O&R wants to increase rates
MIDDLETOWN, N.Y. — The utility Orange and Rockland wants to increase its rates for electricity and natural gas.
O&R is seeking an increase of $33.4 million in electricity revenue. If the New York State Public Service Commission approves the increase proposed in O&R's Nov. 14 filing, a typical residential customer using a monthly average of 677 kWh will pay $8.13 per month on average, from $135.86 to $143.99, or 6 percent.
For natural gas, O&R is seeking a revenue increase of $40.7 million. If approved, the bill for a typical residential gas customer using a monthly average of 100 Ccf would increase on average $26.18 per month, from $137.20 to $163.38, or 19.1 percent.
The new gas and electricity rates, if approved, would become effective a year from now, on Nov. 1, 2015. O&R is the parent utility of Pike County Light & Power (PCL&P).
O&R says it's trying to manage increases in labor costs through programs designed to improve productivity. It is increasing employee contributions to health care, and replacing its traditional pension plan.
Electricity upgrades
O&R says it plans to "harden" and modernize its energy delivery system in conjunction with New York State’s initiatives, and to attract new businesses and create more jobs.
The utility said its costs have increased significantly as the result of infrastructure investments and rising local taxes. The utility seeks to recover the cost of repairs to system damage caused by Superstorm Sandy over five years, instead of the customary three.
The electric rate filing is for a one-year rate agreement, but O&R is open to negotiating a multi-year agreement that may result in reducing the monthly bill. If O&R negotiates a three-year agreement, for example, the average increase for the typical residential electric customer would be $6 7 per month, from $135.86 to $141.93, or approximately 5 percent. Slightly lower increases may be locked in for the last two years of a three-year agreement.
Gas upgrades
O&R’s gas rate increase proposal also seeks to recover the cost of rising property taxes, and includes a number of safety upgrades. The utility plans to speed up the replacement of cast iron and low-pressure gas mains and the elimination of bare steel services. It also wants to reduce the damage done by excavators, extend service to new areas, and enhance customer education.
The gas rate filing is for a one-year rate agreement, but in this case too O&R is open to negotiating a multi-year agreement that may reduce bills. In a three-year agreement, for example, the average increase for the typical residential gas customer would be $15.57 per month, from $137.20 to $152.76, or approximately 11.3 percent. Slightly lower increases may be locked in for the last two years of a three-year agreement.
There has been no O&R gas delivery rate increase since Nov. 2011. The rate increase, if approved, will be the first increase in four years.
For additional details on the rate proposals, visit oru.com/news. The rate filings and additional information also are available at oru.com/tariffs and coned.com/rateplans.