N.Y. PSC Details Amount of RGE Customers Remaining on Default Service in New Hourly Pricing Classes

May 23, 2011
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Of the Rochester Gas & Electric customers to be newly exposed to hourly default service over a two-year phase-in ending in 2012, about 85 are currently taking default service, the New York PSC reported in a written order on RGE's compliance plan.

The expansion of mandatory hourly pricing for default service customers with demands above 300 kW was first reported by Matters last week (5/20).

In a written order issued Friday, the PSC reported that in the first part of the expansion, in which the hourly cutoff will be lowered from 1 MW to 500 kW on September 22, 2011, 220 customers will be affected. Of these, about 25 currently take default service from RGE.

In the second phase, in which the hourly pricing cutoff will be lowered to 300 kW effective September 22, 2012, 365 customers will be affected, of which about 60 currently take default service.

Under the current 1 MW cutoff, 140 customers are subject to hourly priced default service, of which about 20 actually take such default service. The remainder are served by ESCOs.

The PSC's written order also clarified that the expansion of mandatory hourly pricing will extend to all customers in the SC-8 rate class. As a result, some customers who do not meet the otherwise applicable hourly pricing standard (300 kW demand in two of the last 12 months) will nevertheless be moved to hourly pricing, for administrative ease.

Customers only fall out of the SC-8 rate class if they have demands of 200 kW or less for twelve consecutive months.

Accordingly, hourly pricing will likely apply to some customers whose demands are below 300 kW, but not consistently below 200 kW and thus not removed from SC-8. Because these customers have demonstrated that they have the potential to reach the 300 kW threshold, the PSC agreed that it is reasonable to assume they will reach the threshold again, and thus include them in hourly default service, unless they no longer qualify as SC-8 customers.

The matter is Case No. 09-E-0717.

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