BEGWS applies for rate increase
By ROB PRICE THE COURIER-ADVOCATE

BATH - Electricity customers of Bath Electric, Gas and Water Systems could see higher electric bills under a new rate plan the public utility has submitted to the New York State Public Service Commission.

The plan divides utility residential customers into three groups based on electricity consumption, with customers using the most electricity seeing the sharpest rate increase.

Commercial and industrial customers would see a flat rate increase under the new plan, which also proposes an increase for the basic service charge to all electricity customers from $2.90 to $8.

Matthew Benesh, director of utilities for BEGWS, noted the new rates require the approval of the Public Service Commission, and the final rate structure may be different from what the local utility has proposed.

Electricity customers who use more than 2,400 kilowatt hours per month would see their rates increase from 3.1 cents per kwh to 3.3 cents per kwh during the period from May to October. This rate would increase from 4 cents per kwh to 7 cents during the November to April period.

Rate increases would be smaller for customers in the other two groups: those using 1,000 to 2,400 kilowatt hours per month, and those using less than 1,000 kilowatt hours. BEGWS Friday said it does not keep records showing how many electricity customers are in each group.

In explaining the proposed rate hike, Benesh noted the local utility is alloted 13 megawatts of electricity usage from the New York State Power Authority, charging customers 2.5 to 4 cents per kwh for the hydro-generated electricity.

The utility, however, regularly exceeds that allowance and must purchase the additional electricity at higher rates through the New York Municipal Power Agency. Benesh said the new rate plan addresses that issue by charging higher rates to its higher consumption customers - particularly those who use electricity as a sole source of heat for their homes.

"At a minimum," he said, "BEGWS believes that if customers elect to use electricity for heating purposes, the cost of the electricity should be at least the marginal cost of service."

The utility also hopes the rate plan encourages energy conservation among those customers, Benesh added, noting the current rate plan forces low-end users of electricity to subsidize the cost of electricity for higher-end users.

He stressed the proposed rate hike is not tied to the utility's separate plan to upgrade its electrical infrastructure. That de would be paid for through a separate rate hike.

Customers of BEGWS can read a detailed breakdown of the new rate plan at the utility's customer service desk.

The plan was approved recently by the Municipal Utility Commission, which oversees the operations of BEGWS. That action sends the plan to the state Public Service Commission for final approval.

Benesh said a final decision from the state could come in June.