Methodology Used to Set Discount Level for Income-Based Discounts to Residential Electric and G...
NY-ADR
5/22/19 N.Y. St. Reg. PSC-21-19-00018-P
NEW YORK STATE REGISTER
VOLUME XLI, ISSUE 21
May 22, 2019
RULE MAKING ACTIVITIES
PUBLIC SERVICE COMMISSION
PROPOSED RULE MAKING
NO HEARING(S) SCHEDULED
I.D No. PSC-21-19-00018-P
Methodology Used to Set Discount Level for Income-Based Discounts to Residential Electric and Gas Utility Bills
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 petition filed by National Grid to modify the methodology used to annually adjust the Energy Affordability Program discounts for qualifying customers.
Statutory authority:
Public Service Law, sections 65 and 66
Subject:
Methodology used to set discount level for income-based discounts to residential electric and gas utility bills.
Purpose:
To ensure that income-based discounts are adjusted in a manner that moderates annual changes.
Substance of proposed rule:
The Commission is considering a petition filed on May 2, 2019 by The Brooklyn Union Gas Company d/b/a National Grid NY, KeySpan Gas East Corporation d/b/a National Grid, and Niagara Mohawk Power Corporation d/b/a National Grid (NMPC) (collectively, National Grid) to modify the methodology used to annually adjust the Energy Affordability Program discounts for qualifying customers.
Pursuant to the Commission’s orders in Case 14-M-0565, National Grid provides electric and gas bill discounts to income-eligible residential customers. The tiered discounts are set at levels generally intended to keep residential customers’ overall energy burden at or below 6% of income. The calculation is based on an income equivalent to 60% of the State’s median income. Utilities revise the discount levels annually, based on recent historical data, to account for changes in customers’ actual bills and also in the State’s median income.
One of National Grid’s operating companies, NMPC, calculated the discounts for 2019 and found that would have resulted in a large one-time decrease in the discounts for customers. In order to ameliorate the impact the change would have on customers, National Grid proposes to limit the change in the level of the discounts in any single year. Specifically, National Grid proposes that, if the calculation based on historical data indicates that the discount levels should decrease by 20% or less, the discounts would be modified by the indicated amount. However, if the calculation indicates that the discount levels should decrease by more than 20%, the change in the discount levels will be limited to 20%. If the calculation indicates that the discounts should increase, the discounts would increase in accordance with the calculation. While, over the long-term, the discounts would remain designed to limit residential customers’ energy burden to 6% of income, the proposed modifications would phase in dramatic changes to the discount levels over multiple years. The Commission may apply its action in this proceeding to other utilities as well.
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.
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:
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, Public Service Commission, 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 proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.
(19-M-0350SP1)
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