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Customers, ESCOs Seek Assurance Recharge New York Delivery Discount Will Apply to Market-Sourced Power
August 29, 2011
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Customers eligible for the Recharge New York economic development rates should be relieved from paying various monthly distribution riders if they elect to buy their market-based portion of Recharge New York supplies from an ESCO, large customers and ESCOs said in comments to the New York PSC (11-E-0176).
Under the Recharge New York program, 910 MW of electricity will be made available to eligible New York businesses and not-for-profit entities. This power allocation will consist of 455 MW of New York Power Authority hydroelectricity and 455 MW of market electricity purchased from NYPA or ESCOs by Recharge New York recipients.
Additionally, Recharge New York recipients will avoid the System Benefits Charge, the Renewable Energy Portfolio Standards surcharge, and the Energy Efficiency Portfolio Standards surcharge, for the customers' volumes associated with the Recharge New York program.
However, Consumer Power Advocates, the Retail Energy Supply Association, and Constellation NewEnergy sought assurance that Recharge New York customers will be able to bypass the societal policy riders if they elect to receive their market-based Recharge New York supply from an ESCO.
Large customers and ESCOs raised concern with a vague statement from NYPA regarding the avoidance of the riders. NYPA has said that, "Such discount would be applied, of course, to the entirety of the RNY Power sold by NYPA to Program participants, i.e. the power derived from both NYPA hydroelectric resources and market purchases."
Due to the use of the term "sold," ESCOs and large customers raised concern that the statement could be interpreted as allowing deliveries associated with NYPA-sourced market purchases to avoid the societal riders, but requiring deliveries sourced from ESCOs under Recharge New York to be subject to the riders, since ESCO power would not be "sold" by NYPA.
If such an interpretation held, "[t]his discriminatory treatment would actively discourage RNY customers from purchasing the market power component from an ESCO and tilt the market in favor of purchasing the competitive component from NYPA," RESA said.
"The market supply portion of RNY awards should remain eligible for reduced delivery rates. It is important that RNY discounts extend to power supply purchased from competitive suppliers. If these discounts apply only to supply purchased directly from NYPA, participants' competitive opportunities would be diminished, thwarting the purpose of the program," Consumer Power Advocates added.
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