The New York Power Authority has permitted Greenport Village to recoup the money it spent funding a long-term transmission contract through customers’ monthly usage fee, Mayor David Nyce said during the board’s regular session Monday.
In January, the village entered into a 28-month agreement with NYPA locking in a fixed rate for transmission costs, which is typically subject to fluctuation. Mr. Nyce said the move would stabilize rates for the foreseeable future.
While base rates will remain the same, users will now pay an additional fee through the purchase power agreement, or PPA, as noted on the bill. Since PPA is based on usage, not contract costs, NYPA did not initially agree to the increase, but has since reconsidered, according to the Mayor.
The village has already paid 25 percent of the contract cost and on Monday board members voted unanimously to pay the remaining $251,909 of the agreement.
Mr. Nyce said the decision was based on the recommendations of the village’s attorneys and an auditor, however the increase drew criticism from some who likened the village’s move to an “unapproved electric rate hike.”
As a result of the contract, last month village residents saw their bill increase between $7.75 and $10.69 per month. Businesses were subject to an increase between $25.12 and $37.77 per month.