New York's Energy Rate Case Process Faces Scrutiny Over Lack of Transparency
New York's energy rate case process is under scrutiny. Critics argue that utilities hold too much power in confidential settlement negotiations, potentially inflating revenue requests and avoiding public scrutiny.
The process begins with public hearings, but utilities can then move to private negotiations. This shift allows them to control the agenda and documents, creating a power struggle against consumer advocates and community-based organizations. In recent years, only one major gas and electric rate case was litigated in public before an administrative law judge, with the rest settled behind closed doors. Rate cases, which decide energy bills, often take 15 months, with half or more spent in closed-door proceedings.
National Grid's assistant general counsel, Kris Kiefer, acknowledges a power imbalance in settlement talks, stating, 'We coordinate the process, but we ensure all parties have an opportunity to discuss issues.' New York's top utility regulator, Rory Christian, defends the process, highlighting public engagement and evidentiary records. However, critics argue that confidentiality allows utilities to inflate initial revenue requests.
Senators propose reforms for the next legislative session, including returning judges to the rate case process and potentially stripping confidentiality from settlement proceedings. The aim is to balance power and increase transparency in energy bill determination.
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