RG&E allowed to modify gas rates By Todd  Grady Democrat and Chronicle (03/01/2001) -- Rochester Gas and Electric Corp. can proceed with plans to restructure its natural gas rates under a ruling yesterday by a member of the  state Public Service Commission. A PSC commissioner approved the proposal, which will be voted on formally by  the rest of the commission later this month. "We're pleased the commission has approved a plan that permits us to continue providing customers with stable gas delivery rates," said RG&E spokesman  Mike Power. The approval allows RG&E to increase its basic service charge from $6.90  to $12 a month beginning Sept. 1. Despite the increase, most of RG&E's 290,000 gas customers -- including  those who receive gas through alternative marketers such as Energetix Inc. --  will see a slight decrease in their bills because the restructuring also calls for the company to reduce its delivery rate. The average residential customer's bill will go down about 1 percent under the restructuring, which will be in  effect through June 2002. The approximately 40,000 customers who use the least amount of gas will see an increase because of the higher basic charge. As a result of the new delivery rate, RG&E's revenue from natural gas  delivery will fall by about $3 million. The rate is retroactive to July, so residential customers will receive a one-time credit on their March bills -- about $7 for the average customer who  uses about 120 therms per month. Customers who buy their gas from alternative suppliers such as Energetix are  also eligible for the credit, RG&E said. The PSC's order requires RG&E to freeze the basic service charge for low-income customers who use gas for cooking or purposes other than heating, and who qualify for aid under the federally funded Home Energy Assistance Program. Power said it is still unclear how many customers will be affected by the  provision. RG&E also will reduce low-income customers' bills by $20 per month,  forgive $250 in past-due charges per year and make grants available for home energy-saving actions. All customers will get new bills in September that list both the cost of the gas and the delivery rate. Jon Sorensen, spokesman for the state Consumer Protection Board, which had  opposed RG&E's proposal, said the PSC's order dealing with low-income customers now makes the plan acceptable. "Initially we had concerns," Sorensen said. "In the end, we're with them."