LPA-07-15-00003-P Rates and Charges Set Forth in LIPA's Tariff for Electric Service

2/18/15 N.Y. St. Reg. LPA-07-15-00003-P

NEW YORK STATE REGISTER

VOLUME XXXVII, ISSUE 7

February 18, 2015

RULE MAKING ACTIVITIES

LONG ISLAND POWER AUTHORITY

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. LPA-07-15-00003-P

Rates and Charges Set Forth in LIPA's Tariff for Electric Service

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

Proposed Action:

The Authority is considering a proposal to adopt a 3-year rate plan prepared by PSEG-LI and the Authority's staff, subject to Department of Public Service review and recommendations, and consideration by the Authority's board of trustees.

Statutory authority:

Public Authorities Law, section 1020-f(u) and (z); Public Service Law, section 3-b(3)(a)

Subject:

Rates and charges set forth in LIPA's Tariff for Electric Service.

Purpose:

To set rates and charges at the lowest level consistent with sound fiscal and operating practices and safe and adequate service.

Substance of proposed rule:

The Long Island Power Authority (“the Authority”) is considering, pursuant to section 1020-f(u) of the New York Public Authorities Law (“PAL”), the adoption of a three-year rate plan (the “Rate Plan”), proposed by PSEG-LI and the staff of the Authority, for an increase in the rates and charges for the delivery of electric power at the lowest level consistent with sound fiscal and operating practices of the Authority and which provide for safe and adequate service. The Rate Plan proposes increases in delivery charges equal to approximately 2% per year of total electric rates (based on increases of approximately 3.9% per year of estimated annual delivery revenues) and various current cost recovery mechanisms.¹ The rate adjustments, which would not become effective until January 1, 2016, will follow a three-year freeze of delivery rates that began January 1, 2013. In addition, the Rate Plan proposes changes to the existing monthly service charge, low income rates, and back-up rates.²

Pursuant to section 1020-f(u) of PAL and section 3-b(3)(a) of the New York Public Service Law (“PSL”), the Department of Public Service (“DPS”) will review and make recommendations to the Authority’s board of trustees (the “Trustees”) respecting the Rate Plan. In undertaking such review and recommendations, DPS will provide for public statement and evidentiary hearings and participation of intervenors and other parties. PSL § 3-b.³ DPS is expected to make its recommendation by September 30, 2015. DPS may recommend that the Trustees adopt, in whole or in part, modify, or reject the terms set forth in the Rate Plan or in other proposals submitted by other parties or intervenors. Unless the Trustees determine that any particular recommendation made by DPS is inconsistent with the Authority’s sound fiscal operating practices, any existing contractual or operating obligations, or the provision of safe and adequate service, the Trustees will implement such recommendations as part of their final rate plan. PAL § 1020-f(u). If the Trustees make a preliminary determination of inconsistency with respect to any DPS recommendation, they will, upon due notice to DPS and the public, hold a public hearing with respect to such preliminary determination. Id. Within thirty days after such public hearing, the Trustees shall announce their final determination.

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¹ In a separate Notice of Proposed Rulemaking, published in the New York State Register on January 14, 2015 (I.D. No. LPA-02-15-00006-P), LIPA and PSEG-LI proposed several rate adjustment clauses so as to more closely align rates with the actual costs of operating LIPA’s system. In addition to these proposed rate adjustment clauses, LIPA’s tariff presently contains several adjustment clauses, including a fuel and purchased power adjustment clause and an energy efficiency adjustment clause, both of which will be continued.

² The full text of the Rate Plan and all related filings are available on the website of the Department of Public Service, under DPS Matter Number 15-00262.

³ Advance notice of public hearings and any deadlines for public comment will be posted on the websites of DPS and LIPA.

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

Justin H. 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:

Secretary to the Commission, Attn: DPS Matter No. 15-00262, New York State Public Service Commission, Empire State Plaza, Agency Building 3, Albany, NY 12223-1350, [phone], email: [e-mail]

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.