When PATH filed their "Status Update" with FERC on March 7, they made the following statement:
"PATH LLC is evaluating the financial impact of PJM's suspension of the Project on the 2011 Projected Transmission Revenue Requirement ("PTRR") to determine whether a revised 2011 PTRR should be implemented to reflect the suspension of development activities."
The PTRR is PATH's estimate of yearly costs that are subsequently recovered from all ratepayers in the PJM region to finance their project. The money is collected from you over the year as part of your monthly electric bill and given to PATH to finance their activities. After the year ends, PATH goes through a true-up process whereby the PTRR is compared to the Actual Transmission Revenue Requirement (the actual amount they spent). An under recovered balance is added to your electric rates the following year. An over recovered balance is refunded to you in your electric rates the following year. Both over and under recovery are subject to payment of interest at the average monthly interest rate of.... 0.2900%. Yeah, don't spend all that money in one place, little ratepayer!
It's been a month now, and PATH is still "evaluating." C'mon, it doesn't take a rocket scientist to "determine" that the cost of the PATH project in an active state is more than the cost of the PATH project in a "suspended" state.
PATH's PTRR filed on September 1, 2010 projected a revenue requirement of $40.5 million. That's how much they will collect from you and other ratepayers in 2011. This was based on, "Major projected activities in 2011 include receipt of CPCN approvals, continue securing ROW options, increased engineering and permitting activities, and start of Amos substation modifications."
None of that is going to happen this year. PATH won't be spending your money on any of that, however, they will continue to collect money from you as if they were. Oh, they'll give it back to you in 2013, with .2900% interest, but meanwhile they're going to float themselves a $40.5 million dollar loan for two years from the PJM Ratepayer Savings & Loan, better known as your wallet.
Let's compare the .29% ROE you're going to earn on the loan you're giving PATH to the yearly 14.3% ROE PATH earns on all of their money that they are "loaning" to you ratepayers to finance the cost of "your" transmission line.
PATH's rate/finance department needs to pony up and quit dithering. We're not your piggy bank!*
*PowerMAD, cue the appropriate music! (snort, snort)
"PATH LLC is evaluating the financial impact of PJM's suspension of the Project on the 2011 Projected Transmission Revenue Requirement ("PTRR") to determine whether a revised 2011 PTRR should be implemented to reflect the suspension of development activities."
The PTRR is PATH's estimate of yearly costs that are subsequently recovered from all ratepayers in the PJM region to finance their project. The money is collected from you over the year as part of your monthly electric bill and given to PATH to finance their activities. After the year ends, PATH goes through a true-up process whereby the PTRR is compared to the Actual Transmission Revenue Requirement (the actual amount they spent). An under recovered balance is added to your electric rates the following year. An over recovered balance is refunded to you in your electric rates the following year. Both over and under recovery are subject to payment of interest at the average monthly interest rate of.... 0.2900%. Yeah, don't spend all that money in one place, little ratepayer!
It's been a month now, and PATH is still "evaluating." C'mon, it doesn't take a rocket scientist to "determine" that the cost of the PATH project in an active state is more than the cost of the PATH project in a "suspended" state.
PATH's PTRR filed on September 1, 2010 projected a revenue requirement of $40.5 million. That's how much they will collect from you and other ratepayers in 2011. This was based on, "Major projected activities in 2011 include receipt of CPCN approvals, continue securing ROW options, increased engineering and permitting activities, and start of Amos substation modifications."
None of that is going to happen this year. PATH won't be spending your money on any of that, however, they will continue to collect money from you as if they were. Oh, they'll give it back to you in 2013, with .2900% interest, but meanwhile they're going to float themselves a $40.5 million dollar loan for two years from the PJM Ratepayer Savings & Loan, better known as your wallet.
Let's compare the .29% ROE you're going to earn on the loan you're giving PATH to the yearly 14.3% ROE PATH earns on all of their money that they are "loaning" to you ratepayers to finance the cost of "your" transmission line.
PATH's rate/finance department needs to pony up and quit dithering. We're not your piggy bank!*
*PowerMAD, cue the appropriate music! (snort, snort)
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