Allegany owners hail FERC decision ratifying plant's qualifying facility status.KINGSTON, N.Y.--(BUSINESS WIRE)--Nov. 29, 1995--The Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. ("FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability ") today reaffirmed the Qualifying Facility ("QF") status of the 55 Megawatt cogeneration facility in the Town of Hume, New York Hume is a town in Allegany County, New York, United States. The population was 1,987 at the 2000 census. The Town of Hume is on the northern border of Allegany County. History Roger Mills, the first settler, arrived in 1806. , owned by Kamine/Besicorp Allegany L.P. ("Allegany"). The FERC, in granting a limited waiver of the Commission's operating and efficiency standards, reaffirmed that Allegany has been and continues to be a QF under the federal Public Utilities Regulatory Policies Act ("PURPA PURPA Public Utility Regulatory Policy Act of 1978 ") laws. The plant's QF status has been continually attacked by Rochester Gas & Electric Corporation ("RG&E"), as RG&E attempts to abrogate abrogate v. to annul or repeal a law or pass legislation that contradicts the prior law. Abrogate also applies to revoking or withdrawing conditions of a contract. (See: repeal) its 25-year Power Purchase Agreement ("PPA PPA 1. Palpation, Percussion & Ausculation 2. Pittsburgh pneumonia agent 3. Postpartum amenorrhea 4. Price per accession 5. Pure pulmonary atresia ") with Allegany. The FERC found that Allegany's requested waiver was consistent with PURPA's goal of encouraging cogeneration and alternative generation technologies. Cogeneration is the simultaneous production of two forms of energy from one fuel source and Allegany is the only natural gas-fired plant in RG&E's service territory. "We are gratified that FERC reaffirmed its commitment to clean, high-efficiency cogeneration facilities such as Allegany," said Michael F. Zinn, president of Besicorp Group Inc. (AMEX AMEX See: American Stock Exchange Emerging Company marketplace - BGI.EC), a 50 percent owner of the Allegany project. "While we awaited this decision, RG&E continued its attempts to destroy Allegany's business, including refusing to take power and denying back-up power in violation of federal law. Also, RG&E has been attempting to litigate Allegany to death by making unsubstantiated contract claims requiring expensive legal proceedings. Unfortunately, as a result of RG&E's pressure tactics, Allegany was forced to file for Chapter 11 protection in Bankruptcy Court for the District of New Jersey. "Now we will proceed with litigating the remaining contract disputes. We are confident RG&E will be forced to honor its contractual obligations," Zinn said. CONTACT: Besicorp Group Inc., Kingston Michael F. Zinn or Patrice Courtney, 914/336-7700 |
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