N.Y. Orders Surcharge on ConEd Transportation Customers to Fund Refund to Full Service Customers

The New York PSC ordered Consolidated Edison to provide a refund to full service customers, funded by a surcharge on transportation customers, to make full service customers whole for prior under-deliveries by transportation customers due to an error in the lost and unaccounted for gas (LAUF) calculation.

Background on the LAUF error is available here

In order to refund the amounts overpaid by full service customers, the PSC ordered a re-allocation of gas expense from the gas cost factor (GCF), paid by full service customers only, to the monthly rate adjustment (MRA), which is paid by both full service and transportation customers.

Specifically, the PSC directed that full service customers should be credited $9.16 million, including interest, by re-allocating $6.695 million in gas expense from the GCF to the MRA as part of the 2012, 2013, and 2014 annual gas reconciliations.

In other words, ConEd shall make a tariff filing to effect a credit of $6.695 million in the annual reconciliation of gas expenses and gas recoveries for 2012, 2013, and 2014 and a surcharge of $6.695 million annually as part of the load following component of the MRA to all firm customers for the period January 1, 2013 to December 31, 2015.

For a typical residential heating customer, using 1,000 therms per year, full service customers will receive an average monthly credit of 36 cents and transportation customers an average monthly surcharge of 43 cents.