Hourly Pricing to be Expanded at NiMo

June 17, 2011
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The New York PSC approved Niagara Mohawk's implementation plan to expand the cutoff for Mandatory Hourly Pricing for default electric service to 250 kW (10-E-0050).

Expansion of hourly priced default service from the current 500 kW threshold to 250 kW will commence with the June 2013 billing cycle.

The lowering of the hourly pricing cutoff for default service customers was first reported by Matters in January, when it was required as a condition of a rate case order (1/25). As only noted in Matters, NiMo filed its implementation plan for expanded hourly pricing in March (3/14).

Under the approved plan, mandatory hourly pricing will 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 the threshold level 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 shall apply to offer a voluntary hourly pricing product for smaller customers at a later date.

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