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New York PSC Approves Time-Varying Electric Supply Rates In ConEd Pilot

Pilot Also Includes Subscription Plan With Overages

December 14, 2018

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

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The New York PSC has approved various, "innovative rate structures" proposed by Consolidated Edison for electricity customers on a pilot basis

Most of the pilots relate to delivery service rates, including the use of delivery rate "subscription" plans under which customers subscribe to a set amount of demand at a set per kW price, with additional charges for overages

For all but one of the rate options under the pilot, the supply prices will be the same as applicable under standard default service. For the pilots which are for delivery service only, customers may take retail access service while on the pilot.

Specifically, for Rates I, II, III, V and VI of the residential/religious portion of the pilot and Rate I of the small commercial portion of the pilot, charges for electric supply will continue to be based on a single monthly rate for all kilowatt-hour (kWh) usage

As proposed, Rate IV of the residential/religious portion of the pilot includes time-varying supply rates assessed on a per kWh basis with capacity costs being recovered on a kWh basis for energy used during on-peak hours.

In an order authorizing ConEd's pilot, the PSC said of the pilot supply rates the following: "Under the proposed tariff amendments, time-varying supply rates will be offered to customers under Rate IV of the Pilot. Capacity costs for customers enrolled in Rate IV will be recovered on a kWh basis for energy used during on-peak hours. EDF [Environmental Defense Fund] states the description of the supply rate is incomplete in the Company’s proposed tariff leaves. However, the Company’s proposed tariffs indicate that 'the cost of capacity is assessed only for usage during the 'on peak' period' for customers billed under Rate IV of the Pilot. However, supply charges are further differentiated by the differences in the NYISO market prices during the peak and off-peak periods. EDF’s criticism is correct in that Con Edison’s tariff with respect to time-differentiated supply charges is unclear. The Company is required to file updated tariff language specifying how energy is [sic] prices are calculated for time-differentiated supply customers. Additionally, the Commission expects that the outreach materials will explain the time variant supply option to customers, and Staff will review the outreach materials to verify their effectiveness in describing this option."

As Rate IV will include supply rates, customers enrolled with Energy Services Companies (ESCOs) will not be eligible for enrollment in Rate IV. Full-service customers enrolled in Rate IV who elect to switch to an ESCO will be free to do so and will be transferred to Rate I of the residential/religious portion of the Pilot. Other charges and adjustments (e.g., Monthly Adjustment Clause and Revenue Decoupling Mechanism Adjustment) will continue to be assessed on a per kWh basis at the pilot participants’ otherwise applicable rates.

Participating customers will take service under the pilot rates for two consecutive 12-month periods, with the ability to discontinue participation in the pilot at any time

Enrollment in Rate IV of the pilot will occur on an opt-out basis

Service under Rate IV the residential/religious portion of the pilot are to be offered effective October 1, 2019.

The pilots include a price guarantee, consisting of a credit to customers whose electric bills are higher under the pilot than they would have been on their otherwise applicable rate.

The price guarantee comparison will be made on a total bill basis for full service customers and on a delivery-only basis for retail access customers

All credits issued as a result of a price guarantee will be recovered through the Monthly Adjustment Clause.

Across all rate options, ConEd expects to enroll approximately 67,100 customers in the pilot

Case 18-E-0397

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