Joint Proposal Provides That NiMo "Will Develop" Online ESCO Vs. Default Service Cost Calculator

A joint proposal among parties to Niagara Mohawk's pending electric and natural gas rate cases in New York provides that NiMo "will develop" an online calculator to allow ESCO customers to compare their costs under ESCO supply versus shadow-billed default service costs.

Specifically, the joint proposal provides: "The Company [NiMo] will develop a web-based historical utility bill calculator that provides information to residential consolidated bill ESCO customers regarding the amount these customers would have been billed had they purchased commodity from the Company."

This differs from an earlier "term sheet" for the joint proposal, which called for a collaborative regarding the online cost comparison tool, but did not provide that NiMo "will develop" such tool.

The formal joint proposal also provides that NiMo will convene a collaborative as soon as practicable but no later than 60 days following a Commission Order adopting the joint proposal to develop the materials (including the bill calculator and other materials that may be discussed in the collaborative) to be provided to residential ESCO customers concerning the amount the customer would have been billed if they had purchased commodity from NiMo.

The collaborative shall also discuss what bill comparison tools could be provided to residential non-ESCO customers.

The incremental costs that NiMo will incur to develop and provide the cost comparison information, including the materials recommended by the collaborative, will not exceed $0.298 million and will be recovered by offsetting the costs against the electric and gas deferral credits contained in rate provisions in the joint proposal.

Other ESCO-related terms in the formal joint proposal, including the amount of ESCO billing charges/backout credits, provision of ICAP tags, and POR for customers in SC-3 and SC-3A, do not differ form the previously reported terms (see prior story for discussion of terms)

Specifically, in accordance with the Joint Proposal dated December 19, 2005 in Case 05-M- 0333 (Competitive Opportunities Development Plan), under the existing POR program for customers in SC-3 and SC-3A, the ESCO has the option to use either a one-bill option or two-bill option for individual customers. However, if the ESCO seeks to move a customer from the two-bill option to a one-bill option, NiMo's purchase of the accounts receivable of such customer will be subject to the conditions set forth in the Competitive Opportunities Development Plan.

The joint proposal memorializes the settlement agreement among Niagara Mohawk Power Corporation d/b/a National Grid, Department of Public Service Staff, Multiple Intervenors, the Utility Intervention Unit of the New York State Department of State’s Division of Consumer Protection, United States Department of Defense, the Retail Energy Supply Association and the New York Power Authority

Case 12-E-0201 et. al.