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New York PSC Directs Utilities To Analyze Modification Related To Supply Mechanism In Next Base Rate Filings

February 8, 2019

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Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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As part of an order on modifications to temperature controlled (TC) and interruptible (IT) service at KeySpan New York and KeySpan Long Island, the New York PSC directed the LDCs to analyze a proposed modification related to the Gas Adjustment Clause (GAC)

Specifically, as part of reviewing TC and IT issues, the LDCs had stated that they will consider whether to propose in their next rate cases a modification to include TC service in their annual gas cost reconciliation methodology.

A collaborative report reflected the City of New York's concern that the proposed resolution of gas supply issues could raise costs for the LDCs' sales customers. As of the time that the LDCs filed the collaborative report, analysis of these potential costs had not yet been completed. The report recommended that these issues be addressed within the LDCs' next rate cases.

"Due to the lack of analysis on the merits of the concept and the presently unknown impacts for customers, the Companies shall thoroughly analyze and address this concept in their next base rate filings," the PSC directed

The PSC's order also noted that the LDCs recently modified their GTOP manual to provide ESCOs with greater supply flexibility as a result of the collaborative

The GTOP changes modify the LDCs GTOP manual procedures for accepting month-ahead and day-ahead nominations so that ESCOs will be permitted to deliver specific percentages of the supplies on behalf of their TC and IT customers to the city gates where the LDCs' facilities connect with pipelines, rather than delivering 100 percent of their supplies on Transco

The GTOP changes also modify the LDCs' GTOP manuals to permit ESCOs serving non-firm loads and power generation customers to request access to any available city-gate capacity on an intra-day basis

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