New York Power Authority to
Suspend North Country Lost-Energy Charges Pending Investigation
March 17, 2008
FOR IMMEDIATE RELEASE
WHITE PLAINS —The New York Power Authority
(NYPA) has notified the Lake Placid and Tupper Lake municipal
electric systems that it will temporarily suspend passing through a
monthly energy services charge on utility bills as it works with
industry and regulatory organizations to mitigate this cost.
The charge, which is passed along from the New York
Independent System Operator (NYISO), represents the difference
between power generated for a particular area and what is recorded
by customer meters. It is referred to as the lost-energy, or
“The Power Authority values its relationship with
the Lake Placid and Tupper Lake systems, which are among the state’s
51 municipal electric systems and rural cooperatives benefiting from
the low-cost hydropower from our Niagara Power Project,” said Roger
B. Kelley, NYPA president and chief executive officer. “We’re going
to do our best to work with all concerned parties to investigate the
root causes of the unaccounted-for-energy charges the two systems
The Lake Placid and Tupper Lake systems experience
an unusually wide disparity between generation and metering data,
resulting in unusually high costs billed to them earlier this year.
NYPA, on behalf of the two customers, will work
with the NYISO, the New York State Public Service Commission and
National Grid for a permanent solution.
During the interim period, the Power Authority will
suspend passing along the unaccounted-for-energy charge to Lake
Placid and Tupper Lake through June of this year. Amounts paid in
January will be credited on the systems’ February bills.
NYPA decided to undertake these measures to ease
the burden that the most recent cost levels would otherwise place on
the two systems.
■ NYPA uses no tax money or
state credit. It finances its operations through the sale of
bonds and revenues earned in large part through sales of
electricity. ■ NYPA is a leader in promoting
energy-efficiency, new energy technologies and electric
transportation initiatives. ■ It is the
nation’s largest state-owned electric utility, with 18 generating
facilities in various parts of the state and more than 1,400
circuit-miles of transmission lines.
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