LPA-02-15-00006-P Provisions of LIPA's Tariff for Adjustment to Rates and Changes of Service Classifications

1/14/15 N.Y. St. Reg. LPA-02-15-00006-P

NEW YORK STATE REGISTER

VOLUME XXXVII, ISSUE 02

January 14, 2015

RULE MAKING ACTIVITIES

LONG ISLAND POWER AUTHORITY

PROPOSED RULE MAKING

HEARING(S) SCHEDULED

 

I.D No. LPA-02-15-00006-P

Provisions of LIPA's Tariff for Adjustment to Rates and Changes of Service Classifications

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

The Long Island Power Authority ("LIPA") is considering a proposal to modify its Tariff for Electric Service ("Tariff") to update delivery charges, authorize reconciliation of energy efficiency revenues, and introduce a revenue decoupling mechanism.

Statutory authority:

Public Authorities Law, section 1020-f(z) and (u)

Subject:

Provisions of LIPA's Tariff for adjustment to rates and changes of service classifications.

Purpose:

To modify and add to the Tariff in order to implement revenue-neutral changes required to maintain the 3-year LIPA rate freeze.

Public hearing(s) will be held at:

10:00 a.m., March 4, 2015 at H. Lee Dennison Bldg., 100 Veterans Memorial Hwy., Hauppauge, NY; and 2:00 p.m., March 4, 2015 at 333 Earle Ovington Blvd., 4th Fl., Uniondale, NY.

Interpreter Service:

Interpreter services will be made available to hearing impaired persons, at no charge, upon written request submitted within reasonable time prior to the scheduled public hearing. The written request must be addressed to the agency representative designated in the paragraph below.

Accessibility:

All public hearings have been scheduled at places reasonably accessible to persons with a mobility impairment.

Substance of proposed rule:

The Long Island Power Authority (“the Authority”) Staff proposes to modify the Tariff for Electric Service (“Tariff”) effective April 1, 2015 to: (1) update Delivery Charges consistent with the approved LIPA budget for 2015; (2) authorize the reconciliation of revenue to be recovered through the Energy Efficiency Cost Recovery Rate; and (3) introduce a Revenue Decoupling Mechanism.

The approved LIPA budget for 2015 incorporates a level of revenues that assumes no increase in rates, other than changes to the Power Supply Charge (also known as the Fuel and Purchased Power Cost Adjustment). As presented in the budget, however, a number of revenue-neutral changes are required to extend the rate freeze for 2015, align the components of the rates with their underlying costs, and bring the Tariff more into line with Public Service Commission policies for the regulated, investor-owned utilities. These proposed changes will not materially change the rates paid by customers in the aggregate for delivery service. The Power Supply Charge will continue to fluctuate with market conditions.

Text of proposed rule and any required statements and analyses may be obtained from:

Justin Bell, Long Island Power Authority, 333 Earle Ovington Blvd., Suite 403, Uniondale, NY 11553, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

Five days after the last scheduled public hearing.

Regulatory Impact Statement, Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement

Statements and analyses are not submitted with this notice because the proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.