ConEd to File "Proposal" to Lower Mandatory Hourly Pricing Threshold to 300 kW Under Rate Case Settlement

A joint proposal in a Consolidated Edison electric rate case would require the utility to file a proposal to expand mandatory hourly pricing (MHP) to customers with demands over 300 kW.

Specifically, ConEd would be required to file a proposal to expand its MHP program to include customers with demands over 300 kW within 12 months after the completion of reactive power meter installation. The reactive metering project is scheduled to be completed by the end of 2014

The current hourly pricing cutoff at ConEd is 500 kW.

Any proposal for MHP expansion would still require approval from the New York PSC.

"Such proposal will include an evaluation of the existing MHP program and may propose a phase-in or other staged approach of any MHP expansion," the joint proposal says.

New York's steady implementation of lower hourly pricing thresholds had been called into question by a consultant's study submitted in 2012 which had said that mandatory hourly pricing expansion had little impact on customer usage and therefore costs of continued expansion outweighed the benefits (click here for story on the study).

The joint proposal signatories agree that the proposed electric delivery rates do not reflect any costs for the expansion of MHP and that ConEd should therefore receive full recovery of the incremental costs of any MHP expansion that the Commission may approve or direct.

Additionally, the joint proposal provides that ConEd will take steps to change its method of calculating capacity charges for Mandatory Hourly Pricing customers from a calculation based on each customer's peak demand to a calculation based on each customer's installed capacity (ICAP) Tags.

"Because of significant system modifications needed to implement such a change, the Company will begin training efforts to provide information on the new method to affected customers in the spring of 2015, for implementation in the spring of 2016," the JP provides.

See related story today on ConEd ESCO vs. Default Service Cost Calculator

See related story today on ESCO Portability, Other Retail Access Issues in JP

Case 13-E-0030