Proposed Settlement of the Challenge to Legality of RGGI with Con Ed Ratepayer and Questioned RGGI Revenues

The case will be settled later this month if a proposed Consent Decree is approved by Judge Thomas J. McNamara of Supreme Court, Albany County. The proposed settlement

* Makes a $7.7 million payoff to the power producers, laundered through Con Edison, by having Con Edison buy RGGI allowances reserved for them by DEC, and then giving the allowances free to the plaintiffs,
* It maintains the appearance that state is not giving away the allowances free,
* It maintains the appearance that RGGI money from the questioned scheme is not directly used to pay for the allowances given to the plaintiffs as consideration for their dropping the case,
* Con Edison collects the $7.7 million cost it incurs for the giveaway allowances from its customers,
* NYSERDA gives an equivalent grant of RGGI funds to Con Edison, which ostensibly will benefit Con Ed customers in the future and offset the higher rates they must pay to underwrite the deal. The additional NYSERDA grant of RGGI money would be spent by Con Edison on trendy-sounding, unspecified "smart grid" projects that apparently are not otherwise being done now and are not cost effective enough to warrant investment in them today without subsidy
* As a result, a portion of the funds whose legality is questioned is used to settle the case.

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