The New York Power Authority (NYPA) Board of Trustees adopted a rate modification plan for hydropower provided to certain customers.
The cost-based rates for NYPA preference customers will remain between 70 and 80 percent less than average comparative market rates and are the result of an initiative to lower state agency budgets by 10 percent, NYPA said in a release. Preference customers consist of 47 municipal electric systems and four rural electric co-ops.
Life extension and modernization programs at the St. Lawrence-FDR and Niagara projects are among the principal factors in the rate adjustment. NYPA will have invested more than $490 million from 2009 to 2014 for the continued reliability and efficiency of these generating facilities.
The rate plan will be gradually implemented over three-and-a-half years, beginning December 2011, and is in accordance with cost-of-service methodologies approved by NYPA trustees in 2003. That plan extends through 2025.
The overall effective rate for typical customers will be adjusted from the current 1.07 cents per kwH to about 1.33 per kwH in 2014.
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