WPCNR THE POWER NEWS By John F. Bailey April 10, 2009. Consolidated Edison revealed to The CitizeNetReporter this week that the state legislature voted to increase Con Ed’s Assessment to $283 Million in 2009-10, which 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.
The state assessment is a straight cash payment decreed in the new state budget. 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.”
The Con Edision assessment will raise all Westchester and metropolitan area customers’electric and gas bills an as-yet undetermined amount in your Con Ed or Electric Supply Company bills this year.
How the charge will be applied will be considered by the New York State Public Service Commission April 21 in Albany at a hearing which may be viewed on the internet at the Public Service Commission website at http://www.dps.state.ny.us/webcast_sessions.htm
The “secret” assessment Revises Article18-A of Public Utilities Law, In S59B, A59 Bills.
The Assessment is a new charge Con Ed customers will be facing in addition to a possible decision to increase the Consolidated Edison “Delivery Charge” that could increase that charge on your utility bill approximately 15%, according to Consolidated Edison’s filing and preliminary PSC findings, Jim Denn of the Public Services Commission Press Office confirmed to WPCNR.
Con Edison asked last year for a 15% increase in the Delivery Charge, or cost of delivering electricity and gas to their customers, a year later they have asked to increase that original $654 Million request to $819Million in the first year of the increase. The Public Service Commission Legal Judges have recommended a $632 Million increase, slightly less than 15%. On April 21, the Public Service Commission will attempt to split the difference.
A 20% increase in the Delivery Charge for example, in the current White Plains electric bill where the kilowatt hour electric charge is 7.55 cents, would increase the Delivery Charge for White Plainsians to 9 cents per kwh. On usage of 648 kilowatt hours in a month this would increase your delivery charge to$58.32 this month as opposed to $48.90 – a $10 increase on a light electric month, possibly considerably more in high use summer months.
Legislature Changes Up the Utilitity Assessment — Pours Part into General Fund
Last year the state assessment on utilities throughout the state previously had consisted of 1/3 of 1% of intra (within) state revenues. In the new state budget of 2009-2010 passed with much fanfare by the Governor, Assembly Speaker Sheldon Silver and Senate Leader Malcolm Smith last week, that assessment, formerly simply a revenue raiser to support the Public ServiceCommission has been divided into two parts, according Public Service Commission spokesperson, Jim Denn, speaking exclusively to WPCNR Thursday afternoon.
The Bill, A00159, which included the 857% assessment increase, was passed in the Assembly and passed in the Senate, as S59B. Westchester Assemblypersons Adam Bradley,Richard Brodski, Sandy Galef and Mike Spano voted for the bill. Only Assemblyman George Latimer voted against it according to the New York Assembly website.
Mr. Denn said Part 1 of the Assessment will charge up to 1% of a NYS utility intrastate revenues “for sercices that would go to operation of the Public Service Commission and other related entities.”
Part 2 funnels “another 1% (of a utility’s intra “within” state revenues) to the state general fund for energy-related purposes.” Mr. Denn could not define “energy-related purposes.”
Denn said the PSC will determine how the new $283Million Con Ed assessment will be applied to future 2009 consumer bills in the April 21 hearing. When the assessment would be added, and what increment it would add to the customer bill has not been determined.
Split between Con Edison and ESCO customers.
Bob McGee, spokesperson for Consolidated Edison told WPCNR Wednesday that the state increased Con Ed’s assessment cost an additional $250 Million, up from $33 Million in 2008-2009.McGee wrote in an statement issued WPCNR Friday morning, “Not all the money Con Edison will be collecting is Con Edison customer money. A portion of it is being collected from ESCO (Electric Supply Companies), so the gross (assessment increase) figure appears to represent 800% or more increase, while for Con Edison customers it’s really a 500%increase.”
WPCNR emphasizes that the dollar amount, whether it is isolated out in the electric bill as a separate charge, included in the kilowatt hour rate, or in the Delivery Charge, and how much per month it will be for the individual customer has yet to be determined by the Public Service Commission. They will consider that April 21. The 500% figure mention by Mr. McGee does not mean the electric or gas bill is going up 500%.
Impact
Mr. Denn of the Public Service Commission told WPCNR, “At the end of the day, it’s going to impact the rate payer’s bill.”
Denn said that since the new 2-Part Assessment was just installed into the budget last week, it was a new issue the Public Service Commission would consider along with Con Edision’s Delivery Charge request, “and how best to accommodate these (new) charges.”
Meanwhile…back in the State Assembly…Fixed Electric Rates Probing
The WPCNR report of the new assessment, the scope of which is to be determined, comes at the time Associated Press reports today that an Assembly Committee is looking in to alleged “over charging on electric bills and is seeking evidence of conflicts of interests and collusion among New York producers.”
Meanwhile…back in the Governor’s Office…Utility Customer Rights Protection
The Assembly “investigation” parallels a news release from Governor David Paterson distributed to the media, in which the governor announced “a major consumer outreach effort to remind New York residents who are struggling with utility bills of their rights and “protections” regarding service termination and reconnecting utility services.” That release may be viewed at http://www.ny.gov/governor/press/press_0408092.html.
