New consortium opposes electricity rate hike

By Geri Corey
GOSHEN — In November, Orange & Rockland Utilities filed with the Public Service Commission to seek an increase in electric delivery rates by 11.5 percent and gas delivery rates by 35.1 percent.

Realizing the magnitude of the hike in delivery rates, Strategic Power Management, an electric utility company in Goshen, formed a Municipal Consortium to intervene and oppose the increase.

In a letter to Town Supervisor Doug Bloomfield, Daniel Duthie, attorney and President of Strategic Power Management, requested that the town join with other municipalities in the consortium’s endeavor. For the town, the cost of joining in the fight to lower the delivery rate increase would not exceed $5,000 ($10,000 for cities; $2,500 for villages; $20,000 for each county).

The consortium is hoping to combine the financial and political resources of the two cities and 15 towns in Orange County, and five towns in Rockland County, and 33 villages in both counties, to counter the O&R request.

The Town of Goshen had taken part in the Municipal Consortium in the past and it had been successful, said Town Supervisor Doug Bloomfield. Warwick and Deerpark had joined Goshen in the effort.

Before making a decision, Councilman George Lyons suggested finding out if other municipalities are joining in.

“I’m inclined to join,” he said, explaining, “We had good result last time. It’s probably money well spent. We’ll save and the constituents will save, as well.”

A decision whether or not to join the Municipal Consortium was tabled until board members received more information.

The new gas and electricity rates, if approved, would become effective on Nov. 1. Electrical bills would rise by an average of 6 percent, and gas bills an average of 19.1 percent, according to O&R. O&R blames the increase on the rising cost of labor and local taxes, costly repairs needed after knockout storms like Irene and Sandy, and efforts to "harden" and modernize its infrastructure. For more information, see related story, "O&R wants to increase rates": http://bit.ly/1ywNl9V.