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either through the legislature, the utility commission, informal working groups, or some combination of these (em to consider issues such as retail wheeling,...
The New York Public Service Commission (PSC) has approved a proposal by New York State Electric & Gas Corp., an electric utility, to offer a new rate mechanism to retain and regain low-load-factor (5 to 35 percent) customers with viable self-generation options. The Self-generation Deferral Incentive Program offers qualified customers a three-year ceiling on the monthly average price of electricity, and a minimum bill based on estimated marginal customer costs and weighted average marginal energy costs plus one cent per kilowatt-hour.
The utility said it had already lost $310,000 in annual revenues from customers targeted by the new rate program. It also claimed that options such as real-time pricing were not cost-effective for the
low-load-factor customers because such rate mechanisms require energy-intensive customers that have flexibility in scheduling their operations. To mitigate the effect of the rate discounting on nonprogram customers, the PSC placed a $300,000 cap on annual revenue losses under the plan, and required a 70/30 percent sharing between ratepayers and shareholders on discounts and any net revenue gains. Re New York State Electric & Gas Corp., Case 94-E-0828, Feb. 21, 1995 (N.Y.P.S.C.). t
Philip S. Cross is an associate legal editor of PUBLIC UTILITIES FORTNIGHTLY.
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