PSC-41-14-00008-P Rule 42 – Merchant Function Charge

10/15/14 N.Y. St. Reg. PSC-41-14-00008-P

NEW YORK STATE REGISTER

VOLUME XXXVI, ISSUE 41

October 15, 2014

RULE MAKING ACTIVITIES

PUBLIC SERVICE COMMISSION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. PSC-41-14-00008-P

Rule 42 – Merchant Function Charge

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

The Commission is considering a proposal filed by Niagara Mohawk Power Corporation d/b/a National Grid to make a change to the rates, charges, rules, and regulations contained in its Schedules for Electric Service P.S.C. Nos. 220 and 214.

Statutory authority:

Public Service Law, section 66(12)(b)

Subject:

Rule 42 – Merchant Function Charge.

Purpose:

To modify the calculation of two of the components of the Merchant Function Charge.

Substance of proposed rule:

The Public Service Commission is considering whether to approve, modify or reject, in whole or in part, tariff amendments and statements filed by Niagara Mohawk Power Corporation d/b/a National Grid (National Grid or the Company) to modify the calculation included in Rule 42 – Merchant Function Charge (MFC), contained in P.S.C. Nos. 220 and 214 – Electricity. The Company is proposing a change to the calculation of two of the components in the MFC: the Electricity Supply Uncollectible Expense and the Working Capital on Purchased Power Costs. These two components of the MFC are percentage factors multiplied by the electricity supply cost. The Company proposes that the Electric Supply Uncollectible Expense and Working Capital on Purchased Power Cost percentages should be applied to both the electricity supply cost and the Electricity Supply Reconciliation Mechanism (ESRM) on a customer’s bill. The ESRM includes the reconciliation of forecast to actual supply costs and the New Hedge Adjustment for mass market customers. The proposed filing has an effective date of January 1, 2015.

Text of proposed rule and any required statements and analyses may be obtained by filing a Document Request Form (F-96) located on our website http://www.dps.ny.gov/f96dir.htm. For questions, contact:

Deborah Swatling, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Kathleen H. Burgess, Secretary, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, [phone], email: [e-mail]

Public comment will be received until:

45 days after publication of this notice.

Regulatory Impact Statement, Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement

Statements and analyses are not submitted with this notice because the proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.

(14-E-0437SP1)