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ConEd Seeks Later Start, Longer Implementation To Expand Hourly Priced Default Service

January 1, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

Consolidated Edison has filed a new plan to expand mandatory hourly priced default service to customers with demands between 300 kWh and 500 kW which would include a later start date, and longer implementation timeline, compared to an earlier proposal.

Currently, mandatory hourly pricing (MHP) applies to ConEd electric customers with demands greater than 500 kW. In its most recent rate case, ConEd has proposed to lower the hourly pricing cutoff to 300 kW, with implementation occurring from January 2016 to January 2019.

However, an adopted joint proposal in that rate case did not address ConEd's proposed MHP expansion.

ConEd has now filed a revised proposed expansion of MHP to customers in the 300 kW to 500 kW range as part of a report on the MHP program

Specifically, ConEd proposes that the MHP expansion to 300 kW now be rolled into its proposed advanced metering deployment, rather than installing interval meters separately for MHP customers.

As a result, MHP expansion to customers with demand greater than 300 kW would follow ConEd's proposed AMI deployment schedule, and MHP expansion would be staged over a five-year period from mid-2017 through 2022.

Lowering the MHP cutoff to 300 kW would make an additional 1,600 customers eligible for MHP, and will require the exchange of 1,900 meters.

ConEd's AMI plan has not yet been approved by the PSC. ConEd said that it will include this MHP program proposal, including a proposal for expanding MHP as a stand-alone program if the company’s AMI initiative does not move forward, in its next rate case addressing AMI cost recovery

ConEd said that incorporating MHP expansion into the AMI plan is appropriate because of the efficiencies, cost savings, and overall effectiveness of expanding the program in conjunction with the AMI initiative. Under the AMI program, a majority of the meter and installation cost per meter is approximately $210, which is less than the cost per meter under a stand-alone MHP program as estimated by ConEd in its 2015 electric rate filing.

"AMI technology offers more benefits and services to Con Edison customers than any other metering technology. Aside from demand response program participants during a demand response event, current MHP customers do not have the ability to obtain real-time data. Currently, MHP customers are provided with their usage data once per day when the meter is contacted. As stated in the AMI Business Plan, the current use of interval meters and remote telecommunications mediums do not permit real-time communication to the customer. Within the robust AMI infrastructure, the MHP customer segment will have access to their real-time electric usage data. This granularity and transparency of data will provide this customer segment with an enhanced opportunity to adjust their consumption patterns to reduce their electricity bills and shift energy usage resulting in load reductions in peak periods," ConEd said

ConEd also said that, "Expansion of the MHP program will provide more customers with access to detailed usage and price signals that are currently unavailable. This detailed usage and price information will help customers better control their energy and encourage the reduction of peak usage by responding to price signals through customer engagement in energy management strategies consistent with policies outlined by the Commission in the MHP Proceeding and Reforming the Energy Vision initiative. Additional benefits are enabled when the AMI platform is used, including participation in demand response programs and critical peak pricing."

As of November 2015, MHP applies to 2,040 ConEd customers, many of which have multiple meters, totaling 3,500 interval meters. The majority of these customers purchase electric supply service from an ESCO, and are not billed under ConEd's MHP rate. Only 13%, or 260 customers, of the approximately 2,040 eligible customers are being billed for their electric supply at ConEd's MHP supply rate.

Case 13-E-0030

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