CITIZEN POWER ALLIANCE

The New York State Public Service Commission (PSC) says it has authorized Rochester Gas and Electric Corp. (RG&E) to implement its plan to expand mandatory hourly pricing (MHP) to customers with demand greater than 300 kW. Previously, the utility was only required to offer MHP to customers with a demand greater than 1 MW.

According to the PSC, the expansion of hourly pricing benefits the electrical system through potential reductions to peak-period prices, enhanced peak-period reliability and wholesale market power mitigation. The PSC has also found that hourly pricing yields more equitable customer bills than does the existing less exact, average energy rate.

RG&E will phase in the new program in two steps: Customers with a demand of 500 kW or more for two of the prior 12 months will begin participating in the MHP program with their first full billing period falling on or after Sept. 22, 2011, and on Sept. 22, 2012, all the remaining eligible customers will be required to take service under the MHP program. Any customer with a demand of 500 kW or more between September 2010 and August 2011 who is not already on hourly pricing will be notified of their qualification.

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