If approved, the proposed rates will ensure that the companies can meet the increasing cost of providing safe and reliable service. In addition, the proposed rates will make possible investments to modernize infrastructure in line with the recommendations of the draft State Energy Plan, NYSEG and RG&E said. The increases would be the first for the companies since the mid-1990s.
Michael Conroy, senior vice president and chief operating officer of NYSEG and RG&E, said: “While our electricity service rates have declined and our natural gas rates have remained essentially flat since 1996, the expenses necessary to provide safe and reliable service to our customers have climbed year after year.
“These ever-increasing operating and maintenance costs make this rate request essential in order for us to continue providing the level of service our customers expect and deserve.”
Adding to the challenge of operating and maintaining complex energy delivery systems across more than 40% of upstate New York, NYSEG and RG&E have experienced higher costs of and, at times, limited access to capital as a result of the companies’ ‘BBB’ level bond ratings, said the companies.
Under the proposed delivery rates, the increase in the typical total NYSEG residential electricity bill would be approximately $12.39 per month and the typical total NYSEG residential natural gas heating bill would increase approximately $25.34 per month.
The increase in the typical total RG&E residential electricity bill would be approximately $11.86 per month and the typical total RG&E residential natural gas heating bill would increase approximately $21.03 per month.
To complement the infrastructure work the new rates would make possible, NYSEG and RG&E have requested federal stimulus funds for two smart grid projects. These projects would also help meet the objectives of the draft State Energy Plan.
