Printer Friendly

NEW YORK POWER AUTHORITY PROPOSES RATE INCREASE

 NEW YORK POWER AUTHORITY PROPOSES RATE INCREASE
 NEW YORK, Jan. 27 /PRNewswire/ -- New York Power Authority trustees


Monday proposed increasing the rates for hydroelectric power used by residential and farm customers to bring them in line with production costs over a four-year period.
 The production charge for electricity produced at the Power Authority's St. Lawrence-Franklin D. Roosevelt Power Project in Massena and Niagara Power Project near Niagara Falls would remain among the lowest in the country, rising from just over one-half cent per kilowatt hour (kwh) to slightly less than eight-tenths of one cent per kwh in 1995.
 The trustees authorized scheduling a public forum on the proposal and will consider public comments before taking final action. The new rates would enable the Power Authority, a non-profit agency, to recover its operating and capital-related costs for producing the power.
 The increase would take effect May 1 for all customers of New York State's 51 municipal electric systems and rural cooperatives, residential and farm customers of three upstate private utilities, customers served by municipal distribution agencies and consumers in seven neighboring states. Also affected would be the Metropolitan Transportation Authority in New York City and the Niagara Frontier Transportation Authority.
 Following are the expected increases in the delivered cost of electricity for typical customers:
 Annual Increase
 In
 Monthly Bill Percent
 Typical Residential Customer of:
 Niagara Mohawk Power Corp. 8 cents 0.1
 New York State Electric & Gas Corp. 14 cents 0.2
 Rochester Gas and Electric Corp. 16 cents 0.2
 New York municipal system or cooperative 60 cents 1.7
 The increase is greater for municipal system or cooperative customers because they use more Power Authority hydropower.
 Increases would vary for consumers in neighboring states, but would be minimal. Public agencies in Connecticut, Massachusetts, New Jersey, Ohio, Pennsylvania, Rhode Island and Vermont receive some hydropower under federal mandates.
 The hydro production cost is one part of an individual's bill. Charges for electricity from other sources, transmission costs and charges by the local private utility or public system for distribution, administration and other services are the major components of the total bill.
 Under the proposed new rates, hydro production charges would increase by 10.1 percent annually over the phase-in period, after which rates are expected to match Power Authority costs.
 The final step in a five-year increase averaging 7.6 percent annually took effect May 1, 1991. That increase -- the first for residential hydropower since the Power Authority projects began operating in the late 1950s and early 1960s -- also was designed to bring revenues in line with costs. However, operations costs increased more than had been projected, leaving current rates short of full recovery.
 About 60 percent of the newly proposed rate increase is needed to meet expected cost increases over the next four years. The remainder would compensate for the greater-than-expected escalation in costs over the past five years.
 A "rate stabilization reserve," which prevents dramatic rate changes that otherwise could be caused by large fluctuations in river flows, will remain in effect. It permits customer credits for revenues resulting from extended periods of high river flows and also provides for surcharges to recover revenue shortfalls caused by flows that are substantially below normal.
 Before the previous phased-in increase, the Power Authority had reduced the rates twice, in 1983 and 1986.
 -0- 1/27/92
 /CONTACT: Stephen Shoenholz of the New York Power Authority, 212-468-6313/ CO: New York Power Authority ST: New York IN: UTI SU:


JT -- NY065 -- 3759 01/27/92 12:42 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 27, 1992
Words:586
Previous Article:POPE & TALBOT REPORTS RESULTS FOR FOURTH QUARTER, FULL YEAR 1991
Next Article:CHRYSLER CORPORATION ORDERS AND INSTALLS A CRAY Y-MP 8I SYSTEM
Topics:


Related Articles
POWER AUTHORITY HOLDS FORUM ON REPLACEMENT POWER RATES
KISSIMMEE UTILITY AUTHORITY, FLA. REVENUE BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
CON ED $1.7 BILLION 'AA' FIRST & REFUNDING MORTGAGE BONDS AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --
POWER AUTHORITY TO HOLD PUBLIC FORUM ON RATES
NEW YORK POWER AUTHORITY CHAIRMAN ANNOUNCES TERMINATION OF QUEBEC PACT
NEW POWER AUTHORITY ALLOCATIONS LINKED TO 6,800 MANUFACTURING JOBS IN STATE
CON EDISON SEEKS 2 PERCENT ELECTRIC RATE INCREASE IN 1994
NYPA TRUSTEES VOTE TO CANCEL CONTRACT WITH HYDRO-QUEBEC
N.Y. PSC ACTIONS APPEAR POSITIVE FOR NIMO, NYSEG, FITCH SAYS
POWER AUTHORITY TRUSTEES APPROVE MORE 'HELP' FUNDING

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters