The formula rate set by FERC is administered by PJM through the Open Access Transmission Tariff (OATT) Attachment H-19A & B. PATH is required to submit a complicated-looking set of documents twice a year to first collect their projected revenue requirement, and then to report actual spending when the year ends. At that time, the actual is compared to the projected amount which has been collected throughout the year and an over recovery is refunded, or an under recovery is added to the next year's recovery (process known as "true up").
Now, herein lies the problem. Nobody pays any attention to how much they spend or whether or not it should be an allowable expense! That is the job of "interested parties" like you (and your state PSC, who doesn't pay attention either). This "business as usual" scenario has been going on forever and is costing you money. Want to do something about it? Here's how: Wednesday, October 6 at 10:00 a.m., an "Open Meeting" on PATH's 2011 PTRR will be held at Pillsbury Shaw Winthrop Pittman, 2300 N Street, Washington DC. If you cannot attend in person, you may attend via conference call. This is your opportunity to have PATH's proposed spending explained to you by Allegheny Energy's Assistant General Counsel, and your opportunity to ask questions. We are urging all citizens to get involved in how your money is being spent! To attend the meeting either in person or by phone, here's what you need to do: RSVP to firstname.lastname@example.org by September 30 with your name, address, name of person or entity you are representing, and whether you will attend in person or via phone. You may also RSVP via phone at 724-838-6894.
Here's just a sample of what may be discussed at one of these meetings: "Safety, Education, Siting and Outreach Advertising". This expense ends up in the O & M total. This is the cost of all PATH's propaganda advertising that you've seen and continue to see. Ever wonder how much that costs and who's paying for it? In 2009, PATH recovered $2.1 million for advertising costs. In 2010, they are collecting $1.78 million. In 2011, they project only $400,000 in advertising costs. But, what happens if they spend more? No biggie -- they just collect it from you the next year if the true-up reveals they didn't collect enough. Interested enough to send in your RSVP yet? I guarantee you the questions for Randy Palmer are going to get a lot harder this time.