Public battles National Grid rate increases

By Callan Gray (NCC News)

October 27, 2010 7:05 p.m.

Syracuse, NY--Syracuse National Grid customers said no to the power company's first proposed rate hike in over a decade Tuesday night. They spoke out at a public hearing hosted by the Public Service Commission at the Onondaga County/ City of Syracuse Criminal Court House.

From the start, the crowd at the public hearing did not have kind words for National Grid.

“We need to get rid of Niagara Mohawk (cheers) and we need to get something else in here,” said Joanne Stevens of Syracuse United Neighbors.

When National Grid bought Niagara Mohawk in 2002 it began using a competitive transition charge to pay off the smaller company’s debt. National Grid now suggests extending the CTC past its 2011 expiration date to offset a nearly $390-million dollar per year increase in revenues from the delivery service. The company says the continuation of the charge will prevent customers from paying extra.

The plan is structured so although the delivery rate increases, as long as there is equal usage, the bottom line of a customer’s bill will not, according to National Grid spokesman Steve Brady.

“We understand the frustration, clearly the economy is not good,” said Brady. “It’s a very difficult time to do this, we struggled on when this had to be done. But that’s really why we structured the plan the way we did.”

National Grid’s goal to increase revenue is intended to help the company meet the rising cost of running the company.

Public Power

Central New York Public Power Coalition spokesman Steven Penn is not satisfied with National Grid’s plan and feels a long-term adjustment needs to be made.

“We’re not here to look to the PSC to look for a long term solution,” said Penn. “We’re here to look for a band-aid to keep rates from going up until we can transition to public power.”

Penn says public power would allow the city’s customers to gain control over energy rate increases.

“And in areas where we can’t set the policy, we have no democratic control,” says Penn. “So we don’t benefit in the area of cheaper rates, we don’t benefit in the form of taxes. Per utility dollar, public utilities -municipal utilities- pay a lot more back to their cities than do privately held corporations.”

What is Next?

The hearings conclude in Albany on Wednesday, Oct. 27. The public hearings are just half of a two-step process to resolve the issue that includes:

· Having engineers, accountants and economists provide expert technical testimony

· Holding public hearings in local communities

· Combining technical and public testimonies into a report for the PSC to review

· PSC evaluates the report along with the company’s proposal to increase rates

· PSC will rule on the rate increase in January

The community members who voiced opinions at the public hearing are asking the PSC to help get their voices heard.

“Who is looking out for us?” asked Syracuse resident Mercedes Bloodworth.

She was one voice among many, asking for help in the fight against National Grid’s rate hikes.

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