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New York Directs Utilities To Charge Customers Single, Constant Bypassable Rate For Clean Energy Standard Compliance To Minimize "Volatility"

February 23, 2017

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

In authorizing the state's electric utilities to recover costs associated with the various clean energy standards now imposed on LSEs, the New York PSC ruled that a single, constant charge shall be applied at each utility throughout the year, to minimize volatility.

As certain of the new clean energy standards are applied directly to LSEs, these LSE-assigned costs will be applied to utilities' generation rates and will be bypassable. Although separate statements showing the compliance costs will be published by the utilities, to allow customers to review the compliance costs, the CES compliance costs will be rolled into exiting supply mechanisms and bill lines on bills rather than being a line item.

The PSC further ruled that, "The Commission also finds it preferable to have one calculation method of the RECs, ZECs and ACP costs; that is for the rate to remain constant throughout the year, in order to minimize potential volatility associated with monthly rate adjustments and reconciliations."

"The Commission adopts the calculation and reconciliation methods proposed by National Grid and Central Hudson except for the inclusion of working capital, and therefore will require each utility to set a fixed rate for a twelve-month period, on a forecast basis, for the recovery of RECs, ZECs and ACP costs, inclusive of uncollectibles," the PSC said

Prior to the following twelve-month period, the surcharge recoveries received from customers will be compared to actual costs, and reconciled in the following twelve-month period.

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