PSC-19-14-00004-EP Emergency Approval of Tariff Amendment to Effectuate the NYISO New Capacity Zone

5/14/14 N.Y. St. Reg. PSC-19-14-00004-EP

NEW YORK STATE REGISTER

VOLUME XXXVI, ISSUE 19

May 14, 2014

RULE MAKING ACTIVITIES

PUBLIC SERVICE COMMISSION

EMERGENCY/PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. PSC-19-14-00004-EP

Filing Date. Apr. 25, 2014

Effective Date. Apr. 25, 2014

Emergency Approval of Tariff Amendment to Effectuate the NYISO New Capacity Zone

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

Proposed Action:

The Public Service Commission adopted an order approving amendments to Central Hudson Gas & Electric Company electric tariff schedule, P.S.C. No. 15 — Electricity, to effectuate changes in conformance with the establishment of the New York Independent System Operator (NYISO) new capacity zone. The current tariff language specifically references the New York Control Area (NYCA) price for capacity charges billed to customers taking service under the Company’s Hourly Pricing Provision (HPP). However, effective May 1, 2014, in addition to making a portion of its capacity purchases at the NYCA, the Company will be required to purchase the majority of its capacity at the new Lower Hudson Valley (LHV) capacity zone. As such, the Central Hudson approved tariff revisions that replace the specific reference to the NYCA price with more general language that accurately reflects the price for capacity charges billed to HPP customers.

Statutory authority:

Public Service Law, section 66

Finding of necessity for emergency rule:

Preservation of general welfare.

Specific reasons underlying the finding of necessity:

This action is taken on an emergency basis, in accordance with the State Administrative Procedure Act (SAPA) § 202(6)(a) and (b), is necessary for the preservation of the general welfare of Central Hudson ratepayers and compliance with the advance notice and publication requirement of SAPA § 202(1) would be contrary to the public interest. Such emergency adoption is needed to effectuate necessary changes resulting from the implementation of the new LHV capacity zone and to ensure that full service Market Price Charge (MPC) customers, the majority of which are residential customers, do not unfairly subsidize the increase in the new LHV capacity price that would otherwise be paid by Hourly Pricing Provision (HPP) customers. It is estimated that such subsidization would result in an additional 2.2% payment by MPC customers. In view of the fact that any additional costs resulting from the implementation of the LHV capacity zone will become effective May 1, 2014, the approval of the filed tariff leaves should be expeditiously approved to avoid any additional costs to be paid by MPC customers.

Subject:

Emergency approval of tariff amendment to effectuate the NYISO new capacity zone.

Purpose:

Approval of tariff amendment to effectuate the NYISO new capacity zone.

Substance of emergency/proposed rule:

The Public Service Commission adopted an Order approving filed amendments by Central Hudson Gas & Electric Company (Central Hudson or Company) to the electric tariff schedule, P.S.C. No. 15 — Electricity, to effectuate changes in conformance with the establishment of the New York Independent System Operator (NYISO) new capacity zone. The current tariff language specifically references the New York Control Area (NYCA) price for capacity charges billed to customers taking service under the Company’s Hourly Pricing Provision (HPP). However, effective May 1, 2014, in addition to making a portion of its capacity purchases at the NYCA, the Company will be required to purchase the majority of its capacity at the new Lower Hudson Valley (LHV) capacity zone. As such, the Company’s tariff revisions that replace the specific reference to the NYCA price with more general language that accurately reflects the price for capacity charges billed to HPP customers.

This notice is intended:

to serve as both a notice of emergency adoption and a notice of proposed rule making. The emergency rule will expire July 23, 2014.

Text of rule may be obtained from:

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, 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 amended rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.

(14-E-0133EP1)