Orange and Rockland Utilities has expressed "extreme disappointment" with a preliminary decision issued by a judge at the New York Public Service Commission that concerns O&R's proposed electric restructuring settlement. (See, Case 96-E-0900, Opinion No. 96-12.)
On July 2, Administrative Law Judge Stewart C. Boschwitz ruled that unwillingness by O&R to divest its generation company would create potential anti-competitive situations and could hurt ratepayers. The ALJ had said that O&R could choose to divest its GENCO or else keep the affiliate and compensate ratepayers for associated risks.
The restructuring settlement calls for O&R to provide full retail access by May 1, 1999.
"We are deeply disappointed that our agreement - with the most aggressive timetable for introducing customer choice among all New York utilities and among the most aggressive nationwide - has been potentially jeopardized by this recommended decision," said D. Louis Peoples, O&R's vice chair and CEO.
The ALJ also took issue with O&R's plan to recoup stranded costs from May 1999 through April 2003 for its above-market cost of generation, including nonvariable O&M costs.
O&R expects a final ruling in September.
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