The state Public Service Commission today approved refunds totaling $48 million to customers of New York’s six investor-owned utilities, the New York Power Authority and the Long Island Power Authority, according to the commission. The money is from a financial settlement that power producer Constellation Energy Commodities Group Inc. agreed to in order to resolve a dispute with the Federal Energy Regulatory Commission.
The typical residential customer in New York will receive a one-time credit on the delivery portion of their electricity bill of up to $3. The actual amount will vary depending on electricity usage, the Public Service Commission said.
“The financial settlement directly benefits consumers harmed by Constellation’s actions by providing a one-time residential customer credit, as well as other economic benefits that boost the economy, protect consumers’ interests, and help further strengthen our energy infrastructure,” Public Service Commission Chairwoman Audrey Zibelman said in a statement.
Constellation reached a settlement with the Federal Energy Regulatory Commission to pay $110 million in civil penalties on the grounds that it manipulated the wholesale energy sales in three regional markets, including New York. The federal agency determined that $78 million would be used within the wholesale electricity market of the New York Independent System Operator to benefit electric energy consumers.
The Federal Energy Regulatory Commission approved New York’s proposal on how to use the $78 million — $48 million would go to electric consumers, $10 million would be used to establish a fund to support consumer advocacy in the New York Independent System Operator and $20 million for a program to promote advanced technologies that will optimize transition system performance.
These are the amounts of settlement funds that investor-owned utilities will refund to their customers:
— Central Hudson Gas & Electric will refund $1.6 million;
— Consolidated Edison Co. of New York will credit $15.1 million;
— National Grid upstate will refund $10.4 million;
— New York State Electric and Gas Corp. will credit $4.8 million;
— Rochester Gas and Electric will credit 2.3 million;
— Orange and Rockland Utilities Inc. will refund $1.4 million.
The Long Island Power Authority will refund $6.4 million and the New York Power Authority will credit $5.9 million.