New York Codes, Rules and Regulations › Title 21 - Miscellaneous › Chapter X - Power Authority Of The State Of New York › Part 452 - Resale Rates-municipalities And Cooperatives › Section 452.1 - Policy

Current through Register Vol. 46, No. 28, July 10, 2024
Resale rates of municipalities and cooperatives purchasing
				  power from Power Authority of the State of New York shall be established and
				  revised from time to time in accordance with the following:
"The Power Authority Act (New York Public Authorities Law,
				  §§1001 to 1015) requires that power and energy from authority's
				  projects be supplied to domestic and rural consumers at the lowest possible
				  rates and that the rates, services and practices of purchasing, transmitting
				  and distributing public agencies or companies in respect to the power generated
				  shall be governed by the provisions and principles established in the contracts
				  made by authority with such agencies or companies and not by regulations of the
				  Public Service Commission or by general principles of Public Service Law
				  regulating rates, services and practices. "
"It further provides for full and complete disclosure to
				  authority of all factors of cost in the transmission and distribution of power,
				  so that rates to consumers may be fixed initially in its contracts and may be
				  adjusted from time to time on the basis of true cost data, provided that in
				  fixing such cost of transmission and distribution no account shall be given to
				  any franchise value, going value or goodwill based upon the existence of the
				  contract and the availability of the power for sale by the transmitting or
				  distributing company or any company associated therewith. "
"The act also provides for periodic revisions of the service
				  and rates to consumers on the basis of accurate cost data obtained by such
				  accounting methods and systems as shall be approved by authority and in
				  furtherance and effectuation of the marketing policy provided for in the
				  act."
"In establishing rates the purchaser shall not be entitled to
				  any profit on the sale of the power and energy purchased from authority, but a
				  reasonable return shall be allowed in an amount to be approved by authority on
				  the purchaser's investment in distribution and other facilities. There shall
				  also be allowed, in lieu of taxes, an amount to be approved by authority for
				  payment into the general fund of the purchaser which shall not exceed a maximum
				  amount to be calculated by applying the prevailing property tax rates to the
				  depreciated original cost of the purchaser's tangible property which is used in
				  the generation, transmission and distribution of electric power and energy. The
				  purchaser shall keep its books, accounts and records pertaining to the
				  generation, purchase, distribution or sale of power according to procedures to
				  be approved by authority, and all funds received, used and expended in
				  connection therewith shall be kept separate from other funds of the purchaser.
				  Nothing herein shall be construed to prevent the allowance, as an element of
				  cost, of payments made into reasonable and proper reserve funds established by
				  the purchaser and approved by authority."