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The original item was published from 1/2/2018 1:44:23 PM to 1/2/2018 1:44:23 PM.

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Posted on: July 21, 2015

[ARCHIVED] Maragos Files Official Brief Calling PSEG Rate Hike Unjustified

Mineola, NY- On behalf of Nassau County, Comptroller George Maragos filed a formal legal brief with the New York State Department of Public Service Commission (“DPS”) arguing that PSEG’s proposed rate increase is unwarranted. The brief challenges the veracity of PSEG, exposes its apparent attempt to charge $38.1 million to the ratepayers for an already existing ERP system at its parent company, and demonstrates PSEG’s inability to provide common industry comparable metrics of its performance. The lack of management and operational efficiencies will potentially result in an increase in operational costs from 2014 to 2016 of 11.7%, ultimately being passed on to the ratepayers.
“With all of the inefficiencies under the previous LIPA administration, the rate increase proposed by PSEG should not have been requested,” said Comptroller Maragos. “Unfortunately, PSEG’s promise of better management and more competitive rates is not being realized. The DPS and LIPA, which will make the final decision on the rate increase, should deny it and demand better performance from PSEG.”
PSEG could reduce expenditures through productivity improvements, better management and utilization of energy hedging gains. When combined with the millions of dollars in unnecessary costs, the total potential budgetary savings to ratepayers could virtually eliminate any necessity for the 4% annual rate increase proposed by PSEG. Furthermore, there may be an opportunity to also reduce capital costs by up to $38 million from the implementation of the ERP System which we believe PSEG should make available without cost under its Operating Agreement with LIPA.

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