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

J. Issue: Additional RSR Adjustment
Public Comments:
NYAPP asserts that NYPA underestimated the ancillary services credit to the
RSR by nearly $36 million over the four-year period covered by the last rate case
proceeding (2003-2006 Rate Years). NYAPP bases its claim on NYPA’s
summer on-peak average capacity sales of regulation and operating reserves for
each of those years, and seeks to adjust the share of Hydro Project generation
that is used to produce those services, and claims a corresponding RSR credit.
(Russell at 39).
Staff Analysis:
NYAPP’s proposed RSR credit must be rejected. As noted in Authority staff’s
analysis of Issue B, above, NYAPP’s members have previously agreed through
settlements that they would not object to Authority’s continuation of the existing
crediting mechanism for ancillary services sales in future rate cases. NYAPP’s
comments seeking this RSR adjustment would run contrary to the existing
methodology and completely ignore NYPA’s existing method of crediting the CoS
based on the cost of ancillary services needs of NYPA’s contract customers.
NYAPP has in essence requested a methodology that provides a larger credit
than it has previously agreed to. Further, NYAPP has not stated that the
Authority has abandoned making the ancillary services credits that it has
previously provided. In fact, such credits are substantial and NYPA seeks to
continue them here.
Recommendation:
Because this request is contrary to the existing methodologies agreed to by the
Public Customers and NYPA, staff does not recommend any change to the RSR
for additional service credits for the period 2003-2006.
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