|N.Y. Power Authority Trustees Reduce Electricity Supply Costs by Over $53 Million for New York City and Westchester Government Customers|
|New Rates to go into Effect in March|
|February 28, 2013|
|FOR IMMEDIATE RELEASE|
WHITE PLAINS—Municipalities, schools and public services in New York City and Westchester County will continue to benefit from lower electricity costs in 2013 stemming from rate actions by the New York Power Authority (NYPA) Board of Trustees on Tuesday that go into effect with the customers’ March bills. The trustees approved a decrease of $5.4 million, or 3.4 percent, in the fixed cost component of the production rates of the New York City government customers, which include the City of New York, the Metropolitan Transportation Authority, New York City Housing Authority, New York State Office of General Services and Port Authority of New York and New Jersey. When combined with a decrease in the variable cost component of these rates, the overall decrease will be 6.1 percent, or $52.5 million. The board also lowered the power rates of NYPA’s 103 Westchester government customers, including the county, municipalities, schools and housing authorities, by $1.14 million, or more than 3.2 percent. The New York Power Authority has a long and successful partnership with our New York City and Westchester government customers going back decades to lower the energy costs of their essential public facilities and services,” said John R. Koelmel, NYPA chairman. “This partnership is especially important today given the reduced financial circumstances that those customers have had to contend with from the struggling national economy. Under Governor Cuomo’s leadership, NYPA has intensified its efforts to squeeze the maximum amount of savings for our governmental customers.” NYPA meets the electricity needs of thousands of public facilities and services in New York City and Westchester in which the rates correspond with the costs of meeting their energy requirements. NYPA works with the government customers in arranging their power supplies from NYPA generating plants and economical power purchases from the wholesale energy market. NYPA generation, contracted generation and power purchases have saved the customers and taxpayers hundreds of millions of dollars a year on electric bills. The rate decrease for the New York City government customers emerged from a process that NYPA and the customers conduct annually for determining cost-of-service rates. This year’s decrease is due to several factors, including lower estimates for NYPA’s decommissioning, or dismantling, of a Queens generating plant that ceased electricity production in 2010, modifications to cost-recovery schedules for debt payments associated with meeting the customers’ electricity requirements, and expected lower cost of market energy purchases. The $1.14 million rate decrease for the Westchester government customers reflects projections for lower purchased power energy costs, primarily due to lower natural gas prices and decreased operations and maintenance costs. In addition to meeting the full electricity requirements of the New York City and Westchester government customers, NYPA partners with them on major energy efficiency and clean energy initiatives at the sites of their facilities to lower their electricity bills and operating costs. The improvements are provided for under Governor Cuomo’s “Build Smart NY” initiative, for which NYPA has been designated as the lead entity by the Governor, to reduce the energy-use intensity of state facilities by 20 percent by 2020. In 2012, NYPA completed energy efficiency projects in New York City and Westchester for an installed cost of more than $55 million and annual savings of $2.7 million. The upgrades will also reduce annual greenhouse gas emissions by 11,800 tons. -30- About NYPA: The New York Power Authority 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 has been designated as the lead entity via Executive Order 88 by Gov. Andrew M. Cuomo to form a central management and implementation plan to carry out his Build Smart NY plan to reduce energy use by state facilities by 20 percent by 2020. ■ NYPA is the nation's largest state public power organization, through the operation of its 16 generating facilities in various parts of New York State, participation in a unique public/private partnership to contract for power from a clean generating plant in Queens, and its operation of more than 1,400 circuit-miles of transmission lines. ■ More than 70 percent of the electricity NYPA produces is clean renewable hydropower. Its lower-cost power production and electricity purchases support hundreds of thousands of jobs throughout the state. ■ For more information, www.nypa.gov.
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