ROCHESTER, N.Y., Sept. 7 /PRNewswire-FirstCall/ -- NYSEG today filed a petition for rehearing and oral argument of the Public Service Commission's (PSC) August 23 decision in the company's electric rate case on the basis that the administrative law judges' June 9, 2006 decision was changed arbitrarily by advisory staff and if allowed to stand, will have a detrimental impact on NYSEG's operations and seriously impair the financial health of the company.
All three major bond rating agencies, Standard & Poor's, Fitch Investor Services and Moody's, unanimously put NYSEG on negative outlook as a result of this order.
NYSEG also asked for an opportunity to make oral arguments before the Commission to ensure that the commissioners have the pertinent information in the case and to provide for an open and balanced discourse on important issues. It is important that the Commission understand the immediate and long-term consequences on NYSEG's operations, if the order is not modified.
"The PSC's decision does not provide NYSEG with sufficient revenue to cover expenses and significantly impairs our capacity to attract and generate the capital necessary to ensure the reliability of our aging electricity delivery system," said Jim Laurito, NYSEG's president and CEO. "After 10 years without a delivery rate increase, the $36 million rate decrease imposed by the PSC will force us to make major cost reductions including layoffs. These cost reductions will adversely affect customer service and reliability."
NYSEG said the assertions that the PSC's August 23 decision in the electric rate case grants all of the company's revenue requirement requests related to maintaining a reliable distribution system are wrong. In fact, the company said, the PSC's order denies the recovery of prudently incurred costs. "This decision, if allowed to stand, will penalize the company that has the best service and reliability record in New York," said Laurito.
About NYSEG: NYSEG is a Rochester-based subsidiary of Energy East Corporation , a super-regional energy services and delivery company in the Northeast. We serve 860,000 electricity customers and 254,000 natural gas customers across more than 40% of upstate New York. By providing outstanding customer service, promoting competition and focusing on growth, we will continue to be a valuable asset to the communities we serve. For more information about NYSEG, visit nyseg.com.
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