PSC-33-09-00013-P The Financing and Lightened Regulation of Electric Operations

8/19/09 N.Y. St. Reg. PSC-33-09-00013-P

NEW YORK STATE REGISTER

VOLUME XXXI, ISSUE 33

August 19, 2009

RULE MAKING ACTIVITIES

PUBLIC SERVICE COMMISSION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. PSC-33-09-00013-P

The Financing and Lightened Regulation of Electric Operations

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 a petition dated August 4, 2009 from Stephentown Regulation Services LLC requesting financing approval and that the electric operations of its 20 MW energy storage facility in Stephentown, NY be subject to lighted regulation.

Statutory authority:

Public Service Law, sections 2(13), 5(1)(b), 64, 65, 66, 67, 68, 69, 69-a, 70, 71, 72, 72-a, 75, 105, 106, 107, 108, 109, 110, 111, 112, 113, 114, 114-a, 115, 117, 118, 119-b and 119-c

Subject:

The financing and lightened regulation of electric operations.

Purpose:

To protect the financial interests of ratepayers and to ensure safe and adequate electric service.

Substance of proposed rule:

The Public Service Commission is considering whether to adopt, modify, or reject, in whole or in part, the relief proposed in a petition received August 4, 2009 from Stephentown Regulation Services LLC requesting (a) financing approval pursuant to Section 69 of the Public Service Law; and (b) a declaration that Stephentown Regulation Services LLC and its proposed electric energy storage facility is subject to a lightened regulatory regime.

Stephentown Regulation Services LLC is seeking approval to finance amounts up to approximately $69.3 million for the development, construction and start-up of a 20-megawatt energy storage facility and related facilities to be located in the Town of Stephentown, County of Rensselaer, State of New York. As proposed, the financing would consist of a loan from the Federal Financing Bank of approximately $43 million to be guaranteed by the U. S. Department of Energy, and an equity commitment of approximately $26 million to be funded through grants (including one sponsored by the New York State Energy Research and Development Authority for up to approximately $2 million), private investments, inter-company financings, and public offerings.

Regarding the requested declaration, Stephentown Regulation Services LLC states that it serves no retail customers and will operate solely in the wholesale competitive market and as such should only be required to comply with those statutory and regulatory provisions that pertain to wholesale generators.

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.state.ny.us/f96dir.htm. For questions, contact:

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

Data, views or arguments may be submitted to:

Jaclyn A. Brilling, 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.

(09-E-0592SP1)