Another refund on the way for NYSEG customers

A close reading of the recently filed Energy East annual report indicates that NYSEG customers may be due $67 million in refunds.

Public Service Commission staff is alleging that the company failed to properly compute the amount due to customers in the "earnings sharing mechanism," essentially shortchanging customers on amounts on which they were to share. The issue may date back to as far as 2002.

"NYSEG vigorously disputes the staff's claim."

Here's an explanation of the earnings sharing mechanism as stated by NYSEG:

"Our individual company rate plans are a critical component of our success. While specific provisions may vary among our public utility subsidiaries, our overall strategy includes creating stable rate environments that allow those subsidiaries to earn a fair return while minimizing price increases and sharing achieved savings with customers. "

The amount of the refunds due to customers may be known later this year.