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WPCNR ALBANY ROUNDS -THE POWER NEWS. By John F. Bailey. APRIL 25, 2009, UPDATED WITH COUNTY EXECUTIVE STATEMENT. April 21, 2009UPDATED 11:40 P.M. E.D.T.: The New York State Public Service Commission approved a 14.3% increase in the Consolidated Edison Delivery Charge portion of consumer electric bills Tuesday in Albany by a 4 to 1 vote.

 

Friday, Westchester County Executive Andrew Spano reacted to Tuesday’s increase, first reported by WPCNR two weeks ago, with this statement:

 

“Once again the state Public Service Commission has put Con Edison’s interests ahead of those of the electric ratepayers of Westchester and New York City. This latest increase is unwarranted  and particularly in the midst of the current recession is a crushing blow to our residents and businesses already struggling to pay their bills,” County Executive Andrew Spano said.

 

The 14.3% increase in Con Ed “infrastructure” charges, when combined with the $198 Million increase in Consolidated Edison assessment decreed by the state legislature to increase revenues in the general fund, will increase the typical Westchester area bill 6.1% according to PSC official testifying today at the approval hearing in Albany. The full increase approved this afternoon is $721.4 Million.

 

The Public Service Commission Cut Con Edison’s request by $60 Million, requiring them to find an immediate $30 Million in savings to help pay the reduction, and come back for “relief” from Commission if they could not save another $30 Million.

 

Bob McGee, spokesperson for Con Edision issued this statement to WPCNR late Tuesday evening:

 

Since most of a customer’s bill is used to pay supply costs and government taxes, it is troubling that the only costs being slashed in today’s PSC decision are the funds used to maintain the system and provide reliable service. 

 

We will analyze the PSC order when it is issued, but the imposition of further “austerity” in light of the substantial efficiency measures we continue to take strikes us as counter-productive to our efforts to maintain our electric delivery system. 

 

We are disappointed in the PSC action.  We will continue to seek operational savings wherever it makes sense and to serve our customers.

 

The effect: For example on April 2, a White Plains electric customer paid $132.67 for 648 kilowatt hours. On May 1, when the new charges will be in effect that bill will rise $9.02 to $140.76, providing Supply Charges stay the same.  On May 2, the rate increase goes into affect. The $9 PSC estimate is line with WPCNR estimates reported two weeks ago.

 

The 6.1%  overall affect of the decision was said by a PSC analyst, speaking in testimony today in Albany, was the expected affect on the overall customer bill, when the $234 Million Con Edison Assessment charge is added to customers’ bills. The PSC said that 1/3 of half the 2% increase in assessments would be borne by the utility companies and the balance of the increase would be passed along to consumers.

 

The increased assessment was introduced by Governor David Paterson’s office to create more revenue for the General Fund. The assessment increases Con Ed’s Assessment to $283 Million, up 857% in 2009-10, up from $33 Million this year.  It will raise Westchester and NYC area residents utility bills an as-yet-unspecified amount in a few scant months. The assessment must be paid this year.

 

Legislature Clandestine Assessment Hike Blindside:857%

 

The state assessment is a straight cash payment decreed in the new state budget passed the first week of April, as first and exclusively reported, so far by WPCNR.

 

 Con Ed  is faced with an increase of 857% up from $33 Million the state charged Con Edison this year.The assessment increase affects all utilities’ intra (within) state revenues across the state and pours billions into the state General Fund for unspecified use “related to energy.”

 

One PSC Commissioner expressed bewilderment as to why the increased assessment was going to the general fund, but received no explanation from the PSC Administrative Law Judges who made the recommendations accepted today.

 

Con Ed’s Property Taxes Up 23%

 

In the course of testimony, it was reported that Con Edison pays $1 Billion in property taxes, and experienced a 23% increase in its property taxes this year from various communities and cities this year. The state assessment is separate from that amount.

 

The reasons for the Delivery Charge increase, separate from the $198 Million Assessment addition to the bill were Con Edison’s increases in pensions, were Con Edison’s cumulative property tax increases, rate relief, revenue return (10%), rate of depreciation of equipment, and the18A Assessment increase, in addition.

PSC Extracts Savings from Con Edision

 

The PSC decided, from observations of the hearing by WPCNR, to limit the amount of the Delivery Charge rate increase from the $585Million asked for by Consolidated Edison to authorizing only $523.4 Million, requiring that Con Ed execute $60 Million in savings, to make up the difference, rather than by guaranteed the entire rate request. From the hearing observation, it appears Con Edison is required to save $30 Million, and will,if they cannot create $30 more in savings three quarters into the year, have to petition the Commission for “relief,” i.e. an additional surcharge, or rate relief.

 

 

WPCNR WHITE PLAINS VARIETY. From White Plains Public Access Television. April 21, 2009:  Due to system rewiring and design this week, there will be no programming on the public (Verizon 45, Cablevision 76) and government channels (Verizon 47, Cablevision 75) until the evening of Friday, April 23.