Consumer group makes case for utility rate freeze

PULP cites financial hardships, job losses spawned by COVID-19

An Albany-based consumer protection group is urging state utility regulators to freeze New York rate hikes amid the coronavirus pandemic, which has forced many businesses to shutter and has caused widespread unemployment.

The request by the group PULP, which stands for Public

Utility Law Project, is being made to the state Public Service Commission, which has opened an examination of utility rates in relation to the pandemic.

The request to freeze rate hikes is just one request that PULP is making. A range of business, environmental and consumer groups are submitting comments and requests along with the public.

“In order to prevent any further harm to utility customers’ finances and credit, PULP also requests an immediate suspension of all current rate cases, including ongoing settlement discussions and litigations, scheduled rate increases due to past settlements, and adding extensions of the maximum suspension periods until the end of the state of emergency,” PULP said in its July 10 filing.

National Grid, the dominant utility in the Capital Region, has already delayed rate hikes that were supposed to take effect back in April. National Grid is also getting ready to file a new request for new rates starting next year.

As the coronavirus pandemic has continued in New York state, National Grid decided to postpone the rate increases again until August, delaying millions of dollars in new revenue for the utility.

National Grid’s annual electric delivery revenues were supposed to increase by $89.6 million while its annual gas delivery rates were set to increase by $21.5 million. Delivery rates account for about half an average National Grid bill, while the other half is the actual electricity or gas supply costs, which varies throughout the year and which National Grid does not mark up or profit from.

The PSC said Thursday that it will carefully examine the requests of PULP and other groups along with those of utility customers.

“Since the start of the pandemic and the economic downturn, the commission has acted to respond to the most pressing Covid-related impacts for customers on a timely basis,” PSC spokesman James Denn said Thursday. “We continue to enable prompt responses on pressing needs for relief and adjustments, as well as dealing with the full range of the impacts in a comprehensive, thoughtful and thorough manner. The PSC always watches out for impact on customers and with COVID it has never been more of a top priority.”