Power Authority to
Revise Preference Power Rates
Contact
Jack Murphy
jack.murphy@nypa.gov
(914) 390-8198 or
Michael Saltzman
michael.saltzman@nypa.gov
(914) 390-8181
Printer-friendly version
April 29, 2003 FOR IMMEDIATE RELEASE
NEW YORK—New York Power Authority trustees Tuesday
approved revisions in preference power rates that reflect costs associated
with major life extension programs and relicensing efforts at the St.
Lawrence-Franklin D. Roosevelt and Niagara Power Projects as well as the
increased costs of producing electricity.
Preference electricity is sold at cost-based rates. It
is supplied to the state’s municipal and rural cooperative electric systems,
to out of state preference customers under federal law and license
requirements, and to three upstate private utilities for resale to their
rural and domestic customers without mark-up or profit, and to the
Metropolitan Transportation Authority and the Niagara Frontier
Transportation Authority.
The impact of the proposed adjustment will be an
increase in the monthly bill for a typical customer of a municipal or rural
cooperative electric system of less than 60 cents per month per year of the
four year increase. Typical residential and rural customers of Niagara
Mohawk Power Corp., Rochester Gas & Electric Co, and the New York State Gas
and Electric Co.—all of whom provide some preference power to their
customers—will experience an increase of about 12 cents per month per year
on their electric bills.
The trustees, meeting at Power Authority offices here,
adopted a five-phase rate adjustment. The first adjustment, a retroactive
modification covering Dec. 18, 2001 through April 30, 2003, is expected to
produce a refund of approximately $4.5 million. The next four phases,
beginning on May 31 of 2003, 2004, 2005 and 2006 will increase prices from
less than eight-tenths of a cent per kilowatt hour (kwh) to about
nine-tenths of a cent per kwh when the rate modification plan is fully
implemented by May 1, 2007.
The Power Authority, which last reviewed preference
power rates at the beginning of 1992, is in the midst of about $500 million
worth of renewal and life extension work at the two major hydroelectric
projects and also expects to spend almost $200 million through 2006 on
relicensing costs for the two projects. The life extension programs are
designed to keep the two power projects running consistently and efficiently
well into the future. The Power Authority has already requested a new
federal license for St. Lawrence-FDR to replace the current license which
expires later this year. It is in the process of developing a new license
application for the Niagara Project where the current license expires in
2007.
|