Coastal Power Production Co. v. New York State Public Service Commission

*237OPINION OF THE COURT

Kane, J.

In December 1987, respondent Niagara Mohawk Power Corporation (hereinafter Niagara Mohawk) executed a contract with an independent power producer, Turner Power Group, Inc. (hereinafter Turner), for the sale of electricity from the soon-to-be-developed Fulton cogeneration project (hereinafter the Fulton project). The contract provided for Niagara Mohawk to pay Turner at a variable rate based on the greater of Niagara Mohawk’s avoided costs or the minimum rate required by State law. Avoided costs were those expenses Niagara Mohawk would incur to generate the power…