ESCO Opposes New York Utility's Tariff Ending Imbalance Waivers Adopted At Start Of COVID Pandemic

December 22, 2020

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

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Marathon Power, LLC d/b/a Marathon Energy (Marathon Energy) filed comments at the New York PSC in opposition to tariff amendments filed by Central Hudson Gas & Electric Corporation which modified the Index pricing applied to retail suppliers' over- and under-deliveries, such that the average of the existing Index prices will no longer be used for both over- and under-deliveries.

In addition, Central Hudson also removed the waiver for daily imbalance penalties for retail suppliers delivering gas supply outside the prescribed dead band.

The tariff amendments, which were first reported by EnergyChoiceMatters.com, became effective on 5 days' notice beginning December 1, 2020.

The average index pricing and waiver had originally been adopted as temporary tariff amendments in April 2020 in response to the Governor's March 7, 2020 Executive Order No. 202.8. Central Hudson filed to end the temporary tariff amendments because the Governor's Executive Order 202.8 requiring non-essential businesses to reduce their in-person workforce has been lifted.

However, Marathon Power said that while the Executive Order may have been lifted, conditions which prompted the temporary tariff changes remain, particularly given the current COVID surge and potential for further closures

"Although Governor Cuomo's Executive Order 202.8 may have been lifted, current events indicate that further restrictions may be placed back into effect at any time. Recently, the Governor has noted a surge in corona virus infection in New York State and scientists have projected significant increases in the virus's spread over the course of this winter. The Governor has repeatedly indicated the need for vigilance and has demonstrated his resolve to mitigate the virus through additional actions including further closures. It is therefore illogical to argue as the virus surges that the conditions that were in place when the original amendments were made are materially different than they are today or dismiss the fact that the Governor will take additional actions to safeguard the lives of New Yorkers. Prudence dictates that the temporary amendments should have remained in effect," Marathon said

"Marathon Energy believes Central Hudson's filing is premature and it is not prudent at this time for Central Hudson to roll back the temporary provisions that were put in place because of the impact of the corona virus on customer usage patterns. Thus, the temporary provisions should be restored until the current crisis has been put behind us," Marathon said

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