New York to Allow More Large Electric Customers to Take Competitive Supply Without Using ESCO

The New York PSC, in its retail markets order, has revised the 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.

The change was made in response to a request from the New York State Office of General Services (OGS)

Originally, the UBPs provided 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."

In response to a request from the Office of General Services, the PSC revised 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."

Although changed at the behest of OGS, it was not clear how many other customers will meet the new definition of direct customer, and therefore will be able to take competitive supply without using an ESCO if they so desire.

OGS had said that 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."