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Offset Tariff Q&A

  1. Where can the offset tariff be found in the Schedule for Electricity Service (PSC No. 10)?
    1. The offset tariff encompasses General Rule 20.2.1(B)(7), on Leaf 157, which covers single-account offset arrangements, and General Rule 20.2.1(B)(8), on Leaves 157.1-157.5, which covers multiple-account offset arrangements.

Eligibility
  1. What is the rationale behind the multiple-account offset tariff?
    1. We designed this tariff to address customers that want to connect a generator with a nameplate rating over 2 MW to the Company’s high-tension system to supply electricity from that generator to multiple accounts on the customer’s premises.


  2. What does the tariff mean by the term "premises"?
    1. Under General Rule 20.2.1(B)(8), premises is defined as:
      “A parcel of land; or more than one building and/or parcel of land proximate to each other if there is common use, whether or not such buildings or parcels are separated by public or private roads.”
      This tariff is intended to apply to campus-style settings with accounts in a single customer’s name. This is consistent with the definition applicable to line extensions in General Rule 5.1 of PSC No. 10 tariff (Leaf 33).


  3. When in the interconnection process will the customer know whether or not they are considered a “premises”?
    1. This will happen fairly early in the interconnection application process. In preliminary meetings between Con Edison and the Customer and after Con Edison’s receipt of the customer’s load letter, the parties will establish how the service will be utilized.


  4. Why is General Rule 20.2.1(B)(8) limited to a single person or entity?
    1. Allowing multiple customers to share allocations of a generator’s output could involve Con Edison in disputes among different customers regarding the appropriate allocation of credits. Under the tariff, Standby Service accounts and the account associated with the generating facility must be established in a single Customer’s name, which creates a uniformity of interest on the customer side.


  5. What if there is a mixture of high-tension and low-tension accounts?
    1. This is fine so long as at least one of the accounts receiving electricity from the generator is connected to the low-tension system. Each account must be separately metered, so you may have a mix of different kinds of accounts - high- and low-tension accounts and accounts formerly billed under time-of-day and non-time-of-day rates. However, each of the accounts that are to be credited for the generator’s output will be billed under the standby service rate applicable to that individual account and must have interval metering.


  6. Would the offset tariff allow me to provide generation to commercial buildings in my vicinity, provided all accounts belong to a single customer? By “vicinity,” I mean buildings across a city street or on the same block.
    1. There are some campus environments within the city that cross public streets; typically they will also have physical interconnections, such as tunnels below the street and have agreements in place with City agencies to utilize that space for services such as steam lines or chilled-water lines. Such interconnections would fall under “common use” and would thus make connected buildings eligible for this tariff.


  7. Am I eligible for NYSERDA incentives if I take service under this tariff?
    1. NYSERDA currently requires CHP projects to be able to provide emergency back-up supply, so please check with NYSERDA regarding your particular interconnection arrangement.
Allocation/Methodology
  1. How will the Company’s approval of Contract Demand be executed for these arrangements?
    1. For customers taking Standby Service under General Rule 20.2.1(B)(7) or General Rule 20.2.1(B) (8), Con Edison has the final authority to approve or modify the Contract Demand. This will be handled through the interconnection application process and done in collaboration with the customer as the project is being designed.


  2. Will I get a credit towards my Contract Demand associated with the generator output?
    1. No, the Contract Demand on each Standby Service account will be based on the Customer’s maximum potential demand on the Company’s system inclusive of the delivery of the generator’s output to that account. Because the generator’s output does not reduce the Customer’s use of local facilities, such output will not be netted against the Customer’s peak demand as registered by the Customer’s standby service meters. On the other hand, the generator output will be allocated and netted against the As-used Demand of each account, as explained in Q5 and Q6 below.


  3. Can the Contract Demand be reduced if the load at one of the buildings is reduced?
    1. As described in General Rule 20.4.3 of the tariff, a customer can reset its Contract Demand downward once every 12 months if the customer demonstrates a permanent load reduction. See tariff leaves 164 and 165 for further detail.


  4. Can I get credit for excess generation through SC11?
    1. A customer that is a Qualifying Facility may take service under SC 11 if the kWhr export of the generation facility exceeds the total kWhr usage registered on the Standby Service accounts. A "Qualifying Facility" is a cogeneration or a small power production facility that meets the requirements for qualification under Part 292 of Title 18 of the Code of Federal Regulations or a "co generation facility," "alternate energy production facility," or "small hydro facility," as defined in Section 2 of the New York Public Service Law.


  5. Please explain As-Used demand.
    1. For an account that is billed under Standby Service rates, As-used Daily Demand charges are determined for each weekday in the billing period when service is taken from Con Edison to supplement or replace generator output. As-used Daily Demand charges are based on applying a daily demand delivery charge to the daily peak demand during each time period, net of the kW allocated generator demand (M-F 8 am-6pm and 8am-10pm during the months of June through Sept. and M-F 8am-10pm during all other months). As-used Daily Demand charges for the billing period are equal to the sum of the As-Used Daily Demand charges for the time periods.


  6. How is As-Used Daily Demand calculated on each of the Standby Service accounts? What if some of the accounts on a premises are not time-of-day?
    1. Interval metering is required for all accounts billed under Standby Service rates. Each account is then billed separately for daily As-used demand charges based on each account’s specific daily peak demand during the time periods specified above. Each account will be allocated a share of the generator demand based on the account‘s registered demand multiplied by the ratio of the generator demand to the sum of demands registered on the meters of all accounts supplied by the generator. Allocated As-used Generator Demand will be determined for each 15-minute interval.
Billing
  1. Why is the Standby Service customer charge assessed for each account in the offset arrangement rather than as a single charge?
    1. The Standby Service customer charge recovers some of the customer-related costs that Con Edison incurs to serve each account independent of how much electricity is used and when.  Examples include costs associated with the service line required to connect each account to the distribution system (for customers taking service at voltages below 138 kV) and costs associated with customer accounting (e.g., customer call center and credit & collections).


  2. Why is there an additional customer charge of $50 per account per billing period?
    1. There are incremental costs for billing customers under the offset arrangement, as billing under the offset tariff is manually prepared, rather than going through the automated billing system. The charges are per account since billing complexity scales with the number of offsetting accounts associated with a generator.

  3. How will transformer losses between the generator and offsetting accounts be calculated?
    1. Transformer losses are either programmed into the meter or are part of the billing calculation, depending on each individual configuration. Each configuration will vary based on the voltage level of the connection with the generator and the voltage level of the offsetting accounts, so these will be handled on a per-project basis. We will be working closely with customers to make sure that we’re correctly calculating losses taking into account the specific configuration and voltage levels.

  4. If the DG could contribute VARS would there be any credit for or sale of VARs to Con Edison?
    1. Currently, there’s no mechanism for Con Edison to purchase VARs. Customers with on-site generation may qualify to sell VARs to the NYISO. Customers with on-site synchronous generation are able to control the generator’s VAR output.

Metering/Communications
  1. Why is the customer responsible for meter communications?
    1. The customer is in the best position to assure equipment under its control is operating properly. And delays in meter-data collection can result in estimated bills, which are unworkable for allocating generator output across multiple accounts.

  2. Would Con Edison consider using customer owned monitoring equipment to obtain consumption data needed for billing if there is insufficient interval data available from its own equipment?
    1. Metering used for billing purposes must be revenue-grade per New York State Public Service Commission requirements. Meters contain interval data for approximately two months, so we would be able to retrieve data directly from meters once communications have been re-established or by having a Con Edison employee obtain a reading at the premises (at a cost to the customer as specified in General Rule 16.4).



Last updated: October 29, 2014.


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