RDM Target Modifications for SC 8 Customers and Defer any Revenue Shortfall as a Regulatory Ass...
NY-ADR
8/7/19 N.Y. St. Reg. PSC-32-19-00004-EP
NEW YORK STATE REGISTER
VOLUME XLI, ISSUE 32
August 07, 2019
RULE MAKING ACTIVITIES
PUBLIC SERVICE COMMISSION
EMERGENCY/PROPOSED RULE MAKING
NO HEARING(S) SCHEDULED
I.D No. PSC-32-19-00004-EP
Filing Date. Jul. 22, 2019
Effective Date. Jul. 22, 2019
RDM Target Modifications for SC 8 Customers and Defer any Revenue Shortfall as a Regulatory Asset
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:
Proposed Action:
The Commission adopted an order on July 11, 2019 approving expedited approval of Central Hudson Gas & Electric Corporation’s petition to reduce the Revenue Decoupling Mechanism (RDM) targets for Service Classification No. 8 (SC 8)—Public Street and Highway Lighting customers for the last two years of its current rate plan.
Statutory authority:
Public Service Law, sections 5, 65(1), (8), 66(1) and (12)
Finding of necessity for emergency rule:
Preservation of general welfare.
Specific reasons underlying the finding of necessity:
Central Hudson is seeking expedited approval to reduce the Revenue Decoupling Mechanism (RDM) targets for the last two years of its current rate plan (Rate Plan) and to defer the revenue shortfall as a regulatory asset.
The RDM targets for Service Classification No. 8 (SC 8) – Public Street and Highway Lighting are overstated due to a forecasting error resulting in financial harm to all customers within the class. To allow these errors to continue by complying with the notification requirements of SAPA § 202(1) is, therefore, contrary to the public interest.
Additionally, Central Hudson proposes to return the amounts collected from SC 8 customers due to the forecasting error by providing credits to impacted customers of $271,268, and to modify the amount of collections in the RDM adjustment period related to the second six months of Rate Year 1. Thus, waiting the 60-day notice and comment period required by SAPA § 202(1) would result in unnecessary potential rate instability and volatility, unfair subsidization, and overcharges for SC8 customers, and, therefore, would also be contrary to the public interest and general welfare.
Subject:
RDM target modifications for SC 8 customers and defer any revenue shortfall as a regulatory asset.
Purpose:
To ensure SC 8 electric customers are being charged properly and avoid customer confusion and unnecessary rate volatility.
Substance of emergency/proposed rule:
The Public Service Commission is considering a petition filed by Central Hudson Gas & Electric Corporation (Central Hudson or the Company) on June 19, 2019 seeking expedited approval to reduce the Revenue Decoupling Mechanism (RDM) targets for Service Classification No. 8 (SC 8) – Public Street and Highway Lighting customers for the last two years of its current rate plan (Rate Plan), as well as, to defer any revenue shortfall as a regulatory asset. Central Hudson requests the newspaper publication requirements of Public Service Law (PSL) § 66(12)(b) and 16 NYCRR § 720-8.1 be waived because the Company will notify impacted customers as needed and the petition has been provided to all active parties.
RDM targets were approved by the New York State Public Service Commission (the Commission) for each month of the Rate Plan by Order Adopting Terms of Joint Proposal and Establishing Electric Rate Plan (Rate Order). The RDM targets for SC 8 are overstated due to a forecasting error resulting in financial harm to all customers within the class. As well as modifying the RDM targets, Central Hudson proposes to return the amounts collected from SC 8 customers due to the forecasting error by providing credits to impacted customers of $271,268, and to modify the amount of collections in the RDM adjustment period related to the second six months of Rate Year 1. The Company requests authority to defer, with interest, the revenue shortfall for all three rate years resulting from this proposal.
Without modifying these RDM targets, municipal customers taking electric service under SC 8 would continue to experience extreme rate volatility and be significantly overcharged due to the forecasting error.
The full text of the petition and the full record of the proceeding may be reviewed online at the Department of Public Service web page: www.dps.ny.gov. The Commission may adopt, reject or modify, in whole or in part, the action proposed and may resolve related matters.
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 October 19, 2019.
Text of rule may be obtained from:
John Pitucci, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 486-2655, email: [email protected]
Data, views or arguments may be submitted to:
Kathleen H. Burgess, Secretary, Department of Public Service, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 474-6530, email: [email protected]
Public comment will be received until:
60 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.
(17-E-0459EP3)
| End of Document |