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.”
Rockland County Executive Edwin Day is perplexed by the rate hike request given the current taxing structure.
“Anybody in charge of an organization understands that costs do go up but I find it extremely troubling that at the same time the federal corporate tax rate is dropping they are increasing the cost to our consumers,” Day said. “That should warrant extreme scrutiny by the PSC.”
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