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Orange & Rockland To Revise Tariff Language Regarding Recovery Of Supply Costs

Rate Case Joint Proposal Also Addresses Other Retail Market Issues

November 12, 2018

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

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A joint proposal filed in Orange & Rockland's current electric and natural gas rate cases addresses several retail market issues

For both electricity and natural gas, the JP provides that O&R shall add language to the tariff for the Market Supply Charge (MSC) and the Gas Supply Charge (GSC), to, among other things, include on-line auction platform costs as recoverable supply costs

Specifically, O&R under the JP shall, "Add language to the MSC to: (a) include on-line auction platform costs as recoverable supply costs; and (b) clarify how the Company calculates capacity charges[.]"

For natural gas, O&R under the JP shall, "Add language to the GSC to: (a) include on-line auction platform costs as recoverable supply costs; and (b) include the reduction of the WBSS [Winter Bundled Sales Service] capacity charge component revenues in the fixed cost of gas calculation[.]"

As intimated above, under the JP O&R will add a capacity charge component to Winter Bundled Sales Service under SC No. 11

The JP provides that O&R, "will include a link on its website to a tool allowing prospective customers to evaluate the costs and benefits of operating different heating solutions. At the Company’s option, the link will either direct customers to a tool developed by the Company or to a tool developed by a third party. The link shall be established within three months of the Commission order adopting this Proposal."

The JP also provides that O&R, "will initiate a marketer collaborative, to commence during RY1 [rate year 1], wherein parties can discuss issues of concern to the energy services company community. The frequency of such meetings will be discussed and decided by the Company, Staff and other interested parties."

The JP further provides that O&R will develop a Gas Demand Response (DR) pilot program (modeled on the Con Edison Gas DR pilot program targeting commercial and industrial customers in Case 17-G-0606), "to gain insight into optimal gas DR operational parameters and achievable customer response."

"The primary objective of the program will be to test the feasibility of incentivizing customers to provide net reductions of natural gas demand during peak gas demand days (i.e., from 10:00AM to 10:00AM the following day); at sufficient levels, such reductions could potentially defer or eliminate the need to pursue pipeline projects or add to peak day assets. The Gas DR pilot program will also explore strategies to optimize customer participation and performance," the JP provides

The JP was signed by O&R, New York State Department of Public Service Staff, the Utility Intervention Unit, Division of Consumer Protection, New York State Department of State, Great Eastern Energy, LLC, and other parties

Case 18-E-0067 et. al.

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