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Load Representative Opposes National Grid's "Self-Serving" Request To Defer Collection of Costs Related To Default Service

October 5, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Utility Rate Analysis Consultants (URAC) has filed comments with the New York PSC opposing the request of KeySpan New York (The Brooklyn Union Gas Company d/b/a National Grid NY) to suspend collection of the annual reconciliation of gas costs surcharge/refund mechanism in its Gas Adjustment Clause (GAC).

As more fully detailed in EnergyChoiceMatters.com's exclusive story last week (click here), KEDNY is seeking a waiver to avoid an otherwise required increase in the bypassable GAC surcharge to $0.51 per dekatherm effective January 1, 2017 (as a result of reconciliations).

KEDNY is seeking to suspend collection of its annual reconciliation of gas costs mechanism from January 1, 2017 through March 31, 2017. KEDNY would then implement a new surcharge for the remainder of calendar year 2017, from April 1, 2017 to December 31, 2017, with the balance of the under-recovery collected through the 2018 reconciliation filing that KEDNY will make by October 15, 2017.

Utility Rate Analysis Consultants (URAC) said in comments that, "URAC believes that the request is self-serving, will provide the wrong price signals to consumers and has no benefit to the public"

"Merely moving the money from one point in time to another, just for appearance purposes, has no benefit to the consumer. All it will do is provide the wrong price signals, at the wrong points in time, and will add to the confusion about commodity costs and ESCO choices," URAC said

Noting KEDNY has a pending request for a distribution rate increase (which KEDNY itself cited in seeking to defer collection of supply-related costs), URAC said, "KEDNY’s request will not benefit the consumer in any way and is merely a self-serving filing to minimize its exposure to public opinion about the large rate increase it is seeking."

National Grid issued the following statement:

"National Grid filed this waiver to delay collecting commodity reconciliation costs until April 1 to help mitigate the overall impact to customer bills during the height of the heating season, when bills are typically higher. By delaying the increased reconciliation of the gas cost surcharge, this request will help mitigate anticipated base rate increases that will take effect in January 2017, and allow customers to manage bill increases in smaller increments over a longer period when the heating season is over."

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