Statement By Attorney General Spitzer Regarding The Nyseg Electric Rate Settlement

For the past several years I have been working to solve a number of the complex problems facing New York State's energy consumers. Today, I am announcing that I have endorsed a proposal being submitted to the New York State Public Service Commission that establishes electric rates for New York State Electric and Gas Company's consumers for the next five years.
If approved by the Commission, the proposed settlement will provide lower rates for NYSEG's electric service customers, by approximately 13 percent, beginning March 1, 2002, a total annual reduction of $205 million.
Another element of the proposal which I strongly support preserves customer choice. Customers will have the choice of buying power from electricity retailers competing with NYSEG or buying power from the company at a fixed or variable rate. This provides customers with the ability to benefit from the emerging competitive power market, or to avoid the uncertainty of a potentially volatile electric market by locking in prices.
It is my hope that this proposed agreement will help set a balanced tone and model for future settlements in which consumers and investors share in the benefits of a competitive electric industry.