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Revenue Decoupling

The Revenue Decoupling Adjustment (RDA) on your bill is not as intimidating as it sounds. Let us explain...

Revenue Decoupling is not unique to PSEG Long Island

Revenue Decoupling is used in many other states and has already been in use by every other major utility in New York State. The New York State Department of Public Service (DPS) recommended to LIPA that Revenue Decoupling be adopted here and it was approved by the LIPA Board of Trustees in 2015.

PSEG Long Island encourages you to use less of our product

Most companies collect revenue by getting you to buy as much of their products as they can. Every time you flip on your lights or the TV, you're buying our product - electricity. But one of our main goals is to help you use less electricity.

That creates an issue: selling less electricity creates less revenue. And without enough revenue, we would not be able to deliver reliable electric service and quality customer service for millions of people and thousands of companies from Queens to Montauk, 24 hours a day, 7 days a week.

The money that's required each year in order to provide our services to you is outlined in our annual budget. That budgeted revenue, which is authorized by LIPA, is then compared with the actual revenue collected from electric rates. The difference between actual revenues and budgeted revenues creates the Revenue Decoupling Adjustment.

Encouraging energy savings

By separating - or "decoupling" - rate revenue from the amount of energy used by customers, utility budgets are less dependent on selling energy. That removes a major obstacle that could otherwise stand in the way of supporting energy efficiency.

The RDA adjusts bills based on how actual revenue compares to budgeted revenue. Any excess revenue is refunded to customers as a credit adjustment. If revenue falls short, the RDA is a charge to ensure enough funds are available for us to continue to deliver reliable service.

The RDA does not increase our profits

PSEG Long Island earns money from a flat fee for managing the electric system. We do not earn even a penny from the RDA. Every dollar of revenue collected from electric rates is used to run the system and invest in reliability improvements.

You have the power to save

Rest assured that if the RDA is a charge, you still have an incentive to reduce your bill by using less electricity. Our responsibility is to provide programs and resources that make it easier for you to save energy and money. We encourage you to take advantage of these opportunities. Even simple changes in behavior like turning off the lights when you leave a room can save. Or explore our rebate programs that reduce the cost of energy efficient appliances and products.

FAQ

Delivery Service Adjustment (DSA)

This line item on the bill, which can be a credit returned to you or a charge, creates a better way to account for unpredictable costs that are part of providing you with electric service. The goal is long-term electric rate stability.

PSEG Long Island's annual budget is based on what we anticipate it will cost to provide you with safe, reliable and resilient energy, along with all of our other services. The budget includes a certain amount for things like storm repairs to poles and wires.

The Delivery Service Adjustment (DSA) reconciles the difference between some of our budgeted expenses and the actual cost. When costs are less than expected, like when storms haven't been so bad, the DSA is a credit to refund money to customers. When the unexpected happens and costs exceed the projected budget, like when there's a really bad storm, the DSA is applied to the bill as a charge to recover those costs.

Storm repairs are just one unpredictable cost. There are also costs related to borrowing money for electric system improvements. These costs have always been part of your electric bill. The DSA provides a new level of transparency and a better way of accounting for those costs.

Less unpredictability creates greater financial stability - and that pays off, for example, with better interest rates on loans.

FAQ

Rate Plan

On December 16, 2015, the Board of Trustees of the Long Island Power Authority (LIPA), approved modest increases to the electric delivery rates for 2016-2018 to fund vital electric grid improvements.

The approval from the Board follows an extensive review of the original proposal and subsequent recommendations on the proposed rates by the New York State Department of Public Service (DPS), informational forums and public statement hearings, a technical conference, board meetings and evidentiary hearings.

PSEG Long Island worked collaboratively with LIPA, whose new financial policies will help reduce the impact of the rate increase on customers. These policies, which lower the utility's reliance on borrowing and reduce the cost of debt, combined with lower fuel costs and purchased power costs, have utility officials expecting lower bills, for most customers, in 2016 as compared to 2015.

For the average residential customer, that translates to a very modest monthly increase in the total bill of $0.65 a month in 2016, $3.33 a month in 2017 and $3.41 a month in 2018.

The investments that PSEG Long Island has made are paying off:

Tree-trimming

Tree-related power outages are down 60 percent in areas where the new program has been implemented. In 2015, PSEG Long Island trimmed and pruned trees along 2,000 miles of distribution and transmission electric lines to industry best-practice clearance standards. Learn more about our tree trimming program.

Reliability

99.9 percent overall system reliability as a direct result of targeted replacement of transmission and distribution infrastructure, adding new technology to streamline work management processes, and incorporating more renewable energy and demand-side resources onto the grid. Learn more about reliability.

Storm Response

Enhancing the storm response program allowed PSEG Long Island to restore power to the more than 82,000 customers that lost power in a severe summer storm in fewer than three days, all while staying in regular contact with customers and elected officials. Visit our Outage Center.

Customer Satisfaction

9 of 10 customers are satisfied after calling PSEG Long Island's call center, indicating that the new call center initiatives, the new mobile My Account features and the new MyAlerts system are all helping customers. Learn more about customer service.

Growing the Long Island economy

PSEG Long Island supports more than 900 local companies by purchasing more than $120 million in goods and services each year. Learn more about our Economic Development.

FAQ