The joint proposal comes as a result of Central Hudson’s July 2009 rate proposal, and would become effective from July 1, 2010, if approved by the Public Service Commission.
The joint proposal would increase average residential electric delivery charges by $2.56 per month in the first year, $1.96 per month in the second year and $1.89 per month in the third year. The average residential natural gas delivery charges would increase by $5.86 per month in the first year, $2.73 per month in the second year and $2.02 per month in the third year.
Taxes and assessments are expected to comprise approximately 30% of total delivery charges on customer bills, with property taxes alone representing approximately 40% of the proposed first year electric delivery rate increase and more than 25% of the proposed first year gas delivery rate increase.
The joint proposal also includes expansion of a program to assist low-income customers who are experiencing financial difficulties in paying their energy bills and continuation of a bill discount for customers receiving benefits through the Home Energy Assistance Program.
Another measure to reduce costs include an austerity plan, implemented in 2009, to temporarily reduce operating costs, which is incorporated in current rates and will save customers $3m through June 2010.
In addition, the next phase of the electric bill credit (EBC) would begin in July 2010 under the joint proposal. Approximately $20m is expected to be returned to customers through the EBC by June 2010, with additional credits of $12m and $4m by June 2011 and June 2012, respectively.
The EBC was implemented in July 2009 to return $36m to customers through a credit on electric bills, phased over three years in decreasing amounts each year. The credit appearing on bills with the next phases would decrease compared with the prior phase, with the net effect of increasing average residential electric bills by an additional $1.86 per month in the first year, $1.69 per month in the second year, and $.79 in the third year.
