WPCNR THE POWER NEWS. By John F. Bailey. September 18, 2008 UPDATED 1 P.M. EDT: The Executive Director of the New York Municipal Power Agency representing 36 small-to-medium munipalities in the state told WPCNR Thursday that his Agency calculation of $100 Million (estimated by NYISO as $400 Million to power suppliers statewide, passed on directly to residential and commercial users) represented only one month’s overcharges directly related to the long-way—around Lake Erie electrical contracts. He said the NYISO figure of $400 Million was also only one month's overcharges generated, in part, by the Lake Erie "roundabout" contracts.

The revelation raises the possibility, as yet uncommented upon by NYISO and FERC, that consumers paid $800 Million our untold millions more, pending on the loads of electricity and kilowatt hour charges they paid over the 8 Months plus  the Lake Erie option was available.  

Multiplication of the NYISO  calculation for the entire state of overcharges for  May of $400 Million, (a hot month), before the high energy demand months of June, July and August gives  total overcharges for the state over 8 months of  roughly $3.2  Billion – but the real figure is not known Mullane said.  

“Only NYISO has the figures,” Mullane told WPCNR Thursday. Mullane said NYISO has ballparked the statewide loss at $400 Million (for one month).

Mullane comfirmed what Con Edison told WPCNR Wednesday that overcharges, possibly stemming substantially from the Lake Erie “roundabout” contracts, had declined substantially.

Mullane said his organization was unaware the Lake Erie routing had been used in the past (2003), as reported by DC Energy to WPCNR Wednesday.   That routing maneuver resulted in overcharges to the Pennsylvania and New Jersey markets.  Mullane said he would have his legal staff look into that.

Schumer Mum. Quotes NYISO Documents in Press Release.

Meanwhile, Senator Charles Schumer’s office has not released any information on Senator Schumer’s meeting with Joseph Kelliher, the Chair of the Federal Energy Regulatory Commission, Wednesday morning, despite repeated questions from WPCNR for preliminary statements as where the Senator's call for an "open and public investigation" is going.

A Schumer Office press release is being prepared WPCNR was told late Wednesday afternoon and is still unreleased as of high noon Thursday.

Schumer's press office said Wednesday that the Senator became aware of it based on his research staff which discovered documents in releases from the agencies revealing the overcharges. Senator Schumer's press release (released August 12 and again last Thursday), quotes directly from the NYISO documents forwared to the Federal Energy Regulatory Commission July 21. It would appear that the Senator was unaware of the practice before his researchers became aware of the NYISO July 21 documents, but that is unconfirmed at this time.

Who the Traders Were A Mystery.

The Federal Energy Regulatory Commission declined to release the number of traders involved in the process, the dollar amount dimension of the practice which took place from December to July 2008. Coincidently, Consolidated Edison’s kilowatt hour charge to White Plains residents alone escalated 65% over those 9 months.

Asked if he had any idea why NYISO did not immediately suspend Lake Erie routing maneuver when it was first pointed out to them by NYISO, pending investigation, and holding back the overcharges caused by the rerouting around Lake Erie, until NYISO determined whether or not the charges were legal, Mullane said, “That’s a good question.”