Orange and Rockland Utilities -- Gas Operations

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2008 Gas Rate Case -- Testimony on Consumer Issues
The New York State Department of State Division of Consumer Protection submitted testimony on March 27, 2009, addressing service quality incentives and low-income program issues. We opposed the utility’s request for financial rewards if it exceeds specified levels of service quality, explaining that the main purpose of a utility is to provide quality service and ratepayers are already paying for service. We also propose an increase in the low-income credit and a waiver of the reconnection fee for low-income customers.

2008 Gas Rate Case -- Testimony Regarding Profit Rate
In testimony submitted on March 27, 2009, the New York State Department of State Division of Consumer Protection demonstrated that Orange & Rockland’s proposed return on equity of 11.60% is excessive. We show that a fair return on equity for the utility is 10.00%.

Statement Regarding Joint Proposal
The New York State Department of State Division of Consumer Protection explained in this submission dated July 7, 2006, that a Joint Proposal submitted by the Company and other parties should be modified in several important respects to protect consumers. The Proposal was not consistent with the New York State Public Service Commission's Settlement Guidelines, since it is not supported by representatives of consumers, permits the utility to earn excessive profits and requires ratepayers to continue to subsidize competitive energy service providers more than 9 years after barriers to competition were removed.

Testimony Regarding Profit and Rate Issues
In this testimony filed March 30, 2006, the New York State Department of State Division of Consumer Protection explained that the Company's request for a 22% increase in gas delivery rates is excessive. The Division showed that numerous adjustments to the Company's proposals are required, particularly concerning its proposed return on equity. We also explained why customers should not be paying the utility when they migrate to competitive suppliers and recommend that customer funds used to subsidize those competitive suppliers be reduced substantially.

Testimony Regarding Accounting Issues
In testimony dated March 30, 2006, the New York State Department of State Division of Consumer Protection demonstrates that numerous adjustments should be made to Orange and Rockland's rate increase requests. The Division explains that the Company's calculation of pension expense, payroll additions, manufactured gas plant site remediation costs, property taxes, uncollectibles and late-payment revenues, should be modified, thereby substantially reducing the amount of the requested rate increase.

Testimony Regarding Low Income Program
The New York State Department of State Division of Consumer Protection explains in this testimony submitted March 20, 2006, that several changes to the Company's existing and proposed program to assist low-income customers are required to ensure that the program provides benefits in a cost effective manner.

Last Modified: May 02, 2011