NY: LIPA rate plan would see fixed customer charges spike

In New York, PSEG Long Island and LIPA have filed a three-year rate plan that includes sobering increases to customer fixed charges. For standard Residential Service customers, LIPA is seeking to raise the daily service charge by 39% in 2016 and to replace its existing tiered, seasonal energy charges with a flat rate. The daily service charge would rise another 16% in 2017, and then another 14% in 2018.

For Small General Service customers, LIPA has proposed doubling the daily service charge in 2016 and replacing the seasonal energy charges with a flat rate that is lower than the current rates. The daily service charge would rise another 50% in 2017, and then another 33% in 2018, therefore quadrupling the fixed charge within three years. The energy charge would drop by 20% in 2017, and by another 24% in 2018.

For Large General Service customers, LIPA wants to double the daily service charge for both primary and secondary service, raise the demand charge for both primary and secondary service, and replace the seasonal energy charges with a flat rate that is lower than the current rates.

LIPA’s plan will be reviewed by the New York Public Service Commission, and must be approved by LIPA’s board. (The PSC may offer recommendations to LIPA’s board, but it will not formally approve the proposal.) Four public-input sessions will be held this week to allow PSEG Long Island and PSC staff to describe LIPA’s proposal and the review process, and to allow an opportunity for public statements. Comments may also be emailed to RatePlan@pseg.com.

LIPA is a non-profit municipal utility that provides electric service to ~1.1 million customers. PSEG LI operates LIPA’s transmission and distribution system under a 12-year contract; it is paid a flat fee for services rendered.