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 • ring@energychoicematters.com

The following story is brought free of charge to readers by EC Infosystems, the exclusive EDI provider of EnergyChoiceMatters.com

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Union Gas Company d/b/a National Grid NY ('KEDNY') and KeySpan Gas East Corporation d/b/a National Grid ('KEDLI') have withdrawn from their current rate case before the New York PSC (Case 19-G-0309) a proposed green gas supply tariff for utility supply customers.

The KeySpan LDCs' proposal for a green gas supply offering had been first reported by EnergyChoiceMatters.com last year

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

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Senior Energy Intelligence Analyst -- Energy Procurement
• NEW! -- Channel Partner Sales Manager -- Retail Supplier
• NEW! -- Energy Procurement Manager
• NEW! -- Channel Relations Manager -- Retail Supplier
• Senior Retail Energy Markets Pricing Analyst
• Energy Market Analyst -- DFW