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

E. Issue: Request for CoS Credit for Hydroelectric Energy Sales into
NYISO Markets.
Public Comments:
The Neighboring States assert that the cost-based credit they receive for all
sales of energy made into the NYISO, through an annual reconciliation to the
RSR, is insufficient because it does not give them a share of price at which
NYPA sells its Hydro Project energy is into the NYISO markets. (NS Comments
§1). The Neighboring States request an over $4 million adjustment to the CoS
based on this argument.
Staff Analysis:
Staff notes that the Neighboring States’ argument is a collateral attack on Auer
Settlement principles, which all of the customers have accepted as direct
signatories or through their power contracts. Thus, there is no adjustment
warranted. To repeat our previous explanation made in the context of the
requested increased cost-based credit for ancillary services production, once the
customers have received a cost-based credit for sales into the NYISO, the
customers have no entitlement to the revenues of the Hydro Projects due to
energy sales into the NYISO because once the cost-based rate is set, any
revenues above cost garnered from other sales may be deposited into the
general fund of the Authority and such excess revenues should not be used to
produce preference rates that are below cost.
Recommendation:
Because this claim is foreclosed by the Auer Settlement principles, Staff
recommends no CoS adjustment based on the NS Customers’ claim.
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