New York Utilities Withdraw Proposed Green Gas Supply Program For Utility-Supply Customers From Current Rate Case, Note Future Rate Case Likely To Be Filed Soon
April 7, 2020 Email This Story Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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The Brooklyn Union Gas Company d/b/a National Grid NY ('KEDNY') and KeySpan Gas East Corporation d/b/a National Grid ('KEDLI') have withdrawn from their current rate case before the New York PSC (Case 19-G-0309) a proposed green gas supply tariff for utility supply customers.
In an initial brief, the KeySpan LDCs said that they were withdrawing the green gas supply program from the current rate case, though the LDCs noted that they will soon be filing a new rate case
"The Companies proposed to implement a Green Gas Tariff ('GGT') offering that would
enable customers to voluntarily purchase renewable natural gas ('RNG') and support the
development of the RNG market. The Companies initially planned to make the
GGT available beginning in Data Year 1; however, given the context of a one-year rate case, and
the fact that the Companies will likely be looking to file another rate case (seeking a multi-year
plan) soon, the Companies have decided to withdraw the GGT proposal. Given the costs to
implement the GGT, the compressed period implementation timeframe, resource and workplace
constraints due to the COVID-19 restrictions, among other factors, the Companies believe
withdrawing the GGT proposal from this case is appropriate. Accordingly, the Companies will
take the necessary steps to withdraw the GGT proposal from this case," the KeySpan LDCs said
In a revised position, Department of Public Service Staff said in a post-hearing brief that the green gas program should be denied.
As previously reported, Staff, in testimony, had initially generally supported the LDCs' Green Gas Tariff
proposal. Staff, however, did recommend reducing the Companies’ proposed two FTEs to one
FTE, whose time would be split equally between the Companies. Additionally, Staff made
recommendations regarding how gas costs under the Green Gas Tariff should be reconciled.
"However, Staff now recommends that the Commission reject the Companies’ Green Gas Tariff
proposal, including both requested FTEs.
Staff notes that these litigated proceedings will set rates for a single Rate Year.
The Companies’ proposal, by its terms, would not go into effect until after the close of the Rate
Year. Moreover, after additional review of Family Energy, Inc.’s concerns [noted below], Staff agrees that
there are a number of issues that should, at the very least, be thoroughly examined before the
Companies be allowed to move forward with their Green Gas Tariff proposal. Accordingly,
Staff recommends that the reasonable course of action would be to deny the Companies’ Green
Gas Tariff proposal in these cases," Staff said in a brief
Family Energy opposed the LDCs' green gas supply program
In addition to calling the proposal unsupported, Family Energy said in a brief that the utilities' green gas supply program would constitute impermissible streaming of gas supply. Streaming is an arrangement whereby a local distribution company procures specific gas supplies dedicated to certain customers or markets. Family Energy said the PSC prohibits streaming except where non-participating customers would be worse off without the transactions occurring
Family Energy said that if the green gas supply proposal were adopted, the LDCs should be required to offer it as a competitive service through an unregulated affiliate, subject to the UBPs and other PSC retail market orders