Consolidated Edison Company of New York Proposes Amendments to Steam Rider G - Customer Sited Supply Pilot Program

Strategic Insights -

Consolidated Edison Company of New York, Inc. (Con Edison) has submitted proposed amendments to the company's Schedule for Steam Service, P.S.C. No. 4 - Steam, applicable to its customers in the Borough of Manhattan, New York City. The proposed changes aim to modify the Steam Rider G - Customer Sited Supply (CSS) Pilot Program, which was established in 2011 to encourage customers to install Combined Heat and Power (CHP) systems. Despite efforts to attract customers to the program, no participants have enrolled, and Con Edison has received feedback from stakeholders and customers suggesting modifications to make the program more attractive.

Key Takeaways:

  • Con Edison proposes to extend the opportunity for participation in the CSS Pilot Program by introducing a deadline of December 31, 2020 for accepting Rider G applications and delaying the company's earliest right to petition to terminate the Rider until December 31, 2030.
  • The proposed changes aim to increase the flexibility of the program by allowing customers to contract to export a steam quantity that differs for each calendar month and for the primary and secondary operating periods in the months of April through November.
  • Customers advised Con Edison that the program provides an insufficient opportunity to export steam, and the company proposes to allow customers to export steam and receive payment for export during more hours, including during low system load conditions (the "secondary operating period").
  • The proposed changes include capping payment for the customer's export in each operating period at the lower of the Contract Demand and 110 percent of the Contracted Export Quantity for that operating period, and applying a multiplier of 0.47 to the product of the then-current payment rate and the steam export quantity during the secondary operating period.
  • To discourage customers from producing amounts in excess of their Contract Demand, Con Edison proposes to terminate a customer's participation in Rider G if the steam export exceeded the MEQ two or more months in the past 12 calendar months.

Statistics:

  • No customers have enrolled in the CSS Pilot Program since its inception in 2011.
  • The proposed deadline for accepting Rider G applications is December 31, 2020.
  • The company's earliest right to petition to terminate the Rider will be delayed until December 31, 2030.
  • The aggregate export of all Rider G participants will be limited to 50 Mlb/hr in any month and any operating period.
  • Customers will be allowed to modify their Contracted Export Quantities once a year, commencing on the Anniversary Date.

Sources:

  • "Steam Demand Response and Supply Pilot Programs With Modifications", Order Approving, P.S.C. No. 09-S-07941 and Case 09-S-0029.2, December 16, 2011.
  • "Steam Rider G - Customer Sited Supply Pilot Program", Consolidated Edison Company of New York, Inc. filing, July 15, 2015.