For Immediate Release: 3/14/2019
John B. Rhodes, Chair
Contact: James Denn | James.Denn@dps.ny.gov | (518) 474-7080
19022/18-E-0067; 18-G-0068
March 14, 2019
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PSC Reduces O&R’s Rate Request by 80 Percent |
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Utility Regulator Cuts $26.2 Million from Total Revenue Request of $32.2 Million; O&R to Pursue Energy Efficiency Initiatives; Update Aging Infrastructure, and Implement Important Electric Reliability and Gas Pipeline Safety Programs ALBANY — The New York State Public Service Commission (Commission) today established a three-year rate plan for electric and gas service for customers of Orange and Rockland Utilities, Inc.
by adopting the terms of a joint proposal much more favorable to customers than the company’s original request, reducing the rate request by 80 percent. Under its last proposal, the utility sought a total electric revenue increase of $30 million, or 3.3 percent, and a $2.2 million gas revenue increase, or about 1 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 revenues will increase $12.1 million, or 1.9 percent, and will increase $12.2 million, or 1.9 percent, in the third year. Gas revenues in the second year will increase $1 million, or 0.4 percent, and will increase $1 million in the third year, or 0.4 percent.
Under the new rate plan, a 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 residential heating customer would see an average monthly bill decrease of $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 low-income electric customers will see an electric bill reduction of up to 44 percent.
“The 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 Chair John B. 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.”
Major drivers associated with the electric delivery rate increase include the additional return requirement associated with rate base growth, and increases in depreciation expense, labor and benefits, energy efficiency expense, decreased forecasted revenue, environmental site remediation expenses and storm reserve funding. Major drivers for the gas delivery rate increase include additional return requirement associated with rate base growth along with increases in depreciation expense, operations expense, along with labor and benefits costs.
The Commission’s decision accounted for issues and concerns raised in public comments. The decision also supports the Reforming the Energy Vision initiative, or REV, which aims to build a cleaner, more resilient and affordable energy system; highlights of the decision include:
Since the beginning of the case, Department staff has worked tirelessly to minimize cost increases by
advocating progressive outcomes regarding affordability, energy efficiency, and the environment. The
Commission’s decision also reflects the impact of changes to the federal corporate tax rate and
bonus depreciation prospectively.
Parties who have signed the joint proposal include the company; Department of Public Service staff; the New York Power Authority; the New York Department of State, Consumer Protection Division, Utility Intervention Unit; the Pace Energy and Climate Center; the Environmental Defense Fund; the Public Utility Law Project of New York, Inc.; the Towns of Clarkstown, Haverstraw, Orangetown, Ramapo, and Stony Point; the Rockland County Solid Waste Management Authority; the New York Geothermal Energy Organization; and others.
Today’s decision may be obtained by going to the Commission Documents section of the Commission’s Web site at www.dps.ny.gov and entering Case Numbers 18-E-0067 or 18-G-0068 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.
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