Customers Will Shoulder O&R Snow Expenses; Cost Could Exceed $15 Million

Although O&R Utilities has yet to determine the price tag for recovering from , officials are saying the storm was worse than —and Irene cost $15 million.

"We haven't even got the count down yet," explained Michael Donovan, O&R's public affairs officer. "We're still working on the Irene analysis. In the utilities world, the time between these two events is small."

Donovan did note that the October storm was markedly worse than Irene, and financial repercussions would likely follow suit. Irene left about 120,000 customers in the dark; last month's snow knocked out power to approximately 134,000, and was not restored to some homes .

One day before the snowstorm, O&R increased its rate request by $7.8 million due in part to storm damage from Hurricane Irene. In July 2011, the company filed a request with the PSC seeking approval of an electric base rate increase of $17.7 million.

When the time comes to cover the expenses, Donovan said customers will shoulder the cost through rate hikes, as stated in contracts. "How much rates would go up depends on how regulators choose to deal with costs," Donovan continued.

In order to mitigate the high price tag, O&R spreads out the costs over several years, Donovan added.

The high expense may not come as a surprise to Rocklanders who were around during the squall, which toppled trees and , closed roadways for days and required municipalities to far earlier than expected. Still, more than a few are angry with the protracted repairs, and are placing the blame on O&R.

In Ramapo, town supervisor Christopher St. Lawrence is calling for an investigating into the utilities company and their rate hikes. "As a result of Orange and Rockland’s lackluster effort to keep the public properly informed during a difficult and trying time for many families throughout the Town of Ramapo and Rockland County, thousands of people are being kept in the dark, both literally and figuratively," St. Lawrence officials.

Until his recommended investigation is carried out, St. Lawrence wants to suspend the rate increases. Clarkstown supervisor Alex Gromack echoed St. Lawrence, also blasted O&R.

Laureen Gallo, and Upper Nyack resident, was without heat for days following the storm. She and her family battled the cold by pulling on layers and blankets, and making use of the fireplace. "I'm [was not] able to get through to actual person at O&R," Gallo said. "[They] should be ashamed. They learned nothing from Irene."

--

Correction: an earlier version of this story had Mike Donovan saying O&R bills could increase three-percent as a result of storm damages. In fact, no percentage increase has been determined. We regret the error.