NiMo to Expand Hourly Pricing Threshold to 250 kW in June 2013

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March 14, 2011  

Niagara Mohawk would lower the mandatory hourly pricing threshold to 250 kW effective with the June 2013 billing cycle, under an implementation plan filed with the New York PSC (10-E-0050).

The lowering of the cutoff, from the current 500 kW, was approved in NiMo's most recent rate case, but details were left to a compliance filing (see 1/25)

Specifically, mandatory hourly pricing would be extended to customers under Service Classification No. 3 (SC-3) with billing demands of 250 kW to 500 kW for six consecutive months in the 12-month period ending December 2010. The six consecutive month threshold, consistent with NiMo's practice for the current cutoff, is a higher threshold than applied at some other New York utilities, where typically only two months of demand at a threshold places a customer on hourly pricing.

All customers who become eligible for hourly commodity billing will continue to be billed for electricity supply based on their actual hourly usage even if their demand falls below 250 kW.

NiMo said that 991 additional customers are covered by the lower cutoff of 250 kW, however, 37 of these customers would be exempt from hourly pricing for default service due to being served on economic development or similar rates (leaving 954 customers who would be moved to hourly pricing for default service). NiMo did not report how many of these 954 customers currently take default service versus competitive supply.

Effective June 2013, ESCOs serving customers over 250 kW would have their load settled based on hourly data.

NiMo will start providing hourly data to customers moving to hourly pricing in June 2012 to provide a one-year transition period so customers may review their usage patterns. NiMo will also conduct various outreach and education programs, including customer seminars.

NiMo said it would apply to offer a voluntary hourly pricing product for smaller customers at a later date.

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