues for gas delivery of $4.5 million
with the typical residential customer bill using 100 Ccf per month increasing
about $4 per month from $133.64 to $137.76.
The company says it needs the additional revenue for “the continued
safe, reliable and secure operation of its electric and natural gas delivery
systems.”
O&R officials said the revenue increases were mitigated by the recently
enacted federal tax code changes that reduced its corporate income tax
rate from 35 percent to 21 percent.
A statement from O&R explained it this way:
“O&R will realize a tax savings under its current energy delivery
rate structure from the time the new federal corporate tax rates become
effective until January 2019 when new O&R energy delivery rates are
due to go into effect. O&R will defer the federal corporate tax savings
from that period as a customer benefit. The NYSPSC is expected to decide
the amount, manner and timing of that customer benefit’s return
to customers.”
