The New York State Public Service Commission (PSC) on Sept. 28 said that it is seeking comments from the general public by Nov. 10, on proposed changes in the electric and gas delivery rates and services of Consolidated Edison Company of New York (Con Edison).
As noted in the PSC’s notice, Con Edison in late January filed a request with the PSC for approval of a major change in the amount of revenues that it collects from customers through the rates that they pay for electric and gas delivery service. The state Department of Public Service (DPS) and other parties filed responsive testimony and exhibits in May, and thereafter began settlement negotiations to resolve the pending Con Edison rate filings.
The parties’ negotiations ultimately resulted in an agreement on the outstanding issues, which was incorporated into a joint proposal that was filed on Sept. 20, and is supported without reservation and executed by the company, DPS staff and other parties, the PSC added. The joint proposal was also executed by other parties who generally support it, but which have reserved their position on one or two discrete issues, the PSC said.
The joint proposal recommends three-year rate plans for Con Edison’s electric and natural gas services, with both rate plans to be effective as of Jan. 1, 2017, with Rate Year 1 (RY1), Rate Year 2 (RY2) and Rate Year 3 (RY3) defined as calendar year 2017, 2018, and 2019, respectively, the PSC said.
To mitigate the customer bill impacts for the revenue increases for Con Edison electric business over the three rate years, the joint proposal recommends that such increases be levelized, consisting of a $199m increase for each rate year, resulting in an approximate percentage increase of 3.9% in RY1, 3.7% in RY2, and 3.6% in RY3, the PSC said.
The revenue increases for Con Edison’s gas business over the three rate years are $35.5m (RY1); $92.3m (RY2); and $89.5m (RY3), resulting in an approximate percentage increase of 3.1% in RY1, 7.5% in RY2, and 6.7% in RY3.
The PSC added that the actual bill impacts of the proposed changes on the particular customer will vary, based upon revenue allocation and rate design.
As noted in a summary of the electric and natural gas joint proposal, that filing was made by Con Edison, DPS staff, New York Power Authority, the City of New York, United States General Services Administration, Consumer Power Advocates, New York Energy Consumers Council, Pace Energy and Climate Center, Environmental Defense Fund, National Resources Defense Council, Acadia Center, Metropolitan Transportation Authority, Time Warner Cable, Community Housing Improvement Program, Northeast Clean Heat and Power Initiative, Energy Concepts Engineering PC, Association for Energy Affordability, Great Eastern Energy, Digital Energy Corp., Joint Supporters, The E Cubed Company, and Real Estate Board of New York.
The rate plans incorporate many projects and programs that will be beneficial to customers including acceleration of the company’s natural gas leak prone main replacement programs; gas and electric low-income programs; reliability performance metrics; as well as investments in advanced metering infrastructure and associated customer awareness and rate pilot programs, the summary said.
In addition, the summary noted that the joint proposal incorporates numerous “Reforming the Energy Vision (REV)” initiative, including earnings adjustment mechanisms related to system efficiency, energy efficiency and distributed generation interconnections; improvements to electric standby rates; and investments in distributed system platform enabling technologies.
Con Edison is a subsidiary of Consolidated Edison (NYSE:ED).