Authorization of Beaver Dam to Withdraw Approximately $50,000 from an Escrow Account Dedicated ...
NY-ADR
8/13/14 N.Y. St. Reg. PSC-32-14-00003-EP
NEW YORK STATE REGISTER
VOLUME XXXVI, ISSUE 32
August 13, 2014
RULE MAKING ACTIVITIES
PUBLIC SERVICE COMMISSION
EMERGENCY/PROPOSED RULE MAKING
NO HEARING(S) SCHEDULED
I.D No. PSC-32-14-00003-EP
Filing Date. Jul. 24, 2014
Effective Date. Jul. 24, 2014
Authorization of Beaver Dam to Withdraw Approximately $50,000 from an Escrow Account Dedicated to Repaying a Long-Term Loan
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:
Proposed Action:
The Public Service Commission adopted an order authorizing, on an emergency basis, Beaver Dam Lake Water Corporation to withdraw up $50,459 from the escrow account for its loan from the Environmental Facilities Corporation to pay for immediate operating costs.
Statutory authority:
Public Service Law, section 89-f
Finding of necessity for emergency rule:
Preservation of public health and general welfare.
Specific reasons underlying the finding of necessity:
This action is taken on an emergency basis, under Public Service Law § 89-f, to allow the Beaver Dam Lake Water Corporation (Beaver Dam) to withdraw up to $50,459 from an escrow account dedicated to repayment of a long-term loan from the Environmental Facilities Corporation (EFC) to pay outstanding debts and replenish its operating funds.
Beaver Dam states that its current financial situation jeopardizes its ability to operate its system and provide safe and adequate service to its ratepayers.
Subject:
Authorization of Beaver Dam to withdraw approximately $50,000 from an escrow account dedicated to repaying a long-term loan.
Purpose:
To approve Beaver Dam's request to withdraw money from its escrow account.
Substance of emergency/proposed rule:
The Public Service Commission issued an Order approving, on an emergency basis, a petition filed by Beaver Dam Lake Water Corporation (Beaver Dam) for authorization under Public Service Law § 89-f to withdraw approximately $50,000 from an escrow account, dedicated to long-term loan repayment, to replenish Beaver Dam’s operating fund and pay outstanding short-term debts.
In 2007, the Commission approved a long-term financing agreement between Beaver Dam and the Environmental Facilities Corporation (EFC) to perform needed infrastructure repair work and established a surcharge and escrow account to collect the funds needed to repay the EFC. Due to subsequent funding and grants under the American Recovery and Reinvestment Act of 2009, the principal on the loan is less than originally projected and the escrow account is overfunded.
Beaver Dam reports that is experiencing a high level of leaks in its distribution system requiring repairs. These expenses, combined with a payment, from the company’s operating funds, of a cost overrun related to EFC-financed work has depleted Beaver Dam’s short term resources and jeopardized its daily operation. To avoid the loss of service to ratepayers, Beaver Dam requests authorization to withdraw up to $50,459 to pay an outstanding bill and replenish its operations maintenance funds. EFC supports Beaver Dam’s petition.
This notice is intended:
to serve as both a notice of emergency adoption and a notice of proposed rule making. The emergency rule will expire October 21, 2014.
Text of rule may be obtained from:
Deborah Swatling, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 486-2659, email: [email protected]
Data, views or arguments may be submitted to:
Kathleen H. Burgess, Secretary, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 408-1978, email: [email protected]
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 amended rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.
(14-W-0266EP1)
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