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

principles as well as the basis used to allocate other costs in the Cost-of-Service.
NYAPP offers no basis to support their contention that the Information
Technology projections are excessive.
Nonetheless, as a result of the filed comments, NYPA staff again reviewed the
manner in which actual costs are allocated to all of NYPA’s projects and facilities
and how those actual costs flow through to the annual RSR calculation. Certain
cost centers within the Headquarters departments are more correctly allocated
based on the functions they perform rather than a straight labor allocation. The
Energy Risk Assessment and Control, Energy Resource Management,
Marketing, Transmission and Corporate Finance functions were among those
reviewed. As a result of this analysis, and consistent with MEUA’s request, staff
has refined its treatment of these costs and recalculated the Headquarters
component of the Shared Services category. This results in a reduction in the
projections for the 2007 and 2008 rate years.
Recommendation:
Based on the analysis stated, Staff recommends reducing the Shared Services
by $3 million for 2007 and $2.9 million for 2008 to be reflected in the attached
revised Cost-of-Service.
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