Follow-On Merger Credit by National Grid USA
NY-ADR
6/27/07 N.Y. St. Reg. PSC-26-07-00017-P
NEW YORK STATE REGISTER
VOLUME XXIX, ISSUE 26
June 27, 2007
RULE MAKING ACTIVITIES
PUBLIC SERVICE COMMISSION
PROPOSED RULE MAKING
NO HEARING(S) SCHEDULED
I.D No. PSC-26-07-00017-P
Follow-On Merger Credit by National Grid USA
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed action:
The commission is considering whether to approve, modify or reject, in whole or in part, the petition of Niagara Mohawk Power Corporation d/b/a National Grid to implement a follow-on merger credit associated with the recent acquisition by National Grid USA of the New England Gas Company assets of Southern Union Company.
Statutory authority:
Public Service Law, section 66
Subject:
The follow-on merger credit created by the recent acquisition by National Grid USA of the New England Gas Company assets of Southern Union Company.
Purpose:
To determine the appropriate treatment for a follow-on merger credit.
Substance of proposed rule:
The Commission is considering whether to approve, modify or reject, in whole or in part, the petition of Niagara Mohawk Power Corporation d/b/a National Grid to implement a Follow-on Merger Credit associated with the recent acquisition by National Grid USA of the New England Gas Company assets of Southern Union Company. Under the Merger Rate Plan approved by the Commission in Case 01-M-0075, Opinion No. 01-6, National Grid must credit the Deferral Account for electric operations and the Contingency Reserve Account for gas operations 50% of the net synergy savings. The net synergy savings, which is to be the amount identified by the state commission having jurisdiction over the rate (the Rhode Island Public Utility Commission (RIPUC), in this case) has not been so defined. National Grid proposed to reflect, at this time, the estimate of net synergy savings. When the RIPUC makes its final determination of net synergy savings National Grid proposes to update the credit to reflect the higher of either National Grid's estimates or the RIPUC determination.
Text of proposed rule and any required statements and analyses may be obtained by filing a Document Request Form (F-96) located on our website http://www.dps.state.ny.us/f96dir.htm. For questions, contact:
Central Operations, Public Service Commission, Bldg. 3, Empire State Plaza, Albany, NY 12223-1350, (518) 474-2500
Data, views or arguments may be submitted to:
Jaclyn A. Brilling, Secretary, Public Service Commission, Bldg. 3, Empire State Plaza, Albany, NY 12223-1350, (518) 474-6530
Public comment will be received until:
45 days after publication of this notice.
Regulatory Impact Statement, Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement
Statements and analyses are not submitted with this notice because the proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.
(01-M-0075SA34)
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