New York Transco LLC applied Dec. 15 to the New York State Public Service Commission for a declaratory ruling providing that Transco will be regulated under a lightened regulatory regime that is used for competitive wholesale generators and interstate transmission companies engaged in the transmission of electricity in interstate commerce.
Transco was formed and will be owned by affiliates of New York State’s investor-owned utilities (NYTOs). It was formed to develop and own new transmission facilities that will enhance the current capabilities of the bulk power system across New York State. There are currently a number of transmission projects proposed to be owned by Transco that involve additions to or modifications of the existing transmission system in the state, including projects approved by the commission in a recent proceeding that involved contingency planning in case the Indian Point nuclear plant had to be retired. They are called the “TOTS” projects.
The rates for such facilities will be subject to the jurisdiction of the Federal Energy Regulatory Commission and collected from wholesale entities by the New York Independent System Operator under a rate schedule that will be part of the NYISO’s Open Access Transmission Tariff (OATT). Transco’s transmission facilities will be under the functional and operational control of the NYISO and subject to the NYISO’s tariffs.
Transco will not have any retail customers nor will it own local distribution facilities and will have no adverse effect on captive retail customers, competition, rates, or regulation, the company said.
Transco is owned by the following affiliates of the NYTOs: Consolidated Edison Transmission LLC; Grid NY LLC; Iberdrola USA Networks New York Transco LLC; and Central Hudson Electric Transmission LLC. In December 2014, Transco filed a petition with FERC requesting acceptance of its transmission formula rate and approval of transmission rate incentives and cost allocation method. FERC accepted Transco’s request for a formula rate for filing, suspended the rate, and set the rate for hearing.
On Nov. 5, 2015 Transco filed an Offer of Partial Settlement in the FERC action. Signatories to the FERC Settlement Offer include the Transco, the NYTOs, the commission, and the New York Power Authority, among others.
Initially, Transco will purchase the TOTS projects from the NYTOs, and will complete any remaining development, construction and commissioning of the TOTS projects. Transco will also continue to seek New York commission and NYISO authorization for the projects it has proposed in another proceeding. The Transco transmission projects will, among other things, address needs identified in Gov. Andrew Cuomo’s initiative to reduce persistent congestion on major transmission lines that move power between northern and western New York and southeastern New York, and to achieve other state public policy goals.