July (pdf) - New York Power Authority

NYC Governmental Customers. Pursuant to the 2005 Agreements, these customers are committed to pay
for any supply secured for them by the Authority which results from the collaborative process provided
for in the agreements, including the Astoria Energy II plant discussed in Item (8) below. Also, with the
NYC Governmental Customers’ guidance and approval, the Authority will continue to offer to these
customers at least an aggregate of $100 million annually in financing for energy efficiency projects and
initiatives at their facilities, with the costs of such projects to be recovered from them. Many of these projects
fall within the scope of the Authority’s existing energy services program (see ‘‘PART 2—ENERGY
SERVICES’’).
The revenues from the NYC Governmental Customers were approximately 51% and 47% of the
Authority’s 2010 and 2009 Operating Revenues (including wheeling charges), respectively.
The Authority’s other SENY Governmental Customers are Westchester County and numerous
municipalities, school districts, and other public agencies located in Westchester County (collectively, the
‘‘Westchester Governmental Customers’’). By early 2008, the Authority had entered into a new supplemental
electricity supply agreement with all of its Westchester Governmental Customers. Among other things, under
the new agreement, an energy charge adjustment mechanism is applicable, the Authority may modify the
rates charged the customer pursuant to a specified procedure, the customer is committed to pay for any
supply resources secured for it by the Authority under a specified collaborative process, and the Authority
will continue to make available financing for energy efficiency projects and initiatives, with the costs thereof to
be recovered from the customer. Under the agreement, customers are allowed to partially terminate service on
at least two months’ notice prior to the start of the NYISO capability periods and fully terminate service on at
least one year’s notice effective no sooner than January 1 following the one year notice.
The revenues from the Westchester Governmental Customers were approximately 3% of the
Authority’s 2010 and 2009 Operating Revenues (including wheeling charges).
(2) The Authority has existing power sales arrangements that contain certain pricing commitments
with approximately 75 business customers served under programs formerly supplied from the Authority’s
James A. Fitzpatrick Nuclear Power Plant that was sold in 2000. In some instances, these customers are served
directly by the Authority; in other cases, the customers receive Authority power through resale arrangements
with municipal distribution agencies or investor-owned utilities. These agreements allow customers to
purchase Authority power and energy for various periods of time, with the majority of the agreements
extending until at least June 30, 2012. All contractual pricing provisions with these customers (with the
exception of two customers) are in effect through June 30, 2012 and fall under the Energy Cost Savings
Benefits Program that is discussed in section 3(d) below pursuant to contract modifications and Authority
tariff provisions.
These agreements encompass approximately 388 MW of power and associated energy and accounted for
approximately 4% of the Authority’s 2010 and 2009 Operating Revenues (including wheeling charges).
(3) Legislation was enacted into law in July 2005 (Chapter 313 of the Laws of 2005) (the ‘‘2005 Act’’)
which amended the Act and the New York Economic Development Law (‘‘EDL’’) in regard to several of
the Authority’s economic development power programs and the creation of new Energy Cost Savings Benefits
to be provided to certain Authority customers. A summary of the 2005 Act and certain related legislation
enacted subsequently is set forth below.
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