New York PSC Approves ConEd Gas Storage Program For ESCOs With Clarifications

November 19, 2019

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

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The New York PSC issued an order approving Consolidated Edison's (the Company) tariff amendments to its gas tariff schedule, P.S.C. No. 9, to modify the provisions in the Daily Delivery Service (DDS) Program to institute a voluntary Tier 2(B) Physical Storage Program (Tier 2(B) Program) for Gas Marketers, with two clarifications

Under the tariff, ConEdison is to institute a voluntary Tier 2(B) Program beginning April 1, 2020. Pursuant to the tariff, gas marketers interested in participating in the Tier 2(B) Program will be required to notify the Company by February 1 prior to the start of each program year, which runs from April 1 through March 31. The participating marketer will receive its allocation of Tier 2(B) storage field capacity on April 1 of each year based upon its customers’ demand requirements. As filed, a participating marketer that elects not to continue its participation in the Tier 2(B) Program must return its allocated storage field allocation empty by March 31. A marketer that continues to participate in Tier 2(B) Program may continue to maintain its storage field capacity allocation after March 31 of each year. The one exception is that the marketer will only be allowed to keep as much commodity in each of its allocated storage fields for the following program year as does not exceed its new April 1 allocated capacity release for each field minus two dekatherms (Dt).

Under the tariff filing, if the non-participating marketer fails to return its released storage capacity empty on March 31 or if the participating marketer has more commodity in any of its allocated fields on that date than permitted, absent a sale to another buyer, the Company will purchase all of the gas that remains in storage field above the permitted amount, as of 5:00 p.m. on March 31 at the lower of: 1) the Company’s weighted average cost of inventory as of March 1 (excluding the cost of liquefied natural gas, compressed natural gas and propane) minus $0.50/Dt or 2) the Federal Energy Regulatory Commission first of the month market price of gas for March at the storage field listed in the Gas Sales and Transportation Operating Procedures.

Under the tariff, each participating marketer’s Tier 2(B) Program allocation will be 15 percent of its total Tier 2 Managed Supply (Storage) capacity. In addition, Con Edison proposes to revise language under item xiii of the Annual Surcharge or Refund Adjustment provision of the Gas Cost Factor to reference differences between estimated and actual 'incurred costs of capacity' rather than 'charges.'

The PSC approved the tariff, to take effect on December 1, 2019, with two clarifying modifications.

First, ConEdison was directed to file revisions to the operational requirements provision addressing the 'Empty Storage Fields,' which shall address the terms for participating marketers that elect not to continue to participate in the Tier 2(B) Program for the following year.

Second, ConEdison shall file revisions to the operational requirements provision addressing 'Exception to Empty Storage Fields,' which shall pertain to those marketers that elect to participate in the program for the following year.

"These changes should clearly identify that the exception is for gas marketers not continuing to participate instead of those that continue to participate," the PSC said

Case 19-G-0490

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