In an exclusive interview with News10NBC Investigative Reporter Jennifer Lewke, the Chair of the New York State Public Service Commission says the commission approved temporary rate increases for RG&E and NYSEG customers in an effort to avoid much larger increases going into effect automatically.
As of June 1st, RG&E customers will see a 2.9% increase in the delivery charge for electric and a 1.2% increase for gas delivery. NYSEG customers will see a .2% increase for electric delivery and a 1.7% hike for gas delivery.
The rate increases have been temporarily agreed to while state regulators and the utilities continue discussions over a more long-term rate case.
Jennifer Lewke (News10NBC): “Can you explain why you all decided to go ahead and approve temporary rate increases in this case?”
Chair Rory Christian: “For this specific rate case, the decision to move forward with temporary rates was a clear one because that is what we could do that is in the best interest of customers while also ensuring that the system can function with the investments needed to keep things going… this is a complicated case, 4 different cases really (RG&E Electric and Gas and NYSEG Electric and Gas). It’s a lot of paperwork, a lot of review and a lot of documentation and as we were approaching the end of the statutory 11 months it was pretty clear that we were not any closer to coming to a conclusion and the best path forward, rather than letting the 20%-30% rate increases take affect, we chose to move forward with temporary rates to give us more time to get all the parties to come to a better solution than what we would otherwise be able to get.”
Jennifer Lewke: “If you had not approved temporary hikes, they would have automatically got what they asked for right?”
Chair Christian: “The utility drives the beginning of the rate setting process. They set their request, we review it. That’s our job at the Commission and at the Department of Public Service. We engage stakeholders as part of that review process and we have 11 months in which to review everything, to dot the I’s and cross the T’s and make sure that everything is verified. We have to ensure that what the utility wants to do is actually what’s in the best interest and what’s needed for the system and in this instance, we were running out of time and we wanted to make sure that we weren’t forcing our hands, giving in to the utility and subjecting ratepayers to a 30% rate increase so, we put in temporary rates to give ourselves more time to do the job the right way.”
Jennifer Lewke: “Can you walk me through the process of what you are looking at they ask for a certain amount of money, do you say show me how that money will be used?
Chair Christian: “That’s part of it and keep in mind we’re talking about systems that span hundreds of miles, affect thousands of thousands of customers from different walks of life from a chemical factory to somebody’s studio apartment. They’re all going to be receiving and benefiting from these investments in different ways but we want to make sure we are not gold-plating the system. We don’t want to over invest, line in the pockets of shareholders and investors and have a system that’s so expensive that nobody can afford to use it but we also want to make sure that we invest enough so that the system can sustain itself. To ensure we’re not gonna be subjected to brownouts, blackouts and weather-related outages which we know are becoming far more frequent due to climate change, so we have to strike that balance.”
Jennifer Lewke: “Chair Christian, I’m sure you have heard this from some of the thousands of people who have commented in this rate case, but I hear every day from the people who live here that say, “we simply cannot afford to keep saying yes to any more of these increases””
Chair Christian: “The main thing is all about affordability. People’s incomes have not kept up with inflation and interest in inflation. All these other factors and plus things are costing more and are making energy bills harder, and we try to ensure that the rates that we set are just and reasonable, but we recognize that just and reasonable may not mean affordable and so we hear that, we hear what people are saying.”
Jennifer Lewke: “On one side, they have their shareholders who are making millions of dollars so, why do they need more on the other side from the average people who are working their butts off just to be able to stay afloat…how do you reconcile those two things?”
Chair Christian: “So, we reconcile those two things in a number of different ways. Utilities are not designed to be Google, they’re not gonna be making billions upon billions of dollars in profit. They do make profit. There’s no question about that but it’s not a runway level of profit that’s gonna line the pocketbooks of every investor.”
Jennifer Lewke: “For years now, I have been doing stories about major billing and customer service issues at RG&E and NYSEG and I know the commission is well aware of those issues as well. You’ve taken a record number of complaints. Do you take into consideration a utility’s history when you’re deciding what they made and how much more they can get in the future?”
Chair Christian: “We look at everything that comes before us when we evaluate a rate case.”
Jennifer Lewke: “With each problem and with each concern and with each error, distrust grows, and I think people look at the PSC to rebuild that trust to know that you’re looking out for us, are you?”
Chair Christian: “We absolutely are. We are always looking out for the best interest of every customer, every rate payer in New York.”
Jennifer Lewke: “In the broader discussion about energy policy in this state, it’s important to clarify for folks or to help them understand how much of what these utilities are asking for is needed to meet requirements that the state has put forth and how much is just wanted to strengthen the actual system systems that are already in place?
Chair Christian: “In this particular rate case that’s a difficult conversation to have because it’s still being deliberated and we’re hoping they’ll be a settlement on it…but in terms of providing information on costs associated with the CLCPA, we at the commission through our staff at DPS, we release a report annually highlighting what the costs of the CLCPA are and that’s something that we’ve been doing for the past couple of years and will continue doing every year for as long as the CLCPA is in effect.”
Jennifer Lewke: “You guys do parse out certain aspects of all this, right? Like if a data center is going in your backyard, I as a ratepayer, I’m not gonna have to worry about paying more because of that right?
Chair Christian: “That is absolutely right, So, we in New York and a lot of the conversation around data centers and the concerns that they bring are based on what’s happening in other states and their state policies that are not as protective as what we have in New York. Bottom line, in New York if you want to open a data center and you want to install however much load, you have to pay for all the infrastructure associated with bringing you the service. We have a system called beneficiary pays you want to show up, you want be here… you’re the beneficiary you pay for it.”
Jennifer Lewke: “Is there any chance at all you all on the commission say to RG&E and NYSEG, No, you can’t have anymore?”
Chair Christian: “In some instances, avoiding making an investment that’s going to raise rates today could result in an even bigger investment that raises rates even more tomorrow and we have engineers, accountants, economist, statisticians, and others all staff at DPS that look at all these different things. We will make the best decision we can.”
Jennifer Lewke: “How much longer do you think it will be before you can determine what is appropriate for RG&E and NYSEG customers and when that might go into effect?
Chair Christian: “I can’t speak to the timeline at this point in time, but everyone wants to have a speedy resolution to this. I’m confident the utility wants this to be over with us quickly as possible.”
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