New York Utility Seeks 'Discretion' in Collection of Default Service Reconciliations

Niagara Mohawk (National Grid) had petitioned the New York PSC for tariff changes that would provide it with discretion regarding the period over which it must reconcile electric default service costs.

Currently, the NiMo tariff requires that all commodity related rate mechanisms shall be fully reconciled in one month, with the costs or credits collected from or credited to customers on a two month lag, meaning that they are reflected in customers' bills two months after the costs are incurred.

NiMo is seeking to revise its tariff to enable the company to, "spread out the monthly supply cost reconciliations over two or more months, where appropriate."

NiMo's proposed tariff language provides that, "Any reconciliation balance, whether positive or negative, shall be included in the adjustment of subsequent periods."

NiMo said that the current tariff which requires that all reconciliations be completed in one month, "has the potential to create month to month commodity volatility."

Additionally, NiMo is seeking tariff changes to allow the allocation of the New Hedge Adjustment at the NYISO zonal level and the reconciliation of the Mass Market Adjustment at the zonal level.