In addition, the PSC approved Niagara Mohawk's rate design changes that resulted in increased bills for 40 percent of the residential customers, and did not give any significant protection to low-income customers. And, in the prior rate case, the PSC rejected PULP's proposal for low-income gas rates for customers eligible for the Home Energy Assistance program. The PSC has vast power to set just and reasonable rates. And, there is no requirement in law that there be a gas adjustment clause. In contrast, residential customers of Niagara Mohawk and other companies with gas adjustment clauses, however, continue to be vulnerable to price spikes, while the companies and the shareholders receive even more secure revenue streams from increased customer charges that will be collected even if sales decline in a warm winter.
Residential customers are able to request level billing plans to help budget their expenditures.
But sooner or later, the customer must pay the increase due to the gas adjustment clause, and will need to pay up. Likewise, customers in arrears are entitled to deferred payment arrangements. For those on low limited incomes however, these solutions still result in hardship, termination threats, and are inadequate. This winter offers a quick lesson that the new competitive gas market can be very rough on customers at times, even if it is believed to be beneficial in the long run. Economists may say that the price spikes are signs of a healthy market and merely send better price signals to customers to pay up or turn the thermostat down.