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Systems Benefits Charge

November 6, 2000

The Business Council of New York State, Inc. is polling its manufacturing, energy and other members regarding the proposal by the Public Service Commission to expand and extend the System Benefits Charge (SBC) under proposal PSC-39-00-00005-P that was published in the New York State Registry on September 27, 2000. Public comments on this proposal are due by November 20, 2000.

Systems Benefits Charge (background)

Briefly, the Systems Benefits Charge or SBC was established under Case 94-E-0952 - In the Matter of Competitive Opportunities Regarding Electric Service, Opinion No. 98-3, Opinion and Order Concerning Systems Benefits Charge Issues. This was issued and put into effect on January 30, 1998.

At that time the Commission believed that in a competitive market they had to insure certain programs that the market would no longer provide. These programs included energy efficiency, research and development, environmental protections, and low-income assistance. Overall, the PSC ruled that the SBC was to be directed towards programs needed to "transition to a competitive market as well as those that are not expected to be adequately addressed by competitive market".

The funding for the program was to be at the 1995 utility expenditure levels, subject to a one mill/kWh cap. The program, New York Energy $mart, was to be administered by NYSERDA and scheduled to last for three years prior to review. The PSC is now reviewing New York Energy $mart and proposing an expansion and extension of it.

SBC - New Proposal

The Systems Benefits Charge proposals under PSC-39-00-00005-P include:

Commercial Customers - 9,000kWh/Month:

SBC Utility Present Typical Monthly Electric Bill Future Typical Monthly Electric Bill (DPS Proposal) Percent Increase to Present Bill
$ Total SBC $$ within $ total SBC as % of bill $ Total SBC within $ Total SBC as % of Bill
CH 962.27 8.91 0.93 965.77 12.41 1.28 0.36
Con Ed 1,648.80 9.18 0.66 1,652.03 12.41 0.75 0.20
NYSEG 1,391.17 9.18 0.46 1,394.40 12.41 0.89 0.23
NMPC 1,196.89 5.49 0.46 1,203.81 12.41 1.03 0.58
O & R 916.79 8.73 0.95 920.47 12.41 1.35 0.40
RG & E 1,449.29 6.66 0.46 1,455.04 12.41 0.85 0.40

Industrial Customers - 720,000 kWh/Month:

SBC Utility Present Typical Monthly Electric Bill Future Typical Monthly Electric Bill (DPS Proposal) Percent Increase to Present Bill
$ Total SBC $$ within $ total SBC as % of bill $ Total SBC within $ Total SBC as % of Bill
CH 65,133.25 712.80 1.09 65,413.55 993.10 1.52 0.43
Con Ed 64,225.08 734.40 1.14 64,483.78 993.10 1.54 0.40
NYSEG 67,188.97 734.40 1.09 67,447.67 993.10 1.47 0.38
NMPC 74,749.08 439.20 0.59 75,302.98 993.10 1.32 0.74
O & R 40,285.80 698.40 1.73 40,580.50 993.10 2.45 0.73
RG & E 64,076.85 532.80 0.83 64,537.15 993.10 1.54 0.72