NIAGARA MOHAWK - NATIONAL GRID
Niagara Mohawk serves approximately 1.5 million electric and 540,000 natural gas customers in upstate New York
In 2002, the PSC approved the merger and acquisition of Niagara Mohawk with National Grid, USA, which owns several electric companies in New England. National Grid’s parent company is British and operates the transmission grid in parts of England.
PSC to Hold Hearings on Proposed Niagara Mohawk Customer Deposit Policies in Niagara Falls (Nov. 18), Syracuse (Nov. 19), and Albany (Dec. 2)
The PSC will hold additional public hearings on Niagara Mohawk’s customer deposit proposal. This is the third proposal this year to require deposits from large numbers of residential customers.
Niagara Mohawk began in March, 2003 to require deposits from many customers based on the duration of their leases. After strong reaction to this policy, which resulted in denial or delay of utility service to more than 1,000 applicants, Niagara Mohawk withdrew it, pending a decision on a petition seeking regulatory approval of an alternative proposal, which was to require deposits for those whose Equifax “credit scores” are below 812. Over the summer of 2003, evidentiary hearings were held, and PULP presented witnesses who testified against both the initial deposit policy (based on lease duration) and the revised proposal (based on “credit scores”).
After the summer hearings ended, Niagara Mohawk, Department of Public Services Staff, and the Consumer Protection Board proposed a third variation. This latest proposal would (1) add a deposit to the bills of customers who are behind in payment, which would need to be paid in a lump sum, even if the customer otherwise qualifies for a minimum deferred payment agreement to retire arrears with no down payment and payments of $10 per month, and (2) would require a deposit from new applicants for service who have paid or made arrangements pay bills owed from previously closed accounts. The new proposal would affect approximately 110,000 customers. PULP presented testimony in opposition to the latest proposal at evidentiary hearings held in October.
The PSC decided to approve Niagara Mohawk’s third proposal in March 2004, Order on Security Deposits (3-25-04) . There have been two subsequent requests by Niagara Mohawk for orders on rehearing to expand the scope of existing rules and create through these rules additional barriers to residential service. PULP opposed both of these requests and the resulting orders are Order on Petition for Clarification (6-7-04)and Declaratory Ruling issued on Nov. 16, 2004.
Further information on this issue is at Niagara Mohawk’s New Policies On Applications, Deposits, and Collection Matters.
Other PSC Proceedings
PULP Comments on Case 01-M-0075 - National Grid’s Petition to Make Certain Modifications to the Low Income AffordAbility Program - 06-02-2008
National Grid Powerpoints for its 2007-08 "PSC Training” - 10-2007
PULP’s Comments Opposing Niagara Mohawk’s Petition To Modify Meter Reading Standards Due To Winter Weather Conditions - 09-25-2003
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