NYSEG rate hike rejected

April 7, 2009 | Uncategorized

ALBANY (AP) — The state Public Service Commission is dismissing a rate hike request from New York State Electric and Gas and Rochester Gas and Electric.

Commission Chairman Garry Brown says the companies failed to show that their ability to provide safe and reliable service would be jeopardized if they didn’t get an increase.

The request was made in January, four months after the companies agreed not to seek an increase before September 2009, except in a financial crisis.

That agreement was one of the PSC’s conditions for approving the acquisition of their parent company, Energy East, by Spain’s Iberdrola.

The companies say in a statement Tuesday they’re disappointed and fiscal challenges are pushing their financial condition to levels that will imperil service.