New York State Department of Public Service Approves Rate Changes for Consolidated Edison Company of New York, Inc.

Strategic Insights -

Consolidated Edison Company of New York, Inc. has had its proposed rate changes for gas service approved by the New York State Department of Public Service. The changes, which came into effect on a temporary basis on January 1, 2015, were made in compliance with the Commission's Order issued on February 21, 2014, in Case 13-G-0031. The amendments were filed by the company on December 2, 2014, and after a review by the Commission, they were found to be in compliance with the 2014 Rate Order. The changes include an increase in the Rate 1 interruptible monthly minimum charge from $33.33 to $66.66, an update of the gas factor of adjustment for Rate Year 2, and the elimination of the recovery of Pure Base Revenue shortfalls. The revisions will become effective on a permanent basis as of the date of this Order, issued on March 27, 2015.

Key Takeaways:

  • The New York State Department of Public Service has approved Consolidated Edison Company of New York, Inc.'s proposed rate changes for gas service.
  • The revisions were filed by the company on December 2, 2014, and became effective on a temporary basis on January 1, 2015.
  • The changes include an increase in the Rate 1 interruptible monthly minimum charge from $33.33 to $66.66.
  • The gas factor of adjustment for Rate Year 2 has been updated.
  • The recovery of Pure Base Revenue shortfalls has been eliminated.
  • The revisions will become effective on a permanent basis as of the date of this Order, issued on March 27, 2015.
  • The 2014 Rate Order required tariff amendments to include updates to the gas rate plan every three years.
  • Consolidated Edison Company of New York, Inc.'s revenue requirement for gas delivery service was decreased by $54.602 million in Rate Year 1 and increased by $38.620 million in Rate Year 2.
  • The amendments were approved after a review by the Commission, which found them to be in compliance with the 2014 Rate Order.
  • The Commission orders that the tariff amendments and statements filed by Consolidated Edison Company of New York, Inc. are authorized to become effective on a permanent basis.

Statistics:

  • $54.602 million: The revenue requirement for gas delivery service was decreased by this amount in Rate Year 1 (January 1, 2014 through December 31, 2014).
  • $38.620 million: The revenue requirement for gas delivery service was increased by this amount in Rate Year 2 (January 1, 2015 through December 31, 2015).
  • $66.66: The Rate 1 interruptible monthly minimum charge has been increased to this amount from $33.33.
  • 1.0197: The factor of adjustment for Rate Year 2 is 1.0197.

Sources:

  • STATE OF NEW YORK PUBLIC SERVICE COMMISSION At a session of the Public Service Commission held in the City of Albany on March 25, 2015
  • Consolidated Edison Company of New York, Inc. tariff filing to revise its gas rates, charges, rules and regulations for Rate Year 2 in compliance with the Commission Order issued February 21, 2014 in Case 13-G-0031.