Con Edison Electric T&D Rates Frozen through 2016
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 Our colleagues at the NYECC, who were essential
to the negotiations with the Public Service Commission and Con Edison on the
electric rate increase proposals, reported June 18 on the
following results regarding the performance-based credit for standby customers.
The text below is reproduced directly from the NYECC’s June 18 bulletin on the rate resolution.
Background/Details
On Jan. 30 of this year, Con Edison filed for an electric rate increase
($368.1M revenue increase) to become effective Jan. 1, 2016.
After the rate case filing, the Department of Public Service Staff, Con Edison,
the NYECC and other parties participated in confidential settlement
negotiations. A 2015 Joint Proposal to extend the current two-year
electric rate plan by one year (through Dec. 31, 2016) was filed on
April 20, 2015. An Addendum to the Joint Proposal was filed on June 2, 2015
regarding the performance-based credit for standby customers.
The Terms
Con Edison’s Electric T&D rates will be "frozen" through 2016. (Note: steam and natural gas rates were frozen in 2014 for three years.)
- Con Edison originally requested $368.1M for
2016. The PSC in its 2014 Rate Order had previously approved a $47.776M
increase that was scheduled to go into effect in 2016 under the current
electric rate plan, so electric ratepayers were facing a total proposed revenue
requirement increase of $415.9M.
- Under the 2015 Joint Proposal, the revenue
requirement increase will be $122.633M (an incremental revenue requirement
increase of $74.857M plus the $47.776M increase agreed to under the 2014
electric rate plan). The $122.633M increase in the revenue requirement
will be offset by available customer credits in that amount so that rates may
remain flat ($92.6M in customer credits plus $30M previously ordered by the
Commission in its 2014 Order).
Standby Rates
Concessions
- Assessment of the MAC to standby customers
will change from three components (customer charge, contract demand charge, and
as-used daily demand charges) to a single per-kWh MAC charge applicable to
standby customers and all other customers taking service under the electric
tariff.
- The calculation of per-kWh charges such as
SBC/RPS and MAC for offset standby customers will change from a customer’s
total kWh usage to the customer’s total usage net of kWh produced by the
customer’s generating facility.
- There will be the opportunity to earn 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. Due
to the limited time before the start of the 2015 measurement period, which
commences on June 15, 2015, in which to install approved metering and
communications for standby performance credits, the Company proposed a
modification to the method of measuring performance to allow standby customers
the opportunity to earn credits against their contract demand charges in 2015.
The modification allows customers to participate and earn performance credits
in 2015 by using their existing metering, subject to certain conditions, while
working at the same time with the Company to assess their current generating
facility metering equipment for more permanent metering and communication with
Con Edison, as specified in the Joint Proposal, to be installed and operational
prior to the start of the 2016 measurement period.
- The credit will be equal to the product of:
(a) the lesser of the lowest kW recorded on the output meter in the weekday
period from June 15 through Sept. 15 from 10 am to 10 pm, or the customer’s
Contract Demand, multiplied by the Contract Demand Delivery Charge per kW in
effect on Oct. 1 the year it is determined to be paid. The measurement
period for the second and subsequent years will cover two consecutive full
summer periods adjusted for any outage events. The customer will receive
the credit monthly over the course of one year, commencing in November until
the following October.
- "No fault" outages – the measurement period
will exclude up to three outage events (regardless of cause) not exceeding five
24-hour weekday periods and the customer can still qualify for the credit.
- The customer must request the performance
based credit by Oct. 1 of each year and, at the same time, specify the
outage events the customer requests to be excluded from the measurement period.
If you would like more information or a copy of the Joint Proposal, please
reach out to the NYECC’s Executive Director Diana Sweeney at diana.sweeney@nyecc.com,
or 212-616-5118.    
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