GENERAL INFORMATION 15. MARKET SUPPLY CHARGE ("MSC")
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1 P.S.C. NO. 3 ELECTRICITY LEAF: 214 ORANGE AND ROCKLAND UTILITIES, INC. REVISION: 3 INITIAL EFFECTIVE DATE: November 1, 2015 SUPERSEDING REVISION: 1 Issued in compliance with Order in Case 14-E-0493 dated 10/16/ MARKET SUPPLY CHARGE ("MSC") The Company will provide electric power supply to all customers who: (1) choose to have their entire electric power supply requirement provided by the Company, or (2) are not offered Retail Access Service by an ESCO, or (3) return to the Company's service after having been previously supplied by an ESCO, or (4) contract for their electric power supply with an ESCO that fails to deliver. The Market Supply Charge ("MSC") shall be used to recover all costs associated with purchasing energy, capacity and ancillary services incurred by the Company in providing electric power supply to the above-referenced customers. Such costs shall also include costs associated with Non-Utility Generator ( NUG ) contracts and costs/benefits associated with hedging instruments. Costs/benefits associated with hedging instruments (e.g., transaction costs, such as option premiums, costs of providing credit support and margin requirements, professional fees, and gains and losses associated with such transactions made in the commodities exchanges and with other counterparties) shall be recovered as described in the Forecast MSC Component section below. The MSC shall also be used to recover the lost delivery service revenue associated with Rider K and Rider M. The MSC shall be reduced by any penalty amounts received from customers under Rider K, in excess of penalty amounts paid by the Company to the NYISO under the NYISO s Day Ahead Demand Reduction Program. The MSC is applicable to customers receiving electric power supply from the Company under Service Classifications Nos. 1, 2, 3, 4, 5, 6, 16, 19, 20, 21 and 25 (Rates 1 and 2) and under Rider B. The MSC does not apply to Mandatory Day-Ahead Hourly Pricing customers or to customers electing voluntary DAHP under Rider M. The MSC shall consist of two components, the Forecast MSC Component and the MSC Adjustment as described below FORECAST MSC COMPONENT The Forecast MSC Component shall be separately determined on a monthly basis for each of the following customer classes: Residential Service Classification No. 1; Residential Voluntary Time of Use Service Classification No. 19; Non-Residential Secondary Service Service Classification No. 2 (Secondary) and Service Classification No. 25, Rate 1 who are exempt from Mandatory Day-Ahead Hourly Pricing; Non-Residential Secondary Voluntary Time of Use Service Service Classification No. 20; Primary Service Service Classification No. 2 (Primary), Service Classification No. 3, and Service Classification No. 25, Rate 2, and primary service customers under Service Classification No. 9, Service Classification No. 22, and Service Classification No. 25, Rates 3 and 4 who are exempt from Mandatory Day-Ahead Hourly Pricing; Primary Voluntary Time of Use Service Service Classification No. 21; Issued By: Timothy Cawley, President, Pearl River, New York
2 P.S.C. NO. 3 ELECTRICITY LEAF: 215 ORANGE AND ROCKLAND UTILITIES, INC. REVISION: 4 INITIAL EFFECTIVE DATE: April 1, 2017 SUPERSEDING REVISION: 3 Issued in compliance with Order in Case 15-E-0302 dated 2/22/ FORECAST MSC COMPONENT (Continued) Substation Service Substation service customers under Service Classification No. 9, Service Classification No. 22, and Service Classification No. 25, Rates 3 and 4 who are exempt from Mandatory Day-Ahead Hourly Pricing; Transmission Service Transmission service customers under Service Classification No. 9, Service Classification No. 22, and Service Classification No. 25, Rates 3 and 4 who are exempt from Mandatory Day-Ahead Hourly Pricing; Lighting Service Classification Nos. 4, 6 and 16; and Traffic Lighting Service Classification No. 5. The Forecast MSC Component shall be comprised of: (a) a load shape weighted average of forecast peak and off-peak energy charges; ancillary services charges; NYPA Transmission Adjustment Charges ("NTAC"); NYISO charges allocated to the Company resulting from transmission projects approved through FERC, NYISO, and other Commission processes ( NYISO Transmission Charges ); (b) capacity charges; and (c) an estimate of hedging gains/losses. The charges listed in (a) and (b) above will be adjusted for losses using the loss factors set forth in General Information Section No. 32. Estimated hedging gains/losses will be applied through a Hedging Adjustment on a per kwh basis. The resulting class-specific Forecast MSC Component will be applied to all kwh usage during the billing month. For Service Classification Nos. 19, 20 and 21, separate peak and off-peak Forecast MSC Components will be determined based on the time periods defined in each service classification. (A) Energy The energy component of the Forecast MSC Component will be based upon the Company s forecast of peak and off-peak energy prices for NYISO Zone G. (B) Ancillary Services Charge, NYPA Transmission Adjustment Charge, and NYISO Transmission Charges ( Ancillary Services/NTAC/NYISO Transmission Charges ) The Ancillary Services/NTAC/NYISO Transmission Charges component of the Forecast MSC Component shall be based on an estimate of the cost per kwh for such components for the billing month. Issued By: Timothy Cawley President, Pearl River, New York
3 P.S.C. NO. 3 ELECTRICITY LEAF: 216 ORANGE AND ROCKLAND UTILITIES, INC. REVISION: 3 INITIAL EFFECTIVE DATE: December 14, 2014 SUPERSEDING REVISION: FORECAST MSC COMPONENT (Continued) (C) Capacity For each capacity group (as defined below) the capacity component, in cents per kwh, shall be determined for each NYISO capability period by dividing the product of (a) the total full service customer and retail access customer capacity obligations and (b) the weighted NYISO strip auction price in the G-J Locality and Rest of State capacity zones prior to the start of each summer and winter capability period by (c) the total projected full service customer and retail access customer kwh deliveries for the capability period. Capacity obligations are based on the peak loads from the prior year at the time of the New York Control Area peak. Each customer s peak load is adjusted to include the Unforced Capacity Requirement of the NYISO and the applicable class-specific demand loss factor. The capacity component is set for each of the following seven categories: Group A: SC Nos. 1 and 19; Group B: SC No. 2 - Secondary, SC No. 20, SC No. 25, Rate 1 customers exempt from Mandatory DAHP; Group C: SC No. 2 - Primary, SC No. 3, SC No. 21, SC No. 25, Rate 2, and customers from the following classes who are exempt from Mandatory DAHP: SC No. 9 - Primary, SC No Primary, and SC No. 25, Rates 3 and 4 - Primary; Group D: Customers from the following classes who are exempt from Mandatory DAHP: SC No. 9 - Substation, SC No Substation, and SC No. 25, Rates 3 and 4 - Substation; Group E: Customers from the following classes who are exempt from Mandatory DAHP: SC No. 9 - Transmission, SC No Transmission, and SC No. 25, Rates 3 and 4 - Transmission; Group F: SC Nos. 4, 6, and 16; and Group G: SC No. 5 (D) Hedging Adjustment The Hedging Adjustment will be based on the estimated costs or benefits associated with hedging instruments for the billing month. The Hedging Adjustment will be determined by dividing the estimated hedging gains/losses for the billing month by the billing month forecast of kwh sales for customers subject to the MSC. Issued By: Timothy Cawley, President, Pearl River, New York
4 P.S.C. NO. 3 ELECTRICITY LEAF: 217 ORANGE AND ROCKLAND UTILITIES, INC. REVISION: 2 INITIAL EFFECTIVE DATE: November 1, 2017 SUPERSEDING REVISION: 1 Issued in compliance with Order in Cases 15-E-0751 and 15-E-0082 dated 9/14/ MSC ADJUSTMENT The MSC Adjustment will be determined monthly by subtracting the Company's Actual Monthly Total MSC Cost, including costs associated with both voluntary and mandatory day-ahead hourly pricing customers, and the reconciliation of supply costs and revenues from two months prior, from total MSC revenue recovered through the Forecast MSC Component, MSC Adjustment, and both voluntary and mandatory day-ahead hourly pricing charges, and dividing the result by the Company's billing month forecast of kwh sales for customers subject to the MSC. The MSC Adjustment will be developed on a two-month lag and will be assessed on an equal cents per kwh basis for all customer classes subject to the MSC with the following exception. The costs/benefits associated with hedging instruments shall not be included in the MSC Adjustment applicable to Service Classification No. 9, Service Classification No. 22, and Service Classification No. 25, Rates 3 and 4 customers. Actual Monthly Total MSC Costs The Actual Monthly Total MSC Cost will include all costs associated with purchasing energy, capacity, and ancillary services incurred by the Company in providing electric power supply including costs associated with Non-Utility Generator ( NUG ) contracts and costs/benefits associated with hedging instruments. The Actual Monthly Total MSC cost will also include the lost delivery service revenue associated with Rider K and Rider M. The Actual Monthly Total MSC Cost shall be reduced by any penalty amounts received from customers under Rider K, in excess of penalty amounts paid by the Company to the NYISO under the NYISO s Day Ahead Demand Reduction Program. The Actual Monthly Total MSC Cost will also include the total Value Stack Energy Component credits paid to customers served under the Value Stack Tariff as described in Rider N of this Rate Schedule MANDATORY DAY-AHEAD HOURLY PRICING ("DAHP") (A) Applicability Mandatory DAHP is applicable to customers receiving power supply from the Company under Service Classifications Nos. 9, 22, and 25 (Rates 3 and 4). Issued By: Timothy Cawley, President, Pearl River, New York
5 P.S.C. NO. 3 ELECTRICITY LEAF: 218 ORANGE AND ROCKLAND UTILITIES, INC. REVISION: 3 INITIAL EFFECTIVE DATE: November 1, 2015 SUPERSEDING REVISION: 1 Issued in compliance with Order in Case 14-E-0493 dated 10/16/ MANDATORY DAY-AHEAD HOURLY PRICING ("DAHP") (Continued) (A) Applicability (Continued) Mandatory DAHP is also applicable, commencing with bills having a from date on or after each May 1, to customers receiving power supply from the Company under Service Classification Nos. 2, 3, 20, 21 or 25 (Rates 1 and 2), who maintain a demand in excess of 300 kw in any two months of the previous 12-month period ending September 30. Once on Mandatory DAHP, a customer whose demand does not exceed 200 kw for 12 consecutive months during the previous 12-month period ending September 30, shall be transferred out of Mandatory DAHP effective with its bill having a from date on or after the following May 1 unless the customer elects to remain on DAHP service on a voluntary basis. Mandatory DAHP is not applicable to customers taking service under Riders B or I of this Rate Schedule. A Customer may elect at any time to have its electric power supply provided by an ESCO in accordance with Rider I of this Rate Schedule. Issued By: Timothy Cawley, President, Pearl River, New York
6 P.S.C. NO. 3 ELECTRICITY LEAF: 219 ORANGE AND ROCKLAND UTILITIES, INC. REVISION: 7 INITIAL EFFECTIVE DATE: April 1, 2017 SUPERSEDING REVISION: 6 Issued in compliance with Order in Case 15-E-0302 dated 2/22/ MANDATORY DAY-AHEAD HOURLY PRICING ("DAHP") (Continued) (B) Charges Energy Charges (per kwh) Customers shall be subject to hourly energy charges for electric power supply set each hour of each day of the year. The energy component of such hourly energy charge will be equal to the NYISO s day-ahead Locational Based Marginal Price for Zone G. Ancillary Services/NTAC/NYISO Transmission Charges (per kwh) Customers shall be subject to a charge per kwh associated with ancillary services and NTAC equal to the cost per kwh for such components for the cost month two months prior to the billing month. The Ancillary Services/NTAC/NYISO Transmission Charges shall be combined and shown on the "Statement of Market Supply Charge" filed each month with the Public Service Commission. The sum of the Energy Charge and Ancillary Services/NTAC/NYISO Transmission Charges shall be adjusted for losses using the loss factors set forth in General Information Section No. 32. Capacity Charge (per kw of Capacity Obligation) Customers shall be subject each month to a Capacity Charge per kilowatt of Capacity Obligation, as determined below. The Capacity Charge shall be based on the monthly auction price paid by the Company for the capacity it purchases from the NYISO. Such capacity charge shall be shown on the Statement of Market Supply Charge filed each month with the Public Service Commission. The customer s Capacity Obligation, in kilowatts, is determined by the Company no less frequently than once per year. The customer s Capacity Obligation is based on the individual share of the peak load assigned to the Company and is determined based on the individual customer s peak load during the peak hour for the New York Control Area ( NYCA ). The customer s peak load is adjusted to include demand losses by multiplying it by the applicable demand loss factor set forth in General Information Section No. 32. The customer s peak load is also adjusted for capacity related factors of the NYISO by applying the Unforced Capacity Effective percentage for the applicable capability period as posted by the NYISO. Issued By: Timothy Cawley President, Pearl River, New York
7 P.S.C. NO. 3 ELECTRICITY LEAF: 220 ORANGE AND ROCKLAND UTILITIES, INC. REVISION: 5 INITIAL EFFECTIVE DATE: November 1, 2017 SUPERSEDING REVISION: 4 Issued in compliance with Order in Cases 15-E-0751 and 15-E-0082 dated 9/14/ MANDATORY DAY-AHEAD HOURLY PRICING ("DAHP") (Continued) (C) Posting of Hourly Energy Charges The hourly energy charges for electric power supply, including the Ancillary Services/NTAC/NYISO Transmission Charges, shall be posted by the Company on an internet website. All customers subject to DAHP will be responsible for obtaining price information from this website and will be billed based upon the hourly charges posted on this website CLEAN ENERGY STANDARD SUPPLY SURCHARGE ( CESS ) The Clean Energy Standard Supply Surcharge ( CESS ) is applicable to all customers who receive electric power supply from the Company. The CESS recovers costs associated with two components: (1) Renewable Energy Credits ( RECs ) from qualifying renewable energy facilities and Alternative Compliance Payments ( ACPs ), and (2) Zero-Emission Credits ( ZECs ) from qualifying nuclear facilities. The CESS will collect the following: the estimated costs for each component for the 12-month period beginning April 1 and the difference, excluding uncollectible-bill expense, between the actual costs and amounts recovered for that component for prior periods. The REC component of initial CESS will also collect costs for the period January 1, 2017 through March 31, An adjustment will be made to the total charge for each component to reflect an uncollectible-bill expense. The uncollectible-bill expense will be determined using the system Uncollectible Percentage as described in General Information Section No. 7.5(B)(2). The unit amount to be charged for each 12-month period will be determined by dividing the amount to be collected by the forecasted kwh deliveries for the period in which CESS is in effect. The CESS will also be used to recover the Environmental Component Market Value credits paid to customers served under the Value Stack Tariff as described in Rider N of this Rate Schedule. Issued By: Timothy Cawley President, Pearl River, New York
8 P.S.C. NO. 3 ELECTRICITY LEAF: ORANGE AND ROCKLAND UTILITIES, INC. REVISION: 0 INITIAL EFFECTIVE DATE: April 1, 2017 SUPERSEDING REVISION: Issued in compliance with Order in Case 15-E-0302 dated 2/22/ STATEMENT OF MARKET SUPPLY CHARGE Market Supply Charges shall be determined monthly to be effective for service rendered during the following billing month. The MSCs so determined shall remain in effect until changed as authorized by the Commission. The Forecast MSC Component, the MSC Adjustment and their sum, adjusted for applicable taxes pursuant to General Information Section No. 19, will be separately displayed on customers bills. In addition, the CESS will be added to the Forecast MSC Component for display on customers bills. Not less than three business days prior to a proposed change in the MSC, a "Statement of Market Supply Charge" ("Statement") showing the MSC for each applicable customer class, the DAHP Ancillary Services/NTAC/NYISO Transmission Charges, and Capacity Charges, the CESS, and the effective date of such Statement, will be filed with the Commission, apart from this Schedule. Such Statement shall be available to the public at Company offices at which applications for service may be made. Issued By: Timothy Cawley President, Pearl River, New York
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