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ConEd Files To Increase Merchant Function Charges, Bill Payment Processing Charge
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As part of newly filed electricity and natural gas rate cases, Consolidated Edison in New York has filed to increase the merchant function charges, and the Billing and Payment Processing charge
The electric MFCs would be revised as follows:
The gas MFCs would be revised as follows:
ConEd also proposed to update the Billing and Payment Processing Charge (BPP) to $1.80 per bill, with the charge set at $1.80 regardless of commodity (gas or electric). The current BPP is $1.28 for both commodities
The BPP is charged to customers by ConEd for default service customers and for dual billing customers (for distribution)
ESCOs will pay $1.80 per bill per account for utility consolidated billing
As is current practice, a dual fuel customer would pay no more than the full BPP of $1.80, with the BPP split at 90 cents, charged to the ESCO or customer depending on the nature of split dual fuel service (e.g. default service electric but gas choice, etc.)
Although it will not have an impact on the ultimate costs included in the electric Market Supply Charge, ConEd is proposing to combine, in terms of how the charge is presented to customers, Adjustment Factor –
MSC I and Adjustment Factor – MSC II into a single Adjustment Factor – MSC.
MSC I generally relates to market purchase MSC reconciliations, while MSC II reflects hedging reconciliations
ConEd said, "In months where electric supply costs vary
significantly from forecasted costs, these adjustment
factors can be large, but offsetting. This is a normal
and desirable result since the offsetting adjustment
factors can stabilize net market supply costs and
customers’ bills. However, the presentation of large
offsetting adjustment factors on a statement can be
confusing to customers and other stakeholders who make
use of this information."
Combining MSC I and MSC II into a net rate will reduce confusion, ConEd said
ConEd stated that it will continue to track the underlying MSC I and
MSC II adjustment factors separately for reconciliation
purposes, with the netting only appearing in the presentation to customers
ConEd in testimony described efforts that it has undertaken to reduce electric supply costs, including administrative costs related to supply procurement
"Between mid-2018 and 2024, the Company used a third-party RFP auction platform administered in-house at a significantly reduced cost over its prior vendor," ConEd said
"Additionally, since 2020, the Company has conducted multiple RFP auctions for both Energy and Capacity Supply throughout the year as opposed to a single energy auction and single capacity auction. The multiple RFP auctions may help reduce supply costs to customers by taking advantage of dollar-cost averaging and generating more competitive offers by reducing the volume of each auction," ConEd said
ConEd noted that, in conducting electric supply procurements in-house, it is "successfully" using a sealed-bid format, but noted that it is conducting a solicitation to replace a previously used auction platform with a new, similar platform. Going forward, sealed bid will be considered along with other solutions, which include reverse bid auction platforms by third-party providers
ConEd described efforts to improve consumption transparency for gas marketers, through enhancements to the Transportation Customer Information System (TCIS)
Improvements to TCIS include: (1) enhancing the user interface by creating a new dashboard that has an interface to the meter data hub, (2) creating a new interruptible report and modifying existing billing reports as per regulatory requirements, (3) migrating existing functionality from the retiring Retail Choice Information System (RCIS), and (4) upgrading infrastructure to meet cyber and corporate requirements.
"This project improves data reporting accuracy through the dashboard to the meter data hub and gas consumption transparency for gas marketers. This will result in more accurate delivery amounts by gas marketers on behalf of their customers," ConEd said
Cases 25-G-0073, 25-E-0072
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February
3, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
Electric MFCs, ¢ per kWh
Electric Supply, Working Capital MFC
Current Proposed
SC 1 0.1466 0.2949
SC 2 0.1217 0.2710
SC 5, 6, 8, 9, 12, 13 0.0797 0.1849
Electric Credit & Collection-related MFC
Current Proposed
SC 1 0.1991 0.2384
SC 2 0.1462 0.2034
SC 5, 6, 8, 9, 12, 13 0.0342 0.0516
Gas MFCs, ¢ per therm
Gas Supply MFC – ¢ per therm
Current Proposed
Residential 0.7664 0.9007
Non-Residential 0.3987 0.4798
Gas Credit & Collection MFC – ¢ per therm
Current Proposed
Residential 0.9487 0.8364
Non-Residential 0.3049 0.3245
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