By William Opalka

New York regulators last week delayed action on a financial lifeline for the R.E. Ginna nuclear plant in order to review its impact on ratepayers.

The approximately $200 million annual price tag for the reliability support services agreement prompted the New York Public Service Commission to open an inquiry, with initial filings due April 15 (14-E-0270).

The PSC’s March 18 order defers action on Rochester Gas & Electric’s request for approval of the agreement through July 29.

The RSSA, which is also pending before the Federal Energy Regulatory Commission, was supposed to be effective April 1. If approved, the agreement would be retroactive to April 1 and last until the end of September 2018.

RG&E and Exelon’s Constellation Energy Nuclear Group were ordered by the PSC to enter the agreement because the plant is deemed necessary to maintain system reliability in western New York until a transmission project goes online in late 2018.

RG&E has estimated that under the agreement, an average residential customer would see bills rise about 4.2%, while costs for large primary customers would increase 6%.

Interveners representing competitive suppliers, residential ratepayers and environmentalists have complained about the RSSA’s steep price, with industry and other large customers challenging RG&E’s estimates before FERC. (See New York Industrials Want Ginna Deal Tossed.)

“RG&E worked diligently in the best interests of our customers to reach an agreement with Ginna, recognizing the importance of ensuring reliable service on reasonable terms for all parties,” said Dan Hucko, a spokesman for RG&E.

“Given the important role of the proposed reliability support services agreement, we are working collaboratively with the PSC to accommodate the needed regulatory reviews in a timely fashion,” Exelon spokeswoman Maria Hudson said.