|
Consulting |
Search |
NiMo Clarifies Retail Pricing of Capacity Under New Commodity Rate Mechanism
June 27, 2011
Email This Story
Niagara Mohawk has filed a correction to its proposed electric capacity pricing mechanism for customers for whom the utility cannot apply an individualized capacity tag (10-E-0050).
As only reported in Matters, the Retail Energy Supply Association had noted that NiMo's original proposal -- part of a larger modification to its commodity rate design -- failed to include costs associated with the Demand Curve charges imposed by the NYISO on all Load Serving Entities (see 5/16).
NiMo agreed that costs related to the NYISO Demand Curve Requirements (or "Excess Megawatts") were incorrectly omitted from its formula.
NiMo has submitted a revised tariff sheet to reflect that all customers will be charged a forecasted NYISO Demand Curve Requirement for the upcoming month and, because the NYISO Demand Curve must be forecast for the upcoming month, the actual costs will be reconciled through the Electric Supply Reconciliation Mechanism (ESRM) for all customers on a kWh basis.
"Furthermore, since the methodology for charging capacity is different for MHP [mandatory hourly pricing] and non-MHP customers, a separate capacity tag adjustment could be considered to properly allocate the costs and reconciliations to the correct groups," NiMo said.
NiMo also provided several clarifications sought by RESA.
NiMo confirmed that the proposed New Hedge Adjustment, which reconciles the costs of new hedges, is applicable to only mass market customers. RESA had noted that this New Hedge reconciliation is rolled into the Electric Supply Reconciliation Mechanism (ESRM), which is applicable to all customers.
NiMo explained that the Electric Supply Reconciliation Mechanism will have different components for different customer classes. The Electric Supply Reconciliation Mechanism Factor applicable to SC-1 and SC-2 non-demand customers will be the sum of the New Hedge Adjustment, Mass Market Adjustment Factor, and Base ESRM Factor. The total ESRM Factor for unhedged and Mandatory Hourly Pricing customers will be only the Base ESRM Factor, NiMo said.
NiMo further clarified that the NYPA Hydropower reconciliation will flow through the NYPA Mechanism and will be recovered from residential customers on the delivery portion of their bills, reflecting the legacy nature of such contracts. The NYPA Hydropower reconciliation will not be included in the Electric Supply Reconciliation Mechanism.
RESA had requested addition data regarding NiMo's hedging activity, but NiMo said that appropriate hedging disclosures have been previously designed by the PSC.
In response to RESA concerns, NiMo also said that it is not altering the Rate Ready billing model and will continue to supply the model with commodity prices.
"Consistent with the proposed changes to the SC1 and SC2ND customer commodity prices, the Company will supply the Rate Ready model with commodity prices in accordance with Rules 46.1 and 46.3. As part of its outreach and education effort, the Company will host a meeting with the ESCOs to discuss any potential impact these changes may have on ESCO billing options," NiMo said.
Email This Story
Copyright 2010-
Be Seen By Energy Professionals in Retail and Wholesale Marketing
Run Ads with Energy Choice Matters
Call Paul Ring
954-
|
Consulting |
Search |