RG&E says it has filed a plan with the NYS Public Service Commission to lower its electricity delivery rates and increase the natural gas delivery rate.
The utility, which is a subsidiary of the Spanish company Iberdrola, says that if approved, the $10 million reduction in electricity service charges and the $20 million dollar increase for natural gas would become effective in May of 2016.
If approved, RG&E estimates that an average residential electric customer would see their bill drop by $1.30 a month, or 1.4 percent. An average natural gas customer would see their bill rise about $5 per month, a 6 percent increase or about $59 for the year.
RG&E plans to invest the additional revenue to enhance its network capacity, improve grid reliability and strengthen the security for its electric and natural gas networks.
“Our delivery rates are among the lowest of New York’s major utilities, and this plan will let us keep it that way,” said Mark S. Lynch, president and CEO of NYSEG and RG&E. “We’ve been effective at managing our costs, and the savings have gradually accumulated since the last review of our rates in 2010. We have proposed to return the benefit of those savings to customers through lower electricity delivery rates.”
Officials say the cut in electric delivery rates will offset some of the potential payments the utility would be making to Exelon, the owner of the Ginna nuclear power plant, to keep that plant in operation until alternatives can be put in place to maintain reliable service to the Rochester area. The PSC ordered RG&E to submit a proposal in response to Exelon's announcement that it wanted to take Ginna out of service.
NYSEG, which is also owned by Iberdrola, also submitted a request with the PSC that calls for $126 million revenue increase for electricity and $38 million for natural gas. If approved, an average NYSEG electric customer would see about a 10 percent increase or about $8 more per month. The average natural gas customer would see a hike of 11 percent, or about $10 per month.
NYSEG also has customers in parts of Western NY and the Finger Lakes.
