New York State Electric & Gas Corp. (NYSEG) voiced itssupport for legislation to give states authority to modifynon-utility generator contracts. Congressmen Gerald Solomon, AmoryHoughton (R-NY) and Edolphus Towns (D-NY) introduced HR 4183, whichwould clarify the Public Utility Regulatory Policies Act of 1978.Changes proposed are said to ensure just and reasonable costs forNUG power sold to utilities. State regulators would be permitted tomodify prices utilities are currently required to pay non-utilitygenerators so they do not exceed the market price of electricity atthe time of delivery. The legislation also would establish programsto monitor non-utility generators to ensure they continue to meetFederal Energy Regulatory Commission requirements.

NYSEG said its customers will be forced to pay more than $2billion above market prices for NUG power through 2009 when thelast of its large NUG contracts expires. The legislation couldresult in an 8% to 24% drop in residential electric bills in 1999.

“Passage of this legislation is an opportunity to correct afailed public policy. In order for competition to benefitresidential customers, we must renegotiate the Saranac (CalEnergy)and Lockport NUG contracts now,” said Wes von Schack, NYSEG CEO.”Our residential customers should not have to pay these outrageousand unfair prices any longer.”

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