Central Hudson Gas & Electric Corporation Supplier Handbook For Customer Choice Retail Access Program

Transcription

1 Central Hudson Gas & Electric Corporation Supplier Handbook For Customer Choice Retail Access Program

2 Central Hudson Gas & Electric Corporation 284 South Avenue Poughkeepsie, New York CHG&E Retail Access Handbook TABLE OF CONTENTS Page 1. INTRODUCTION 1 2. OBLIGATIONS OF PARTIES 2 3. RETAIL SUPPLIER ELIGIBILITY & COMPLIANCE PSC Registration 4 Creditworthiness 4 Supplier Operating Agreement 5 Consumer Protections 5 Customer Cancellation Procedures 6 Dispute Resolution 6 Retail Supplier Suspension Criteria 7 Audit 8 4. CUSTOMER ELIGIBILITY Eligibility Criteria 8 Customer Sign up/enrollment 9 Changes in Supplier 9 5. BILLING Customer Billing 10 Retail Supplier Billing 10 Delivery Rate 10 Establish Retail Supplier Information 11 Historical Metered Usage 11 Establish Customer Account 11 Meter Reads 11 Common Data Exchange 12 Cancel and Re-bill 12 Termination of Service 12

3 6. CUSTOMER METERING AND LOAD PROFILE DATA Page Overview TRANSMISSION & DISTRIBUTION OPERATING RULES Scheduling 14 Weekly Scheduling 15 Day Ahead Scheduling 15 Deliveries by Agents 15 Transmission Scheduling 16 Transmission Allocation 16 System Reliability 16 Service Interruptions 17 Installed Reserve 17 Ancillary Services LOAD BALANCING AND SETTLEMENT PROCESS Overview 19 Details of Balancing and Settlement CONTACTS GLOSSARY FORMS Supplier Operating Agreement 26 CHG&E Customer Authorization Form 30 CHG&E Creditworthiness Application 31 Retail Supplier Application Form 32

4 1. INTRODUCTION The purpose of this Retail Access Supplier Handbook ("Handbook") is to provide a set of procedures and guidelines for the implementation of a Retail Access program within the service territory of Central Hudson Gas & Electric Corporation (CHG&E). The procedures and guidelines in the Handbook will result in a safe, reliable operating environment where participating Customers may choose a Retail Electricity Supplier (Retail Supplier) by freely evaluating all available options, where Retail Suppliers may conduct business with CHG&E and Customers in a smooth, efficient manner, and where all Customers are adequately represented and afforded reasonable consumer protections. The implementation of a Retail Access Program marks the beginning of a new era for the electric utility industry and Customers in New York State. Execution of this program will allow Customers to choose their electricity supplier. Specific information regarding the program will be disseminated to Customers by CHG&E as requested. Under the terms of the program, and subject to resolution of certain administrative issues, CHG&E will begin its Retail Access Program on or after September 1, These administrative issues include but are not limited to tariff approval by the New York State Public Service Commission ( PSC ) and approvals by the Federal Energy Regulatory Commission ("FERC"). In order to ensure the safe and reliable operation of the CHG&E system, to address administrative and operational requirements, and to comply with requirements of the FERC, PSC, New York Power Pool ("NYPP"), and the Independent System Operator ("ISO") when it is established, CHG&E reserves the right to modify these procedures and guidelines as may be necessary. For additional information about the Retail Access Program in New York State, contact the New York State Department of Public Service on the World Wide Web, In order to supply capacity and energy to the CHG&E system, the Retail Supplier will need to obtain transmission service from other transmission providers. Therefore, a Retail Supplier must register with the NYPP to qualify for access to the NYPP transmission scheduling system, known as the NYPP OASIS. The Internet address for registration is The NYPP OASIS administrator can be reached at (518) Purchases of electric capacity and energy are subject to operating regulations of the FERC, PSC, Northeast Power Coordinating Council ("NPCC"), North American Electric Reliability Council ("NERC"), and NYPP operating procedures applicable to wholesale purchases. (1)

5 Retail Suppliers are also subject to the terms of CHG&E's tariff, P.S.C. No Electricity, the terms of CHG&E's FERC approved open access transmission tariff ("OATT"), and the terms of the Supplier Operating Agreement, as each of the same may be amended, modified, superseded or supplemented. A sample Supplier Operating Agreement is contained in this Handbook in Section 11, Forms. Unless otherwise specifically stated herein, the provisions of CHG&E's tariff, P.S.C. No. 14 continue to apply. CHG&E's Retail Access Tariff leaves are subject to approval by the PSC, and are subject to change in accordance with applicable laws, rules and regulations. Unless otherwise specifically defined herein, the terms used shall have the meanings ascribed to such terms in CHG&E's tariff, P.S.C. No. 14. The description of the program contained in this Handbook is intended to specifically relate the details of CHG&E s Customer Choice Program as it pertains to Retail Suppliers. 2. OBLIGATIONS OF PARTIES Retail Supplier A Retail Supplier is an entity, other than CHG&E that can provide electricity to retail Customers in New York State. Retail Suppliers must be registered with the PSC and must pass creditworthy criteria that have been established in CHG&E's Tariffs. Retail Suppliers must comply with PSC orders, directives, rules and regulations that are applicable to them. Retail Suppliers shall be responsible for providing generation, capacity and associated energy to meet the needs of each Customer being served and to deliver the associated capacity and energy to a mutually agreed upon point or points interconnecting with CHG&E's transmission system. A Retail Supplier must deliver to CHG&E electricity in increments of one megawatt (1 MW) per hour for all hours where electricity is scheduled to be delivered to CHG&E. The megawatts must be scheduled in whole numbers (no decimals or fractions of a megawatt). This requirement may be satisfied by two or more Retail Suppliers aggregating their load within CHG&E s service territory for scheduling and balancing purposes, with one Agent, authorized in writing by the other Retail Suppliers who are aggregating their loads, taking full responsibility for scheduling and balancing of the aggregated load with CHG&E. Retail Suppliers may designate only one agent per month to deliver in their behalf. Notification of this designation will be made prior to the start of each month. Agent delivery schedules will include hourly breakdowns by Retail Supplier. In addition to complying with applicable tariffs, rules, regulations, orders and procedures specifically referenced herein, all Retail Suppliers shall meet the requirements of the operating rules and procedures outlined in this Handbook. Failure to comply with such (2)

6 requirements may cause CHG&E to limit or deny a Retail Supplier's participation in this program. Participating Customers Eligibility Criteria. To participate in the program, a Customer must: (1) Meet the eligibility criteria set forth in CHG&E's tariff. (2) Cooperate in, and permit the collection of data and information necessary to evaluate the program. (3) Select only one Retail Supplier at a time per CHG&E account(meter). (4) Choose a Retail Supplier by directly contacting a Retail Supplier who has been reviewed by the PSC and approved by CHG&E. (5) Sign up with such Retail Supplier either by telephone or in writing, and, in either case, provide written authorization to have electric consumption history communicated by CHG&E to the Retail Supplier At the request of a Customer, CHG&E will provide to such Customer or their designee up to 24 months of their most recent historical metered usage information (KWh and KW) at no charge. Should a Customer desire historical metered usage information (KWh and KW) prior to the most recent 24 months, CHG&E will provide this information (if available) for a fee of $15 for each additional 12-month period or portion thereof. CHG&E is only required to provide 2 such requests per customer per year without a charge any additional requests will be billed at the rate of $15 per 12 months of historical data. Transfer of a Customer from one Retail Supplier to a different Retail Supplier is not permitted without the consent of the Customer. CHG&E will inform the PSC of all such Customer reports concerning an unauthorized switch of Retail Supplier ( slamming ). CHG&E Responsibility CHG&E is responsible for providing transmission and distribution services from the interconnect point with CHG&E s system to the Customer s meter, as defined in this Handbook, and will: (1) Provide for the delivery of electricity across CHG&E's transmission and distribution system for each Retail Supplier and to each Customer location; (2) Respond to service interruptions; (3)

7 (3) Investigate and address power quality issues; (4) Provide customer service and support for delivery service; (5) Address physical connections to CHG&E's facilities; (6) Install, own (consistent with PSC Opinion No ), maintain, and read meters installed for CHG&E's billing purposes. (7) Answer questions regarding transmission and local distribution service; (8) Submit bills to the Customer for CHG&E's delivery services; (9) Report meter reading data to the Retail Supplier consistent with the Supplier Operating Agreement; (10) Provide, for a fee, the option of Customer billing services for the Retail Supplier. (11) At the request of a Customer, will provide such Customer with a copy of CHG&E s most recently published list of approved Retail Suppliers. (12) Act in the capacity of the Provider Of Last Resort ("POLR"). 3. RETAIL SUPPLIER ELIGIBILITY & COMPLIANCE PSC Registration To participate in CHG&E's Retail Access program, a Retail Supplier must register with the PSC to become a qualified supplier. The Retail Supplier should contact the PSC at their web site or by phone at the numbers provided in section 9 of this Handbook to obtain the list of full requirements and all forms required by the PSC. Creditworthiness CHG&E will determine the ability of a Retail Supplier to meet its Contractual obligations. To accomplish this CHG&E will impose reasonable credit review procedures. This review shall be made in accordance with standard commercial practices. In addition, CHG&E may require a Retail Supplier to provide and maintain in effect during the term of the Supplier Operating Agreement, security deposits, prepayments or an unconditional and irrevocable letter of credit as security to meet its responsibilities and obligations. (4)

8 The creditworthiness determination will be made after the Retail Supplier provides Central Hudson with the financial information that is described in CHG&E's tariff, P.S.C. No Electricity, at Section 35 (M). The Retail Supplier will be considered creditworthy if (a) the Retail Supplier's long-term unsecured debt securities must be, and remain, rated a minimum of BBB or Baa2 by Standard & Poor's or Moody's, respectively, (b) the Retail Supplier has, as determined by CHG&E in its sole discretion, a qualified long-term payment history with CHG&E; the Retail Supplier's parent company, in a form satisfactory to CHG&E, guarantees responsibility for all financial and service obligations under the Retail Access Program and the Supplier Operating Agreement, and such parent company conforms to the minimum ratings specified above, and (d) the Retail Supplier otherwise demonstrates to CHG&E's satisfaction that it is creditworthy. Supplier Operating Agreement The Company will execute a Supplier Operating Agreement with each PSC registered Retail Supplier participating in the program. A copy of the Supplier Operating Agreement is included in Section 11 of this Handbook. The Supplier Operating Agreement contractually commits the Retail Supplier to abide by the contract provisions contained therein, the guidelines and procedures contained in this Handbook, and applicable FERC and PSC opinions, orders directives and approved tariff provisions, as well as subsequent modifications, amendments or revisions of these documents. A Retail Supplier must, on an ongoing basis (1) meet any applicable FERC, NYPP, ISO (or Power Exchange) requirements; (2) comply with PSC consumer protection requirements; (3) comply with ongoing reporting requirements; (4) keep the PSC apprized of any material change in the data contained in its initial eligibility application filing; (5) continually adhere to the description of its own policies and procedures as set forth in its disclosure statement to Customers; and (6) comply with CHG&E operating rules and procedures as outlined in this Handbook. Failure to comply with any of these requirements will result in Retail Supplier Suspension. Consumer Protections Retail Suppliers must comply with the provisions of PSC Opinion No to Establish an Open Access Program, including but not limited to the following provisions: (1) Provide prospective Customers with a copy of their disclosure statement prior To the Customer making a commitment to the Retail Supplier; (2) Provide Customers with a minimum of fifteen (15) business day s notice prior to terminating any contractual relationship for electric power supply; (5)

9 (3) Adhere to practices sufficient to ensure a smooth transition, by a Customer, from one Retail Supplier to another; (4) Adhere to practices sufficient to protect Customers from an unauthorized switch of Retail Supplier; and (5) Offer Customers, and adhere to, a process for resolving Customer complaints that is both affordable and convenient for the Customer. Customer Cancellation Procedures With a minimum notification time of fifteen (15) business days, the Retail Supplier must provide CHG&E with a written cancellation notice stating that the Customer's contract with the Retail Supplier is terminated or being terminated, and that such Customer will no longer receive electricity supply from the Retail Supplier. Such notice must be sent to CHG&E for processing at the following address: Central Hudson Gas & Electric Corporation, Attn.: Customer Choice Program Administrator, 284 South Avenue, Poughkeepsie, New York Upon receipt of the written cancellation notice from the Retail Supplier, CHG&E will make the necessary changes to the Customer's account, to be effective 15 days after the date of the notification. Central Hudson will also notify the affected Customer of this termination and will offer to provide the Customer with a list of alternate suppliers. Slamming, an unauthorized change in Retail Supplier without the Customer's knowledge or approval, is prohibited. The Retail Supplier responsible for the request to change a Customer's electric power supplier without such Customer's authorization will pay all costs, fees and damages to or incurred by the Customer and/or CHG&E arising from the unauthorized change. The Retail Supplier responsible for slamming may also be subject to fines imposed by the PSC. Dispute Resolution Any dispute between CHG&E and a Retail Supplier involving services governed by the Supplier Operating Agreement shall be submitted in writing to the CHG&E Customer Choice Program Administrator by a designated representative of the Retail Supplier for resolution on an informal basis. If the representatives are unable to resolve the dispute within thirty (30) days of submittal, the dispute may be submitted to (1) Senior Management representatives of CHG&E, (2) the PSC, if the dispute involves suspension of the Retail Supplier from the program or (3) arbitration, as agreed to by the parties and administered by the American Arbitration Association under its Commercial Arbitration Rules. Retail Supplier Suspension Criteria (6)

10 1. PSC Suspension. Circumstances that may warrant PSC suspension of a Retail Supplier's participation will be considered on a case-by-case basis. Criteria to be considered in determining whether an individual Retail Supplier should be suspended include: (a) Failure to adhere to the policies and procedures described in the Retail Supplier's disclosure statement; (b) Failure to comply with prescribed consumer protections; (c) An unacceptably high volume of Customer complaints as defined by the PSC; (d) Failure to comply with the requirements of CHG&E, FERC, NYPP, ISO or Power Exchange; (e) Failure to comply with PSC prescribed reporting requirements; and (f) Failure to apprize the PSC of a material change in the information contained in a Retail Supplier's initial application with the PSC. 2. CHG&E's Penalty and Suspension. Retail Suppliers who fail to schedule and deliver electricity to meet their Customers' requirements or fail to abide by the Supplier Operating Agreement will be subject to a charge and suspension. (a) Retail Suppliers who fail to actively schedule and deliver electric power to meet their Customers' requirements, will be charged for all costs incurred by CHG&E associated with scheduling and delivery of power for the Retail Supplier's Customers (including administrative costs) and CHG&E shall notify the PSC of such occurrence and may suspend such Retail Supplier from participation in the program. (b) If Retail Suppliers fail to schedule and deliver sufficient electricity to meet their Customers' requirements and the value of the electric power being provided by the NYPP or NY ISO to balance the Retail Supplier's Customers' load as determined by CHG&E's Balancing and Settlement procedure exceeds the credit limit of the Retail Supplier, where the Retail Supplier does not meet CHG&E's creditworthiness criteria, as established in CHG&E's tariff, P.S.C. No Electricity, Section 35 (M), such Retail Supplier must immediately start to schedule sufficient electric power to meet the needs of the supplier's Customers, and either (1) arrange for increased credit with CHG&E or (2) make a payment to CHG&E to reduce the Retail Supplier's obligation to CHG&E to an acceptable level. If the Retail Supplier fails to take appropriate action, CHG&E shall notify the Commission of such occurrence and may suspend such Retail Supplier from participation in the program. (c) Retail Suppliers who schedule and deliver electric power in such a way as to adversely affect the reliable operation of the electric system or system security, will be charged for all costs incurred by CHG&E associated with the situation, including administrative costs. Upon the second occurrence within a twelve month period, CHG&E shall notify the PSC of (7)

11 such occurrence and, unless required otherwise by the PSC, may suspend such Retail Supplier from participation in the program. (d) When notified by the PSC of the suspension of a Retail Supplier, or when CHG&E suspends the Retail Supplier from its system, CHG&E shall notify the suspended Retail Supplier's Customers within 5 business days of such suspension and of such Customer's option to either select another Retail Supplier or receive electricity from CHG&E. CHG&E shall maintain information sufficient to accomplish the foregoing notification requirement. Audit CHG&E or its representative, at all reasonable times during normal business hours, for the purpose of examination, audit or review, shall be offered access to the records, books, documents, data, information and papers (including those on electronic media) (collectively, the "Records") associated with the Retail Supplier's enrollment documentation. The Retail Supplier shall preserve and have the Records subject to examination, audit or review for a period commencing with the creation or receipt of such record and ending three (3) years from the date of termination of the Supplier Operating Agreement. CUSTOMER ELIGIBILITY Eligibility Criteria A Customer who would otherwise qualify for CHG&E s Service Classification Nos. 1, 2, 6, 12, or 13 may be eligible to participate in the Customer Choice Retail Access Program subject to the penetration levels and timetable set forth in CHG&E's tariff, P.S.C. No Electricity, General Information Section 35, and the participation qualifications for the Customer s specific service class. This participation will be administered on a first come first served basis. If the yearly Percent load Penetration Level for the specific customer class is fully subscribed, the Customer will be placed on a waiting list and will be eligible to participate at the next available opportunity. Customers must also provide, cooperate in, and permit the collection of data and information necessary to evaluate the program. Certain CHG&E Customers meeting the above definitions may not be able to participate in the program, including those Customers taking service under any of CHG&E's incentive rates. For details pertaining to the eligibility of Customers taking service under incentive rates, refer to CHG&E's tariff, P.S.C. No. 14. Customer Sign-up/Enrollment Customers should choose a Retail Supplier by directly contacting a Retail Supplier who has registered with the PSC and has an active Operating Agreement with CHG&E. Customers may sign up with such Retail Suppliers either by telephone or in writing. A Customer may then enter into a contract ("Supplier/Customer Contract") to purchase power from that Retail Supplier. (8)

12 CHG&E, at the request of a Customer, will provide such Customer with a copy of it's most current list of approved Retail Suppliers. At the request of a Customer, CHG&E will provide to such Customer or its designee up to 24 months of the most recent historical metered usage information at no charge up to a maximum of 2 times per year. Should a Customer desire historical metered usage information prior to the most recent 24 months, CHG&E will provide this information (if available) for a fee of $15 for each additional 12-month period or portion thereof. Requests for historical metered usage in addition to the 2 free allowances per year will be billed at the rate of $15 per 12 months of data. The information provided to a Customer hereunder will also be made available to such Customer's Retail Supplier if authorized in writing, by the Customer. Transfer of a Customer from one Retail Supplier to a different Retail Supplier is not permitted without the consent of the Customer. Customers must confirm with CHG&E the termination of any agreement with a Retail Supplier and the entry into a new agreement with a new Retail Supplier in accordance with the procedures set forth in CHG&E's tariff. Changes in Supplier If a Customer chooses to change Retail Suppliers, the new Retail Supplier of the Customer must provide written notice to CHG&E and the current Retail Supplier of such change and confirm such change with the Customer. That notice must be given not less than fifteen (15) business days prior to the effective date of such change. Unless the Customer notifies CHG&E of its objection to a change in suppliers within ten (10) calendar days from the date CHG&E is notified by the new Retail Supplier, CHG&E will amend its records to reflect the change, and shall be authorized to treat the new Retail Supplier as the Customer's Retail Supplier. If the Customer objects to the change within the time period provided for herein, no change in Retail Supplier will be authorized and the Customer and the Retail Supplier must settle the dispute in accordance with the Retail Supplier's complaint procedures. If a Customer chooses to return to the CHG&E system for electricity supply, that the Customer must provide CHG&E, not less than fifteen (15) business days prior to the effective date of such change, with either a verbal or written notice of such determination. Upon receipt of such customer notice, CHG&E will send a confirming notice within 5 business days to the Retail Supplier, and the return to the CHG&E system will be implemented. In such instances, the Customer will receive service under CHG&E's then-current tariff and Service Classification applicable to such Customer. No fee will be assessed for the initial Retail Supplier selection and the initial voluntary return to CHG&E. A fee of $8 to cover administrative costs will be assessed each time a Customer voluntarily changes Retail Suppliers or returns to the CHG&E system after the initial selection and return. (9)

13 5. BILLING Customer Billing Unless otherwise agreed to by and between CHG&E and the Retail Supplier, or as otherwise provided herein, CHG&E will bill a Customer only for the delivery of electric power supply and other services provided by CHG&E, and the Retail Supplier will bill a Customer for the electricity supply and other services the Retail Supplier provides to the Customer. For purposes of this Handbook, the billing system where both CHG&E and the Retail Supplier render separate bills to a Customer, is referred to as a two-bill system, and where CHG&E renders a single bill for CHG&E's and the Retail Supplier's services, is referred to as a one-bill system. The CHG&E Delivery Service bill will be issued to a Customer in accordance with established billing cycles and current practices applicable to such Customer. CHG&E Billing of Retail Supplier Under the Retail Access Program, the Retail Supplier is responsible for scheduling, balancing and settling discrepancies with respect to a Customer's electric power supply requirements. This process can result in monthly charges or credits depending upon the amount of electric power supply the Retail Supplier delivers to CHG&E and the actual amount required by the Customers. CHG&E will invoice Retail Suppliers for amounts owed or credits due in accordance with balancing and settlement procedures set forth herein. Delivery Rate All Customers who choose a Retail Supplier for its electricity supply will be billed for delivery service by CHG&E. CHG&E delivery rates are in accordance with its filed tariffs Service Classification Nos. 15, 16, 18, 19, 20 or 21 (See CHG&E's tariff, P.S.C. No. 14). Establish Retail Supplier Information Initially, each Retail Supplier must submit its retail access eligibility application to the PSC. Upon acknowledgment of such application, the Retail Supplier must submit financial information to CHG&E as per CHG&E s filed tariffs for the purpose of conducting a creditworthiness review. Upon successful completion of the creditworthiness review, the Retail Supplier will sign the Operating Agreement contained in this Handbook. The Retail Supplier shall then proceed with customer sign-up/enrollment of Customers. For this process, the Retail Supplier must submit to CHG&E written notification that the Customer has signed an agreement with the approved Retail Supplier. Such written notification may be a FAX or E mail listing of all such Customers. (10)

14 Historical Metered Usage The Customer's historical metered usage information may be requested by the Customer by contacting CHG&E. Retail Suppliers may request historical metered usage on behalf of the customer so long as the customer consents to sharing that information and grants written permission to do so. Such usage information will be mailed or faxed to the customer or authorized Retail Suppler's address/fax. If the request is for historical metered usage information (KWh, KW) is prior to the most recent 24 months or exceeds 2 requests per year, CHG&E will provide this information (if available) for a fee of $15 for each 12 month period or portion thereof. Payment of this fee must accompany the request. Establish Customer Account Once a Customer has chosen an approved Retail Supplier, the Retail Supplier shall notify CHG&E. Customers and Retail Suppliers will receive confirmation from CHG&E of new agreements, termination of agreements and changes of Retail Supplier by letter. Meter Reads The CHG&E bill will be issued in accordance with the established meter reading cycles for the applicable account. For each Customer account receiving electric power from a Retail Supplier, CHG&E will perform cycled meter readings in accordance with current practices. If future meter read dates for a particular Customer change, CHG&E will notify the Retail Supplier. If a Customer or a Retail Supplier requests CHG&E to provide a meter reading on a day other than the scheduled meter read date, the Retail Supplier or customer will be charged a fee of $22 per meter, or the then-current charge, each time. Special meter readings require four business days advanced notice. Common Data Exchange Under a two-bill system, after CHG&E performs cycled meter readings, CHG&E will then provide the Retail Supplier with the metered usage. This information will be sent to the Retail Supplier within 48 hours that such information is posted on CHG&E's CIS System. The information will be transmitted by facsimile machine (fax), electronically or be available at Central Hudson s website, whichever method is most efficient at the time. If there is a reason to withhold billing information (a meter read fails a high/low check, for example) CHG&E will not release the metered usage to the Retail Supplier until the discrepancy has been resolved. CHG&E will use expeditious business practices to investigate, correct and send the metered usage to the Retail Supplier within 48 hours of such resolution. Cancel and Rebill In some instances, CHG&E will need to cancel a bill, obtain new or correct information, and then re-issue or "re-bill" with the corrected billing determinants. When a bill is (11)

15 rebilled, CHG&E will immediately issue a correction notice to the Customer as well as the Retail Supplier. Reasons for cancellations consist of the following: Over Read, Over Estimated, Customer Read, Removed Read Error, Bad Constant, Wrong Rate, Faulty Meter, Diversion of Service, Ground Condition, or Other. After a bill is canceled, CHG&E will then issue a new bill, re-bill or produce an off-cycle bill at no cost with the correct determinants. For this transaction, the correct dates and meter reads are entered. Termination of Service If a Customer's bill for CHG&E's transmission and delivery services is unpaid and signed arrangements have not been made for future payments, the Customer will be sent a Notice of Termination. After the issuance of a Notice of Termination, if the Customer fails to pay the amount billed by CHG&E, CHG&E will disconnect electric power or electric power delivery service, as appropriate, to that Customer, pursuant to the applicable PSC rules and regulations for disconnection of electric service. CHG&E will notify the Retail Supplier after 5 business days of the service disconnection. Depending on the circumstances, CHG&E will either reconnect the Customer and notify the Retail Supplier regarding the reconnection or issue a final bill to the Customer. After issuance of the final bill, the Customer's Retail Supplier is no longer obligated to secure electric power supply for the Customer, and CHG&E is not obligated to provide delivery service to the Customer. CHG&E will incur no liability for a supplier's revenue or other loss or damage caused by, arising out of or related to CHG&E's disconnection of the Customer s electric service. 6. CUSTOMER METERING AND LOAD PROFILE DATA Customers will continue to use existing meters. However, consistent with PSC Opinion No customers do have the option, at their expense, to request the installation of time differentiated metering for the purpose of participating in the Retail Access Program. CHG&E will continue to own, install, maintain, and read Customers' meters for billing purposes. CHG&E will perform meter readings in accordance with established reading cycles and current practices, and provide relevant meter reading information to the Retail Supplier. Information provided to a Retail Supplier may only be used for the purposes of billing or analyzing the meter data for the Customer and for no other purposes. It shall be the Customer's responsibility, at all times, to provide CHG&E employees with access to their metering equipment. Any attempt to prohibit such access will terminate the customer's eligibility status for the purpose of this program. Overview Existing meters installed at Customer sites will be used to derive basic billing determinants (12)

16 for CHG&E and for the Retail Supplier. CHG&E may elect to replace an existing meter or install additional metering equipment at the Customer site to obtain load profile data consistent with PSC Opinion No CHG&E will purchase, install, initialize, and commission all meters and metering equipment including, but not limited to, a time differentiated type that is necessary to provide accurate billing determinants and load profile data. CHG&E will perform any metering operations, including, but not limited, to installing, disconnecting, reconnecting, sealing and removing meters and metering equipment. CHG&E will maintain and test meters according to its internal operating practices and the PSC's rules and regulations. A Retail Supplier or Customer may request an accuracy test of an installed meter which is not required by CHG&E's internal practices or the PSC's rules. CHG&E may elect to test the meter in place at the Customer's site or at its central test facility. Upon receipt of the request, the test will be completed within ten (10) business days. Retail Supplier requests for meter accuracy tests shall be made directly to the CHG&E Customer Choice Administrator. A time and materials bill will be prepared for these services and will be provided by CHG&E to the Retail Supplier. Central Hudson will allow existing Service Class 3 and Service Class 13 Customers to own their metering equipment provided the metering equipment is approved by the PSC for billing purposes and that CHG&E will retain sole control of the metering installation. As stated in CHG&E's tariff, the Customer's historical metered usage (KWh, KW) for 24 months will be provided to the customer at no charge. This information is known as "billing history" CHG&E also provides customer specific usage factors based on this historical information. These factors are applied to the customer s specific segment group load profile which is utilized for scheduling and balancing. For Customers that do not have hourly interval metering, CHG&E shall provide a profile ( static profile ) which represents hourly consumption by Customer segmented group. CHG&E utilizes 11 such profiles to represent its entire customer base. Each Customer s load profile will be adjusted by a usage factor specific to that individual Customer s consumption history. This factor will be multiplied by the load profile for that Customer s segment to result in a more accurate hourly estimation of consumption. The Customer s hourly consumption will be represented by this estimate for purposes of balancing and settling. For Customers with hourly interval meters, a dynamic profile can be produced. Consumption history provided by CHG&E to Customers or Retail Suppliers for these accounts will consist of the most recent 12 month hourly data. For Retail Supplier requests which exceed the basic billing determinants and dynamic profile information, CHG&E will cooperate with the Retail Supplier to provide the specific data. Fees for this special service will be charged generally for time and materials required to compile the information. An estimate of all such charges will be provided upon Retail Supplier or Customer request. (13)

17 7. TRANSMISSION & DISTRIBUTION OPERATING RULES In the event that any portion of the service provided hereunder is subject to the FERC jurisdiction, such portions shall be performed in accordance with CHG&E's FERC approved OATT, as the same may be modified or superseded from time to time. The rates charged to a Retail Supplier hereunder incorporate the current open access tariff rate on file with and approved by the FERC. Such rates are subject to change in accordance with CHG&E's open access tariff and the FERC orders, rules and regulations governing the same. Scheduling The Retail Supplier must schedule his electric power supply requirements, in one megawatt increments, the hourly energy required by his aggregated load-profiled Customers (plus 7.39% for losses), with CHG&E, in the CHG&E file format for each hour of the day. The megawatts must be in whole numbers (no decimals or fraction of a megawatt). If there is less than one megawatt to be scheduled for an hour, the scheduled amount may reflect one megawatt for one hour and zero megawatts for the next hour or hours. For the one day each year when time changes from Daylight Savings Time to Eastern Standard Time (in the fall season), the power schedule for that day shall include 2 hour ending 0200's. For the one day each year when time changes from Eastern Standard Time to Daylight Savings Time (in the spring season), the power schedule for hour ending 0200 is to reflect 0 MW delivery for that hour. This will maintain the appropriate number of delivery hours for those respective days. Delivery must be to the border of CHG&E's service territory in which the Customer meter resides. The Retail Supplier may make weekly or daily delivery schedules. Weekly Scheduling Sales by Retail Suppliers for delivery to Customers will be scheduled by CHG&E with the New York Power Pool ("NYPP"). All aspects of these transactions will be subject to NYPP and CHG&E practices and procedures. All times specified below are Eastern Prevailing Time. The schedule of daily deliveries must be submitted by 9:00 AM prior to the day of delivery. Weekend and Holiday schedules must be submitted by 9:00 AM on the weekday preceding the weekend day or holiday. Holidays are defined, for scheduling purposes only, as 11 standard holidays observed by CHG&E. Those Holidays Are: New Years Day, President s Day, Good Friday, Memorial Day, Independence Day, Labor Day, Columbus Day, Thanksgiving Day, Day After Thanksgiving, Day Before Christmas, and Christmas Day. Day-Ahead Scheduling On a day ahead basis (by 9:00 AM), CHG&E shall be notified of any change in the Retail (14)

18 Supplier's hourly load requirements that were previously submitted. A Retail Supplier may submit modifications to its delivery schedule between 8:00 A.M. and 5:00 P.M. on business days. These modifications must be submitted no later than 2 hours prior to the delivery hour. Deliveries By Agents Two or more Retail Suppliers may aggregate loads for scheduling purposes provided one party ( Agent ), who has been authorized in writing by the retail suppliers, is responsible for scheduling the aggregated load with CHG&E. Each Retail Supplier is required to provide CHG&E with verification that this Agent is authorized to schedule on behalf of the Retail Supplier (s). A Retail Supplier may designate only one single party as an authorized Agent per calendar month. The Retail Supplier shall notify the Company of such designation at least 5 business days prior to the start of each month. For Balancing and Settlement purposes, each Agent will be responsible for providing CHG&E with an hourly schedule of deliveries by Retail Supplier for the entire period that they acted as their Agent pursuant to the requirements described above. This schedule may be expressed as a percentage breakdown by Retail Supplier or provided in KW s. Transmission Scheduling For the purposes of the Retail Access Program, Retail Suppliers must schedule transmission service to CHG&E's control area, at a point designated by CHG&E, but they do not need to schedule transmission service over paths within CHG&E's control area to the Customer. CHG&E will schedule the transmission and distribution service required within its control area to reach the Retail Supplier s Customer pursuant to CHG&E's applicable tariff. A Retail Supplier must register with the NYPP to qualify for access to the NYPP transmission scheduling system, known as the NYPP OASIS. The Internet address for registration is The NYPP OASIS administrator can be reached at (508) Once the Retail Supplier is registered with the NYPP, it may nominate transmission reservations on the NYPP OASIS scheduling system via the Internet. If the CHG&E System Operator approves the transaction, the Retail Supplier needs to then confirm that it intends to make the transaction. Transmission Allocation CHG&E will allocate Retail Supplier delivery in a proportion to native load on Delivery Service. The calculation of transmission allocation will be performed as follows: (1) The amount of transmission capability to be allocated will be the net amount of the total available transmission capability after reductions for existing "grand fathered" transmission contracts (e.g., NYSEG, NYPA). A portion of the net amount will be allocated to each Retail Supplier on behalf of its Retail Access Customers on the basis of a load ratio. (15)

19 (2) For the purpose of allocating transmission capability, "load ratio" shall mean the ratio of the Retail Supplier's aggregated customer load, coincident with the CHG&E summer peak load for the prior year, to the CHG&E forecasted summer peak load for the current year, both adjusted for expected load growth. System Reliability The Retail Supplier agrees to conform with CHG&E scheduling, planning and operating practices and with any specific instructions or orders issued by CHG&E, NPCC, NYPP, ISO or Power Exchange for scheduling, planning and operating the CHG&E system. This is necessary to provide and maintain the reliability of CHG&E's electric transmission and distribution systems. CHG&E shall provide distribution service to each Customer. In the event that the loading of the distribution system, or a portion thereof, must be reduced for safe and reliable operation, CHG&E will address these curtailments within acceptable operating practices. Service Interruptions In the event of unplanned service interruptions, CHG&E shall restore electrical service to Customers in accordance with CHG&E's service restoration procedures filed with the PSC. Service to all Customers will be restored as quickly as possible without regard to supplier. Any service interruption which CHG&E is required to make for planned maintenance of the distribution, transmission or generation facilities will be made according to normal operating procedures. Should a Retail Supplier's electric power supply be interrupted for reasons beyond CHG&E's control, the Retail Supplier will be responsible for any charges incurred by CHG&E to replace the scheduled electric power throughout the supply interruption. Any amounts due to CHG&E for such replacement electric power will be reflected on the Retail Suppliers' account balance in accordance with the balancing and settlement process. Installed Reserve Prior to the commencement of each capability period, each Retail Supplier shall estimate its required installed capacity. The Retail Supplier must provide CHG&E with evidence (i.e., copy of contract (s) of obtaining and maintaining installed capacity resources adequate to meet its installed capacity requirements. The Retail Supplier must notify CHG&E of changes to installed generating capacity under contract to the Retail Supplier All of the foregoing shall be performed in accordance with applicable NYPP/ISO procedural rules. The present requirement for installed capacity is a reserve of 18%. Therefore if a Retail Supplier is delivering 10 MW into CHG&E s system his installed capacity requirement would be 11.8 MW. For each capability period CHG&E will determine any capacity deficiency and assess a (16)

20 charge to any Retail Supplier having a capacity deficiency. The charge will be equal to the Deficiency Charge set forth in schedule B of the NYPP Agreement dated July 6, 1991, as the same may be amended from time to time. Ancillary Services For the purposes of the Retail Access Program, CHG&E will provide ancillary services on its transmission and distribution systems. Ancillary services to be provided by CHG&E include: (1) Reactive Supply and Voltage Control - the management (production/absorption) of reactive power in a manner that maintains voltages on the bulk power Transmission system within acceptable equipment and stability limits. These services will be billed to the Retail Supplier at the rate of up to $.15 per KW month based on the maximum hourly delivery. The foregoing rate shall apply on a straight pro-rated basis to the length of service. (2) Frequency Regulation and Response - the continuous balancing of supply resources with load to maintain the electric system at sixty cycles per second (60 Hz). Retail Suppliers will be required to purchase an amount of reserve capacity equal to 1.5% of their total delivery and billed at the rate of $3.52 per KW month. The foregoing rate shall apply on a straight pro-rated basis. (3) Operating Reserve - (Spinning Reserve Service) needed to serve load immediately in the event of a system contingency. Retail Suppliers are required to purchase an amount of reserve capacity equal to 1.2% of their maximum hourly delivery and billed at the rate of $3.52 per KW month. The foregoing rate shall apply on a straight pro-rated basis. (4) Operating Reserve - (Supplemental Reserve Service) needed to serve load immediately in the event of a system contingency; however, it is not available immediately to serve load but rather within a short period of time. Retail Suppliers are required to purchase an amount of reserve capacity equal to 4.1% of their maximum hourly delivery and billed at the rate of $2.51 per KW month. The foregoing rate shall apply on a straight pro-rated basis. (5) Scheduling, System Control and Dispatch Services - the management of obligations required by the NYPP/ISO to ensure transmission reliability, such as monitoring system operations, load shedding when required, and system restoration. These services will be billed at the rate of up to $.10 per KW month until such time as the New York Power Pool offers network and point-to-point transmission service, at which time this rate shall automatically become up to $.14 per KW month. 8. LOAD BALANCING AND SETTLEMENT PROCESS Overview Load balancing is the process of reconciling a power delivery with an estimated Customer (17)

21 load. Looking at each and every Retail Supplier, CHG&E must "balance" the required Customer load, based on usage factor adjusted load profiles, with actual power delivered into its system. Settlement will be completed after Customer s meters are read and it is known how much energy was actually consumed. The settlement process will rely on readings from hourly load meters (which produce dynamic profiles) and readings from non-hourly load meters (which require static profiles to determine hourly loads). To facilitate this process CHG&E will do the following for each Retail Supplier: (a) Identify the load profile type for each Customer (b) Provide Customer consumption history and usage factors (c) Provide to the Retail Supplier, each Customer's metered usage within 48 hours of the information being registered on CHG&E's CIS system. If no meter reading is available, an estimate will be used and will be provided as such. On a daily basis, CHG&E will do the following for each Retail Supplier: (a) Post a daily on peak cost per megawatt hour which will be as published in Power Markets Week Prices of Spot Electricity, East New York. (b) Post a daily off peak cost per megawatt hour which will be the midpoint weekly off peak cost as published in Power Markets Week Prices of Spot Electricity, East New York. On a monthly basis, CHG&E will do the following for each Retail Supplier: (a) Compare the Retail Supplier's delivered electric power to his aggregated Customers loss corrected and load profiled actual usage and calculate the Retail Supplier bill (balancing). (b) Notify the Retail Supplier and other departments internal to CHG&E (i.e., creditworthiness review group) if a Retail Supplier consistently fails to meet delivery schedules. (c) Prepare and issue a Settlement Bill. This bill may include a true up of more than one month's previously issued Balancing Bills and will be a re-calculation of all customers usage where an actual meter reading has been obtained. Details of Balancing and Settlement BALANCING For each hour of each day a schedule is provided by each Retail Supplier to CHG&E. Load for each hour and anticipated losses are required to establish the electric power required to (18)

22 balance the system. Scheduled electric power is assumed delivered, however, the sum of all deliveries may not necessarily equal the calculated electric power consumption (load). It is CHG&E's responsibility to calculate this imbalance and bill the Retail Supplier for the cost of electric power under delivered or credit him for all over deliveries. As part of this process, CHG&E must determine the aggregated profiled load requirement and compare it with the associated electric power delivery, calculate the difference and bill or credit the Retail Supplier. This will be done for each Retail Supplier, on a monthly basis, by hour. The Retail Supplier is responsible to maintain deliveries within a 5% or 2 Mw (whichever is greater) Tolerance Bandwidth. Differences within the tolerance bandwidth will be tallied by hour for both over and under deliveries. The hourly difference will be billed or credited to the Retail Supplier at the price basis for balancing and settlement. Deliveries made outside of the Tolerance Bandwidth will be penalized as follows: For every hourly kilowatt delivered above the Tolerance Bandwidth but within 125% of the aggregated load profile CHG&E will purchase the excess electric energy at 65% of the price basis for balancing and settlement. For every hourly kilowatt delivered above the Tolerance Bandwidth and in excess of 125% of the aggregated load profile, CHG&E will purchase the excess electric energy at 30% of the price basis for balancing and settling. For every hourly kilowatt delivered below the Tolerance Bandwidth CHG&E sell to the Retail Supplier, electric energy at 135% of the price basis for balancing and settlement. SETTLEMENT Settlement is the process of reconciling the difference between the hourly energy delivered to the Central Hudson tie point and the aggregated consumption of the Retail Suppliers portfolio of customers (ie. energy as measured in KWh at the Customer s meter and adjusted for 7.39 % losses then allocated to each hour by load profiles or directly measured by hourly interval metering). CHG&E will monitor the hourly delivery of energy by the Retail Supplier, measure hourly consumption of all interval metering and calculate profiled hourly usage of the Retail Supplier s Customers. The Company will reconcile the hourly difference between energy delivered and his Customer's aggregated metered usage after all his Customers meters have been read (Settlement). For Retail Suppliers who have a Customer base that consists of both Static and Dynamic load profiles a separate Delivery Schedule, Balance Transaction and Settlement will be required for each profile type. For each hour for the month being settled, Customer usage is calculated using the best data available at the time. The best available data consists of actual hourly consumption information or bimonthly measured consumption redistributed on the specific customer s load profile including losses. As actual meter readings become available an adjustment of previously issued balancing bills is conducted to compensate for the difference between the estimation process utilized in Balancing and the Customer s actual measured consumption (Settlement Billing). This process is continuous until all meters in the Retail Suppliers aggregated group have been read. (19)