1975-05-19
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RfCEfVED
MAY 1 9 1975
ELAINE H. S..lEI
CENTRAL HUDSON
GAS & ELECTRIC CORPORATION
353 MAIN STREET, BEACON, N. Y. 12508
896-6711
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May 19, 1975
RECEIVED
MAY 1411975
ELAINE H. SNOWDEN
Town of Wappinger
Wappingers Falls, New York 12590
Gentlemen:
The fuel cost incurred by Central Hudson to generate electricity
has increased nearly six-fold in the past year because of major increases
in the cost of residual oil used by the Company. The increased cost of
fuel related to the electric consumption of all residential, commercial and
industrial customers served under our filed rates has been recovered for the
past two years by application of a fuel cost adjustment charge to those
rates. The ra.tes charged by the Company for street lighting, however, are
not now subject to a fuel cost adjustment charge. At present fuel costs,
the Compa.ny is absorbing about $400,000 annually of fuel costs associated
with street lighting, while all other customers are paying the fuel adjust-
ment charge.
By filings of November 28, 1973 and February 19, 1974 with the
Public Service Commission of the state of New York, Central Hudson sought
permission to amend its electric rates to produce additional annual revenue
of $12,177,100, but proposed that no portion of the rate increase be as-
signed to street lighting customers. By its Order of November 22, 1974, the
Commission granted the proposed rate increase and accepted the Company's
proposal to assign no part of the increase to street lighting. The Commission
did direct, however, that a fuel cost adjustment clause be added to street
lighting contracts so as to eliminate the possibility that other ratepayers
may be subsidizing street lighting customers.
Accordingly, the enclosed contract amendments provide for the
application of a fuel cost adjustment clause to the electricity used for
street lighting in the following Street Lighting Districts effective
September 1, 1975.
Town of Wappinger - Hughsonville Lighting District
Town of Wappinger - Chelsea Lighting District
Town of Wappinger - General Town Charge
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Town of Wappinger
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May 19, 1975
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The effective date of the enclosed amendments is the anniversary
date of the subject contracts, as set forth in Section E. thereof, on which
date the contract is terminable by either party. The amendments are sub-
mitted to you in lieu of a notice of termination and submittal of entirely
new contracts, but this letter shall constitute such notice in the event
the proposed amendments are not accepted as of the anniversary date.
The proposed fUel cost adjustment applicable to street lighting
will be identical to that applicable to our filed rates except that the
adjustment will be determined from a base fUel cost of $.003 per kilowatt-
hour which is the amount of fUel cost included in present street light rates.
If you have any questions regarding the enclosed contract amend-
ments, please feel free to contact us. In view of the increasing costs of
energy faced by us and all of our customers, we sincerely hope that you will
act favorably on this amendment to street lighting contracts.
Yours very truly,
&r1' t:JJ
Customer Relations Manager
EVContejdm
Enclosures
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