Rejection of Joint Proposal for Electric Rate Increases Urged by Public Utility Law Project and AARP

Strategic Insights -

As the New York Public Service Commission (PSC) considers the Joint Proposal (JP) submitted by New York State Electric and Gas Corporation (NYSEG) and Rochester Gas and Electric Corporation (RG&E), the Public Utility Law Project of New York, Inc. (PULP) and AARP New York have reiterated their opposition to the proposal. The JP seeks to implement electric rate increases of 25% for NYSEG and 15% for RG&E, citing the COVID-19 pandemic as a reason for these increases. However, PULP and AARP argue that the proposal is not in the public interest and would harm residential customers of the companies.

Key Takeaways:

  • PULP and AARP urge the PSC to reject the Joint Proposal (JP) submitted by NYSEG and RG&E, citing harm to residential customers.
  • The JP includes electric rate increases of 25% for NYSEG and 15% for RG&E, which PULP and AARP argue are not justified by the pandemic.
  • Despite the companies' efforts to downplay the impact of the increases, PULP and AARP assert that they would disproportionally harm low-income and vulnerable populations.
  • The companies have failed to provide sufficient evidence to justify the rate increases, and their claims of COVID-19-related costs are not supported by credible data.
  • The PULP and AARP point out that the companies have a history of overcharging their customers and that the proposed increases would exacerbate this issue.
  • The companies' proposal also includes measures to upgrade infrastructure, such as advanced metering infrastructure (AMI) and renewable energy projects, but PULP and AARP argue that these benefits are not sufficient to justify the rate increases.
  • The joint proposal also mentions the COVID-19 Related Costs Recovery and other challenges faced by the companies as a reason for implementation.
  • PULP and AARP have called for a more thorough and transparent review process, with a focus on the impact of the proposed rate increases on low-income and vulnerable populations.

Statistics:

  • 25% electric delivery rate increase for NYSEG
  • 15% electric delivery rate increase for RG&E
  • Over 3 million people on unemployment in New York State
  • $600 federal supplement expires past July 31st
  • Significant increase in COVID-19 cases and deaths as of July 22, 2020 (Source: John Hopkins Coronavirus Resource Center)

Sources:

  • New York State Department of Public Service document (no date)
  • John Hopkins Coronavirus Resource Center (https://coronavirus.jhu.edu/data/new-cases)
  • New York State's Official Website (https://coronavirus.health.ny.gov/home)
  • Weekly UI Claims Report, New York State Department of Labor (https://labor.ny.gov/stats/weekly-ui-claims-report.shtm)
  • "End of $600 Unemployment Bonus Could Push Millions Past the Brink" (New York Times, July 21, 2020)
  • "Extra $600-A-Week Unemployment Benefit Won't Get Renewed, Mnuchin Says" (Forbes, July 14, 2020)