July (pdf) - New York Power Authority

transmission facilities tariff on file with FERC. In 1996 the Authority adopted an open access transmission
tariff.
In an order dated July 28, 1999, FERC approved the NYISO Open Access Transmission Tariff, the
NYISO Market Administration and Control Area Tariff (under which non-transmission services are
provided by the NYISO), and each of the related agreements submitted to it for approval in connection
with the formation of the NYISO. In an Order issued January 27, 1999, FERC approved the use of the
Authority’s present transmission system revenue requirement in developing the rates for service under the
NYISO tariff and declined to set the revenue requirement for hearing. Such action does not, however,
foreclose further review by FERC of any modifications of the Authority’s transmission system revenue
requirement.
FERC also approved, among other things, the imposition of the NYPA Transmission Adjustment
Charge (“NTAC”) and the NYPA Transmission Service Charges (the tariff elements for the recovery of
the Authority’s annual transmission revenue requirement), establishment of the NYISO and the Reliability
Council, the Reliability Rules, and the commencement of operations by the NYISO.
Transmission agreements between the IOUs, LIPA and the Authority and their customers in existence
remain in effect unless modified pursuant to Sections 205 or 206 of the Federal Power Act (‘‘FPA’’). The
IOUs have made Section 205 filings with respect to virtually all transmission agreements applicable to the
Authority and its customers. The Authority concurred in these filings, and they have been approved by
FERC. These customers, including customers of the Authority, have the right to elect to convert their
service to service under the NYISO Open Access Transmission Tariff. Should any of the Authority’s
customers choose to convert to service under the NYISO Open Access Transmission Tariff, the Authority
would fully collect the foregone Transmission Service Charge amounts under the NTAC provisions.
Cable Agreement
The Authority and LIPA are parties to the Sound Cable Facilities and Marketing Agreement (the
‘‘Cable Agreement’’), relating to the Authority’s Long Island Sound Cable (the ‘‘Cable’’) (see
‘‘PART 2—THE AUTHORITY’S FACILITIES—Transmission—Long Island Sound Cable’’), which was
executed for the purposes of providing lower cost energy from upstate New York and Canadian sources to
consumers on Long Island and of increasing the reliability of their electric supply by strengthening
interconnection capability between Long Island and the rest of New York State. The Cable Agreement
provides that LIPA will reimburse the Authority for the costs it incurs in connection with the Cable,
including but not limited to debt service, reserves, and operation and maintenance expenses, in return for
the use of the capacity of the project. LIPA was initially allocated the full capacity of the Cable and to the
extent that the Authority has allocated capacity to other parties, LIPA’s payment obligations are
proportionately reduced, with such other parties making payments pursuant to applicable rates. The
Authority has allocated capacity of the Cable to certain loads served by the Authority in LIPA’s service
territory when there has been insufficient capacity to serve such loads on another cable jointly owned by LIPA
and Con Edison.
ENERGY SERVICES
The Authority currently implements two main energy services programs, one for its SENY
governmental customers and the other for various other public entities throughout the State. Under these
programs, the Authority finances the installation of energy saving measures and equipment which are owned
by the customers and public entities upon their installation and which focus primarily on the reduction of
the demand for electricity and the efficient use of energy. The Authority has authorized as of June 30,
2011, the expenditure of an aggregate of $[3.3] billion on these programs, the funds for which are
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