What are NYSEG and RG&E proposing?
They are proposing to raise the temperature threshold for disconnecting customers for non-payment from 85°F to 90°F.
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Business / Utilities
NYSEG & RG&E Seek Higher Temperature Threshold for Disconnecting Utilities
New York State Electric and Gas (NYSEG) and Rochester Gas & Electric (RG&E) are requesting a change to the temperature threshold at which they can disconnect customers for non-payment. They seek to raise the limit from the current 85°F to 9...
Key Insights
- **Proposed Change:** NYSEG and RG&E want to increase the temperature threshold for service disconnections from 85°F to 90°F.
- **Reasoning:** Avangrid, the parent company, claims the change could have enabled an additional $12 million in collections in 2024, citing lost collection opportunities under the current restrictions. This matters because it directly affects the utility's revenue and financial stability.
- **Industry Standard:** Avangrid argues that their current threshold is the lowest in the state and that the proposed 90°F aligns with other major New York utilities, ensuring fairness.
- **Customer Impact:** Concerns have been raised about the potential health and safety risks to customers, particularly during heat waves. The companies have not conducted specific analyses on these risks.
In-Depth Analysis
NYSEG and RG&E's proposal to raise the disconnection threshold comes as the NY PSC is considering a statewide standard for utility disconnections. Consumer groups and regulators are weighing the potential financial benefits for the utilities against the health and safety risks for vulnerable customers. The PSC's decision will likely involve considerations for clear notification periods, medical exemptions, and flexible payment plans.
The request highlights the balance between utilities' need to manage accounts in default and the responsibility to protect customers, especially during extreme weather events. The outcome of this decision could set a precedent for how utilities across New York manage disconnections during the summer months. The situation underscores the importance of clear communication, robust customer assistance programs, and proactive measures to mitigate risks during outages.
FAQ
Why do they want to make this change?
Avangrid states it could have enabled an additional $12 million in collections in 2024 and aligns them with other utilities in the state.
What are the potential risks?
Concerns exist regarding health and safety risks to customers, particularly during heat waves, as no specific analysis has been conducted on these impacts.
Takeaways
- NYSEG and RG&E are seeking to raise the temperature at which they can disconnect customers for non-payment, a move that could increase their revenue but also raises concerns about customer safety.
- The NY Public Service Commission is reviewing the proposal, balancing financial benefits for utilities against potential risks to vulnerable customers.
- Clear communication, robust customer assistance programs, and proactive measures to mitigate risks during outages are essential.
Discussion
Do you think this change is a fair balance between the utility companies' financial needs and customer safety? Let us know in the comments!
Share this article with others who need to stay informed about potential changes in utility policies!
Sources
Disclaimer
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