New York State Public Service Commission Faces Opposition to Petition on R.E. Ginna Nuclear Power Plant Operation

Strategic Insights -

Multiple Intervenors, represented by Couch White, LLP, have filed a response in opposition to Rochester Gas and Electric Corporation's (RG&E) petition to implement a temporary surcharge on its customers in conjunction with the proceeding to examine a proposal for continued operation of the R.E. Ginna Nuclear Power Plant, LLC. The petition, filed on June 4, 2015, seeks to recover the costs of a Reliability Support Services Agreement (RSSA) between RG&E and R.E. Ginna Nuclear Power Plant, LLC, from electric customers.

Multiple Intervenors argue that the relief sought by RG&E should be denied in all respects, citing several reasons why implementing temporary rates is not necessary. Firstly, the proposed surcharge would impose material costs on customers before the amounts sought to be collected from RG&E even become due and owing to GNPP, which may never occur. Secondly, RG&E's claims of rate compression are without basis in fact, and any retroactive payments by RG&E to GNPP would not cause rate compression due to the existence of substantial customer credits. In fact, RG&E currently owes customers over $155 million, which dwarfs the proposed RSSA costs of "nearly $25 million." Furthermore, the Commission has already authorized the use of available credits to pay RSSA costs recoverable from customers, rendering RG&E's request unnecessary and contrary to the public interest.

Key Takeaways:

  • Multiple Intervenors, represented by Couch White, LLP, have opposed RG&E's petition to implement a temporary surcharge on its customers, citing several reasons why it is not necessary.
  • The proposed surcharge would impose material costs on customers before the amounts sought to be collected from RG&E even become due and owing to GNPP, which may never occur.
  • RG&E's claims of rate compression are without basis in fact, and any retroactive payments by RG&E to GNPP would not cause rate compression due to the existence of substantial customer credits.
  • RG&E currently owes customers over $155 million, which dwarfs the proposed RSSA costs of "nearly $25 million."
  • The Commission has already authorized the use of available credits to pay RSSA costs recoverable from customers, rendering RG&E's request unnecessary and contrary to the public interest.
  • Multiple Intervenors argued that granting RG&E the relief requested would not serve any practical purpose other than to increase the amounts of money that RG&E currently owes to customers, which is not in the public interest.
  • RG&E's petition seeks to implement its proposed surcharge to recover RSSA costs from customers on a temporary basis, which Multiple Intervenors argue should be denied in all respects.

Statistics:

  • RG&E currently owes customers over $155 million.
  • The proposed RSSA costs are estimated to be "nearly $25 million."
  • The Commission has already authorized the use of available credits to pay RSSA costs recoverable from customers.
  • RG&E has confirmed in discovery that it currently is in possession of:

+ $37.583 million in Public Benefit Adjustments for the benefit of electric customers.

+ $9.944 million in Asset Sale Gain Account funds that are for the benefit of electric customers.

+ $107.545 million in a net deferral balance that is for the benefit of electric customers.

Total customer credits: $155.072 million.

Sources:

  • Multiple Intervenors, represented by Couch White, LLP, filed a response in opposition to RG&E's petition on June 9, 2015. (Source: Couch White, LLP letter to Hon. Kathleen H. Burgess, Secretary New York State Public Service Commission, dated June 9, 2015)
  • RG&E's petition, filed on June 4, 2015, seeks to implement a temporary surcharge on its customers to recover the costs of a Reliability Support Services Agreement (RSSA) between RG&E and R.E. Ginna Nuclear Power Plant, LLC. (Source: RG&E's Petition to the New York State Public Service Commission, dated June 4, 2015)
  • The Commission has already authorized the use of available credits to pay RSSA costs recoverable from customers. (Source: Cases 12-E-0201 and 12-G-0202, Proceeding on Motion of the Commission as to the Rates, Charges, Rules and Regulations of Niagara Mohawk Power Corporation d/b/a National Grid for Electric and Gas Service, Order Approving Electric and Gas Rate Plans in Accord with Joint Proposal, dated March 15, 2013)
  • RG&E currently owes customers over $155 million. (Source: RG&E Response to Multiple Intervenors Information Request Nos. 39-41)