Wholesale Power Companies Like Entergy Must Disclose Finances Under New Public Service Commission Order

Brennan waged two-year effort to get utility commission to enforce state’s financial reporting law

January 30, 2013

The New York State Public Service Commission, in an order issued Jan. 23, 2012, directed the wholesale electric power industry to file reports on its revenues, expenses, and profits on an annual basis. State Assemblymember Jim Brennan, (D, W-F), chair of the Assembly Committee on Corporations, Authorities, and Commissions, began insisting nearly two years ago that the Commission enforce a State law that required electric corporations to report their finances to the Commission.

In the course of examining the finances of the Entergy Corporation at the Indian Point nuclear plants, Brennan determined that the Commission had begun exempting wholesale power companies from an annual State law reporting requirement as the industry deregulated. As a result, independent power producers had ceased filing cost and profit reports. Brennan sent a letter in the Commission in April 2011 asking the Commission to enforce the law.

Brennan also introduced legislation in the 2011-2012 session, A.7306, which overrode the Commission’s actions and required it to compel the industry to file annual reports. The bill passed the Assembly in both 2011 and 2012, with the support of a number of environmental, good government, and consumer groups.

The Commission initiated a proceeding in the summer of 2011 to review the issue, and issued a proposed order in early 2012 to compel the industry to file. Mr. Brennan participated as a party in the proceeding and submitted an analysis of Entergy’s finances showing that the company was making $487 million, or 70%, more from its Indian Point operations than if it had remained regulated.

“The annual report is a necessary tool in maintaining transparency and oversight of the industry,” Mr. Brennan said, “providing critical information on the operations and profits of power producers.” He added that “price, cost, and profit information is essential to understanding competition, or the lack of competition, in today’s electric markets. I appreciate that the Public Service Commission has reaffirmed its obligations on this significant issue.”

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