National Grid Comments on Electric Generator Rate Design Proposal

The New York State Department of Public Service's Public Service Commission initiated a review of the tariff provisions regarding natural gas service to electric generators, Case 17-G-0011. National Grid, a leading gas utility company in New York, filed comments on the Staff Proposal for electric generator rate design, proposing changes to the current rate structure. The proposal aims to simplify the rate design, better reflect the economics of different types and sizes of generators, and ensure electric generators contribute to system costs.

Key Takeaways:

• National Grid supports the removal of the 50 MW threshold for wholesale generators, advocating for equal treatment of electric generators regardless of capacity size.
• The company's tariffs already apply the same terms and conditions for service to electric generators under 50 MW as they do for electric generators 50 MW or greater.
• National Grid proposes modifications and clarifications to Staff's proposed rate components, accounting for varying sizes of electric generators.
• The company supports Staff's proposal for electric generator rate design, aiming to simplify the rate design and better reflect the economics of different types and sizes of generators.
• National Grid suggests retaining the ability to negotiate electric generator transportation rates when electric generators present viable economic opportunities to bypass the utility's system or for operational requirements.
• The company recommends updating rate components periodically during general rate proceedings.

Statistics:

• National Grid provides natural gas service to 412 electric generators in New York State.
• The services provided to electric generator customers include both local transportation service and balancing service.
• KEDNY provides non-core gas transportation service under Service Classification ("SC") 18 for electric generators under 50 MW, and SC 20 for electric generators 50 MW or greater.
• KEDLI provides non-core gas transportation service under SC 7 and 14 for electric generators under 50 MW and 50 MW or greater, respectively.
• Niagara Mohawk provides non-core transportation service for electric generators 50 MW or greater under SC 14.
• The Companies offer service to electric generation customers on a non-firm basis, benefiting both non-firm and firm customers.

Sources:

• New York State Department of Public Service (DPS) Case 17-G-0011 Staff Proposal on Electric Generator Rate Design, March 30, 2020
• National Grid Comments to Staff Proposal on Electric Generator Rate Design, April 15, 2020
• Joint Proposal by the Commission in Cases 16-G-0058 and 16-G-0059, January 19, 2018