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[UPDATED] Ginna and RG&E get extension for contract talks
UPDATED 4:10 p.m. - In a filing this afternoon, the Public Service Commission granted RG&E and Ginna the extension they requested.
Original post: Rochester Gas and Electric and the owners of the Ginna nuclear power plant want more time to negotiate an agreement for the utility to purchase the plant's electricity.
The companies were supposed to submit a proposed contract to the state Public Service Commission today. But yesterday they submitted a letter to the PSC, asking to push the deadline to February 6. The PSC hasn't responded yet.
In November, the PSC directed RG&E to negotiate an electricity purchase contract with Ginna. Under the contract, which Ginna's owner requested, RG&E will buy power from the plant on an as-needed basis, and at a negotiated price. Ginna hasn't been able to sell its electricity at a high enough price on New York's competitive market and its owner, a subsidiary of power industry giant Exelon, said that it'd move to retire the plant without an agreement.
Ginna representatives say that retiring the plant could threaten the reliability of the Rochester area's power supply.
In yesterday's letter, attorney John McManus of Harris Beach says that RG&E and Ginna will continue to work toward an agreement. He also explained why the companies need an extension:
Original post: Rochester Gas and Electric and the owners of the Ginna nuclear power plant want more time to negotiate an agreement for the utility to purchase the plant's electricity.
The companies were supposed to submit a proposed contract to the state Public Service Commission today. But yesterday they submitted a letter to the PSC, asking to push the deadline to February 6. The PSC hasn't responded yet.
In November, the PSC directed RG&E to negotiate an electricity purchase contract with Ginna. Under the contract, which Ginna's owner requested, RG&E will buy power from the plant on an as-needed basis, and at a negotiated price. Ginna hasn't been able to sell its electricity at a high enough price on New York's competitive market and its owner, a subsidiary of power industry giant Exelon, said that it'd move to retire the plant without an agreement.
Ginna representatives say that retiring the plant could threaten the reliability of the Rochester area's power supply.
In yesterday's letter, attorney John McManus of Harris Beach says that RG&E and Ginna will continue to work toward an agreement. He also explained why the companies need an extension:
"Negotiation of an agreement of this type entails consideration and resolution of a myriad of technical and financial issues. Although significant progress has been made, GNPP and RG&E have not yet finalized an agreement that satisfactorily resolves all of these issues. A brief extension will permit GNPP and RG&E to continue to work together in an attempt to develop a more considered RSSA that best satisfies the Commission’s requirements as well as the needs of GNPP, RG&E and all interested parties.
