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Another New York Utility Proposes To Offer Renewable Natural Gas Supply Option To Default Service Customers

August 28, 2020

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Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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In a newly filed rate case at the New York PSC, Central Hudson Gas & Electric (the Company) offered two potential proposals to increase the use of renewable natural gas (RNG), with one of the proposals being the offering of a renewable gas supply option to default service customers

In testimony, Central Hudson said that it will evaluate opportunities to contract with an RNG facility or supplier. Depending upon the volume of supply the Company is able to procure, the Company may pursue the following alternatives:

1. Offer customers the opportunity to opt-in to a premium gas supply offering consisting or partially consisting of RNG sources ('RNG Supply Option 1'). "This will test customer willingness to pay for clean energy and offer a product that a segment of our customers may demand. It also may be available to a wider customer base than a RNG facility and allow the Company to begin testing the market sooner," the Company said

2. Integrate the RNG supply as an additional source of gas supplied to all full retail customers ('RNG Supply Option 2'). "While this option does not provide as much opportunity to test customer willingness to pay for RNG, it provides a cleaner gas supply for all of our customers. If the available RNG supply is very limited, the administration of a separate supply offering may not be practical and the increase in gas supply prices to all customers will be minimal, rendering this solution as the preferred option," Central Hudson said

"If the available RNG supply is limited, Central Hudson would initially offer the RNG supply program to residential customers only to allow for a sufficient number of participants. If additional supply becomes available, the Company will consider expanding the program," Central Hudson said

For RNG Supply Option 1, the customers who opt into the program would pay the actual price per Ccf plus program administration fees.

For RNG Supply Option 2, the RNG supply costs would be recovered as part of and in the same manner that all gas supply costs are recovered.

Initially in order to explore either RNG Supply Option, RNG supply would be limited to 5% of the 2020 gas supply requirement, Central Hudson said

Case 20-E-0428, 20-G-0429

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