A new law could help New York utilities reduce electric rates
and improve their balance sheets.
Legislation recommended by Gov. Pataki on June 1, 1996, seeks to provide the...
The Independent Power Producers of New York, Inc. (IPPNY) has released an initial white paper on restructuring the electric industry in New York State. The paper concludes that electric rates in New York are too high and suggests paramount objectives: 1) all customers should enjoy direct access and choice among electric suppliers, and 2) disaggregation of vertically integrated utilities must occur in such a way that the surviving natural monopolies (em the wires businesses (em remain financially indifferent to customer choice of supply. IPPNY called for a fair assessment of stranded costs by netting out a utility's above-market assets (nuclear units) and its below-market assets (hydro and fully depreciated fossil units). IPPNY suggests selling or spinning off the entire utility generating system, finding it inequitable to allow utilities to "cherry-pick" among assets and adjust only those above market.
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