PSC-23-14-00011-P Whether to Grant Deny or Modify in Whole or in Part the Tariff Filing of National Grid to Revise Rule 46 of its Electric Tariff

6/11/14 N.Y. St. Reg. PSC-23-14-00011-P

NEW YORK STATE REGISTER

VOLUME XXXVI, ISSUE 23

June 11, 2014

RULE MAKING ACTIVITIES

PUBLIC SERVICE COMMISSION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. PSC-23-14-00011-P

Whether to Grant Deny or Modify in Whole or in Part the Tariff Filing of National Grid to Revise Rule 46 of its Electric Tariff

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 whether to grant deny or modify in whole or in part the tariff filing of Niagara Mohawk Power Corporation d/b/a National Grid to revise Rule 46 of its electric tariff to allow it flexibility to manage commodity volatility.

Statutory authority:

Public Service Law, sections 65(1), 66(12)(a), (b) and (e)

Subject:

Whether to grant deny or modify in whole or in part the tariff filing of National Grid to revise Rule 46 of its electric tariff.

Purpose:

Whether to grant deny or modify in whole or in part the tariff filing of National Grid to revise Rule 46 of its electric tariff.

Substance of proposed rule:

The Commission is considering whether to grant, deny or modify, in whole or in part, the tariff amendments filed by Niagara Mohawk Power Corporation d/b/a National Grid (National Grid or the Company) to make revisions to Rule 46 - Supply Service Charges, contained in P.S.C. No. 220 – Electricity. The amendments National Grid proposes would provide it with a measure of flexibility to manage significant volatility resulting from the reconciliation of electric commodity costs for residential and small commercial customers (mass market customers). National Grid proposed three tariff modifications to allow for the flexibility it seeks: 1) a revision to the New Hedge Adjustment (NHA), which charges or credits customers the costs or benefits of the Company’s hedging strategy on a monthly basis. According to the Company, the revision would enable National Grid to allocate the costs or benefits of an enhanced supply portfolio hedging strategy by New York Independent System Operator (NYISO) Zone. A zonal NHA rate would align the hedges with the specific zones and provide mass market customers with additional protection against supply cost volatility; 2) revision to the Mass Market Adjustment component of the Electricity Supply Reconciliation mechanism (ESRM) to enable the Company to reconcile the MMA by NYISO zone to reflect the actual zonal market prices to ensure customers receive the credits or pay the charges incurred in their zone; and, 3) a revision to allow the Company to have more flexibility in the timing of the reconciliation of revenues and expenses for mass market customers, which the Company claims would enable it to spread out the monthly supply cost reconciliations over two or more months. The proposed filing has an effective date of August 28, 2014.

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-0180SP1)