Public Service Commission nears decision on NYSEG and RG&E rate increase, hearings underway

Final hearings for the New York State Electric and Gas (NYSEG) and Rochester Gas and Electric (RG&E) rate case have begun. The companies requested a 35 percent increase, equaling about $464.4 million, and asked for a return on equity of 10 percent for the rate year, resulting in a $32 million increase in electric service revenue. (Photo by Cindy Tiley)

CHENANGO COUNTY — After many months of discovery requests, public hearings, and testimonies, the final hearings for the New York State Electric and Gas (NYSEG) and Rochester Gas and Electric (RG&E) rate case have begun.

The companies requested a 35 percent increase, equaling about $464.4 million, and asked for a return on equity of 10 percent for the rate year, resulting in a $32 million increase in electric service revenue.

The rate request will be determined by the Public Service Commission (PSC) with the final outcome after four weeks of hearings with parties cross examining each other to ultimately lead to the final decision on delivery rate increases requested by the companies.

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City of Norwich Assemblyman Joseph Angelino said the PSC is the same organization that places all types of mandates on power companies and added, he hopes for change.

“The PSC mandates on power companies is a long list; miles of power line upgrades and vegetation  management to increase reliability, paying people for renewable  energy credits, connecting solar and wind projects to their grid, storm hardening, burying lines when possible, and more,” said Angelino.

He said NYSEG has no choice but to comply, and when NYSEG goes to the PSC asking for a rate increase, NYSEG can show how much all of these mandates cost them, with PSC usually approving the rate increase.

“I don't like the process, and hope the rate increase, if granted, will be lower than requested,” Angelino said.

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