NYSEG investment, prices going up soon
BINGHAMTON--New York State Electric and Gas (NYSEG) and Rochester Gas and Electric (RG&E), subsidiaries of AVANGRID, Inc., announced they have filed a proposed rate case settlement with the New York Public Service Commission (NYPSC). News of the filing comes after months of negotiations and discussions with stakeholders. While there are several benefits for customers, there are also increases planned in delivery rates.
COVID-19 Relief
The settlement provides up to $30 million for COVID-19 relief ($16.5 million for NYSEG and $13.5 million for RG&E) for the companies' most vulnerable residential and small commercial business customers. The money will be distributed by the companies automatically through $100 bill credits and in three phases, starting in September 2020, pending regulatory approval, with an initial pool of roughly 133,000 residential and small commercial customers.
The companies will create two new electric economic development programs targeted towards both small and large businesses. A $2 million annual small business customer program and a $4 million annual large business customer program will be established using funds from the companies' proposed economic development program to assist businesses that have been impacted as a result of COVID-19.
As part of the COVID-19 response, the companies will continue to maintain a forgiveness program as part of the Low-Income Program; and institute a more flexible deferred payment agreement program.
Rate and Bill Impact
The settlement represents a three-year agreement between the companies and the signatory parties.
While the original proposal filed by the companies in May 2019 called for new delivery rates to go into effect in May 2020, the settlement filed Monday delays the rate increase for the first rate year from taking effect until September 2020. The delivery increases for the electric businesses, which will begin in September of the first rate year are 4.6 percent at NYSEG and 2.4 percent at RG&E, and the bill impact to customers is approximately 2.3 percent and 1.4 percent respectively. The monthly bill increase for an average NYSEG electric residential customer is $2.49. The monthly bill increase for an average RG&E electric residential customer is $0.37. For both NYSEG and RG&E, their gas businesses have no delivery increases in the first rate year.
In rate years two and three, NYSEG electric's delivery increase will be 9.1 percent in each year, with a monthly bill increase of $4.13 and $5.54, respectively, for the average residential customer. In rate years two and three, NYSEG's gas business delivery increase will be 0.8 percent and 1.6 percent, with a monthly bill increase of $0.55 and $1.20, respectively, for the average residential gas heating customer.
Support for New York's Clean Energy Future
The companies commit to structure their gas system planning with the objective of achieving a zero-net increase in gas usage.
Investments in Aging Infrastructure
The filed settlement reflects an investment in NYSEG and RG&E's electric infrastructure by investing approximately $550 million (2020-2023) in NYSEG's Asset Condition Replacement program and approximately $309 million (2020-2023) in RG&E's Asset Condition Replacement program.
Increased Tree Trimming
NYSEG's distribution tree trimming funding will increase from $30 million to $57.2 million annually. |
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