PSC Freezes National Grid Rates
The New York State Public Service Commission has adopted a proposal that freezes base delivery rates for 2013 and 2014, increases funding for low-income ratepayers, strengthens customer service performance measures and modifies, among other things, the company’s earnings sharing, revenue requirements and capital expenditures.
In a Thursday, June 13th, statement PSC Chairman Garry Brown explained this “will foster continued rate stability and promote the affordability of rates, while providing the company with the resources and motivation it needs to maintain and enhance the safety and adequacy of its gas service,”
The company’s current rates were set as part of a five-year rate plan that was adopted in 2007.
In addition to freezing base delivery rates, other key features of the new proposal includes lowering National Grid’s allowed Return On Equity (ROE) to 9.4 percent, down from 9.8 percent; requiring that the company’s excess earnings above 9.4 percent be shared 80 percent ratepayer/20 percent shareholder, with the ratepayers’ share applied to Site Investigation and Remediation (SIR) deferral balances; enhancing National Grid NY’s gas safety and customer service metrics; and increasing funding for the low-income program from $7.4 million to $10.4 million.
The changes came about from a growing concern about the company’s high earnings, which is now addressed by the newly adopted proposal, which provides significant public interest benefits.
National Grid NY serves more than 980,000 natural gas customers in Brooklyn, Queens, and Staten Island.
The Commission’s decision may be viewed at the www.dps.ny.gov by entering Case Number 12-G-0544.