A controversial electric restructuring settlement proposed by Consolidated Edison Company of New York to the New York Public Service Commission, which includes a 25-percent rate cut for some industrial customers, was attacked as hostile to small customers.
ConEd filed the plan in response to the PSC's efforts to develop a new framework for the state's electric industry in its "Competitive Opportunities" proceeding (Case 97018/96EO897). ConEd's proposed five-year plan would run through March 31, 2002 and cut rates by $655 million.
Proposal Details. Industrial customers with monthly demands of more than 1,500 kW would receive the largest rate reduction of 25 percent ($40 million cumulative). Commercial customers would receive a 10-percent rate reduction ($261 million) by the end of the five years. Average rates for residential customers would decline by 3.3 percent. A rate increase that was to have been effective April 1 would be canceled (a $435-million hike over five years).
Retail access to competing suppliers of electricity would be phased in over a five-year period starting in 1997. All customer classes would have access to competitive providers for up to 500 MW starting in 1998. Additional retail access would be added each year, with full access available no later than the end of 2002. ConEd would divest at least 50 percent of its fossil-fueled generating capacity in New York City.