Electricity-Steam Generation Rate Changes Did Not Qualify as a “Rule” Under the State Administrative Procedure Act

In affirming the NYS Public Service Commission’s approval of electricity/steam generation rates, the Third Department determined that the “long-term cost allocation method” did not qualify as a “rule” and therefore did not trigger the notice requirements of the State Administrative Procedure Act:

The part of the order determining the long-term cost allocation method does not constitute a rule because it  does not impose “‘a fixed, general principle to be applied by an administrative agency without regard to other facts and circumstances relevant to the regulatory scheme of the statute it administers'” … .   As such, the notice provisions of the State Administrative Procedure Act do not apply (see State Administrative Procedures Act §§ 102 [2] [a]; 202 [1] [a]…).   Further, the notices issued by the Commission in connection with the planning proceeding satisfied procedural due process by clearly indicating that the planning case included consideration of the long-term impacts of cost allocation, and petitioner was provided sufficient opportunity to be heard on the issue … .  We have considered petitioner’s remaining arguments and find them to be likewise without merit.  Matter of City of New York v NYS Public Service Commission, et al, 515472, 3rd Dept, 4-11-13