N.Y. Restructures Gas Rates to Lure Competitive Supplies

Fortnightly Magazine - September 1 1997
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The New York Public Service Commission has directed Consolidated Edison Co. to modify its gas transportation rates to more accurately reflect costs.

The commission said that the tariff revisions mark a "major step" for a service territory where competition between the utility and gas marketers had not yet developed. The rate modifications include:

• decreased "load following" charges for customers with high load factors for storage services used to meet daily swings in consumption;

• removal of stand-by service costs from the load-following charge and development of a separate surcharge for stand-by protection provided to "human needs" customers, such as residential and acute care health facilities;

• a commitment by the utility that it will allow sales customers to convert from sales to transportation service without assignment of the utility's associated upstream capacity; and

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