National Grid. Niagara Mohawk Power Corporation INVESTIGATION AS TO THE PROPRIETY OF PROPOSED ELECTRIC TARIFF CHANGES. PSC 220 Electricity Tariff

Transcription

1 National Grid Niagara Mohawk Power Corporation INVESTIGATION AS TO THE PROPRIETY OF PROPOSED ELECTRIC TARIFF CHANGES PSC 220 Electricity Tariff PSC 214 Electricity Tariff for Street, Highway, Roadway and Other Outdoor Lighting January 29, 2010 Submitted to: New York Public Service Commission Docket No. 10-E- Submitted by:

2 Attachment 2 Sheet 1 of 4 The tariff leaves submitted for filing as follows: PSC No. 220 Electricity Third Revised Leaf No. 2 Second Revised Leaf No. 3 First Revised Leaf No. 113 First Revised Leaf No. 173 Third Revised Leaf No. 182 Third Revised Leaf No. 192 First Revised Leaf No. 211 First Revised Leaf No. 213 First Revised Leaf No. 216 First Revised Leaf No. 222 Original Leaf No First Revised Leaf No. 223 First Revised Leaf No. 224 First Revised Leaf No. 225 First Revised Leaf No. 228 First Revised Leaf No. 229 First Revised Leaf No. 231 First Revised Leaf No. 236 First Revised Leaf No. 237 First Revised Leaf No. 238 First Revised Leaf No. 239 Original Leaf No Original Leaf No Third Revised Leaf No. 349 First Revised Leaf No. 350 Third Revised Leaf No. 359 Third Revised Leaf No. 370 Third Revised Leaf No. 371 Third Revised Leaf No. 375 Third Revised Leaf No. 376 Third Revised Leaf No. 379 Third Revised Leaf No. 380 Second Revised Leaf No. 381 First Revised Leaf No. 388 Third Revised Leaf No. 391 Third Revised Leaf No. 392 First Revised Leaf No. 395 Third Revised Leaf No. 407 Third Revised Leaf No. 408 First Revised Leaf No. 416 Fourth Revised Leaf No

3 Attachment 2 Sheet 2 of 4 Fourth Revised Leaf No. 422 Fourth Revised Leaf No. 423 Fourth Revised Leaf No. 424 First Revised Leaf No. 425 Third Revised Leaf No. 432 First Revised Leaf No. 436 Third Revised Leaf No. 438 First Revised Leaf No. 441 First Revised Leaf No. 464 Statement of Merchant Function Charge No. 1 PSC No. 214 Electricity Second Revised Leaf No. 1 First Revised Leaf No. 2 First Revised Leaf No. 3 Second Revised Leaf No. 4 Fourth Revised Leaf No. 5 Second Revised Leaf No. 6 Twenty-Ninth Revised Leaf No. 7 Third Revised Leaf No. 8 Twelfth Revised Leaf No. 9 Third Revised Leaf No. 9.1 Second Revised Leaf No. 9.2 Third Revised Leaf No. 9.3 Second Revised Leaf No. 9.4 Second Revised Leaf No. 9.5 Second Revised Leaf No. 9.6 Second Revised Leaf No. 9.7 Ninth Revised Leaf No. 10 Sixth Revised Leaf No. 11 Third Revised Leaf No. 12 Second Revised Leaf No. 13 Second Revised Leaf No. 14 Fourth Revised Leaf No Fourth Revised Leaf No. 15 Second Revised Leaf No. 16 Second Revised Leaf No. 17 Second Revised Leaf No.18 Twenty-Ninth Revised Leaf No.19 Fourth Revised Leaf No. 20 Third Revised Leaf No. 21 Eleventh Revised Leaf No. 22 2

4 Attachment 2 Sheet 3 of 4 Sixth Revised Leaf No. 23 Sixth Revised Leaf No. 24 Fifth Revised Leaf No. 25 Sixth Revised Leaf No. 26 Ninth Revised Leaf No. 27 Sixth Revised Leaf No. 28 Fifth Revised Leaf No. 29 Fourth Revised Leaf No. 30 Fifth Revised Leaf No. 31 Seventh Revised Leaf No. 32 Fifth Revised Leaf No. 33 Fifth Revised Leaf No Fifth Revised Leaf No. 34 Fourth Revised Leaf No. 35 Fifth Revised Leaf No. 36 Sixth Revised Leaf No. 37 Fifth Revised Leaf No. 38 Sixth Revised Leaf No. 39 Seventh Revised Leaf No. 40 Sixth Revised Leaf No. 41 Seventh Revised Leaf No. 42 Sixth Revised Leaf No. 43 Sixth Revised Leaf No. 44 Fifth Revised Leaf No. 45 Fifth Revised Leaf No. 46 Fifth Revised Leaf No. 47 Seventh Revised Leaf No. 48 Fifth Revised Leaf No. 49 Sixth Revised Leaf No. 50 Sixth Revised Leaf No. 51 Sixth Revised Leaf No. 52 Seventh Revised Leaf No. 53 Fifth Revised Leaf No. 54 Sixth Revised Leaf No. 55 Fifth Revised Leaf No. 56 Fifth Revised Leaf No. 57 Fourth Revised Leaf No. 58 Twenty-Ninth Revised No. 59 Third Revised Leaf No. 60 Sixth Revised Leaf No. 61 Fourth Revised Leaf No. 62 Fourth Revised Leaf No. 63 Fifth Revised Leaf No. 64 Third Revised Leaf No. 65 Fifth Revised Leaf No. 66 Third Revised Leaf No. 67 3

5 Attachment 2 Sheet 4 of 4 Fifth Revised Leaf No Fourth Revised Leaf No. 68 Second Revised Leaf No. 69 Third Revised Leaf No. 70 Second Revised Leaf No. 71 Twenty-Third Revised Leaf No. 72 Twentieth Revised Leaf No. 73 Seventh Revised Leaf No.73.1 Third Revised Leaf No. 74 Fifth Revised Leaf No. 75 Fifth Revised Leaf No. 76 Fifth Revised Leaf No. 77 Fourth Revised Leaf No. 78 First Revised Leaf No. 79 Third Revised Leaf No. 80 Fourth Revised Leaf No. 81 Thirtieth Revised Leaf No. 82 Third Revised Leaf No. 83 Fourth Revised Leaf No. 84 Eleventh Revised Leaf No. 85 Tenth Revised Leaf No. 86 Seventh Revised Leaf No. 87 Third Revised Leaf No. 88 Third Revised Leaf No. 89 Fourth Revised Leaf No. 90 Third Revised Leaf No. 91 Statement of Merchant Function Charge No. 1 Effective: March 1,

6 PSC 220

7 PSC NO: 220 ELECTRICITY LEAF: 2 NIAGARA MOHAWK POWER CORPORATION REVISION: 3 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: 1 TABLE OF CONTENTS GENERAL INFORMATION Leaf No. I. TERRITORY TO WHICH SCHEDULE APPLIES 5 II. RULES AND REGULATIONS 1. Definitions and Abbreviations How Service May Be Obtained Limitation of the Service Offer Customer Use of Service Disturbances Highly Fluctuating Loads Maintenance of Power Factor Corrective Equipment Resale, Remetering or Submetering Service Re-establishment and Disconnection Charges Short-term and Temporary Service Dual Service Standby Service-Canceled Access to Premises Discontinuance and Complaint Procedures and the Withholding of Service Extension of Overhead Electric Lines Underground Distribution Underground Extensions to Non-Residential Developments Submarine Cable Extensions Network Area Service Non-Network Voltage in a Network Area Service Laterals - Below 15,000 Volts Service Laterals - Above 15,000 Volts Transformer Vaults and Substations Service Entrance and Building Wiring Meter Billing, Meter Reading and Collections Revisions Special Services Performed by Company for Customer at a Charge Delivery Charge Adjustment Shared Meters Additional Rules and Regulations - 25 Hertz Service-Canceled Increase in Rates Applicable in Municipality Where Service is Supplied Payment of Interest on Customer Overcharges Economic Development Programs Electric Distribution Pole Attachment Rates Net Metering For Solar and Farm Waste Electric Generating Equipment Net Metering for Wind Electric Generating Equipment Renewable Energy Marketing Program Rule 39 - Retail Access Program Adjustments to Charges Pursuant to the New York Power Authority Hydropower Benefit Reconciliation Mechanism Adjustment of Charges Pursuant to the System Benefits Charge Merchant Function Charge ( MFC ) 222 5

8 PSC NO: 220 ELECTRICITY LEAF: 3 NIAGARA MOHAWK POWER CORPORATION REVISION: 2 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: 1 TABLE OF CONTENTS GENERAL INFORMATION Leaf No. 43. Transmission Revenue Adjustment Specification of Delivery Voltage Nuclear Retirement Adjustment Clause Electricity Supply Cost Aggregation of Electric Delivery Service Administration of Standard Rate Service and Market Rate Service Renewable Portfolio Surcharge Retail Access Pilot Program-Canceled Local Distribution Service-Canceled Lump Sum Payment of Transition Costs by Customers Totally Bypassing the Company's Retail Distribution System Standard Interconnection Requirements and Application Process for New Distributed Generators 2 MW or Less Connected in Parallel with Utility Distribution Systems Emergency Demand Response Curtailment Program Offerings Day-Ahead Demand Response Program Offerings Incremental State Assessment Surcharge ( ISAS ) Revenue Decoupling Mechanism ( RDM ) Electric Delivery Adjustment Mechanism ( EDAM ) SERVICE FORMS Service Application Form "A" 264 Application for Electric Overhead Line Extension Form "B" 265 Application for Electric Underground Line Extension Form "D" 267 Application for Service Form - Form "C" 268 Special Provision Rider 269 Rider for Separate Meter 270 Rider for Combined Metering and Billing 271 Non-Residential Service Application 272 Non-Residential Deferred Payment Agreement 277 Surety Bond 278 Non-Residential Customer Promise to Pay Bills Upon Receipt 279 Residential Deferred Payment Agreement 280 Application for Electric Standby Service Form "G" 282 Service Classification No. 11 Agreement Extension Form "H" 287 Customer Service Agreement for Service Classification No Form "I" 290 Standardized Contract for Interconnection of New Distributed Generation Units With Capacity of 2 MW or Less Connected in Parallel with Utility Distribution Systems - Form "K" 314 Voluntary Emergency Demand Response Programs Form(s) 329 Customer Service Agreement Form "M" 346 6

9 PSC NO: 220 ELECTRICITY LEAF: 113 NIAGARA MOHAWK POWER CORPORATION REVISION: 1 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: METER: GENERAL INFORMATION 25.1 BILLING METERS AND BILLING METER SERVICES Except as otherwise provided in Rules and , the Company, will supply, at its cost, those billing meters that are required by the Company for the billing of Electric Supply Service and/or transmission, distribution and delivery service it provides to customers, ESCos, and Direct Customers; and (ii) provide all associated installation, maintenance, testing and removal services. The Company will retain control of such billing meters and may remove them at any time. Customer shall be responsible for the protection of Company-provided meters and other Company property located on the premises and shall exercise reasonable care to prevent theft of, damage to, or interference with such equipment Consistent with the PSC Orders Providing for Competitive Metering in Case Nos. 94- E-0952 and 00-E-0165 and Addendum - MET - New York Practices and Procedures for the Provision of Electric Metering in a Competitive Environment, eligible customers who have demands of 50 kw or greater for two (2) consecutive months during the most recent twelve consecutive months, may arrange for competitively-provided, PSC-approved billing meters and associated services. Each month, a customer who has a competitively-provided, PSC approved meter will receive from the Company a meter ownership credit as set forth in Addendum -MET. Eligible customers are those who are served under Service Classifications ("SC") - 2 Demand, 3, 3-A, and 4, or who are served under SC-11 or SC-12 and would otherwise be eligible for service under the aforementioned Service Classifications A customer who purchases an existing meter will be charged the undepreciated book cost plus applicable taxes A customer who purchases a new meter will be charged the removal cost of the old meter and equipment. In addition to the cost of removal, a customer who purchases a new meter from the Company will be charged the cost of the meter. 7

10 PSC NO: 220 ELECTRICITY LEAF: 173 NIAGARA MOHAWK POWER CORPORATION REVISION: 1 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: 0 GENERAL INFORMATION 34. ECONOMIC DEVELOPMENT PROGRAMS: (Continued) 34.3 Program 2 - Empire Zone Rider (EZR) (Continued) Electric Pricing for Qualifying EZR Load (Continued) (Continued) kv < 2.2 kv Per kwh Per kwh SC-2ND $ $ SC-2D $ $ SC-3 $ $ SC-3A $ $ Delivery Rates Applicable to Qualifying EZR Load Which Commenced Before September 1, Group Classification Criteria Customers who are eligible to receive EZR service and whose EZR service commenced prior to September 1, 1998 shall be divided into the following three groups for billing purposes: Group 1 Customers: Customers who do not qualify for service under Group 2 or Group 2 Customers: Customers who meet the Manufacturing and Service Sector definitions as specified below: A. Manufacturing Sectors: Manufacturing customers shall be identified as those customers classified by the North American Industry Classification (NAICS) System Manual (1998 edition or revised thereto) as follows: Name NAICS Code Manufacturing

11 PSC NO: 220 ELECTRICITY LEAF: 182 NIAGARA MOHAWK POWER CORPORATION REVISION: 3 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: 2 GENERAL INFORMATION 34. ECONOMIC DEVELOPMENT PROGRAMS: (Continued) 34.4 Program 3 - Economic Development Power Rider (EDPR) EDPR RATES (Continued) Incremental Customer Charge: Parent Service Classification No. 3, except Special Provision L: Parent Services Classification No. 3, Special Provision L only: Parent Service Classification No. 3-A: $19.41/mo. $ 6.69/mo. $ 6.69 /mo. Charges applicable to Existing Allocations as defined in Rule : Company Charges, per kw* Transmission,/kW Distribution Delivery/ kw Secondary $1.89 $4.96 Primary $1.89 $3.06 Subtransmission $1.89 $1.10 Transmission $1.89 $0.00 * In addition to the above charges, the Company will charge the customer a NYPA Capacity and Energy Charge, in effect at that time, for EDP. In any month, the NYPA Capacity Charge and the NYPA Energy Charge shall be equal to the Capacity and Energy charges which the Company is required to pay to the NYPA for EDP purchased from NYPA in that month, as adjusted by the Company for applicable losses. Company Charge applicable to New Allocations as defined in Rule : Charges, per kw and per kwh* For Parent Service Class SC-3: Distribution Distribution Delivery/kW Delivery/kWh Secondary $ $ Primary $ $ Subtransmission $ 4.47 $ Transmission $ 4.47 $ For Parent Service Class SC-3A Distribution Distribution Delivery/kW Delivery/kWh Secondary $14.75 $ Primary $14.20 $ Subtransmission $ 4.00 $ Transmission $ 3.28 $ * In addition to the above charges, the Company will charge the customer a NYPA Capacity and Energy Charge, in effect at that time, for EDP. In any month, the NYPA Capacity Charge and the NYPA Energy Charge shall be equal to the Capacity and Energy charges which the Company is required to pay to NYPA for EDP purchased from NYPA in that month, as adjusted by the Company for applicable losses. 9

12 PSC NO: 220 ELECTRICITY LEAF: 192 NIAGARA MOHAWK POWER CORPORATION REVISION: 3 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: 2 GENERAL INFORMATION 34. ECONOMIC DEVELOPMENT PROGRAMS: (Continued) 34.5 Program 4 - Power For Jobs Rider (Continued) PFJR RATES Program 4 - PFJR participants are subject to the Incremental Customer Charge as specified in The Incremental Customer Charges and the respective parent service classifications for which they apply are as follows: Parent Rate SC-2D and SC-3 (except Special Provision L): Parent Rate SC-3, Special Provision L only: Parent Rate SC-3A or SC-4 $19.41 /mo. $ 6.69 /mo $ 6.69 / mo. Company Demand and Energy Charges (for PFJR power delivered to customers) Charges applicable to Existing Allocations as defined in Rule : Company Charges, per kw and per kwh: Distribution Delivery Transmission/kW Per kw Per kwh Secondary $1.89 $4.96 $ Primary $1.89 $3.06 $ Subtransmission $1.89 $1.10 $ Transmission $1.89 $0.00 $ Charges Applicable to New Allocations as defined in Rule : Company Charges, per kw and per kwh: Distribution Delivery Per kw Per kwh SC-2D $10.10 $ SC-3 Secondary $15.63 $ SC-3 Primary $11.50 $ SC-3 Subtransmission $ 4.47 $ SC-3 Transmission $ 4.47 $ SC-3A Secondary $14.75 $ SC-3A Primary $14.20 $ SC-3A Subtransmission $ 4.00 $ SC-3A Transmission $ 3.28 $ RkVA: Applicable to Existing Allocations and New Allocations. All reactive demand is billed at the parent service classification's reactive demand rate. In addition to the above charges, the Company will charge the customer a NYPA Capacity and Energy charge, in effect at that time, for PFJR Service. In any month, the NYPA Capacity Charge and the NYPA energy charge shall be equal to the capacity and energy charges which the Company is required to pay to NYPA for PFJR power purchased from NYPA in that month, as adjusted by the Company for applicable losses. 10

13 PSC NO: 220 ELECTRICITY LEAF: 211 NIAGARA MOHAWK POWER CORPORATION REVISION: 1 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: RETAIL ACCESS PROGRAM (Continued) 39.4 CREDITWORTHINESS (Continued) 39.5 LOAD BALANCING GENERAL INFORMATION The information in the notice and revised disclosure statements and/or contracts would include the following: 1) A description of the credit evidence, escrow account, or letter of credit evidence submitted by the ESCo as set forth in Rules and ; 2) Applicable interest rate, if any; 3) Conditions of use of customer funds; 4) Circumstances that allow the use of funds for payment of customer bills; 5) Conditions for return of funds to customers Any transfers obtained by the Company Under Rule 2.3 will be prohibited. The Company will continue to administer its deposit policy in accordance with Rule 2.3 of the Tariff. The ESCo/Direct Customer shall be responsible for compliance with all of the provisions of the NYISO Tariff that are applicable to Load Serving Entity s ( LSE ) CHANGES IN SERVICE PROVIDERS Appendix A, Section 5 of the UBP establishes practices for receiving, processing and fulfilling requests for changing a customer s ESCo and for obtaining a customer s authorization for such a change CUSTOMER INQUIRIES Appendix A, Section 6 of the UBP establishes requirements for responses by an ESCo or the Company to retail access customer inquiries RATES TO BE PAID BY CUSTOMERS PARTICIPATING IN THE RETAIL ACCESS PROGRAM All customers participating in the Retail Access Program will pay unbundled Transmission and Distribution charges and non-bypassable Competitive Transition Charges (CTC) to the extent applicable. Each customer is subject to the above mentioned unbundled rates and charges as set forth in the customer's otherwise applicable Service Classification or Agreement. 11

14 PSC NO: 220 ELECTRICITY LEAF: 213 NIAGARA MOHAWK POWER CORPORATION REVISION: 1 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: RETAIL ACCESS PROGRAM (Continued) GENERAL INFORMATION BILLING BACKOUT CREDIT AND BILLING CHARGES A customer who chooses to receive a consolidated bill from either the Company or an ESCo will receive a billing backout credit of $1.15 per month per account on the Company s portion of the consolidated bill The billing backout credit is only applicable if the account is no longer receiving a supply service bill issued by the Company for either gas or electric service If the Company issues a consolidated bill on behalf of an ESCo for both electric and gas service or electric service only, the Company will charge the ESCo a fee of $1.15 per bill, unless the fee is otherwise established in an existing Billing Service Agreement ACCOUNT SEPERATION FEE If a combination service customer chooses to receive a consolidated bill from an ESCo, but chooses to receive gas and electricity supply service from two different suppliers (Company or ESCo), the combination account will be separated into separate gas and electric accounts with a single bill (delivery and supply) rendered for each account COMPANY INVOICES The party requesting the enrollment or change in billing arrangement that initiates the account separation of a combination account will be charged a fee of $25.46 to separate the account. This fee shall cover the one-time cost of recombining the separate accounts if required in the future Appendix A, Section 7 of the UBP establishes procedures for charges for services provided by the Company directly to an ESCo or Direct Customer. 12

15 PSC NO: 220 ELECTRICITY LEAF: 216 NIAGARA MOHAWK POWER CORPORATION REVISION: 1 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: RETAIL ACCESS PROGRAM (Continued) INDEMNIFICATION GENERAL INFORMATION An ESCo/Direct Customer, to the fullest extent of the law, shall indemnify, defend, and save harmless the Company from and against any loss, damage, liability, cost, suit, charge, expense (including attorneys fees), claim, investigation, proceeding, or cause of action, which may at any time be imposed on, incurred by, or asserted against the Company and in any way relates to or is claimed to relate to or arise out of any damage or injury to property (including real property, personal property, and environmental damages), persons (including injuries resulting in death), or any economic losses, by or to third parties (including customers), that are directly or indirectly caused by or arise out of or are in any way connected with the ESCo/Direct Customer s acts or omissions (including the ESCo/Direct Customer s performance or non-performance of its agreements with customers) SPECIAL PROVISIONS The ESCo/Direct Customer shall be responsible for all losses determined by the Company based on the actual subzone loads from the NYISO and shall settle directly with the NYISO Losses reported to the NYISO shall include losses on the Company's underlying delivery systems not included in the NYISO Tariff. The Company losses to be allocated through the NYISO settlement process include the following efficiency factors: LOCAL TRANSMISSION EFFICENCY FACTORS Transmission Subtransmission Primary Secondary In addition to the adjustment under Section , the remaining unaccounted for energy will be allocated to all LSEs as follows: AVERAGE UNACCOUNTED FOR ENERGY FACTOR The Company will calculate an Average Unaccounted for Energy Factor defined as the quantity of unaccounted energy, equal to the sum of remaining unaccounted for energy in all six of the Company s subzones, calculated for the four most recent months reported to the NYISO for NYISO billing and settlement purposes, divided by the sum of all the LSE load requirements for all six of the Company s subzones for the same four month period. An Average Unaccounted for Energy Factor will be updated each month. The Company will report each ESCo load requirement to the NYISO for NYISO billing and settlement purposes as the ESCo retail load times the Local Transmission Efficiency Factors times one (1) plus the Average Unaccounted for Energy Factor. 13

16 PSC NO: 220 ELECTRICITY LEAF: 222 NIAGARA MOHAWK POWER CORPORATION REVISION: 1 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: 0 GENERAL INFORMATION 42. MERCHANT FUNCTION CHARGE 42.1 The Merchant Function Charge ( MFC ) is a mechanism that permits the Company to recover from full service customers costs associated with the following components: (a) (b) (c) (d) Electricity Supply Procurement Electricity Supply Credit and Collection Expenses Electricity Supply Uncollectible Expenses Return on Working Capital for Purchased Power 42.2 Bills rendered to full service customers taking service under PSC Nos. 220 and 214 Electricity are subject to the MFC, except: (i) load served by NYPA (ii) customers served under SC No. 11 and SC No. 12 in accordance with the terms of their individual contracts Calculation of the Merchant Function Charge per kwh: Electricity Supply Procurement The Electricity Supply Procurement rate per kwh shall initially become effective January 1, 2011 and shall equal $ per kwh The Electricity Supply Procurement Rate will be reset January 1, 2012 and each January 1 st thereafter by dividing the revenue requirement of $2,240,057 by the forecasted sales of customers purchasing electricity supply from the Company for that period For the period January 1, December 31, 2011 and for each subsequent year will be reconciled to the target of $2,240, The resulting over/under collection shall be divided by the forecast sales of customers purchasing commodity from the Company for the next calendar year and added to the Electricity Supply Procurement Expense component of the Merchant Function charge effective for the next January 1 rate calculation The resulting rate shall be filed on the Statement of Merchant Function Charge not less than three (3) days prior to its effective date. 14

17 PSC NO: 220 ELECTRICITY LEAF: NIAGARA MOHAWK POWER CORPORATION REVISION: 0 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: GENERAL INFORMATION 42. MERCHANT FUNCTION CHARGE 42.4 Electricity Supply Related Credit and Collection Expense The Electricity Supply Related Credit and Collection Expense rate of $ per kwh for non-demand; $ for demand, $ for street lighting is included in the MFC ESCos who are participating in the Company s Purchase of Receivables Program are subject to the Electricity Supply Related Credit and Collection Expense rates in Rule No above The per kwh Electricity Supply Related Credit and Collections Rate in Rule No shall be included in the filed Statement of Merchant Function not less than three (3) days prior to its effective date Electricity Supply Related Uncollectible Expense The Electricity Supply Related Uncollectible Expense charge will be determined separately for non-demand, demand and street lighting customers. The charge will be calculated by multiplying the uncollectible percentage factor by commodity revenue on customer s bills. The uncollectible percentage factor will be 2.68% for non-demand customers,.40% for demand, and.05% for street lighting customers and will be applied to customers Electricity Supply Charge The uncollectible percentage factor will be updated on an annual basis based on actual uncollectible expenses for the prior year The Electricity Supply Related Uncollectible Expense percentage factor will be filed on the Statement of Merchant Function Charge not les than three (3) days prior to its effective date Return on Working Capital for Purchased Power The Return on Working Capital for Purchased Power charge will be calculated by multiplying the working capital percentage factor of.425% by commodity revenue on customer s bills The Return on Working Capital for Purchased Power percentage factor will be filed on the Statement of Merchant Function Charge not less than three (3) days prior to its effective date. 15

18 PSC NO: 220 ELECTRICITY LEAF: 223 NIAGARA MOHAWK POWER CORPORATION REVISION: 1 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: TRANSMISSION REVENUE ADJUSTMENT GENERAL INFORMATION 43.1 The Transmission Revenue Adjustment ("TRA") shall be based on a monthly comparison of (1) a forecast based transmission revenue credit that is reflected in delivery rates, and (2) the actual transmission revenue realized, exclusive of revenue taxes imposed thereon Transmission Revenue is defined as wholesale transmission services, excluding congestion rents from Transmission Congestion Contracts, (TCCs) The forecast based transmission revenue credit reflected in delivery rates is $132,128, The calculation of the Transmission Revenue Adjustment shall be determined on a cost month basis and applied on a two-month lag basis As a result of the monthly comparison of the base transmission revenue credit amount to the actual transmission revenue amount, the TRA determined to be in excess of the base transmission revenue credit amount shall be refunded to customers. The TRA determined to be less than the base transmission revenue credit shall be collected from customers In the event that the monthly comparison of base transmission revenue to actual transmission revenue exceeds $6 million, plus or minus, in any given month, the amount over the $6 million will be deferred to the next cost month, with a return at the Company s cost of capital. If the $6 million cap is reached for an additional two consecutive months, the cap will be increased to $8 million. The $8 million cap shall remain in place as long as the TRA exceeds +/- $6 million, including recovery of the deferral and corresponding return, and will revert back to the $6 million monthly cap once the TRA, including recovery of the deferral and return, falls to less than or equal to +/- $6 million The TRA amount determined above shall be allocated to applicable service classifications based on the percent allocation of Transmission Revenue in the Company's most current embedded cost of service study (ECOS). The allocation of such revenues in the ECOS is based on single coincident peak method. The percent allocations are as follows: PSC No. 220 PSC No. 214 SC % All Service Classifications 0.03% SC1C 1.05% SC2ND 3.00% SC2D 15.91% SC3-Secondary 16.22% SC3-Primary 5.97% SC3-Sub Transmission/Transmission 1.81% SC3A-Secondary.85% SC3A-Primary 2.57% SC3A Sub Transmission/Transmission 11.40% 16

19 PSC NO: 220 ELECTRICITY LEAF: 224 NIAGARA MOHAWK POWER CORPORATION REVISION: 1 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: 0 GENERAL INFORMATION 43. TRANSMISSION REVENUE ADJUSTMENT (Continued) 43.6 (Continued) Customer s taking service under SC No.4 Supplemental Service and SC No. 7 Standby Service shall be subject to the TRA rates of their parent service classification The TRA amounts for the respective service classifications as determined in Rule 43.6 shall be divided by the respective service classification's monthly forecast sales associated with the corresponding month which the adjustment will be refunded to or collected from customers The TRA rates shall be applied to customers' actual billed consumption and applicable to customers served under PSC No. 220 Nos. 1, 1-C, 2ND, 2D, 3, 3-A, 4, and 7 and all PSC No. 214 service classifications. The TRA is not applicable to kwh consumption associated with NYPA hydro sales under S.C. No. 4 and High Load Factor Fitzpatrick ("HLFF") sales, Economic Development Power and Power For Jobs and Empire Zone qualifying load, and may be applicable to PSC No. 220 SC Nos. 11 and 12 in accordance with the terms of their individual contracts The TRA shall be shown on statements filed with the Public Service Commission apart from this rate schedule not less than three (3) business days before its effective date. Such statements' effective dates shall be coincident with the first billing cycle of each month. 17

20 PSC NO: 220 ELECTRICITY LEAF: 225 NIAGARA MOHAWK POWER CORPORATION REVISION: 1 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: SPECIFICATION OF DELIVERY VOLTAGE GENERAL INFORMATION 44.1 Delivery voltage for Electric Service to existing customers may be changed as follows: By the Company when in its sole judgment such change in delivery voltage will alleviate system or facility loading, reliability or safety problems. When the change in delivery voltage is solely initiated by the Company, the Company will be responsible for the associated costs By the customer upon written request to the Company, provided however: (1) that such change in delivery voltage shall be allowed only when in the Company's sole judgment, system or facility loading, reliability and safety will not be jeopardized; and (2) that the provisions of Rule 28 shall apply to any such change in delivery voltage requested by the customer In the event of any change in a customer's delivery voltage pursuant to Rule , the customer shall be required to pay a voltage migration fee equal to the differential between the distribution and CTC charges applicable to the customer's former delivery voltage and the distribution and CTC charges applicable to the new delivery voltage at which the customer is to be served after the voltage change The distribution and CTC differential shall be prepaid on a lump sum basis prior to commencement of service to the customer at the new voltage level, unless otherwise agreed to by the Company in writing. The Company may (at its sole option) permit the customer to amortize the payment of the lump sum over a period greater than one year on terms and conditions acceptable to the Company. This amount shall be equal to the net present value calculated at the Company s weighted average after-tax cost of capital of the estimated net revenue difference between total retail delivery revenues before migration and total retail delivery revenues after migration less any avoided capital costs, avoided operating and maintenance costs, and any avoided property taxes for each year resulting from the voltage change. The present value of this differential shall commence upon the date of migration and continuing for a period of fifteen (15) years In cases where the customer commits to an increase in load and the load increase necessitates a n increase in delivery voltage, the voltage migration fee will not be required All transactions under the Rule 44.2 shall be in the form of a written contract between the Company and the Customer As used in this Rule 44, the term "existing customer" shall mean any customer with facilities or equipment connected to the Company's electric system at a Retail Delivery Point on or after September 1,

21 PSC NO: 220 ELECTRICITY LEAF: 228 NIAGARA MOHAWK POWER CORPORATION REVISION: 1 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: 0 GENERAL INFORMATION 46. ELECTRICITY SUPPLY COST (ESCost) (Continued) 46.3 For each hour, the NYISO Tariff Schedule 1 Scheduling, System Control and Dispatch Service rate in $/MWh from the cost month two months prior; plus 46.4 For each hour, the NYISO Tariff Schedule 2 Voltage Support Service average rate in $/MWh from the cost month two months prior; plus 46.5 For each hour, the NYISO Tariff Schedule 3 Regulation Service rate in $/MWh from the cost month two months prior; plus 46.6 For each hour, the NYISO Tariff Schedule 4 Energy Imbalance Service rate in $/MWh calculated as NYISO Real Time energy purchases times the difference between Real Time price minus DAM Price plus Real Time energy sales times the difference between the DAM Price minus Real Time Price, each from the previous three months divided by the NYISO net energy for load to meet sales to PSC No. 220 and PSC No. 214 customers served ESS by the Company under both the Standard Rate and Market Rate Service as set forth in Rule 48; plus 46.7 For each hour, the NYISO Tariff Schedule 5 Operating Reserve Service weighted average rate in $/MWh from the cost month two months prior; plus 46.8 For each hour, the NYISO Tariff Schedule 6 Black Start and System Restoration Services rate in $/MWh from the cost month two months prior; plus 46.9 The NYISO Tariff Schedule 10 Reliability Facilities Charge ( RFC ) rate in $/MWh from the cost month two months prior; plus The NYISO Tariff Schedule 11 Penalty Cost Recovery rate (excluding any penalty costs directly assigned to Niagara Mohawk) in $/MWh from the cost month two months prior; plus The NYISO Tariff Schedule 12 Highway Facilities Charge ( HFC ) rate in $/MWh from the cost month two months prior; plus For each hour, the NYISO NTAC rate in $/MWh from the cost month two months prior; plus For each hour, an unforced capacity imbalance rate (in $/MWH) calculated as the sum of (i) (ii) (iii) purchases (in MW) in the monthly capacity auctions times the respective monthly auction price ($/MW-mo) minus LBMCP ($/MW-mo), plus sales (in MW) in the monthly capacity auctions times LBMCP ($/MW-mo) minus the respective monthly auction price ($/MW-mo); the purchase (in MW) in the spot capacity auction required to meet the Company s Unforced Capacity Requirement times the spot auction price ($/MW-mo) minus LBMCP ($/MW-mo), plus the sale (in MW) in the spot capacity auction required to meet the Company s Unforced Capacity Requirement times LBMCP ($/MW-mo) minus the spot auction price ($/MW-mo) ; and the purchase (in MW) in the spot capacity auction required to meet the Company s obligation in excess of the Unforced Capacity Requirement times the spot auction price ($/MW-mo) as established by the NYISO s administratively determined Demand Curve. 19

22 PSC NO: 220 ELECTRICITY LEAF: 229 NIAGARA MOHAWK POWER CORPORATION REVISION: 1 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: 0 GENERAL INFORMATION 46. ELECTRICITY SUPPLY COST (ESCost) (Continued) each from the previous cost month, two months prior, divided by the NYISO net energy load to meet sales to PSC No. 220 and PSC No. 214 customers served ESS by the Company under both Standard Rate and Market Rate Service as set forth in Rule The sum of each item shall be adjusted by the Local Transmission Efficiency Factors set forth in Rule for the applicable distribution delivery voltage level and the Average Unaccounted for Energy Factor set forth in Rule plus any applicable taxes Any billing adjustment from the NYISO may be flowed through this Rule 46 based on the tariff rules in effect on the date service was rendered A system average calculation of the prices in each of the Load Zones shall be calculated to effectuate contracts under Service Classification No. 11 that reference system average rates. The system average prices shall be determined through application of weights to each Load Zone price. The weight factors will be updated and filed with the PSC for approval according to historic consumption. The weights for each of the Load Zones shall be shown on statements filed with the Public Service Commission apart from this rate schedule not less than three (3) business days before its effective date. Such statement will be filed quarterly with proposed effective dates of January 1, April 1, July 1, and October 1 of each year. The statements will be available to the public. 20

23 PSC NO: 220 ELECTRICITY LEAF: 231 NIAGARA MOHAWK POWER CORPORATION REVISION: 1 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: 0 GENERAL INFORMATION 47. AGGREGATION OF ELECTRIC DELIVERY SERVICE (Continued) 47.3 In the event the aggregation of Electric Delivery Services is allowed under the provisions of this Rule, the customer shall be required to pay an amount to the Company for the revenues lost as a result of the aggregation of Electric Delivery Services. This amount shall be equal to the net present value calculated at the Company s weighted average after-tax cost of capital of the estimated net revenue difference between total retail delivery revenues before aggregation and total retail delivery revenues after aggregation less any avoided capital costs, operating and maintenance costs, and property taxes for each year or partial year commencing upon the estimated date of aggregation and continuing for a period of fifteen (15) years. The aggregation fee s calculation shall be performed so that no incremental benefit shall result at the expense of the ratepayers or Company simply due to a customer aggregating its meters. The final aggregation fee shall take into account the impact of revenue deferrals and recovery mechanisms to insure proper revenue recovery from the aggregating customer. If actual interval data is available for the prior twelve months for all meters that are to be aggregated, actual kw data shall be used to determine the aggregation revenues. If interval data is not available, an estimate will be used based on the Company s available information The fee calculated in Rule 47.3 above shall be paid to the Company prior to the aggregation of Electric Delivery Services by the customer. The Company shall entertain levelized annual payments or other options that may be negotiated between the Company and the customer, subject to adequate security In the event that the customer s facilities have been physically altered in such a manner that requires electrical service changes according to the National Electric Code or the Company s Engineering standards, changes to the Company s service equipment or facilities may be required. The need for such changes shall be at the sole discretion of the Company in accordance with Good Utility Practice. The customer shall bear the cost of such changes and payment therefore will be in addition to the fee calculated in Rule 47.3 above Where the existing Company equipment or facilities must be removed in order to implement aggregation the customer shall bear the cost of removing such equipment or facilities, plus the costs to install any and all new equipment or facilities in addition to the fee calculated in Rule 47.3 above In order for the customer to be allowed to aggregate Electric Delivery Service under this Rule 47, the customer must not be delinquent for any receipts of undisputed bills owed to the Company An Energy Service Company (ESCo), as defined under Rule No of this Tariff Schedule, is not eligible to aggregate Electric Delivery Service under this Rule A customer is not eligible to aggregate Electric Delivery Service under this Rule No. 47 for any portion of its load served under a special contract pursuant to Service Classification No. 11 or Service Classification No. 12 except where such contract expressly permits the customer to aggregate services When the Company, in its sole judgment, specifically requests a physical aggregation of separate Retail Delivery Points to alleviate system or facility loading, reliability or safety problems, a Non-Residential Customer may aggregate without paying the charge as described in Rule No

24 PSC NO: 220 ELECTRICITY LEAF: 236 NIAGARA MOHAWK POWER CORPORATION REVISION: 1 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: 0 GENERAL INFORMATION 52. LUMP SUM PAYMENT OF TRANSITION COSTS BY CUSTOMERS TOTALLY BYPASSING THE COMPANY'S RETAIL DISTRIBUTION SYSTEM 52.1 PURPOSE To prevent the shifting of the Company's Transition Costs to other stakeholders that would occur in the event of total bypass of the Company's retail distribution services and charges DEFINITIONS Except as provided in Rule , the term "Municipal Utility" as used in this Rule 52 shall include any governmental body established under state or local law for the purposes of owning or operating facilities for the distribution or furnishing of electric power to any ultimate consumer in the Company's service territory or any portion thereof Notwithstanding the provisions of Rule , the Power Authority of the State of New York ("NYPA") shall not be considered to be a Municipal Utility, a utility or an alternative supplier of electric power or Electric Service, for the purposes of this Rule 52 with respect to allocations of electric power by NYPA to ultimate consumers in the Company's service territory: (a) authorized by the Settlement Agreement between the Company, NYPA and the New York State Public Service Commission ("Commission") dated May 22, 1997 and approved by the Commission in Orders dated May 23, 1997, June 10, 1997 and August 20, 1997 in Cases 97-E-0528 and 97-E-0569 or authorized by Chapter 316 of the New York Laws of 1997, as amended by Chapter 386 of New York Laws of 1998; or (b) exempted from exit fees by the Settlement Agreement dated October 10, 1997 and approved by the Commission in Opinion No.98-8 dated March 20, 1998 in Case Nos. 94-E-0098 and 94-E-0099 ("the Settlement Agreement") APPLICABILITY The Lump Sum Recovery of Transition Costs authorized by this Rule 52 shall apply to customers and locations in the Company's service territory served under Schedules P.S.C. No. 220 Electricity and P.S.C. No. 214 Electricity on or after April 6, 1998 which thereafter receive electric service which bypasses the Company's retail distribution system and Municipal Utilities that serve such customers and locations as set forth below. 22

25 PSC NO: 220 ELECTRICITY LEAF: 237 NIAGARA MOHAWK POWER CORPORATION REVISION: 1 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: 0 GENERAL INFORMATION 52. LUMP SUM PAYMENT OF TRANSITION COSTS BY CUSTOMERS TOTALLY BYPASSING THE COMPANY'S RETAIL DISTRIBUTION SYSTEM (Continued) 52.4 EXEMPTIONS This Rule 52 shall not apply to residential customers taking service from a Municipal Utility at premises that the Municipal Utility was authorized to serve on January 1, 2010 or to Municipal Utilities providing service to such customers at such locations This Rule 52 shall not apply to any customer, Municipal Utility or alternative supplier of electric power or Electric Service with respect to customers' load subject to the provisions of S.C. No This Rule 52 shall not apply to any customer that Electrically Isolates its load(s) from the transmission and distribution systems of the Company and all other electric utilities and independent power producers (other than the customer itself) as specified in Rule This Rule 52 shall not apply to a customer's premises which is disconnected from the Niagara Mohawk system when the customer's electricity is either supplied by the customer or by a third party who is also disconnected from Niagara Mohawk's system with all of its generating capacity installed after January 1, 2002, located on or immediately adjacent to the customer's premises and used exclusively to serve that single customer, even if the customer's premises is located within 100 feet of the Niagara Mohawk system. This Rule 52 shall not apply when the customer disconnects from the Niagara Mohawk system and is connected to a third party owning generation located on or immediately adjacent to the customer's premises who is connected to the Niagara Mohawk system with all of its generating capacity installed after January 1, 2002 and whose generating capacity is used to serve only one retail customer at that location with any excess electricity being delivered over Niagara Mohawk's system, even if that customer's premises is located within 100 feet of the Niagara Mohawk system, as long as the third party generator pays the charges under S.C. No. 7, Niagara Mohawk's standby tariff for retail service. In the event that the third party generator fails to agree to pay the standby tariff the Lump Sum Contribution towards the Company's Transition Costs will be assessed. 23

26 PSC NO: 220 ELECTRICITY LEAF: 238 NIAGARA MOHAWK POWER CORPORATION REVISION: 1 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: 0 GENERAL INFORMATION 52. LUMP SUM PAYMENT OF TRANSITION COSTS BY CUSTOMERS TOTALLY BYPASSING THE COMPANY'S RETAIL DISTRIBUTION SYSTEM (Continued) 52.5 ASSESSMENT OF CHARGE In all cases where it applies, the Lump Sum Contribution towards the Company s Transition Costs will be assessed as follows: In the case of the furnishing of Electric Service by any Municipal Utility to any retail customer at a location in the Company's franchised service territory, the Lump Sum Contribution towards the Company's Transition Costs shall be paid to the Company by the Municipal Utility to the extent that the Municipal Utility is subject to the Commission's jurisdiction to require the payment of that Amount. To the extent that the Municipal Utility is not subject to the Commission's jurisdiction to require the payment of the Lump Sum Contribution towards the Company's Transition Costs and if the Municipal Utility elects not to pay such Amounts on the customer's behalf, that Contribution shall be paid to the Company by the customer. This requirement shall apply regardless of whether the customer in question was inside or outside of the municipality's corporate boundaries as of April 6, 1998 and regardless of whether the Municipal Utility utilizes the Company's transmission system in the provision of electric service to the customer In all other cases where service is extended to a customer in the Company's franchised service territory by any entity other than the Company and the customer is no longer connected to the Company's delivery system either directly or indirectly through the facilities of another retail customer of the Company, the Lump Sum Contribution towards the Company's Transition Costs shall be paid directly by the customer to the Company LUMP SUM TRANSITION COST CALCULATION METHODOLOGY The Lump Sum Transition Cost Charge shall be determined by multiplying the Company s remaining CTC on the actual or proposed date of disconnection by the ratio of the Customer s total charges for CTC revenue during the calendar year preceding the Customer s actual or proposed date of disconnection from the Company s system to the Company s total CTC revenue during that calendar year. The Company shall entertain levelized annual payments or other options that may be negotiated between the Company and the customer or the Municipal Utility, subject to adequate security. Payment of the charge established in this Rule 52 either by the customer or by a Municipal Utility shall not entitle the Municipal Utility to take ownership of any facilities owned by the Company and used to service the Customer. The Company may agree to sell such facilities to the Municipal Utility or the Utility may seek to condemn those facilities to the extent authorized by State law. 24

27 PSC NO: 220 ELECTRICITY LEAF: 239 NIAGARA MOHAWK POWER CORPORATION REVISION: 1 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: 0 GENERAL INFORMATION RESERVED FOR FUTURE USE 25

28 PSC NO: 220 ELECTRICITY LEAF: NIAGARA MOHAWK POWER CORPORATION REVISION: 0 INITIAL EFFECTIVE DATE: MARCH 1, 2010 SUPERSEDING REVISION: GENERAL INFORMATION 57. REVENUE DECOUPLING MECHANISM ( RDM ) 57.1 The Revenue Decoupling Mechanism reconciles actual delivery service revenues for the year to allowed delivery service target revenues as approved in Case No. 10-E-. The difference between actual delivery service revenues and allowed delivery service target revenues for any Reconciliation Group listed in Rule in each annual period forms the basis of the RDM rate adjustment for that Reconciliation Group The allowed delivery service revenues will be allocated to the following Reconciliation Groups: 1. Residential (SC1, SC1-C) 2. Small C&I (SC2 and SC2D) 3. Large C&I (SC3, SC3A, SC4, SC7, SC11, SC12) 4. Street Lighting (All service classifications) The RDM will not apply to the following customers: 1. SC 11 and 12 customers in accordance with the terms of their individual contracts; and, 2. Grandfathered customers receiving Replacement and Expansion Power (Existing and additional) from NYPA On an annual basis, actual delivery service revenues will be reconciled to allowed delivery service target revenues for each Reconciliation Group in Rule No If the RDM reconciliation has a positive balance, then the RDM will be a credit to customer s bills. If the RDM reconciliation has a negative balance, then the RDM will be a surcharge on customer s bills The RDM will be calculated by dividing the resulting difference by each Reconciliation Group s forecasted sales and applied on a volumetric basis, per kwh for Reconciliation Groups 1, 2 and 4 and per kw for Reconciliation Group If in any month, the total of the cumulative monthly reconciliations, based on actual delivery service revenue for any all the Reconciliation Groups in Rule above, is greater than 1.5% of the Company s annual allowed target revenues for that Reconciliation Group for that year, the Company will file an interim RDM adjustment for each affected Reconciliation Group for the remainder of the calendar year The RDM will be effective on thirty day s notice and set forth on a statement filed with the Public Service Commission to be effective the first day of the proceeding month. 26