Review: $221M PSEG rate hike proposal is much too high

The Department of Public Service released its review of PSEG's three-year, $221 million rate hike request Thursday and concluded that they are asking for too much. State regulators say the rate increase

News 12 Staff

May 15, 2015, 6:09 AM

Updated 3,294 days ago

Share:

Review: $221M PSEG rate hike proposal is much too high
The Department of Public Service released its review of PSEG's three-year, $221 million rate hike request Thursday and concluded that they are asking for too much.
State regulators say the rate increase proposal should be slashed to just $48 million.
According to the state agency, PSEG overestimated its rate hike request by $173 million by inflating its inflation allowance, and underestimating debt-refinance savings and projected electricity sales.
The Department of Public Service also says PSEG spent too much on advertising, staffing and tree-trimming.
In response to the state's months-long review, PSEG said, "We will carefully study and review today's proposals and testimony and will formally respond on June 4, in accordance with the procedural schedule established by the Administrative Law Judges. We remain committed to an open and transparent rate planning process."
LIPA Board member Matthew Cordaro says he's not surprised by the state's findings.
"It's not unusual for the staff of the public service commission to come back with significantly pared estimates of what the rates should be. They sharpened their pencils and then apply their own projections, which may be different," said Cordaro.
The LIPA Board of Trustees will make the final decision rate hike request by the end of the year.
 


More from News 12
1:52
School Vote 2024 underway across Long Island; polls open until 9 p.m.

School Vote 2024 underway across Long Island; polls open until 9 p.m.

1:09
Warm and sunny Wednesday ahead; showers possible Thursday

Warm and sunny Wednesday ahead; showers possible Thursday

2:35
Police return to Massapequa Park home of suspected Gilgo Beach killer Rex Heuermann

Police return to Massapequa Park home of suspected Gilgo Beach killer Rex Heuermann

0:42
Nassau DA gives Freeport, Long Beach police $60K grants to fund DWI patrols this summer

Nassau DA gives Freeport, Long Beach police $60K grants to fund DWI patrols this summer

1:42
 'It is an event that just hits you in the heart.' First responders unite with patients they saved

'It is an event that just hits you in the heart.' First responders unite with patients they saved

1:45
Town of Hempstead moves closer to taking over Capri Motor Inn

Town of Hempstead moves closer to taking over Capri Motor Inn

2:31
Long Islanders head to the polls to vote on school budgets; 6 look to pierce tax cap

Long Islanders head to the polls to vote on school budgets; 6 look to pierce tax cap

2:31
Guide: School Vote 2024 budgets and tax information

Guide: School Vote 2024 budgets and tax information

0:26
Town of Hempstead accepts judge's ruling, state investigation into future of Capri Motor Inn

Town of Hempstead accepts judge's ruling, state investigation into future of Capri Motor Inn

1:55
Made on Long Island: Ceriello Fine Foods in Williston Park

Made on Long Island: Ceriello Fine Foods in Williston Park

0:39
Long Island Fight for Charity announces 2024 charity boxers

Long Island Fight for Charity announces 2024 charity boxers

1:52
Teachers union: Concessions made in Sachem to keep budget gap as small as possible

Teachers union: Concessions made in Sachem to keep budget gap as small as possible

2:01
Freeport police appoint first Black assistant chief in department history

Freeport police appoint first Black assistant chief in department history

0:52
Nassau County designates May 20 as Steve Guttenberg Day

Nassau County designates May 20 as Steve Guttenberg Day

0:45
Holocaust Museum and Tolerance Center honors ‘upstanding’ teens

Holocaust Museum and Tolerance Center honors ‘upstanding’ teens

Nassau police say 911 system back up following outage

Nassau police say 911 system back up following outage

1:57
What new evidence could have triggered another search at suspected Gilgo Beach killer Heuermann's home?

What new evidence could have triggered another search at suspected Gilgo Beach killer Heuermann's home?

2:43
Neighbors near Rex Heuermann's home again deal with crowds, police presence

Neighbors near Rex Heuermann's home again deal with crowds, police presence

1:48
East Patchogue teen files lawsuit blaming Brookhaven Town following cancer diagnosis

East Patchogue teen files lawsuit blaming Brookhaven Town following cancer diagnosis

0:19
2 people injured after car overturns on Long Island Expressway in Melville

2 people injured after car overturns on Long Island Expressway in Melville