PSEG Long Island Coming 1/1/14
Feb 23, 2014 19:57:42 GMT -5
Post by Admin on Feb 23, 2014 19:57:42 GMT -5
Coalition of Nassau Civic Associations
P.O. Box 500
Merrick, NY 11556
516-972-6988
contactconca@gmail.com
www.concali.org
PSEG-LI Coming January 1, 2014
Legislator Denenberg's Disaster Response Taskforce
Report on Public Service Electric & Gas and
The Coalition of Nassau Civic Associations
Report On the Public Service Commission
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
December 22, 2013
Submitted by Claudia Borecky
Leg. Denenberg's Disaster Response Taskforce, Chair
Coalition of Nassau Civic Associations, Secretary
On October 28, 2013 Legislator Dave Denenberg held a community meeting with representatives of Public Service Electric & Gas, (its newest division is the soon-to-be Public Service Enterprise Group -Long Island ("PSEG-LI")) to discuss its plans for Long Island's energy. PSEG-LI has entered into a 12-year contract with an option for an eight-year extension that begins on January 1, 2014 to take over full operation and control of LI's electrical grid.
After a power point presentation by PSE&G, Claudia Borecky questioned PSE&G about concerns that were raised by residents and members of the Taskforce:
1. Who will be running our electrical grid?
PSEG-LI will have total operation and control over the distribution, operation and control of Long Island's electricity. They expect to hire 2200 employees in total, 1900 of which are current National Grid employees. Currently, National Grid operates our gas and electric, while LIPA manages and controls its operations. On January 1, 2014 PSEG-LI will manage, operate and control our electricity, while National Grid will still be responsible for our natural gas.
2.After Superstorm Sandy, LIPA officials said that they were just weeks away from completing the installation of a new state-of-the-art computerized system that would have had the ability to coordinate its operations and its communication with its customers. However, it was reported that PSEG-LI was awarded $30 million to upgrade its computer system. Our question was: What happened to the state-of-the-art system that should have been operable by now?
The PSEG-LI rep explained that they scrapped that "new" computer program, stating that it was an upgraded version of their old system. They plan to replace it with an even newer and better state-of-the-art computer system. This $50 million computer system is expected to be funded by federal grants and will be able to communicate with the public in the case of power outages with real time information. Customers will be able to get accurate information of when they will be working in their area and when they can expect to have their power restored. The system is expected to be implemented within the next eight months.
3.Can you explain the implementation of micro grids?
PSEG-LI will get $20 million in federal funds for a trial program in which one community each in Nassau and Suffolk can create a "micro grid" that would store power from the wider electric grid. This will allow neighboring communities to get its electricity from those micro grids so that the entire island does not remain dependent on the greater electrical grid. Inter-municipality agreements currently are seeking IRS approval.
4.How will a PSEG-LI takeover affect our electric biil?
We will be receiving just one bill from PSEG-LI for our electricity. The 2014 rate freeze applies to the delivery charge only, which is expected to remain at $87.62 for the average residential bill. The other half of the bill, called the power supply charge, will fluctuate monthly.
5.How is the LIPA debt expected to be paid off if we are no longer getting a LIPA bill?
Our PSEG-LI statement will include a line called a "securitization" charge, reflecting the costs to refinance about $1.5 billion in old LIPA debt. The agency expects to save $15 million from the refinancing next year, an amount that will help LIPA freeze rates. LIPA is essentially refinancing its old debt, borrowing at least $700 million of new debt, extending our debt even further down the line and instead of lowering our monthly bill to reflect a $15 million savings, PSEG-LI will have $15 million in savings every year for the life of the loan. And since the debt will be a separate charge, PSEG-LI is not taking on the debt. We, as consumers, will pay it off over a longer period of time with interest.
That raises more questions for another day: When the freeze is lifted, will we see our rates skyrocket?
6.LIPA, as a public utility, has been reimbursed for most of its expenses relating to Superstorm Sandy. Since PSEG-LI is a private company, will it still be entitled to federal funds in case of an extreme storm?
PSEG-LI representatives assured us that since LIPA will retain its "ownership" of our electricity, it will still be entitled to federal reimbursement caused by a natural disaster. However, I question why PSEG-LI claims it does not fall under Federal Energy Regulatory Commission's jurisdiction, claiming it is a private company. And then it claims that it can still receive federal funds because it is "owned" by LIPA, a public interest. This Taskforce is seeking clarification of these conflicting arguments.
7.Since LIPA charged wireless carriers a much higher rate to lease its utility poles than had Verizon, the wireless carriers found that it wasn't cost effective to use LIPA's poles. I asked about PSEG-LI's policy regarding placing wireless antennas on its utility poll.
PSEG's rep stated that federal law requires them to allow wireless antennas on their poles. I expressed our community's opposition to these antennas and requested that PSEG, as LIPA currently does, continue to keep the same rate so as to prevent future inundation of cell antennas on PSEG poles throughout Nassau County.
8. Since Long Island loses power during storms, I proposed starting to install their wires underground. Although it may be expensive, I suggested it would make sense to coordinate underground installations with road rehabilitation projects that take place throughout Nassau. Over time, we could bury most of Nassau County's electrical wires underground.
I believe it would be a wise investment in our future, but PSEG-LI has no plans for underground installations.
9.Tree Trimming - PSEG-LI plans to significantly increase its tree-trimming operations to hopefully, prevent many of the outages that are caused during windstorms.
10. Solar Power Incentives - As PSEG-LI is a private company, some residents are concerned about its interest in pursuing green energy. Although it does not go into detail about what incentives it will provide residents who want to install solar panels, PSEG-LI has cut its budget for green initiatives for 2014 by $26 million. However, PSE&G does not give rebates for solar energy installations in New Jersey.
Public Service Commission's Role
The Department of Public Services ("DPS") invited the Coalition of Nassau Civic Associations to an informational session on December 12, 2014. A handful of representatives from local chambers and governmental departments were in attendance. Legislator Dave Denenberg and our LIPA/National Grid expert, Cindy Kouril, accompanied me to the meeting.
Representatives from the DPS explained that as of January 2, 2014, a DPS office will open in Plainview and will be staffed with 29 people. This office will field customer complaints. Customers can register complaints online by visiting www.askpsc.com or by calling 1-800-342-3377. Representatives of DPS will be speaking to small civic groups. Please feel free to contact Jill Wasser, Consumer Program Specialist with the State of New York Public Service Commission at jill.wasser@dps.ny.gov to arrange for a presentation to your civic association.
PSEG-LI is responsible for preparing its budget, capital improvement and storm response plan, which must be filed with LIPA and the DPS. The DPS acts as an oversight board and make sure that PSEG-LI complies with performance standards for customer satisfaction; audits the budgets and plans; and makes its recommendations to LIPA. LIPA has the ultimate authority. Rate increases are filed with the DPS. Any request for a rate increase over 2.5% must go the DPS for a more comprehensive investigation and at which time, public hearings will be held.
As we have seen over the last couple decades, state agencies have been severely cut, especially on Long Island. My concern that once PSEG-LI is off the ground, the state can cut the DPS presence on Long Island. With a population larger than four states, I find it unfathomable that Long Island does not have DPS offices for any other aspect of public service, such as water or telecommunications. I questioned if anything was written into the legislation that formed this DPS on Long Island as to whether its staff and/or presence on Long Island is guaranteed. No such guarantee exists and they admitted that there is nothing to stop the state from cutting its staff down the road.
LIPA/National Grid
LIPA will still own the electric portion of Long Island's utilities. PSEG-LI will operate, manage and control the day-to-day operations of delivering electricity to residents. National Grid will no longer be providing electricity, but will continue to provide homes with natural gas. LIPA will no longer be handling calls that people have concerning their natural gas. PSEG-LI will direct calls about natural gas problems to National Grid, but will not address those problems.
LIPA is cutting its staff by 50 people. Governor Cuomo appoints five of the nine LIPA trustees. Newsday's source identifies them as follows: 1. Thomas J. McAtee, Jr.,Executive Vice President of the Suffolk Transportation Service; 2. Mark Fischi, Senior Management Director for Hunt Corporate Services; 3. Ralph Suozzi, Mayor of Glen Cove; 4. Sheldon L. Cohen, Senior Managing Director for CBRE, Inc. and 5. Elkan Abramowitz, a partner at Morvillo Abramowitz. The State Senate and Assembly leaders each select two trustees. Neal Lewis and Chairman Larry Waldman have resigned.
Conclusion
In conclusion, PSEG-LI seems to be concentrating on customer satisfaction. Most of their investment is going toward improving customer relations, which include better communication before, during and after a storm with real time online information on areas where repairs are taking place and when power can be expected to be restored. Better communication with the public and the crew was perhaps, one of our greatest complaints in the aftermath of Superstorm Sandy. However, is enough attention being given toward infrastructure improvements that will bring us into this century and protect us from future power outages? I would like to see PSEG-LI include underground wiring in its plans for Long Island's future.
PSEG has a good storm recovery record and has the expertise to deliver the upgrades that LIPA so badly needs. PSEG's plan for better customer communications will help bring people out of the dark after outages. However, I would like to see a plan for better communication with the towns and villages. PSEG-LI's Emergency Management Plan must be in sync with the towns' and villages' plans so that clean-up and tree-removal efforts are better coordinated. Communication must be approved and town and village workers need to be trained so that they may better serve their communities.
I am also concerned about incentives for greener energy. LIPA will no longer give rebates and PSEG has cut its green energy policy by $26 million. It is projected that we will see more and more severe storms in the future. I am afraid that in cutting these programs, we are moving Long Island in the wrong direction.
Further, we are concerned with oversight. Although the Public Service Commission will hold a greater role, it will have no real authority over its operations.
And lastly, we are concerned with our utility bills. We, who have private water, are paying 5 times more than those residents who have public water. Similarly, PSEG-LI, as a private corporation, needs to make a profit. In my opinion, we could expect our utility bills to increase. From the onset, there will be a separate charge on our bill to pay back LIPA's debt, which charge is not included in the "frozen rate." And we know that there will be a separate power supply charge, which is also not included in the "frozen rate." Therefore, even with a frozen rate, these additional charges will mean that we will be paying a significantly higher utility bill from day one.
P.O. Box 500
Merrick, NY 11556
516-972-6988
contactconca@gmail.com
www.concali.org
PSEG-LI Coming January 1, 2014
Legislator Denenberg's Disaster Response Taskforce
Report on Public Service Electric & Gas and
The Coalition of Nassau Civic Associations
Report On the Public Service Commission
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
December 22, 2013
Submitted by Claudia Borecky
Leg. Denenberg's Disaster Response Taskforce, Chair
Coalition of Nassau Civic Associations, Secretary
On October 28, 2013 Legislator Dave Denenberg held a community meeting with representatives of Public Service Electric & Gas, (its newest division is the soon-to-be Public Service Enterprise Group -Long Island ("PSEG-LI")) to discuss its plans for Long Island's energy. PSEG-LI has entered into a 12-year contract with an option for an eight-year extension that begins on January 1, 2014 to take over full operation and control of LI's electrical grid.
After a power point presentation by PSE&G, Claudia Borecky questioned PSE&G about concerns that were raised by residents and members of the Taskforce:
1. Who will be running our electrical grid?
PSEG-LI will have total operation and control over the distribution, operation and control of Long Island's electricity. They expect to hire 2200 employees in total, 1900 of which are current National Grid employees. Currently, National Grid operates our gas and electric, while LIPA manages and controls its operations. On January 1, 2014 PSEG-LI will manage, operate and control our electricity, while National Grid will still be responsible for our natural gas.
2.After Superstorm Sandy, LIPA officials said that they were just weeks away from completing the installation of a new state-of-the-art computerized system that would have had the ability to coordinate its operations and its communication with its customers. However, it was reported that PSEG-LI was awarded $30 million to upgrade its computer system. Our question was: What happened to the state-of-the-art system that should have been operable by now?
The PSEG-LI rep explained that they scrapped that "new" computer program, stating that it was an upgraded version of their old system. They plan to replace it with an even newer and better state-of-the-art computer system. This $50 million computer system is expected to be funded by federal grants and will be able to communicate with the public in the case of power outages with real time information. Customers will be able to get accurate information of when they will be working in their area and when they can expect to have their power restored. The system is expected to be implemented within the next eight months.
3.Can you explain the implementation of micro grids?
PSEG-LI will get $20 million in federal funds for a trial program in which one community each in Nassau and Suffolk can create a "micro grid" that would store power from the wider electric grid. This will allow neighboring communities to get its electricity from those micro grids so that the entire island does not remain dependent on the greater electrical grid. Inter-municipality agreements currently are seeking IRS approval.
4.How will a PSEG-LI takeover affect our electric biil?
We will be receiving just one bill from PSEG-LI for our electricity. The 2014 rate freeze applies to the delivery charge only, which is expected to remain at $87.62 for the average residential bill. The other half of the bill, called the power supply charge, will fluctuate monthly.
5.How is the LIPA debt expected to be paid off if we are no longer getting a LIPA bill?
Our PSEG-LI statement will include a line called a "securitization" charge, reflecting the costs to refinance about $1.5 billion in old LIPA debt. The agency expects to save $15 million from the refinancing next year, an amount that will help LIPA freeze rates. LIPA is essentially refinancing its old debt, borrowing at least $700 million of new debt, extending our debt even further down the line and instead of lowering our monthly bill to reflect a $15 million savings, PSEG-LI will have $15 million in savings every year for the life of the loan. And since the debt will be a separate charge, PSEG-LI is not taking on the debt. We, as consumers, will pay it off over a longer period of time with interest.
That raises more questions for another day: When the freeze is lifted, will we see our rates skyrocket?
6.LIPA, as a public utility, has been reimbursed for most of its expenses relating to Superstorm Sandy. Since PSEG-LI is a private company, will it still be entitled to federal funds in case of an extreme storm?
PSEG-LI representatives assured us that since LIPA will retain its "ownership" of our electricity, it will still be entitled to federal reimbursement caused by a natural disaster. However, I question why PSEG-LI claims it does not fall under Federal Energy Regulatory Commission's jurisdiction, claiming it is a private company. And then it claims that it can still receive federal funds because it is "owned" by LIPA, a public interest. This Taskforce is seeking clarification of these conflicting arguments.
7.Since LIPA charged wireless carriers a much higher rate to lease its utility poles than had Verizon, the wireless carriers found that it wasn't cost effective to use LIPA's poles. I asked about PSEG-LI's policy regarding placing wireless antennas on its utility poll.
PSEG's rep stated that federal law requires them to allow wireless antennas on their poles. I expressed our community's opposition to these antennas and requested that PSEG, as LIPA currently does, continue to keep the same rate so as to prevent future inundation of cell antennas on PSEG poles throughout Nassau County.
8. Since Long Island loses power during storms, I proposed starting to install their wires underground. Although it may be expensive, I suggested it would make sense to coordinate underground installations with road rehabilitation projects that take place throughout Nassau. Over time, we could bury most of Nassau County's electrical wires underground.
I believe it would be a wise investment in our future, but PSEG-LI has no plans for underground installations.
9.Tree Trimming - PSEG-LI plans to significantly increase its tree-trimming operations to hopefully, prevent many of the outages that are caused during windstorms.
10. Solar Power Incentives - As PSEG-LI is a private company, some residents are concerned about its interest in pursuing green energy. Although it does not go into detail about what incentives it will provide residents who want to install solar panels, PSEG-LI has cut its budget for green initiatives for 2014 by $26 million. However, PSE&G does not give rebates for solar energy installations in New Jersey.
Public Service Commission's Role
The Department of Public Services ("DPS") invited the Coalition of Nassau Civic Associations to an informational session on December 12, 2014. A handful of representatives from local chambers and governmental departments were in attendance. Legislator Dave Denenberg and our LIPA/National Grid expert, Cindy Kouril, accompanied me to the meeting.
Representatives from the DPS explained that as of January 2, 2014, a DPS office will open in Plainview and will be staffed with 29 people. This office will field customer complaints. Customers can register complaints online by visiting www.askpsc.com or by calling 1-800-342-3377. Representatives of DPS will be speaking to small civic groups. Please feel free to contact Jill Wasser, Consumer Program Specialist with the State of New York Public Service Commission at jill.wasser@dps.ny.gov to arrange for a presentation to your civic association.
PSEG-LI is responsible for preparing its budget, capital improvement and storm response plan, which must be filed with LIPA and the DPS. The DPS acts as an oversight board and make sure that PSEG-LI complies with performance standards for customer satisfaction; audits the budgets and plans; and makes its recommendations to LIPA. LIPA has the ultimate authority. Rate increases are filed with the DPS. Any request for a rate increase over 2.5% must go the DPS for a more comprehensive investigation and at which time, public hearings will be held.
As we have seen over the last couple decades, state agencies have been severely cut, especially on Long Island. My concern that once PSEG-LI is off the ground, the state can cut the DPS presence on Long Island. With a population larger than four states, I find it unfathomable that Long Island does not have DPS offices for any other aspect of public service, such as water or telecommunications. I questioned if anything was written into the legislation that formed this DPS on Long Island as to whether its staff and/or presence on Long Island is guaranteed. No such guarantee exists and they admitted that there is nothing to stop the state from cutting its staff down the road.
LIPA/National Grid
LIPA will still own the electric portion of Long Island's utilities. PSEG-LI will operate, manage and control the day-to-day operations of delivering electricity to residents. National Grid will no longer be providing electricity, but will continue to provide homes with natural gas. LIPA will no longer be handling calls that people have concerning their natural gas. PSEG-LI will direct calls about natural gas problems to National Grid, but will not address those problems.
LIPA is cutting its staff by 50 people. Governor Cuomo appoints five of the nine LIPA trustees. Newsday's source identifies them as follows: 1. Thomas J. McAtee, Jr.,Executive Vice President of the Suffolk Transportation Service; 2. Mark Fischi, Senior Management Director for Hunt Corporate Services; 3. Ralph Suozzi, Mayor of Glen Cove; 4. Sheldon L. Cohen, Senior Managing Director for CBRE, Inc. and 5. Elkan Abramowitz, a partner at Morvillo Abramowitz. The State Senate and Assembly leaders each select two trustees. Neal Lewis and Chairman Larry Waldman have resigned.
Conclusion
In conclusion, PSEG-LI seems to be concentrating on customer satisfaction. Most of their investment is going toward improving customer relations, which include better communication before, during and after a storm with real time online information on areas where repairs are taking place and when power can be expected to be restored. Better communication with the public and the crew was perhaps, one of our greatest complaints in the aftermath of Superstorm Sandy. However, is enough attention being given toward infrastructure improvements that will bring us into this century and protect us from future power outages? I would like to see PSEG-LI include underground wiring in its plans for Long Island's future.
PSEG has a good storm recovery record and has the expertise to deliver the upgrades that LIPA so badly needs. PSEG's plan for better customer communications will help bring people out of the dark after outages. However, I would like to see a plan for better communication with the towns and villages. PSEG-LI's Emergency Management Plan must be in sync with the towns' and villages' plans so that clean-up and tree-removal efforts are better coordinated. Communication must be approved and town and village workers need to be trained so that they may better serve their communities.
I am also concerned about incentives for greener energy. LIPA will no longer give rebates and PSEG has cut its green energy policy by $26 million. It is projected that we will see more and more severe storms in the future. I am afraid that in cutting these programs, we are moving Long Island in the wrong direction.
Further, we are concerned with oversight. Although the Public Service Commission will hold a greater role, it will have no real authority over its operations.
And lastly, we are concerned with our utility bills. We, who have private water, are paying 5 times more than those residents who have public water. Similarly, PSEG-LI, as a private corporation, needs to make a profit. In my opinion, we could expect our utility bills to increase. From the onset, there will be a separate charge on our bill to pay back LIPA's debt, which charge is not included in the "frozen rate." And we know that there will be a separate power supply charge, which is also not included in the "frozen rate." Therefore, even with a frozen rate, these additional charges will mean that we will be paying a significantly higher utility bill from day one.