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

D. Issue: UCAP Sales Credit
Public Comments:
Neighboring States proposed that the Authority should include a credit for
anticipated UCAP sales in the proposed rates.
Staff Analysis:
Staff has been including and the customers have been receiving a credit for
short-term sales of capacity above the base level of capacity sales in the annual
RSR reconciliation. This calculation is performed after the actual amounts for the
year are known. A review of the monthly auction prices of rest of state capacity
for the past four years shows a fluctuation of prices between $0.25/kW-month to
$3.30/kW-month, as the table below shows:
NYISO Monthly Prices
Rest of State Capacity
3.50
3.00
2.50
$/kW-mo.
2.00
1.50
1.00
0.50
-
Aug-03
May-03
Nov-04
Nov-05
Aug-05
May-05
Feb-05
Feb-07
Nov-06
Aug-06
May-06
Feb-06
Aug-04
May-04
Feb-04
Nov-03
This price volatility, together with the natural uncertainty in the amount of excess
capacity available from the Hydro Projects, make forecasting a UCAP credit for
inclusion into current rates problematic.
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