Jonathan A. Lesser is the independent expert brought in by the PUC to review the Commission’s initial decision on whether or not BEL should get a rate increase. His report was released this evening and basically, it finds as follows: First, he advises that the social rate of 26 cents per kilowatt hour should not increase. He advises also that the PUC recommended rate of 44 cents per kilowatt hour for those using 51 to 200 kilowatt hours should increase by 4 cents, to 48 cents per kilowatt hour. And the rate for those using more than 200 kilowatt hours should go up by three cents, from 47 cents per kilowatt hour to 50 cents.
The expert also recommends the introduction of a monthly $6 service charge for residential customers. For commercial customers, he recommends an increase of 3 cents per kilowatt hour for less than 20,000 kilowatt hours and an increase of 7 cents per kilowatt hour for more than 20,000 kilowatt hours. And while he sees commercial customers paying more, it’s much the same for government, which he recommends should pay 5 cents more per kilowatt hour for street lights.
Again, these are simply the expert’s findings, and not a binding decision – so those rates are not the final rates. But BEL does wish that it were binding. The company issued a release after 6:00 today making it clear that they are pleased with the findings. Notably, the expert supports BEL’s request for a higher rate of return. A quote from BEL’s President Lyn Young says that: “the report from the independent expert makes some realistic recommendations.”
The PUC will now review this report and issue its final decision on BEL’s rate in 15 days to go into effect on the first of July.
