PSC-06-16-00013-P Continued Deferral of Approximately $16,000,000 in Site Investigation and Remediation Costs  

  • 2/10/16 N.Y. St. Reg. PSC-06-16-00013-P
    NEW YORK STATE REGISTER
    VOLUME XXXVIII, ISSUE 6
    February 10, 2016
    RULE MAKING ACTIVITIES
    PUBLIC SERVICE COMMISSION
    PROPOSED RULE MAKING
    NO HEARING(S) SCHEDULED
     
    I.D No. PSC-06-16-00013-P
    Continued Deferral of Approximately $16,000,000 in Site Investigation and Remediation Costs
    PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
    Proposed Action:
    The Public Service Commission is considering a report filed by Orange and Rockland Utilities, Inc. regarding continued deferral of approximately $16,000,000 in site investigation and remediation costs.
    Statutory authority:
    Public Service Law, sections 65 and 66
    Subject:
    Continued deferral of approximately $16,000,000 in site investigation and remediation costs.
    Purpose:
    To consider the continued deferral of approximately $16,000,000 in site investigation and remediation costs.
    Substance of proposed rule:
    The Public Service Commission (Commission) is considering the report filed by Orange and Rockland Utilities, Inc. (O&R) on December 15, 2015. The report provides O&R’s explanation of recently concluded litigation with Travelers Indemnity Co. (Travelers) regarding O&R’s claims for insurance recovery related to site investigation and remediation (SIR) of pollution from manufactured gas plant sites. In the report, O&R asserts that it should not be penalized for the outcome of the litigation, which forecloses O&R from recovering a maximum of $16,000,000 in SIR costs from Travelers. The report was filed in response to the Commission’s Order Adopting Terms of Joint Proposal and Establishing Electric and Gas Rate Plans, issued on October 16, 2015 in Cases 14-E-0493 and 14-G-0494, in which the Commission stated that “continued deferral of the SIR costs should only be allowed for a limited time to allow O&R “to make a filing, by December 15, 2015, explaining why the SIR costs that were the subject of the litigation over insurance coverage should be recovered through rates.” The Commission may adopt, reject or modify, in whole or in part, the proposal by O&R, that O&R’s SIR deferral balance continue to include rate recovery of the approximately $16,000,000, or may reduce O&R’s SIR deferral balance by all or a portion of the approximately $16,000,000 that was the subject of the litigation with Travelers. The Commission may also resolve related matters.
    Text of proposed rule and any required statements and analyses may be obtained by filing a Document Request Form (F-96) located on our website http://www.dps.ny.gov/f96dir.htm. For questions, contact:
    John Pitucci, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 486-2655, email: john.pitucci@dps.ny.gov
    Data, views or arguments may be submitted to:
    Kathleen H. Burgess, Secretary, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 474-6530, email: secretary@dps.ny.gov
    Public comment will be received until:
    45 days after publication of this notice.
    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.
    (14-E-0493SP2)

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