BPU Electric Customers to See 2.6 Percent Increase in Rates Starting in March

JAMESTOWN – The New York State Public Service Commission (PSC) has approved an electric rate increase for the Jamestown Board of Public Utilities (BPU).

• READ THE COMPLETE PSC FILING DOCUMENT [PDF]

According to a release sent out by the BPU, the approval means a typical residential customer using 750 kilowatts an hour per month will see a monthly increase of $1.40, or 2.6 percent of their total bill. This will be the first electric rate increase for the BPU since 2010.

The PSC also approved the BPU’s request to establish a new Overhaul Reserve Fund, to pay for the cost of overhauling its gas turbine and steam generators. The gas turbine alone must be overhauled every 25,000 run-time hours at a cost of $2.5 – $4.5 Million. Funding for the overhaul reserve fund will come from the BPU’s off system sales profits. The BPU said that the Overhaul Reserve Fund will allow the BPU to save cash for the required overhauls without incurring the cost to file a rate case before the PSC and without raising rates.

In it’s filing, the PSC also ordered the BPU to move $2.8 Million in the current Dismantling Fund, which is excess of projected dismantling cost, to the new Overhaul Reserve Fund. And the PSC denied a request for a Capital Fund to accumulate separate funds for undefined future capital projects (apart from the new Overhaul Reserve Fund).

In what appears to be a sign of support for Jamestown Mayor Sam Teresi, the Commission also noted that the City of Jamestown – as the owner of the facility and its supplier of equity capital – may require the BPU to distribute a reasonable portion of its profits to the City, provided that the utility is earning a profit and will remain financially stable.

Finally, the PSC accepted the utility’s request to expand its existing program that allows qualifying customers the opportunity to apply to install equipment that generates electricity-using wind or solar powered equipment. This expansion will enable approved BPU Service Class 3 and 6 customers (large and economic development customers) to install equipment with a capacity of up to 200 Kw.