Utility representative outlines causes of winter bill spikes and explains smart-meter options

A utility municipal community relations manager gave a technical briefing on why many Putnam County residents saw higher electricity bills this winter and explained options for customers to review and manage charges.

"Delivery charges is where the cost of the wholes, staffing, things in that nature are negotiated every few years under what is called a freight case to the pump service commission in the state," said Sylvie Ochi, who identified herself as "local producer municipal community relations program manager covering Dutchess, Monmouth, and Rochester Counties." Ochi described delivery charges as separate from supply charges, and said the recent winter price spikes were driven largely by the supply side'the generators and fuel markets.

Ochi and utility staff explained that some customers are on time-of-use meters (referred to in the presentation as SC-8 or day-night meters) while others are on a straight residential rate (SC-1). The utility said it hedges a portion of expected supply for SC-1 customers to reduce price variability but is restricted from hedging day-night customers to the same degree. "We're hedging about 70%" for the straight-rate customers, she said, "which helps stabilize the cost for residential... night customers." Ochi said supply prices saw large day-to-day swings in mid-January; she reported single-day supply rates that ranged from roughly 6 cents per kilowatt-hour up to about 30 cents per kWh on extreme days.

The utility representative said customers with smart meters can opt their meter settings and that customers who change rate or meter types typically see changes only prospectively, not retroactively. She noted the utility maintains a local customer service office where residents may bring bills for a line-by-line review: "We have a Waffle office. It's open Monday through Friday from 9AM to 3PM... and we have at least 1, if not 2, customer service reps there during the day," Ochi said (transcript wording). She also said customers who use an energy supply company (ESCO) will see the supplier'not the utility'listed on their bill for supply charges.

Legislators and residents asked about delivery charge increases, how often the utility files rate cases with the state Public Service Commission, tree trimming and storm debris collection, and policies on disconnections and customer assistance. Ochi said the utility files a rate case about every three years for delivery charges and that typical increases to delivery charges are "less than a penny to a penny" on the sample bills discussed. She also said the utility contracts with tree-trimming firms and that storm debris pickup follows policies that differ when debris results from storms.

Residents at the meeting recounted steep bill increases and urged the utility to consider more flexible protections for customers in financial distress; county legislators urged additional outreach and clearer explanations of the differences between delivery and supply charges.

Ending: Utility staff offered to review individual bills at the local office and to provide follow-up information; legislators requested more detailed billing analyses and comparisons to present back to constituents.