To view the Commission's final Order, Issued and Effective June 15, 2012, please visit http://www.dps.ny.gov/, open Search, and click after entering 11-E-0408 in Search by Case Number.

The New York State Public Service Commission seeks public comments on a Joint Proposal regarding Orange & Rockland Utilities, Inc., to increase electric revenues effective July 1, 2012. Opportunities to comment include two public statement hearings, which will be held before an Administrative Law Judge.

It is not necessary to make an appointment in advance or present written material to speak at the hearings. Persons will be called to speak after completing a request card. Each session will remain open for at least one hour and will continue until everyone wishing to speak has been heard or other reasonable arrangements are made.

Disabled persons requiring special accommodations may place a collect call to the Department of Public Service's Human Resources Management Office at 518-474-2520. TDD users may request a sign language interpreter by placing a call through the New York Relay Service at 711 to reach the Department of Public Service’s Human Resource Management Office at the previously mentioned number.

Thursday, March 15, 2012

Afternoon Session: 4:00 p.m.
Evening Session: 7:00 p.m.

 Orange County Government Center
Emergency Services Building, Auditorium
22 Wells Farm Road
Goshen, New York

 Wednesday, March 28, 2012

Afternoon Session: 4:00 p.m.
Evening Session: 8:00 p.m.

Ramapo Town Hall
237 Route 59
Suffern, New York

PLEASE NOTE: At the March 28th hearing, customers can participate in person or in the following ways: (1) by telephoning (845) 918-2030 and making a statement; (2) by sending comments via e-mail to [email protected]; (3) by viewing a streamed live broadcast at the Town of Ramapo’s internet site www.ramapo.org; or (4) by viewing it on Verizon FiOS Channel 32. For the 8:00 p.m. hearing only, customers of Cablevision Channels 75, 77, or 78 will have the added option of viewing a streamed live broadcast of the hearing.

Background

On July 29, 2011, Orange and Rockland Utilities, Inc. (Orange & Rockland or Company) filed a request with the New York State Public Service Commission (Commission) for approval to increase revenues (the total amount of money collected from customers through the rates they pay) for electric delivery service for a three year period beginning July 1, 2012.

The Company proposal, as updated through December 23, 2011, would have increased rates by $31.4 million effective July 1, 2012, and an additional $6.5 million and $16.5 million effective July 1, 2013, and July 1, 2014, respectively. Orange & Rockland stated that there were a number of reasons why the additional revenue was necessary, including: (1) costs associated with additions to utility plant in service, (2) increases in operating expenses to cover changes in the cost of required work (e.g., salary and wages, tree trimming, stray voltage testing), (3) increased property and other taxes, (4) increased financing costs and (5) costs for restoration of service following Hurricane Irene and an October 29, 2011 snowstorm. The Company stated that these cost increases were offset in part by higher projected sales and other revenues and the amortization of certain deferred credits.

On February 24, 2012 negotiations among the parties to the case resulted in the filing of a Joint Proposal by Department of Public Service (DPS) Staff, Orange & Rockland, and the Department of State proposing terms to resolve all contested issues, and to establish a three-year rate plan starting July 1, 2012.

Summary of Joint Proposal

Under the Joint Proposal, in Years One, Two and Three respectively, electric delivery revenues would increase by $19.4 million, $8.8 million, and $15.2 million. The impact on customers on a total revenue basis would be 2.5%, 1.5%, and 2.6%, respectively. The signatory parties propose that these three base rate increases can be implemented, at the Commission’s option, on a levelized basis of $15.2 million for each of the three rate years. The total bill impact would average 2.3% annually on an overall total revenue basis for the three years.

The Joint Proposal also includes:

• Continuation of a revenue decoupling mechanism ("RDM");
• Recognition of savings associated with the implementation of recommendations applicable to O&R resulting from a management audit of Consolidated Edison Company of New York, Inc.;
• Modifications to the program for replacement of municipal street lights;
• Expansion of the Company’s mandatory day ahead hourly pricing ("MDAHP") program;
• Continuation of a Low Income Assistance Program; and
• Continuation of regulatory incentives for the Company to provide high quality customer service and to meet targets for safety measures.

The Commission must decide the case by June 24, 2012. It may adopt or reject the Joint Proposal in whole or in part. An Administrative Law Judge will preside over the gathering of public comments and all evidence relating to the proposal.

How to Comment on the Case:

• The Internet: Comments may be submitted via the Internet in two ways: (1) by accessing the Department’s Website – http://www.dps.ny.gov – click ‘Search’ and enter 11-E-0408 in the field box labeled 'Search For Case/Matter Number’ and click again. Then, click on "Post Comments" at the top of the page and, (2) e-mail comments can be sent directly to the Secretary to the Commission at [email protected]. Many libraries offer free Internet access.

• Mail Written Comments: Written comments may also be mailed to Hon. Jaclyn A. Brilling, Secretary, Public Service Commission, Three Empire State Plaza, Albany, New York 12223-1350

• Toll-Free Opinion Line: Another way to submit comments is by calling the Commission’s toll-free Opinion Line at 1-800-335-2120. This line is set up to receive in-state calls 24-hours a day. Callers should press "1" to leave comments regarding "Electric Issues" and refer to "Case 11-E-0408 – Orange & Rockland Utilities – Electric Rates."

All statements and comments received by the Administrative Law Judge and the Commission will be placed in the case file and posted to the Commission’s Document Matter and Management System to be viewed electronically on the Commission’s Website (http://www.dps.ny.gov). All comments should be submitted, or mailed and postmarked, by no later than April 23, 2012. All public comments received by the Commission will be placed in the official case file and subject to public inspection. Persons interested in Orange & Rockland’s rate filing may view it at the Commission’s offices at Three Empire State Plaza, 14th Floor, Albany, New York and 90 Church Street, New York, New York (bring picture identification for a security check), or on the Commission’s Website http://www.dps.ny.gov.

Next Steps

The Commission will formally consider the case at one or more regularly scheduled public meetings. Following its discussion and deliberations at such meetings, the Commission will issue a written order

 You can click here for a printable factsheet regarding information in this case.