New York OGS Seeks Rule Change to Allow Aggregation to Meet Definition of "Direct Customer," Shop Without ESCO

The New York State Office of General Services (OGS) has sought a change to New York's uniform business practices (UBPs) to allow customers to aggregate their electric load in order to meet the threshold of a "direct customer" and participate in the market without an ESCO.

Specifically, the UBPs currently provide that a "direct customer" is: "An entity that purchases and schedules delivery of electricity or natural gas for its own consumption and not for resale. A customer with a minimum peak connected load of 1 MW at a single service point qualifies for direct purchase and scheduling of electricity provided the customer complies with NYISO requirements. A customer with annual use of a minimum of 3,500 dekatherms of natural gas at a single service point qualifies for direct purchase and scheduling of natural gas."

OGS has asked the PSC to revise the definition of direct customer to be: "An entity that purchases and schedules delivery of electricity or natural gas for its own consumption and not for resale. A customer with an aggregated minimum peak connected load of 1 MW to a designated zonal service point qualifies for direct purchase and scheduling of electricity provided the customer complies with NYISO requirements. A customer with annual use of a minimum of 3,500 dekatherms of natural gas at a single service point qualifies for direct purchase and scheduling of natural gas." [emphasis added]

The new definition, "will allow OGS to fulfill the requirements established under State Finance Law §97-g which is to aggregate the electric load of state facilities within the NYISO Zones across the State," OGS said.

OGS made the request in the PSC's ongoing review of various retail market issues (see earlier story).