Chamber, Manufacturers’ Association Against Proposed BPU Rate Increase

JAMESTOWN – The Jamestown Board of Public Utilities wants to increase electric rates, but not everyone is in favor of the min-rate increase.

The Chautauqua County Chamber of Commerce and the Manufacturers Association of the Western New York have come out in opposition of the BPU’s proposal to raise electric rates by 2.5 percent.

According to officials with the BPU, the rate increase would equal an average increase of $2 a month for electric customers, but would result in about $1.2 million of additional revenue for the BPU on an annual basis. Part of the reason for the increase request includes lower retail electric sales, higher labor costs, and improvements needed for the BPU plant.

It has filed a request with the state public Service Commission, which will either approve or deny in the request later this year.

• COVER LETTER FROM BPU TO PSC REQUESTING RATE HIKE

However, the Chamber of Commerce and Manufacturer’s association feels the rate increase is nothing more than an indirect tax from the city of Jamestown, passed on to the businesses and customers that use the BPU – both in and outside of the city.

During the past three years, Jamestown has received more than $1.25 million in dividend payments from the BPU’s electric division to help with general budget expenses. An additional $120,000 from the water division was also given to the city in 2013. These recent dividend payments have been in addition to the BPU’s required tax equivalent payments, which was $4.2 million alone in 2014.

The Chamber says that if the Board of Public Utilities simply used the dividends it has paid to the city to cover its own operating expenses or capital projects, this proposed rate increase could be avoided.

Chamber and Manufacturers association president Todd Tranum voiced opposition to the proposed rate hike during the most recent ‘Chamber Corner’ news bulletin, which is distributed to regional media on a weekly basis, appearing in the Post-Journal on Sunday, April 26.

A public comment period is now open on the rate case. Anyone wishing to weigh in on the issue can either:

• Write the New York State Public Service Commission at Empire State Plaza, Agency Building 3, Albany, NY 12223-1350;
• Call 1-800-335-2120;
• Post comments online on the PSC website.

In all cases, please reference the case number:  15-E-0184.