NY PSC Denies Rehearing Of Inclusion of Certain Large Customers In Municipal Aggregations On Opt-Out Basis

The New York PSC denied National Fuel Gas Distribution's request for rehearing concerning the inclusion of certain large customers in NFGD's territory in municipal aggregations on an opt-out basis.

As previously reported by EnergyChoiceMatters.com, in its April CCA (community choice aggregation) order, the PSC eschewed the definition small non-residential used to define such customers in its February retail market "reset" order for purposes of defining customers who may be enrolled in a CCA on an opt-out basis.

Instead, the PSC established a list of service classes specific to each utility that may be enrolled by municipal aggregations on an opt-out basis, with these service classes in some cases including customers that are larger than the definition of small non-residential used in the retail market reset order (see our prior story for a link to these specific service classes)

National Fuel Gas Distribution sought rehearing on this issue, stating that the inclusion of its SC 3 General in the classes whose customers may be enrolled on an opt-out basis, "is overly broad because this classification includes non-residential customers with consumption up to 5000 mcf annually, well in excess of the 750 Dth mass market breakpoint provided in the Reset Order for mass market customers."

"These customers are generally more sophisticated in terms of their energy purchasing decisions than non-residential customers that fall within the mass market definition," Distribution had said

The PSC denied NFGD's request to alter this provision.

"While many CCA programs are expected to focus on mass market customers, they may nonetheless provide benefits to large customers. Furthermore, as NFG notes, those customers are generally sophisticated regarding energy purchasing decisions; they are therefore well-equipped to evaluate an opt-out letter and make an informed decision to opt-out or join the CCA. Nonetheless ... NFG is free to propose, in comments on a particular Implementation Plan, that the Commission restrict eligibility for the CCA program proposed by the Plan to a narrower group of customers," the PSC said on rehearing

As first reported by EnergyChoiceMatters.com yesterday, the PSC also clarified that municipal aggregations may adopt a partial phased approach to implementation.

The PSC's written order provides that, "Municipalities may choose a partial or phased approach as a pilot of CCA, to manage the implementation process given a large geographic footprint or overlapping jurisdictions, or for another reason beneficial to their program."

"Where a phased or partial approach is being used, the Implementation Plan should identify what portions of the municipality or municipalities will initially be included, explain whether customers in other parts of its jurisdiction will be permitted to participate on an opt-in basis, include a detailed outreach plan that will inform residents throughout the municipality of the program and its geographic limits, and contain information on whether and in what time frame the program will be expanded," the PSC said