Oct. 27, 2010, 5:30 p.m.
SYRACUSE, N.Y.- National Grid customers have been showing their outrage over a proposed $400 million rate hike.
The state Public Service Commission held two public hearings yesterday at 4 p.m. and 6:30 p.m. in the Criminal Courts Building in Syracuse. Many people in the crowd brought signs, including one that said "Power for people, not profit."
National Grid has been criticized by PSC employees, who say the company should not be asking for more than $40 million, about one-ninth of the company's actual rate increase request. These hearings are part of an investigation by the PSC, who will ultimately rule on the rates this January.
Mercedes Bloodworth, an organizer for Syracuse United Neighbors, says it is the PSC's responsibility to the public to block this rate increase.
"We're asking you today, you know, to step up to the plate and do the job that you were hired to do and look out for our best interest," Bloodworth said.
A closer look at the proposal
National Grid's proposed rate increase aims to:
- Modernize and maintain field equipment
- Increase the allowed rate of return from 10.6 percent to 11.1 percent
- Pay off the debts that the company inherited when it bought Niagara Mohawk in 2002
Alphonso Davis, a former candidate for mayor, says that it would be "criminal" to raise the rates any higher during a recession.
"When you consider raising the rate do you look at the average of where people are financially," asked Davis. "The majority of the people it's going to hit, or the people it's going to hit the hardest are those individuals who can barely pay their bills right now."
National Grid understands the frustration
The company hasn't increased delivery rates in over a decade, and must now raise the price to keep up with the growing costs of business. National Grid spokesman Steve Brady says even with the delivery cost increase, customers' overall bills should not go up.
"That's really why we structured the plan the way we did," said Brady, "so that even if the delivery rate goes up, the bottom line bill would not increase assuming equal usage year over year."
Brady says that National Grid understands that its customers are frustrated, but the delivery rates must increase.
"The economy right now is not good," Brady said. "We really struggled with when this had to be done."
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