Updated 04/04/2011 04:43 PM
Con Ed, Local Congressional Delegation Opposed To Federal Utility Surcharge
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A federal ruling to grant a utility surcharge to power generators is drawing opposition from a growing list of federal lawmakers and even Consolidated Edison.
The Federal Energy Regulatory Commission ruling means New Yorkers could see an estimated 12 percent rate hike.
Even though the rate increase would show up on individual customers bills, Con Ed officials say the utility would not see a dime of the money. They would only be collecting it for power plants.
Members of New York's congressional delegation sent a letter to the chairman of the FERC urging him to reconsider, saying, "Electric reliability is important and providing adequate economic incentives for new electric generation when needed is also important. But, given the current and expected surplus of generation in New York City, higher capacity payments to generators are neither necessary nor justified."
For now the FERC has agreed to another hearing on the matter.
A majority vote on the five-member panel is needed to overturn the surcharge.
The rate hike was set to kick in on May 28.