N.Y. Restructures Gas Rates to Lure Competitive Supplies

Fortnightly Magazine - September 1 1997
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The New York Public Service Commission has directed Consolidated Edison Co. to modify its gas transportation rates to more accurately reflect costs.

The commission said that the tariff revisions mark a "major step" for a service territory where competition between the utility and gas marketers had not yet developed. The rate modifications include:

• decreased "load following" charges for customers with high load factors for storage services used to meet daily swings in consumption;

• removal of stand-by service costs from the load-following charge and development of a separate surcharge for stand-by protection provided to "human needs" customers, such as residential and acute care health facilities;

• a commitment by the utility that it will allow sales customers to convert from sales to transportation service without assignment of the utility's associated upstream capacity; and

• a requirement that the utility provide daily load data for aggregated pools of customers so that marketers can use their own storage capabilities to meet customer requirements.

Re Restructuring of the Emerging Competitive Natural Gas Market et al., Case Nos. 93-G-0932 et al., May 2, 1997 (N.Y.P.S.C.).


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