Two New York Public Service Commission administrative law judges (ALJs) have recommended that Niagara Mohawk Power Corp. (NMP) be allowed to increase its 1995 electric and gas rates by $57 million (1.9 percent) and $10.7 million (1.7 percent), respectively (Docket Nos. 94-E-0098, 94-E-0099, and 94-G-0100). The proposal contrasts sharply with the PSC's 1994 recommendation to cut NMP rates by 7.1 percent over five years. NMP had asked for a 1.8-percent hike in electric rates, and a 4.2-percent increase in gas rates. Despite the ALJs' recommendation, however, NMP expects 1995 electric revenues to decrease by $28 million (0.9 percent).
The ALJs proposed that NMP's electric revenue adjustment mechanism be discontinued in 1995, although the fuel-adjustment clause would be retained. They also recommended a return on equity of 11 percent. The PSC is only considering NMP's 1995 rate request at this point; the utility's rate plan for 1996 to 1999 will be examined separately. (em LB
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