PSC-07-13-00017-P The Modification of a Prior Order Concerning the Treatment of Funds Received from a Third Party

2/13/13 N.Y. St. Reg. PSC-07-13-00017-P

NEW YORK STATE REGISTER

VOLUME XXXV, ISSUE 07

February 13, 2013

RULE MAKING ACTIVITIES

PUBLIC SERVICE COMMISSION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. PSC-07-13-00017-P

The Modification of a Prior Order Concerning the Treatment of Funds Received from a Third Party

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

Proposed Action:

The Commission is considering whether to modify a prior order requiring The Chaffee Water Works Company to turn over to ratepayers money received from an outside source to instead require the money to be used to reduce the principle of a loan from the EFC.

Statutory authority:

Public Service Law, section 89-c

Subject:

The modification of a prior order concerning the treatment of funds received from a third party.

Purpose:

To decide whether to modify a prior order concerning the treatment of funds received from a third party.

Substance of proposed rule:

On October 14, 2010, the Public Service Commission (Commission) issued an order establishing rates for The Chaffee Water Works Company (Chaffee). The order also addressed the treatment of funds Chaffee would be receiving from Gernatt Asphalt Products Inc. (Gernatt) as part of Gernatt’s operation of a quarry near Chaffee’s property. The order required Chaffee to use the funds to reimburse its ratepayers for a surcharge used to repay a loan from the Environmental Facilities Corporation (EFC), which was used to reconstruct Chaffee’s water system. Chaffee was to collect the surcharge from ratepayers on a quarterly basis and then refund the surcharge amount at the end of the year.

EFC has informed Department of Public Service Staff that this arrangement violates the financing agreement between EFC and Chaffee. Under that agreement, Chaffee is required to turn over all third-party funds, such as the Gernatt money, to EFC to reduce the loan principal.

The Commission is considering whether to modify its 2010 order to require Chaffee to comply with its financing agreement with EFC.

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:

Deborah Swatling, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Jeffrey C. Cohen, Acting Secretary, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, [phone], email: [e-mail]

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.

(08-W-1407SP2)