State agencies, RG&E agree to $110 million refund

State agencies, RG&E agree to $110 million refund
Freeze electric rates for five years

The New York State Consumer Protection Board (CPB), the New York State Department of Public Service (DPS), Rochester Gas & Electric Corporation (RG&E) and other parties announced a proposed agreement that would provide $110 million in refunds to RG&E's electric customers. The proposed agreement also will freeze base electric delivery rates through 2008.

In refunding $110 million, the company will issue checks totaling $60 million as soon as practical after the agreement is approved, according to the New York State Consumer Protection Board. Additional refunds of $25 million, $15 million and $10 million will be provided in January of 2005-2007, respectively.

It is the largest refund ever proposed for customers of an upstate utility, according to CPB Chairperson and Executive Director, Teresa A. Santiago.

The amount of the refund will depend on a customer's electricity usage. The average residential customer using approximately 680 kilowatts of electricity per month will receive a refund check of approximately $65. Customers will receive additional refunds or bill credits of $25 million in January 2005, $15 million in January 2006 and $10 million in January 2007," Santiago said.

The refunds and many other customer benefits in the proposal reflect proceeds from the proposed sale of RG&E's Ginna Nuclear Generating Station. The net proceeds from that sale represent the investment of RG&E's customers. Those proceeds are being returned to customers through refunds, used to offset an increase in electric delivery rates that would otherwise have been necessary, and used to help offset other increases in electricity costs that otherwise would have been charged to customers.

Approval of the Joint Proposal would end litigation and negotiations between RG&E and New York State concerning RG&E's proposal in 2003 to increase electric service rates by approximately $80 million. The Joint Proposal is expected to be considered by the New York State Public Service Commission in May.

RG&E serves approximately 330,000 customers in Monroe, Wayne, Ontario, Livingston, Wyoming, Cayuga and Allegany counties.