Public Service Commission approves Liberty Utilities three-year rate plan with changes

Jun. 22—ALBANY — The New York State Public Service Commission has approved a three-year rate plan for Liberty Utilities Corp. that results in a change in revenues that is 68% lower than the $4.33 million the company originally requested in the first year.

In addition to the change in rates, the company will improve customer service and expand funding for low-income customers, according to a news release from the Public Service Commission.

"The rate plan we have adopted is premised on rates, terms and conditions that are just and reasonable, and we accordingly find that it is in the public interest," Commission Chair Rory M. Christian said in a statement. "We find the agreement provides sufficient funding for the company to maintain safe and reliable service, and that it appropriately balances the interests of ratepayers and other parties. Further, the agreement furthers the social, economic, and environmental policies of New York state, including the Climate Leadership and Community Protection Act or Climate Act."

With the Commission's decision, base delivery revenue rates will increase $1.38 million in the first year, $1.93 million in the second year, and $1.94 million in the third year, resulting in a 2.97% total bill increase in each of the rate years, an increase well below the current rate of inflation.

For the typical residential heating customer, these revenue changes would yield a $7.84 increase in the average monthly bill in the first year, a $6.06 increase in the second year, and a $6.11 increase in the third year. The new rates begin Nov. 1, 2022 and end Oct. 31, 2025. Since the beginning of the rate plan occurs prior to its approval, the company will be allowed to apply a surcharge.

The company's existing low-income program will also be expanded, while increasing the dollar amounts awarded. The low-income program will be funded at $351,459 in the first year, $399,708 in the second year, and $452,674 in the third year. The expanded low-income program identifies and allocates more funding to customers who are in greater need of assistance.

In addition to the rate case decision, the commission approved Liberty's request to renew its gas franchise with the town of Fowler. Renewing the gas franchise was deemed to be in the public interest because it would allow the company to continue to provide gas service to customers in the town of Fowler, as it has done over the past 30 years.

In a separate news release, Liberty Utilities officials said the new rates "will support ongoing efforts to enhance safety and reliability of the natural gas distribution system, which is essential to keeping residents warm and safe during North Country winters. The plan also helps offset the increased cost of supplies and materials in recent years and recover costs associated with system improvements since the last rate adjustment, including more than $10 million in investments in infrastructure and new technology to modernize the system."

Additionally, they said, "The approved plan will support new programs aimed at improving service to customers, such as a new, in-house meter-reading program with three dedicated employees, resources and support for emergency response and planning, damage prevention initiatives around excavation safety, and value-added programs for customers like new bill discounts for low-income residents, enhanced energy efficiency programs, and a new residential methane detector pilot program."

"We are continuously working to ensure ongoing safety and reliability of our system and exploring ways to better serve our customers," Liberty New York Gas Vice President and General Manager Mark Saltsman said in a statement. "And we aim to do this while keeping service affordable for all customers. The new rate plan strikes a balance of these priorities."

Officials said this is the first delivery rate adjustment requested by New York Gas since 2015.

Liberty is a local gas distribution company with 572 miles of mains that sells or transports natural gas to approximately 17,000 customers in portions of St. Lawrence, Lewis and Franklin counties.