Minutes of the Annual Meeting of the Power - New York Power ...

Part I: Introduction.............................................................................................1
A. January 2007 Proposed Rulemaking........................................................1
B. Public Comment Period.............................................................................3
C. Summary of Proposed Final Rates ...........................................................5
Part II: Public Comments, Staff Analysis and Recommendations.................7
A. Issue: Prudency of Authority’s Niagara Project Upgrade Costs and
their Inclusion in Preference Power Rates……………………………. ............7
Public Comments: ........................................................................................7
Staff Analysis:...............................................................................................8
1. The Niagara Project Upgrade was Prudent and Necessary to ...........
Assure the Continued Viability of the Project…………... .......................9
2. Based on its Flawed Analysis of Niagara Project Capacity,
NYAPP Mistakenly Asserts that the Niagara Project Upgrade was
Imprudent…………………………………………………….. .......................12
Recommendation:.......................................................................................14
B. Issue: Increased “Cost-Based” Credit for Ancillary Services
Production......................................................................................................15
Public Comments: ......................................................................................15
Staff Analysis:.............................................................................................16
1. The Authority’s Proposed Cost-Based Credit is Consistent with .....
the 2003 Rate Plan, and Based on Principles Agreed to by the
Customers. …………………………………………………………................16
2. Contrary to NYAPP’s Assertions, the Authority’s Sales of
Ancillary Services into the NYISO Do Not Represent Additional
Firm Capacity............................................................................................18
Recommendation:.......................................................................................19
C. Issue: Inflation Compensation Adjustment...........................................20
Public Comments: ......................................................................................20
Staff Analysis:.............................................................................................20
Recommendation:.......................................................................................20
D. Issue: UCAP Sales Credit .......................................................................21
Public Comments: ......................................................................................21
Staff Analysis:.............................................................................................21
Recommendation:.......................................................................................22
E. Issue: Request for CoS Credit for Hydroelectric Energy Sales into
NYISO Markets………………………………………………………. ..................23
Public Comments: ......................................................................................23
Staff Analysis:.............................................................................................23
Recommendation:.......................................................................................23
F. Issue: Request for CoS Credit for Authority’s Investment Income. ....24
Public Comments: ......................................................................................24
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