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New York Power Authority to Suspend North Country Lost-Energy Charges Pending Investigation

Michael Saltzman

March 17, 2008 


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 unaccounted-for-energy, charge.  

“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 are experiencing.” 

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.  

About NYPA:

■    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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