About
The Division of Consumer Protection’s Utility Intervention Unit (UIU) represents the interests of New York consumers before federal, state and local administrative and regulatory agencies engaged in the regulation of energy, water and telecommunication services. The UIU participates in the deliberations of the Public Service Commission (PSC), the New York Independent System Operator (NYISO) and the Federal Energy Regulatory Commission (FERC), as well as utility and energy-related interagency working groups, task forces and committees. The UIU analyzes filings, submits testimony and briefs, engages in settlement discussions and participates in evidentiary hearings in PSC and FERC regulatory proceedings and participates in NYISO governance. The UIU also reaches out to local governments, not-for-profit corporations, and business to gain information and clarify issues on behalf of consumers.
What is a Utility Rate Case?
In New York State, a rate case is the formal process which allows regulated utilities to file a request to increase delivery rates. A typical utility filing will include updates and proposals on how to handle issues such as property taxes, rates of return, depreciation costs, operation and maintenance expenses, rate design, reliability, low income and customer service. The New York Public Service Law, requires a decision by the PSC to be made within 11 months from the original utility rate case filing date. Within this timeframe, consumer advocates and the public may intervene and become a party to the case. The typical rate case process is demonstrated below.
Rate Case Process
Overview of the rate case process:
In order for a regulated utility company to change electric, natural gas, water, and steam delivery rates in New York State, the utility must prepare a filing in the form of testimony and exhibits as part of a formal process that demonstrates to the Public Service Commission (Commission) the need for a rate increase. A new case will be added to the Document and Matter Management system handled by the New York State Department of Public Service (DPS). It is at this time the 11-month rate case process begins, and an administrative law judge is assigned to preside over the case. The Utility Intervention Unit will form a team of experts to review the filing and intervene on behalf of ratepayers. Other interested parties (e.g., DPS, commercial and industrial groups, local municipal officials, and environmental groups) can intervene in the rate case as well.
All parties have an opportunity to thoroughly review the utility’s rate request, participate in the discovery process, file expert testimony, and participate in settlement negotiations or evidentiary hearings. Once rebuttal testimony is filed, confidential settlement negotiations commence with interested parties, or an evidentiary hearing is conducted on all filed testimony.
If parties enter settlement negotiations, the outcome is typically a joint proposal that specifies rate adjustments in a multi-year rate plan – often three years. Parties can either support, oppose, or be neutral on the joint proposal. Parties supporting or opposing the joint proposal file statements in support or opposition within the scheduled established by the administrative law judge. An evidentiary hearing is often held on the joint proposal. Ultimately, the Commission issues an order adopting the terms of the joint proposal and occasionally modifying some terms of the joint proposal.
Alternatively, if parties do not enter settlement negotiations or if settlement negotiations fail, an evidentiary hearing is conducted on the filed testimony. Based on the filed testimony and hearing, the administrative law judge develops its recommended decision for consideration by the Commission that ultimately leads to an order.
Energy
Energy is essential to our everyday lives. In our modern society, energy is used for lighting, cooking, heating and air conditioning, communication and much more. Delivering electricity and natural gas to New Yorkers homes and businesses requires complex delivery systems often with expensive capital investments which are borne by ratepayers.
Why is what we do important?
The Utility Intervention Unit (“UIU”) helps ensure that consumer concerns are considered in rate cases and policy matters in New York State. As such, the UIU plays a significant role in shaping public utility regulatory issues that are before the Public Service Commission (“PSC”) (i.e., public policy and ratemaking issues) and delivers a strong commitment for the adoption of fair, just and reasonable rates for residential and small commercial consumers.
Here are the cases we have been involved in:
Water
Water is essential for our survival. Water utilities, through water supply systems, deliver clean, safe, reliable, and affordable water to their communities. Water utilities also may operate wastewater systems and provide water to industrial consumers. The infrastructure required to treat and delivery water requires extensive planning and continuous system upgrades and investments.
Why is what we do important?
The New York Department of State's Division of Consumer Protection (DCP) Utility Intervention Unit (UIU) represents the interests of residential and small commercial consumers before the Public Service Commission during utility rate cases and during other policy-related regulatory proceedings in New York State. The UIU is responsible to ensure that basic water service is provided at just and reasonable rates.
Here are the cases we have been involved in:
Telecommunications
Telecommunications plays an important role in the everyday lives of consumers. The telecommunications industry is more expansive than it was in the past. It encompasses multiple service providers, including telephone companies, cable system providers, internet service providers, wireless carriers, and satellite operators.
Why is what we do important?
The Utility Intervention Unit (“UIU”) actively represents the interests of consumers of regulated landline service in proceedings before the Public Service Commission (“PSC”). UIU efforts help ensure that customers can access just and reasonable rates, that relevant consumer protections are followed, and that providers maintain quality service.
With increased competition in the telecommunications industry, some consumers now have alternatives to traditional landline telephone service. UIU advocates on behalf of consumers regarding state regulation of cable television service and encourages providers of wireless telephone service to offer reliable, high quality, and cost effective service.
Here are the cases we have been involved in:
- 2022 Review of the State Universal Service Fund
- UIU also advocates for the interests of consumers by serving on the Targeted Accessibility Fund (TAF) Advisory Board. For more information visit: http://www.tafny.org/whatIsTAF.php
2022 NYSEG/RG&E Rate Cases
Company Proposal
Case Information: 22-E-0317/22-G-0318/22-E-0319/22-G-0320
New York State Electric & Gas Corporation (“NYSEG”) serves approximately 905,005 electricity customers and 271,547 natural gas customers across upstate New York and Rochester Gas and Electric Corporation (“RG&E”) serves approximately 385,925 electricity customers and 319,737 natural gas customers in a nine-county region centered on the City of Rochester. On May 26, 2022, NYSEG and RG&E (together the “Companies”) filed their initial request for an electric and gas revenue increase for a one-year case. Subsequently, on August 12, 2022, the Companies filed an update reflecting changes and/or corrections to their initial request. In the update, NYSEG sought an electric revenue increase of $274.4 million and a natural gas revenue increase of $30.1 million. RG&E sought an electric revenue increase of $93.4 million and a natural gas revenue increase of $32.2 million. The rate increase requests for the Companies is driven primarily by residual rate pressure from the Companies’ last rate proceedings, which includes expiring tax credits and the amortization of regulatory liabilities; costs necessary to support its core business, which includes property tax increases and the impacts of inflation on labor; costs associated with state policy, which includes shortened depreciable service lives for gas assets, increases in energy efficiency and other Climate Leadership and Community Protection Act (CLCPA)-related costs; reliability and resiliency, including reliability capital investments, cyber security and vegetation management; and other costs, including return on equity. These requests would increase electric and gas delivery rates by 31.3% and 14.4%, respectively, for NYSEG. For RG&E, electric delivery rates would increase by 18.9% and for gas they would increase by 18.1%.UIU Advocacy
On September 26, 2022, and October 18, 2022, the UIU filed testimony focused on customer service, consumer protections, IT investments, utility ownership of renewable generation assets, cost of service, revenue allocation, rate design, and other consumer-related issues. The UIU participated in settlement negotiations that commenced on November 2, 202, which ultimately led to a settlement agreement. UIU supported the settlement on a limited basis. UIU supported the revenue allocation section of the Joint Proposal since it includes revenue allocation results for three rate years that are not attributable to any one cost of service study.
Result
The Commission adopted a three-year electric and gas rate plan for the Companies, with new rates beginning May 1, 2023, and ending April 30, 2026. For NYSEG, the plan limits the total bill impact for a typical residential electric customer to 10.3%, 8.4% and 9.9% for the next three rate years and for a typical residential gas customer the total bill impact is 3.6%, 1.5%, and 2.9%. For RG&E, the plan limits the total bill impact for a typical residential electric customer to 7.4%, 5.5% and 6.0% for the next three rate years and for a typical residential gas customer the total bill impact is 4.6%, 4.5%, and 4.3%.
Case Related Documents
To learn more about these cases, please go to the Department of Public Service’s Document and Matter Management System under the above referenced case numbers. Here are the links:For NYSEG:
For RG&E: