New York State Assemblyman Fred W. Thiele, Jr. (I-D-WF-Sag Harbor) today blasted the PSEG/LIPA plan to increase the delivery charge by nearly 4% for the next three years. The plan would increase PSEG revenue by $72 million per year from 2016 to 2018. Total bills would increase 2%.

The PSEG bill is divided into two parts: (1) a delivery charge and (2) a fuel supply charge. They each constitute roughly 50% of the monthly utility bill. From September to December the fuel supply charge has risen 81%, far above the actual cost of fuel. PSEG is now proposing to increase the delivery charge by 3.8% a year for the next three years. LIPA increased the delivery charge only twice over the last 16 years, both times by less than 2%. This is the largest increase in the delivery charge in the history of LIPA.

Thiele stated, “When the LIPA Reform Act was signed and a three year rate freeze was promised, we were told, ‘You have to operate the utility better. LIPA’s answer to everything is more money. We don’t have more money. You can’t keep putting your hand in the pocket of the ratepayers. That’s not the answer. The answer is, use the money you have better.’ The fact is that in the 13 months that PSEG has operated Long Island’s utility system for LIPA they have done nothing but put their hands in our pockets. While businesses, families, and government are all taking actions to cut their costs and operate more efficiently on Long Island to restore the economy, PSEG has reached its hand in our pockets at every opportunity. Long Island already has among the highest utility rates in the nation, we can’t afford to send more of our money to Newark, New Jersey for electricity. The only thing PSEG is missing is a gun and a mask.”

Further, the LIPA rate plan does not include the costs associated with its Utility 2.0 Plan and its Revenue Decoupling proposal which could add more than $100 million in additional costs.

Thiele added, “Adding insult to injury is the fact that there is no real oversight or rate regulation over LIPA and PSEG. They can do whatever they want. Yes, there will be public hearings, the public can speak. However, in the end, there will be no accountability to the people of Long Island. This again is further proof that the LIPA Reform Act was a sham.”

Thiele concluded, “Rates are up, debt is up, renewable energy is down. Everything that is up should be down and everything that is down should be up. This is what happens when you create an unregulated monopoly.”