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

of the data and issues involved in this proceeding, and also understands that
affected parties desire more time to review the data. However, staff received and
responded to 159 data requests and interrogatories during the review period,
providing considerable written responses, calculations and spreadsheets to the
customers. The precision of analysis in the data requests received and the
detailed analysis supporting the written comments are a clear indication that
there was adequate time for the customers to review the data responses and
interrogatories and examine the proposal in depth.
The key components of the proposed rate increase relate to the costs of
relicensing the Niagara Project which was approved by the FERC on March 15,
2007. These costs are real and indisputable. Any delay in implementation of the
proposed rates would allow the customers to enjoy the benefits of the Authority’s
relicensing efforts while deferring their obligation to pay the increased costs
associated with the new license. As an entity operating on a self-sustaining
basis with revenues derived from the sale of power, the Authority has an
obligation to recover all of its costs of the hydroelectric projects. Public
Authorities Law §1005(5). Adequate time has been provided to the customers to
explore the basis for the proposed increase and for those comments to be given
due consideration by the Trustees.
Recommendation:
The proposed rates should be implemented effective May 1, 2007, as proposed.
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