National Grid proposes to extend and modify the Clifton Park Demonstration for purposes of testing innovative pricing proposals on an opt-out basis. The proposed extension of the Clifton Park Demonstration would implement alternative innovative rate designs intended to assess customer behaviors in response to price signals and energy information and may produce additional information that would inform future rate design.

National Grid proposes to implement and evaluate three different rate design groupings for customers who receive their energy supply from the Company. Group 1 would consist of customers served under a Subscription Delivery and Subscription Supply rate. Group 2 would consist of customers served under a Subscription Delivery and the Company’s SC-7 Hourly Supply rate. Group 3 would consist of customers served under the Company’s SC-7 rate for both Delivery and Supply.

The Company proposes to test the proposed rate structures on an opt-out basis to achieve a larger pool of participants that is more representative of the overall service classification. With a focus on a positive customer experience, National Grid proposes an approach to reconfiguring the Clifton Park Demonstration that includes: (1) empowerment and enablement through customer education; (2) bill guarantees that will provide a credit to the customer for the difference in the event the customer’s charges over the first twelve months on the proposed rate are greater than what they would have been billed on standard SC-1 charges on a total bill basis; and (3) robust notice and outreach to affected customers. National grid proposes to continue quarterly reporting of the Clifton Park Demonstration results and project progress, including lessons learned.

Finally, National Grid anticipates that extending and modifying the Clifton Park Demonstration to implement and evaluate the effect of the innovative pricing proposals would result in an increase of approximately $4.5 million in costs for the Clifton Park Demonstration, which would exceed the $43.915 million REV demonstration project budget cap for all the Company’s REV demonstration projects. Therefore, National Grid requests approval to increase its REV demonstration project budget cap by $2.5 million.

The full text of the petition and the full record of the proceeding may be viewed 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.

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.

(19-E-0111SP2)