N.Y. PSC Confirms Responsibility for Payment of Credit to Net Metered Hourly-Eligible Customers on ESCO Service

The New York PSC has confirmed the entity responsible for paying credits for excess generation generated by net metered customers who qualify for default hourly pricing, but are served by an ESCO.

Specifically, the PSC endorsed the mechanism in place at New York State Electric & Gas Corporation and Rochester Gas and Electric Corporation as appropriate.

The PSC noted that ESCOs serving net metered hourly-eligible customers only supply the customer with the generation the customer actually uses in excess of its production, and at NYSEG and RGE, as described by the PSC, "the utility is responsible for furnishing any net metering credit that results notwithstanding ESCO service."

As described by NYSEG and RGE, excess monetary credits, "are first applied to the demand and customer charges in the current month's bill and then the remaining credits are allocated to supply and delivery."

"[T]he NYSEG/RG&E method appropriately yields the correct overall credit while leaving the arrangement between the ESCO and the HPP [hourly-eligible] customer in place and unaffected," the PSC said.

"This enables the HPP customer to realize the benefits it seeks from ESCO supply, does not require the ESCO to submit confidential information on its price structure, and is otherwise reasonable," the PSC said.

The PSC directed that Consolidated Edison, Niagara Mohawk, Orange & Rockland, and Central Hudson conform to the NYSEG/RGE net metering mechanism for hourly-eligible customers to the extent they do not already do so.

The NYSEG/RGE mechanism adopted by the PSC also addresses for hourly-eligible customers proper calculation and crediting of net metered amounts by hour, including carrying such amounts forward, and provision for an annual cash-out for eligible customers.

Case: 12-E-0043