The rate case should be suspended pending a probe into utility finances, the senator says.
SYRACUSE, N.Y. -- U.S. Sen. Charles Schumer says the state Public Service Commission should suspend its review of National Grid’s request for higher electric rates until the commission completes its investigation into the utility’s finances.
The PSC plans to investigate allegations that National Grid’s rate request included millions of dollars in inappropriate company expenses, including executive perks such as private-school tuition, veterinary bills and washing machine repairs.
Schumer, D-N.Y., sent a letter today to PSC Chairman Garry Brown asking for a delay in the rate case while the PSC looks at National Grid’s procedures for allocating expenses to Upstate ratepayers. In addition to raising concerns about the executive perks — which National Grid has already withdrawn and apologized for — PSC staff accountants have questioned whether Upstate customers are subsidizing operations at Grid's utilities in other regions.
“While I am gratified the PSC has decided to investigate the appropriateness of National Grid’s expenses, I would urge the PSC to immediately suspend any consideration of a rate increase,” Schumer wrote in the letter.
James Denn, speaking for the PSC, said this afternoon the commission had not received the letter. “When we do, it will be reviewed,” Denn said.
The PSC announced Thursday that it would hire a consultant to investigate National Grid’s accounting. The commission will decide in November whether to choose a firm that has already audited Grid or put the job out to bid.
At Thursday’s meeting, PSC members said they expected to continue their review of National Grid’s rate hike request while the investigation is under way. Grid is seeking about $400 million a year extra beginning in January. PSC staff accountants have recommended no increase.
Schumer said the PSC should reject National Grid’s rate request and require it to file a new proposal after the investigation into its finances is complete.