Rockville Centre electric rate increase approved

The New York State Public Service Commission announced on July 12 that it has ratified the proposed 11.1 percent increase requested by the Rockville Centre Electric Department.

Last October, village officials had originally estimated that the increase would be nearly 17 percent, partly as a result of inflation and the rising costs of medical and retirement expenses, but after review and adjustments, the department determined a smaller increase was in order.

“While no one wants to pay higher rates, this increase was absolutely necessary to maintain the financial health of the Electric Department,” said Mayor Francis Murray. “Even with this increase, Rockville Centre residents will still be paying among the lowest rates in our region, 30 to 40 percent lower than LIPA’s.”

As part of the proposal, the village agreed not to file for another rate increase for at least the next 12 months.

Prior to its decision, the commission held formal hearings and solicited comments via email and a toll-free opinion line.

According to Village Comptroller Michael Schussheim, the increase is based specifically on the costs of continuing the present operation of the Electric Department and does not include extra costs for the possibility of new power plant generators.

Schussheim pointed to inflation and the increased costs of retirement and insurance premiums as some of the reasons necessitating the increase. The last increase in electricity rates for the village was implemented in June 2004, Schussheim said.

“The rates that were approved eight years ago are not sufficient,” he said.

The 2004 rate increase was enacted after the installation of a substation at the Electric Department on Maple Avenue and technical improvements to the distribution system. At the time, electricity rates had not risen for nearly a decade.

Murray said that the Electric Department has been operating at a deficit for two years. Schussheim said that in the 2010 fiscal year, the losses were more significant than in 2011.