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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:
- Expanding
the charge from a cumulative total of $78 million per year to $139 million
per year.
- The individual
rates in the six (6) utility territories would be altered to make them as
close as possible state-wide at about 1.4 mills/kWh. The rate in mills/kWh
under the first SBC were .6 for Niagara Mohawk, .7 for Rochester Gas &
Electric and 1.0 for CH Energy, Con Edison, NYSEG, and Orange and Rockland.
Based on the new SBC rate, the following are projections (winter rates)
for medium size commercials (from 10-50kW) and medium size industrials (between
500-2,000kW):
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
|
- The proposal would extend the SBC for five (5) years starting January
1, 2001.
- The new SBC rates will be entirely non-bypassable. Since the new SBC
is not subject to bypass, some customers classes will see SBC rates equivalent
to the new rates of .14 cents per kWh.
- Under the new proposal, the charge is extended beyond the initial three
years by an additional five years, for a total of eight. The PSC is altering
one aspect of the settlement agreements by singling out the SBC and extending
it. The Commission is also altering the current SBC and creating a new
programs six (6) months prior to the culmination of the initial program.
- The program is also adding a new aspect to the SBC. Currently, the SBC
funds energy efficiency, research and development, environmental protections,
and low-income assistance (as mentioned above). Under the new phase, the
SBC will also target "peak load reduction". It is the intended
goal of this new program to reduce electricity demand in New York State
by an estimated 1,019 to 1,269 megawatts by the end of the program (2005).
The megawatt savings NYSERDA reports under the SBC programs funded under
Energy $mart totals134 by year 2005. The total equates to an aggregate
of 1,153 to 1,403 by 2005 (under both the Energy $mart program and the
SBC five-year peak load reduction program).
- The continuation of the original SBC programs are to be maintained under
this new phase (January 1, 2001 - December 31, 2005) as well.
We
are asking the membership of the Business Council
for their input on the Public Service Commission's
proposal to extend and expand this energy surcharge/rate
increase. Ken
Pokalsky (ken.pokalsky@bcnys.org) and
should be sent prior to November 17, 2000.
Click
here for the PSC proposal.
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