ALBANY -- 6:00pm UPDATE
It's hard to predict the future but National Grid shareholders got a glimpse of it on Thursday. The New York State Public Service Commission approved a one year plan that would raise rates by more than $112 million although your monthly bills are expected to stay the same because of a deal with the PSC.
The PSC will also allow National Grid to return a profit to investors of 9.3% if the company doesn't come back looking for another rate increase until 2012. If the company looks for another rate increase this year, the PSC will limit their return to 9.1%.
National Grid has said they are disappointed in that rate of return. At the PSC hearing, a commissioner also read a portion of a letter National Grid sent as a response to the proposal.
The commissioner said she was concerned by one part of the letter that read "Niagara Mohawk's revenues in the range that has been recommended will not be adequate to cover the costs of providing safe and reliable service to our customers."-
Jessica Maxwell from the Syracuse Peace Council said she had little sympathy for a multinational corporation that had $3.2 billion in revenue last year.
"It's just outrageous that they would come back to the public complaining or feel bad about the deal when they're getting guaranteed profits from ratepayers. that's a pretty good deal."--->
As the temperature drops, Louise Pointdexter keeps an eye on the thermostat. The Syracuse grandmother says cold temperatures are hard on her arthritis and she finds it hard to believe that the heating bills she struggles to pay make sure shareholders profits are paid out.
"It has nothing to do with sustainability or anything or trying to be there and be a profitable company. It's just greed," said Pointdexter.
National Grid executives have said other states provide a higher return on investment. A company spokesman said it was unlikely the company would comment on Thursday's action by the PSC until they receive a written copy next week.
Earlier Coverage-
The New York State Public Service Commission approved a one-year, $112.7 million rate hike for National Grid. The PSC structures the deal so monthly bills will stay the same until 2012 and National Grid will defer certain costs.
National Grid had been seeking a $390 million increase over three years.
The PSC also allowed National Grid to have a 9.3% return on investment. National Grid had been seeking 10.85%.
A National Grid spokesman said it is unlikely the company will comment on the deal until they receive it in writing next week.
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