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Joint Proposal Would Lower Hourly Pricing Cutoff at Orange & Rockland
March 2, 2012
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Copyright 2010-
The threshold for mandatory hourly pricing for default service customers at Orange and Rockland Utilities would decrease under a joint proposal from O&R, New York PSC Staff, and the New York Division of Consumer Protection (Case 11-E-0408).
Under the joint proposal, O&R would expand mandatory day ahead hourly pricing (MDAHP) to full service customers with demand thresholds between 100 kW and 300 kW.
A specific date for the expansion was not provided, but Staff previously contemplated a start in the spring of 2015, with interval meters installed for affected customers in the spring of 2014. This would provide affected customers with 12 months of interval usage data in preparation for the switch to hourly pricing, and would allow O&R to complete its current hourly pricing expansion to 300 kW (effective May 2013) before installing additional interval meters.
Under the joint proposal, O&R would file a plan for the expansion of hourly pricing to 100 kW within six months of the date of an order adopting the joint proposal, including: (a) a proposed schedule for meter installation and billing for the expansion; (b) costs for the expansion of mandatory day ahead hourly pricing, together with justification and supporting documentation; (c) a proposed mechanism for the recovery of any costs in excess of the amount included in the distribution rate revenue requirement adopted under the joint proposal; and (d) draft tariff leaves detailing the expansion.
Staff previously said that O&R had 230 customers, comprising approximately 44 MW of load, with individual maximum demand levels above 100 kW but below 300 kW. Of those 230 customers, 162 received their commodity from an ESCO, leaving 68 on default service.
Furthermore, under the joint proposal, O&R would revise the capacity price applicable to MDAHP customers effective with the rate year beginning July 1, 2012. The capacity price will be based on the New York Independent System Operator monthly auction price for unforced capacity and will be included on O&R's monthly Market Supply Charge (MSC) statement.
Additionally, O&R will revise the tariff to reflect that capacity will be assessed to MDAHP customers based on the individual customer's peak load during the peak hour for the New York Control Area (NYCA).
Separately, O&R will revise the manner by which it assesses capacity for non-MDAHP customers from the current hourly load-weighted average price calculation, based on load profiles, to capacity based on capacity obligations, which are based on the peak hour from the prior year during the NYCA peak. O&R will continue to base the capacity price on the six-month strip auction price applicable to non-MDAHP customers.
The resulting per kWh rate then will be added to the weighted average price calculation for energy and ancillary services as currently performed for the MSCs for non-MDAHP customers.
Capacity obligations for the classes, including those for both full service and retail access customers, will be summed and grouped into the following seven categories:
Group A: SC Nos. 1 and 19;
Group B: SC No. 2 - Secondary, SC No. 25, Rate 1 customers exempt from MDAHP and SC No. 20;
Group C: SC No. 2 - Primary, SC No. 3, SC No. 21, SC No. 25, Rate 2, and customers from the following classes who are exempt from MDAHP: SC No. 9 - Primary, SC No. 22 - Primary, and SC No. 25, Rates 3 and 4 - Primary;
Group D: Customers from the following classes who are exempt from MDAHP: SC No. 9 - Substation, SC No. 22 - Substation, and SC No. 25, Rates 3 and 4 - Substation;
Group E: Customers from the following classes who are exempt from MDAHP: SC No. 9 - Transmission, SC No. 22 - Transmission, and SC No. 25, Rates 3 and 4 - Transmission;
Group F: SC Nos. 4, 6, and 16; and
Group G: SC No. 5
Email This StoryCopyright 2010-
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