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New York Utilities Update Plan To Offer Renewable Natural Gas To Customers

Utilities Update Merchant Function Charges, Data

July 4, 2019

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Copyright 2010-19
Reporting by Paul Ring •

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KeySpan New York and KeySpan Long Island (collectively, National Grid) have filed updates to their current rate cases at the New York PSC, with such updates including a modification to a renewable natural gas supply option proposed by the LDCs

As exclusively first reported by, the KeySpan LDCs in the rate case proposed a "Green Gas" tariff offering that will allow customers to voluntarily purchase renewable natural gas [RNG] to meet all or a portion of their energy needs.

The offering will include four tiers, which will differ for residential and non-residential customers

As originally proposed in the KeySpan LDCs' initial testimony, for residential customers, the tiers and pricing were originally proposed to be:

Low              $5/month
Low-Middle      $20/month
High-Middle     $25/month
High            $50/month

Specifics on the amount of RNG per tier for residential customers was not readily apparent in the initial testimony

In supplemental testimony, the KeySpan LDCs have revised the proposed residential renewable natural gas tiers.

Specifically, in the revised proposal, "the Companies propose to update the residential tiers to include a flat-rate option that more closely tracks the 100 percent option for non-residential customers[.]"

The revised proposed green gas program for residential customers now includes the following tiers:

Low              $5/month
Low-Middle      $25/month
High-Middle     $50/month
High           $100/month

In a data response, the KeySpan LDCs said that conversations with SoCalGas, which developed a similar program, suggested that residential customers preferred a structure that provides a fixed bill impact rather than one that covers a fixed percentage of gas consumption. The KeySpan LDCs used an estimated average cost of $15/dekatherm of RNG to calculate the bill impacts at the various percentage rates.

The KeySpan LDCs did not propose any changes to the originally proposed green gas program for non-residential customers (see original story for non-residential details)

Additionally, the KeySpan LDCs submitted updated data for their proposed Merchant Function Charges and associated components

See the data and MFCs in the LDC's filings below

Brooklyn Union Gas Company page 257-276

KeySpan Gas East Corporation page 233-252

Case 19-G-0309 et al.

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