CITIZEN POWER ALLIANCE

U.S. Senator Charles E. Schumer today called on the New York State Public Service Commission (PSC) to block a 20% electricity delivery rate hike requested by National Grid Power. Schumer said that for almost a decade consumers and businesses have been expecting a rate cut once National Grid paid down the debt it took on after its purchase of Niagara Mohawk. Over the past ten years, New Yorkers have paid a "competitive transition charge" totaling $4.8 billion to finance this debt, which is scheduled to be paid down in 2011.

The delivery rate hike approved at the time of the purchase, in 2002, has caused the Central New York region to have some of the highest electricity rates in the country, acting as an anchor around the neck of economic development efforts. Now, instead of providing their customers with the relief they deserve, National Grid is asking for yet another increase. Schumer said that while this delivery rate increase will not cause an increase in customers' bills, it will wipe out any relief they would have seen and leave electricity costs in the region sky high.

"For almost a decade, electricity prices far above the national average have been a burden to ratepayers and a yoke around the neck of economic development efforts in Central New York; it's time for the Public Service Commission to send a loud and clear message to National Gird that this classic game of bait and switch is fooling no one," Schumer said. "In 2002 customers were hit with big rate hikes and they expected relief when the debt was paid off - well that day is here and it's time for National Grid to deliver rate relief for its customers instead of coming back for another massive increase."

In 2002, National Grid took over Niagara Mohawk Power Corporation and assumed responsibility for Niagara's debt. Over the past ten years, New Yorkers have paid a "competitive transition charge" to finance this debt, which is scheduled to be paid down in 2011. For families forced to shoulder the burden of this debt through higher utility bills, the year 2011 was to mark a significant decrease in their electricity payments. Unfortunately, National Grid has applied for a 20% percent delivery rate increase beginning in 2011, meaning residents will receive no relief in their utility bills.

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