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Costs for New Transmission Lines in NY Passed Through To You As of June 1st

New York, NY –  Effective June 1st, 2016, regardless of your electricity supplier, you will see an additional passed through cost as a line item on your supply invoice in New York.  The costs for the New York Transco high voltage transmission lines in New York will be proportionately spread across Con Ed/O&R, Central Hudson, NYSEG/RG&E, National Grid, and PSEG LIPA.  The projects are collectively known as TOTS (Transmission Owner Transmission Solutions). There isn’t any detail regarding the actual cost per kWh that will be assessed, but based on what is known and some rough back of the envelope calculations, we expect somewhere between $.0003/kWh and $.0007/kWh dependent on rate class, load factor, etc. for June 1 – Dec 31 2016.  Additional revenue requirements for 2017 and 2018 will be projected each respective September 30th, with new rates effective Jan. 1, 2017 and Jan 1, 2018.  Your individual electricity suppliers should be sending letters addressing this pass through charge at some point in the next 2 weeks.

Background

New York Transco was formed in November 2014, comprised of the utility companies in New York.  The purpose of this group is to own and construct high voltage transmission facilities in New York due to:

  • generation retirements and reliability contingency (primarily Indian Point nuclear plant)
  • downstate congestion
  • aging transmission infrastructure
  • lack of transmission lines investment in New York

Projects

  • Ramapo to Rock Tavern Project (Con Edison, Orange and Rockland Utilities, Central Hudson) – establish a second 345kV line between Central Hudson’s Rock Tavern 345 kV substation and Con Edison’s Ramapo 345 kV substation by performing three concurrent system upgrades.
  • Edic to Pleasant Valley Project (National Grid) – establish a new 345kV line that will run from National Grid’s Edic substation in Oneida County to Con Edison’s Pleasant Valley substation in Dutchess County
  • Marcy South Series Compensation and Fraser – Coopers Corners Reconductoring Project (New York Power Authority and NYSEG) – upgrade various elements of the transmission system between Marcy and Coopers Corners substations
  • Second Oakdale – Fraser Project (NYSEG) – establish a second Oakdale to Fraser 345kV transmission line
  • Staten Island Unbottling Project (Con Edison) – two phase project to produce transfer increases of approximately 440 MW

Transmission Lines Cost Allocation

This past March, FERC approved the cost allocations (below) and return on equity (10%) for the TOTS projects.  The 2016 revenue requirements below (June 1 – December 31) will be passed through to end users in these territories.

 

Transmission District

 

Allocation %

 

Allocation $

Central Hudson 5.99% $1,540,647
Con Edison/O&R 63.18% $16,250,093
NYSEG/RG&E 10.12% $2,602,896
National Grid 12.16% $3,127,590
LIPA 8.55% $2,199,087
TOTAL 100.0% $25,720,312

 Timeline

Transmission lines NY Transco Timeline

Contact Us Now

Andy Anderson, LEED AP O+M, CMVP
Managing Director

EnergyWatch Inc.
1261 Broadway, Suite 510
New York, NY 10001
P 212.616.5198
andy@energywatch-inc.com