July (pdf) - New York Power Authority

approved to receive Awards, with total payments to date amounting to approximately $5.8 million. Two
of these customers are approved to receive Awards for longer terms extending through December 31,
2016 and December 31, 2029, respectively.
The Authority has also contracted for the sale of up to 61.4 MW of Industrial Power to MUSAs, not
all of which is presently allocated, located in the service territories served by Con Edison, LIPA, Orange &
Rockland Utilities, Inc. (‘‘Orange & Rockland’’), and Central Hudson Gas & Electric Corporation
(‘‘Central Hudson’’), for resale to business customers approved by the Authority. A total of 7.4 MW is being
sold to the County of Westchester Public Utility Service Agency (‘‘COWPUSA’’) for resale to seven
such customers, and 45.6 MW has been made available to the New York City Public Utility Service Agency
for resale to ten such customers, of which 39.4 MW is currently being delivered. In addition, 4.7 MW of
such power is being made available to the Suffolk County Electrical Agency for resale to five customers, and
3.8 MW has been made available to the Nassau County Public Utility Agency for resale to four customers.
The Authority currently utilizes approximately 71 MW of purchased power and energy to meet the
needs of the Authority’s PFJ Program customers that are receiving power allocations rather than PFJ
Reimbursement payments (see ‘‘PART 2―POWER SALES―Marketing Issues and Developments—
Item (6)’’).
The Authority also sells incremental purchased power and energy at full cost to 12 of its 51 municipal
electric system and rural electric cooperative customers to meet their electric power requirements in excess of
their hydroelectric power allocations, which incremental power amounts during the peak winter months, in
the aggregate, to approximately 80 MW and during the off-peak summer period diminishes to about 33% of
the winter amount.
SENY Governmental Customers
The Authority supplies power and energy from acquisitions in the energy and capacity markets, as well
as from Authority sources, to the NYC Governmental Customers and the Westchester Governmental
Customers for use for education, public housing, street lighting, subways, airports, bridges and tunnels and
other public purposes. The contracts with such governmental bodies provide for firm power service under the
Authority’s applicable service tariffs and its rules and regulations for power service, as supplemented by long
term agreements with many of these customers (see ‘‘PART 2―POWER SALES―Marketing Issues and
Developments—Item (1)’’). The rates established vary from customer to customer in accordance with load
characteristics, and, in most cases, include both demand and energy rates. Authority power is delivered to
these customers over the transmission and distribution system of Con Edison. The Authority pays Con
Edison a delivery service charge to cover the cost of delivering this power to the point of use by the
customer, which cost is recovered by the Authority from the customer.
The Authority’s Ashokan and Kensico facilities and Small Hydroelectric Development Project No. 1 are
used to support service to SENY Governmental Customers under the arrangements discussed above.
To serve the NYC Governmental Customers, the Authority has as resources its existing generation,
including the 500-MW Plant (see ‘‘PART 2—THE AUTHORITY’S FACILITIES—Generation—500-MW
Combined-Cycle Electric-Generating Plant’’), the power and energy from the Astoria Energy II plant that
entered into service on July 1, 2011 for which it has a power supply contract, as well as market-based
purchases. See “PART 2―POWER SALES―Marketing Issues and Development—Item 8).” The
Authority anticipates that through these various sources it will be able to meet the power and energy needs
of such customers. See ‘‘PART 2—NEW YORK INDEPENDENT SYSTEM OPERATOR—Certain
Authority Plant Outage Risks’’ for a discussion of risks relating to outages at Authority units or nonperformance
of counterparties to energy supply contracts.
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