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Central Hudson Gas & Electric Corporation Files Rate Adjustment Mechanism Plan

Strategic Insights

— 1 min read

Central Hudson Gas & Electric Corporation has submitted a Rate Adjustment Mechanism plan to the New York State Public Service Commission, outlining a proposal to implement a rate adjustment mechanism to refund or recover identified balances and carrying charges. The plan seeks to update the electric rate adjustment mechanism annually, starting from July 2019, with the first billing batch in July 2022. This move aims to address the balances eligible for collection, as identified in the RAM Compliance Filing made on March 31, 2022.

Key Takeaways:

  • The Rate Adjustment Mechanism (RAM) plan will be effective starting July 2019, with the first billing batch in July 2022.
  • The RAM factor will be updated annually to refund or recover identified balances and carrying charges.
  • The plan seeks to modify the electric Earnings Adjustment Mechanism (EAM) factor to reset annually each September.
  • The EAM factor effective July 2021 will be set to zero effective the first billing batch in July 2022.
  • The company has identified a RAM balance eligible for collection, as stated in the RAM Compliance Filing made on March 31, 2022.
  • The plan aims to address the balances eligible for collection through the implementation of the RAM mechanism.

Statistics:

  • July 2019: Starting date for the implementation of the Rate Adjustment Mechanism.
  • July 2021: Effective date for the current Earnings Adjustment Mechanism factor.
  • July 2022: First billing batch for the updated Rate Adjustment Mechanism.
  • $0 (Zero): The EAM factor will be set to zero effective the first billing batch in July 2022.
  • 12 months: The duration for which the EAM factor effective July 2021 was designed to be in effect.

Sources:

  • Central Hudson Gas & Electric Corporation. (2021, June 16). P.S.C. No. 15 - Electric Statement of Rate Adjustment Mechanism RAM-4 Statement of Earnings Adjustment Mechanism EAM-4.
  • New York State Public Service Commission. (2021, November 18). Order in Case 20-E-0428.

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