At Deadline: Con Ed Rate Hike Joint Proposal Calls for Rate Freeze

The following is reproduced directly from the NYECC email prepared by the group’s Executive Director, Diana Sweeney. We have bolded key points for your convenience.

On Jan. 30 of this year, Con Edison filed for an electric rate increase ($368.1M revenue increase) to be effective Jan. 1, 2016. Shortly after the rate case filing, the Department of Public Service Staff, Con Edison, the NYECC and other parties conducted confidential settlement negotiations.  

--Con Edison’s Electric T&D rates will be "frozen" through 2016.

--Con Edison originally requested $368.1M for 2016, not including a $48M increase that was scheduled to go into effect in 2016 per the current electric rate plan, so the total proposed revenue requirement increase was $416M.

--Con Edison’s actual revenue requirement increase will be $122.1M (an incremental revenue requirement increase of $74.3M plus the $48M increase agreed to in the current electric rate plan).  The $122.1M will be offset by available customer credits in that amount so that rates may remain flat.

--The calculation of the MAC will be aligned with the MAC calculations for other customers, and calculation of per-kWh charges such as SBC/RPS and MAC for offset standby customers will be based on customer usage net of kWh produced by the customer’s generating facility.

--There will be a performance based credit (to be determined each year in October), available for Standby Service customers to earn credits against their contract demand charges for Con Ed and NYPA customers with generating facilities at a voltage lower than 100kV.

--Generator output must be separately metered using interval metering with telecommunications capability arranged and installed at customer’s expense. The customer must also provide and maintain the communications service for the meters recording the generator output. If the credit is sought for the summer of 2015, the metering and communications capability has to be installed before June 1, 2015. Customer bears the risk of Commission rejection of this proposal.

--Credit to be based upon the lowest kW recorded on the output meter in the weekday period from June 15 through Sept. 15 from 10 am to 10 pm multiplied by the Contract Demand Delivery Charge per kW in effect on October 1 the year it is determined to be paid. The customer will receive the credit monthly over the course of one year.

--"No fault" outages -- up to 3 events of any duration not exceeding 5 days (each day is a weekday 24-hour period) can be excluded, and will enable the customer to still qualify for the credit.

There will be a 45 day public comment period prior to the Commission’s determination or approval.   It is anticipated that the Commission will approve the Joint Proposal.

During these negotiations, the NYECC was your voice and your advocate.  We will continue to keep you apprised. If you would like more information or a copy of the Joint Proposal, please reach out to Diana Sweeney at diana.sweeney@nyecc.com or at 212-616-5118.