Legislation

06/02

Legislature Approves Energy Consumer Protection Act of 2002. Gives consumers who buy natural gas or electricity from marketers the same protections they have as utility customers. The law makes marketers subject to the same late-fee caps that apply to utilities and requires them to offer budget billing plans. No prepayments are allowed, and deposits can be collected only from consumers with a bad payment history. Marketers may shut off service to customers who do not pay their bills under the standards specified in the Home Energy Fair Practices Act. The law becomes effective in June 2003.

Regulatory Actions

12/07

PSC Approves Gas Rate Plans for Keyspan Energy Delivery (Keyspan) NY and Keyspan Long Island. The plans specify that the companies will begin purchase of receivables programs effective October 1, 2008, and April 1, 2009, respectively, for ESCOs using their consolidated billing programs. (Keyspan will change its name to National Grid in May 2008.) The programs will include a transition fee to compensate for additional collections risk. The companies also were directed to meet with PSC staff and other parties to examine best practices for establishing ESCO referral programs in their service areas. A report on the collaborative effort is due within 90 days.

12/07

PSC Directs Consolidated Edison Co. of NY (Con Edison) and Orange and Rockland Utilities, Inc. (O&R) to Submit a Supplemental Plan for Development and Deployment of Advanced Electric and Gas Metering Infrastructure (AMI). The companies' AMI plan, filed in March 2007, met requirements of the PSC AMI order (08/06). However, the PSC ruled that additional information is needed to assess the validity of the companies' cost estimates. Companies are to submit a report detailing the results gained from demonstration projects and a re-evaluation of the cost-effectiveness of systemwide meter installation. If approved, the companies' systemwide AMI installation would encompass about 3.6 million electric meters and 1.2 million gas meters.

12/07

PSC Directs Central Hudson Gas and Electric Corporation (Central Hudson) to Submit a Revised AMI Pilot Plan. The PSC determined that the company's pilot proposal (December 2006), electric AMI plan, and gas AMI assessment (February 2007) were inadequate. The revised pilot should incorporate AMI functionality within the metering systems used and permit evaluation of the cost-effectiveness of AMI installation systemwide.

10/07

PSC Asks for Comments Regarding the Features and Functions of AMI Systems that Should Be Considered as Standard. Review of the utilities’ AMI plans filed during the first quarter 2007 showed that the utilities do not have a consistent understanding of what an AMI system should include.

09/07

PSC Approves Con Edison's 3-Year Rate Plan. The plan adjusts the timing and amount of the rate increase to levelize its impact. A transitional, 1-year revenue decoupling mechanism and provisions for energy efficiency programs are included in the plan. The company will continue its purchase of receivables program as approved in 2005, except for changes in the discount rate and the addition of a dispute resolution procedure. The company will continue its ESCO (marketer) referral program and Market Match website but has no obligation to continue other parts of the retail access program in its 2004 rate plan. It will continue to amend its consolidated billing service agreement to reflect changes to its retail access program.

08/07

PSC Issues Order on Capacity Release Programs. LDCs must assign capacity to retail marketers for serving residential and small commercial customers. Marketers using their own capacity for core customers can continue at current levels. If a marketer reduces capacity it would become the maximum that the marketer could bring to the LDC's citygate. New or additional marketer load would be served through LDC capacity release. Local gas production connected to distribution facilities are to be treated as upstream capacity and LDCs with local production must establish plan for its use. LDC capacity releases should be for the entire year, not just the 5-month heating season. LDCs are to continue offering storage services to marketers and are encouraged to institute "delivery point operator/city gate swing service"(DP/CSC) programs where possible, which would allow marketers to balance citygate deliveries year-round. LDCs must file tariff amendments to meet these requirements by October 1, 2007, that would become effective on a temporary basis on November 1, 2007.

05/07

PSC Approves Central Hudson's Unbundled Bill Formats. Central Hudson is authorized to recover $53,000 of the costs of the new bills from its Competitive Education Campaign funds. The new bill formats will better inform consumers and educate them on the costs of the supply services that could be obtained from competitive suppliers instead of the utility.

03/07

PSC Staff Issues White Paper on Natural Gas Capacity Planning and Reliability. It proposes requiring LDCs to adopt the mandatory capacity assignment model with some modifications to allow for grandfathering of existing levels of marketer capacity used to serve core customers. According to staff, this would ensure continued reliability of the natural gas system in the State while preventing the inefficiencies inherent in duplicative capacity assets that could result from assuring the continued availability of the pipeline capacity provided by gas marketers in case they exit a utility program. Specifically, if marketers exit a utility program, the capacity that they had provided may be needed to continue to serve those customers. In order to assure reliability, natural gas utilities could obtain capacity intended to duplicate that marketer-provided capacity, which would be inefficient and could result in negative costs as well as environmental impacts associated with building duplicative capacity. This issue is more pressing than ever due to increasing natural gas loads and continuing limited and tightening capacity availability. Utilities may not renew existing contracts, or may renew them at lower levels, because they are relying on capacity that marketers have contracted for. If those marketers stop serving customers in New York State and that capacity is no longer available to serve New York ratepayers, reliability could be adversely impacted.

01/07

PSC Schedules Energy Fair for Customers of National Grid USA and National Fuel Gas Company. The fair will give customers the opportunity to meet with marketers to learn about available electric and natural gas supply choices.

12/06

PSC Approves O&R's Retail Access Plan, with Modifications. The plan outlines O&R’s current and proposed initiatives to educate customers about competitive energy markets and energy service companies (marketers) and foster migration of customers to retail access options. O&R was directed to expand its Market Expo invitation pool to all customer classes and continue to host Energy Fairs for residential and small business customers. It was also directed to provide detailed information about how the company will facilitate customer aggregation in its service territory and also how it will improve bill formats. A compliance filing is due within 45 days.

11/06

ESCOs Directed to Post Prices Online Each Month. Beginning December 2006, by the 5th day of each month, ESCOs must post on the NYPSC Power to Choose web site a snapshot of prices for residential services as of the 1st day of the month. Reported price offers also must include information on terms and conditions, such as the type of price offer (fixed, variable, capped), types of payment and billing options, cancellation fees, deposit requirements, and late payment charges. ESCOs who do not comply will be notified, and if still noncompliant would be prohibited from enrolling new customers and would be dropped from the utility's referral program. Actual offers to provide service must be obtained directly from the ESCOs.

11/06

PSC Approves 3-Year Rate Plan for St. Lawrence Gas Company, Inc. Plan funds a new billing system and promotes economic development and customer choice in gas suppliers. According to the PSC, the plan better aligns rates for each customer class to reflect the actual costs of providing service to the various customer classes. The company is required to survey ESCOs and other parties to determine if there is enough interest for an energy aggregation program.

10/06

PSC Approves 3-Year Rate Plan for O&R. Plan includes provisions for the continuation of programs to ensure customer choice of gas suppliers. The company will be allowed to retain a percentage of potential excess earnings if it can ensure customers understand their supply options.

09/06

PSC Staff Recommends Approval of Rochester Gas and Electric Corp. (RG&E) New Billing System. Proposed tariff establishes billing charges for each service class. Although RG&E has not filed a full rate unbundling proposal, it will use the current back-out credit as a proxy for a competitive service cost-based billing charge.

08/06

PSC Issues Order Relating to Electric and Gas Metering Services. Endorses electric and gas utility investment in advanced metering infrastructure where feasible and encourages pilot programs to test a variety of proposals for development of advanced metering systems. Requires gas utilities to assess advantages of and need for advanced metering systems and submit plans, if necessary, for installation of new advanced metering technologies. Authorizes competitive meter-reading services for daily gas balancing for certain gas customers.

07/06

PSC Approves Central Hudson's 3-Year Rate Plan. Continues customer choice initiatives and best practices, such as the ESCO referral program “Energy Switch,” the Market Match, Market Expo, and ESCO Ombudsman. Bills will be further itemized to allow better commodity price comparisons between Central Hudson and ESCOs.

06/06

PSC Approves National Fuel Gas Distribution Corporation’s (National Fuel) ESCO Referral Program. Participating customers would receive a 2-month discount of 7 percent from National Fuel’s current month Gas Supply charge. The program will be open for continuous enrollment through July 31, 2007. Each ESCO will tell customers what the price for service after the introductory discount period will be and when it will change. A call center will obtain customer authorization, process enrollments, and provide ESCOs with customer information. Enrollment can be done electronically, in writing, or by recorded phone call. Participation will be limited to customers who are currently receiving commodity service from National Fuel.

06/06

Consolidated Edison Company of New York, Inc. (ConEdison) Presents Plan to Support Customer Participation in Retail Energy Market. Voluntary participation in ConEdison's "Power Your Way" program will be encouraged through its ESCO Referral Program (“PowerMove”) for residential and small business customers and new educational efforts, such as a redesigned web site, brochures, bill inserts, and advertising. The PowerMove program offers a 2-month introductory discount of 7 percent for supply from an ESCO. Customers can receive one bill for both supply and delivery and can change suppliers at any time without penalties.

05/06

Electronic Data Interchange Standards and Uniform Business Practice Guidelines Modified. Changes will support new retail access initiatives, such as guidelines for ESCO Referral Programs and the use of the Purchased Receivables payment processing method. They will enable utilities to enroll customers without an ESCO Request and ensure that ESCOs have enough information on purchased receivables to maintain adequate financial records.

04/06

PSC Approves Niagara Mohawk Power Corp.’s (National Grid) Collaborative Plan for Promoting Competitive Retail Markets. Plan includes “New Choices” program in which residential and small business customers can receive a 7-percent discount on natural gas supply for 2 months if they choose an ESCO. Customers can select a specific ESCO or let National Grid choose one for them. National Grid will purchase the receivables of participating ESCOs. Participants are eligible to receive only one discount for the life of their account. Customers with both electricity and gas services can receive the 7-percent discount on each service.

12/05

PSC Adopts ESCO Referral Program Guidelines. PSC issues order adopting ESCO referral program guidelines and approving an ESCO referral program subject to modifications.

07/05

PSC Directs Central Hudson to End Its Fixed-Price Option. The company is to end the plan when the program expires on October 31, 2005, because the PSC determined that the company's firm sales customers were subsidizing those on a fixed-price plan. Marketers are encouraged to offer similar programs in Central Hudson's service area.

07/05

PSC Approves 2-Year Rate Plan for National Fuel Gas Distribution. The plan includes several new retail access programs directed mainly to large-volume sales customers. One program allows customers to exchange information electronically and receive offers from marketers, while another commits to at least two market forums for non-residential business customers to receive offers from marketers and exchange information about retail choice.

05/05

PSC Approves Central Hudson Gas & Electric's Retail Access Plan. Plan includes a customer choice program that gives introductory savings to customers who choose to buy from a marketer. The plan is modeled after Orange and Rockland Utilities' power switch program. Customers who enroll retain the option of returning to Central Hudson's sales service. The company is to expand its consumer outreach and education programs, through both written inserts and Web site information.

08/04

Statement of Policy on Unbundling and Order Directing Tariff Filings. Presents guidelines for accurately quantifying a fair utility rate that marketers can compete against. Directed utilities to conduct comprehensive cost-of-service analyses that would allocate costs between competitive and noncompetitive services.

08/04

Statement of Policy on Further Steps Toward Competition in Retail Energy Markets. Policy adopted encouraging customer choice and affirming that competitive markets are the preferred means of promoting efficient energy services. Outlines strategies to boost participation in competitive markets, including: opening all utility retail functions (except delivery) to competition, expanding consumer education programs, continuing option for suppliers to have utilities handle billing, and encouraging aggregation programs. Long-term supply contracts are discouraged and marketers should either take assignment of LDC-contracted capacity or contract directly with the pipeline. Utility has first right to purchase marketer capacity if marketer exits the market.

01/04

Comments Requested on Specific Strategies to Facilitate Customer Choice. Companies asked what should be done now to increase customer choice and what would be the expected benefits and cost of recommended actions. Asked to consider ways to eliminate barriers to customer aggregation programs and the pros and cons of auctions, incentive mechanisms, long-term contracts, and minimum capacity commitments for marketers.

03/03

Recommended Decision on Unbundling Track Embedded Cost Studies. Administrative law judge recommended that an embedded cost of service study approach should be used in cost analyses for energy service provider studies, which would be based on cost-causation principles, but sufficiently flexible to consider consumer interests.

05/02

Proceeding on Competitive Gas Metering. Comments requested on pros and cons of allowing large customers to get metering and meter data services from competitive providers, as well as many other meter issues including whether residential and small commercial customers should be able to utilize competitive gas metering..

03/02

Consumer Protection Measures Strengthened, Case 00-M-0504. PUC issued new requirements that apply to marketers offering prepayment plans or requiring deposits from customers. Rules were in response to a company bankruptcy that resulted in some customers being unable to get back their deposits.

01/02

Provider of Last Resort Pilot Program. Orange and Rockland Utilities proposed a 6-month pilot POLR program for about 5,000 residential gas customers. Participants will be assigned to gas marketers on a rotating random basis so that each marketer has about the same number of customers. Program will evaluate customer and marketer reaction to the program and test whether "conveying a sense of urgency to customers re need to choose a supplier is an effective means of promoting retail access." Program targeted for 2002-2003 heating season but probably will not be ready until the 2003-2004 heating season .

07/01

Study of the Future of Competitive Gas and Electricity Retail Markets, Case 00-M-0504. Preliminary report recommended that major changes be delayed until enough pipeline capacity is installed to ensure reliable and competitive retail markets. Report also recommended that rate-term agreements be no longer than 3 to 4 years so as not to fix prices after a competitive market develops. In addition, report recommends that the PSC require marketers to provide the same consumer protection measures required of utilities.

04/01

Initial Approval of Data Exchange Standards and Uniform Billing Practices. The PSC adopted a set of uniform business and payment processing practices to be included in utility tariffs and procedures and approved a plan requiring LDCs and energy service companies to standardize certain data systems to ensure electronic data interchange throughout the State.

04/01

Investigation into Business Practices of Energetix, Inc., a marketer supplying gas in the Rochester area. Concerns centered around a price increase in fixed price contracts and short time given for customers to evaluate changes. Concerns also raised about relationship with its affiliate RG&E. Agreement was subsequently reached in which Energetix rescinded price increase.

04/01

Study of Generic Gas/Electric Unbundling Issues, Case 00-M-0504. Report issued on collaborative efforts, "Concepts, Issues, and Views of the Future." Next phase will be to examine policy issues statewide, including how to calculate unbundled costs, rate treatment for stranded costs, and cost functionalization.

02/01

Decision Issued Approving Measures to Encourage Competition in RG&E Service Area. Measures include: (1) "retail back-out credit" of $45 per year to be paid to competitive supplier to reflect utility avoided costs when a customer chooses an alternative supplier, (2) gas delivery management options that allow competitors to use and pay for storage on RG&E's system, (3) and communication protocols to share system info with users and customers including emergency planning, system alerts, etc. Decision also reduces delivery service rates for customers from 7/00 through 6/02.

12/00

Interim Restructuring Plan Approved for Key Span NY and LI (1/01-6/01). Plan includes: (1) One-time bill credit against the delivery charges paid by heating customers. (2) Incentive payment to marketers equivalent to 8% of monthly delivery charges incurred by marketer's firm service customers. (3) Pilot program to reduce frequency of meter tests. (4) Consumer education program re/ competition. (5) Survey to measure gas marketer satisfaction.

11/00

Orange and Rockland Utilities, Inc. Restructured to Encourage Competition. Delivery and commodity charges are to be itemized separately in customer bills. O&R will provide a marketer $25 for each customer (up to 10,000) who switches to that marketer and also implement a "backout credit" to cover utility avoided costs. O&R will offer pilot program to help marketers manage gas delivery and also implement a program to notify marketers of available capacity.

10/00

Order Restructuring Niagara Mohawk. Final order issued on measures approved by Commission in 7/00 to foster competition in Niagara Mohawk service area. The LDC will make more pipeline and storage capacity available to marketers/suppliers and offer balancing services and billing services. Bills are to delineate actual costs of services and the LDC is to initiate a consumer education program and provide grants to counties to develop aggregation programs for low-income customers. Delivery rates to customers will be frozen through 8/31/03.

02/00

Single Billing Option Approved. Customers who choose an alternative gas supplier can receive a combined bill for service, to be issued by either the utility company or the supplier. The entity issuing the bill will be responsible for bill printing and mailing, receiving and processing payments, and remitting the amount owed to the biller.

12/99

Order Concerning Reliability. Requires each LDC to submit a Gas Transportation Procedures Manual that describes the LDC's services, day-to-day and critical period operating procedures, and the rights and responsibilities of gas marketers and direct customers. The manuals are to include: (1) information regarding LDC and marketer contact personnel, (2) a requirement that all market participants have Internet access, (3) procedures for day-to-day and periodic communications including via Internet, conference calls, and regular meetings, (4) uniform daily nomination schedules reflecting the GISB standards, and (5) communications procedures during critical periods such as during OFOs or system alerts. The Order also established procedures to reexamine gas curtailment issues, established a default position on capacity requirements that requires marketers to have firm primary delivery point capacity for the 5 winter months, and established a process to explore long-range capacity dedication issues. Comments on these issues are due March 31, 2000.

09/99

Uniform Business Practices. Order requiring utilities to file tariff amendments by October 1, 1999, to comply with all aspects of Uniform Business Practices, Case 98-M-1343.

08/99

Order Concerning Issues Associated with Future of Natural Gas Industry and Role of LDCs, Case 97-G-1380. Continues requirement that marketers with firm service customers have "firm, non-recallable, primary delivery point capacity for November through March" or as an alternative provide firm, secondary capacity and pay "standby charges" to the LDC for backup service. LDCs are to establish their standby charges for the 1999-2000 heating season by October 1, 1999. Also by that date marketers are to indicate their interest in such service and then confirm that interest by October 15, 1999. An LDC who releases 7 months of capacity at maximum rates would be considered to have met the PSC's directive to minimize stranded costs.

05/99

Order Concerning Stranded Capacity Costs (2/99) Adopted as Permanent Rule, Case 98-G-1785 et al.

04/99

Order Clarifying Gas Policy Statement (11/98). Clarifies that LDC ratemaking and unbundling proposals in compliance with Gas Policy Statement are to be public information. Includes guidelines for the presentation of rate proposals, including data requirements.

04/99

Order Modifying Uniform Business Practices, Case 98-M-1343. Supersedes 2/99 order, slightly modifying provisions for late payment charges, security posting, switching notification, information costs, and usage and load profile information. Practices are to be effective by June 1, 1999.

03/99

Stranded Costs. Order Concerning Capacity Assignment, Case 97-G-1380 et al. LDCs are to establish mechanisms (to be called "transition surcharges") for recovery of stranded capacity costs. The unit rates for upstream capacity cost recovery should be applied on a volumetric basis using the gas cost adjustment clause and a surcharge on post-aggregation firm transportation customers. LDCs must continue to offer capacity to parties that desire it; the cost of that capacity will be based on the LDCs weighted average cost of capacity. Stranded capacity cost calculations shall include all capacity release credits associated with the nonassigned upstream capacity after April 1, 1999.

02/99

Order Concerning Recovery of Stranded Capacity Costs: Emergency Measure, Case 98-G-1785 et al. Requires LDCs to review tariffs to ensure that transportation customers are not receiving system reliability benefits without paying for them. States that LDCs may recover "prudent" stranded capacity costs from all firm sales and post-aggregation firm transportation customers (after 3-28-96 order).

02/99

Opinion and Order Concerning Uniform Business Practices, Case 98-M-1343. Establishes guidelines for standardized retail access business practices across the electric and natural gas utilities, such as standards for marketer creditworthiness, customer information, billing practices, switching, slamming prevention, and dispute resolution process. These practices are to become effective on May 1, 1999.

11/98

Policy Statement on Issues Associated with Future of Natural Gas Industry and Role of LDCs, Cases 93-G-0932 and 97-G-1380. The PSC ordered that LDCs would stop selling gas and be completely out of the merchant business at the end of a 3-to-7-year transition period. By April 1, 1999, all LDCs would "cease assigning capacity to migrating customers." LDCs would remain the suppliers of last resort, at least in the short term. Negotiations on new rate terms and revenue requirements for LDCs during the transition period will be on a utility-specific basis. LDCs are to quantify the potential for stranded costs and devise mitigation plans and long-term rate plans that unbundle distribution and upstream costs. LDCs will continue to have access to sufficient supply and storage for system operation and can impose some restrictions on marketers in order to maintain system reliability. LDCs will also be responsible for customer educational programs.

09/97

Order Clarifying April 1998 Excess Capacity Filing Requirement, Case 93-G-0932. PSC spelled out procedures expected of LDCs to prepare for competition. At the same time, a staff report was released for comment that recommended that all LDCs in the State stop selling gas and become solely gas distributors over a 5-year period.

03/96

Order Concerning Compliance Filings, Case 93-G-0932. The PSC approved LDC aggregation programs and allowed LDCs to "assign upstream capacity to aggregation customers for 3 years." LDCs were to report on their efforts to reduce "excess" capacity and mitigate stranded costs in filings due on April 1, 1998.

12/94

Regulatory Guidelines for Natural Gas Distributors, Order 94-26, Case 93-G-0932. Established regulatory guidelines for natural gas distributors that led to the implementation of small customer aggregation programs.