Proposal Concerning Modifications to LIPA’s Tariff for


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Proposal Concerning Modifications to LIPA’s Tariff for Electric Service
Requested Action:
The Long Island Power Authority (“LIPA”) staff proposes to modify the Tariff for Electric Service (the “Tariff”) effective June 1, 2020, in accordance with the New York State Public Service Commission Proceeding 14-M-0224; Proceeding on Motion of the Commission to Enable Community Choice Aggregation Program.
Background:
In December of 2014, the Commission opened a proceeding to consider the authorization of a Community Choice Aggregation (CCA) in New York. In a CCA program, one or more municipalities aggregate the load of their residents and small businesses on an opt-out basis and procure energy on their behalf.
In February of 2015, the Commission approved a petition by Sustainable Westchester, Inc. to implement a pilot CCA program in Westchester County (the “SW Pilot”). The SW Pilot launched in April 2016. On April 21, 20161, the Commission authorized the establishment of generic municipal CCA programs statewide and set forth the framework for those programs. The CCA Framework Order instructed interested municipalities, on their own or through their selected CCA Administrator, to file Implementation Plans and related documents for Commission approval to initiate a CCA program. The CCA Framework Order also instructed the utilities to provide municipalities with customer-specific data within specific timeframes described in the Order. Additionally, the Order allowed for the utilities to charge fees for the provision of the data and required them to submit tariff amendments for review. The utilities were to implement tariff changes to describe the rules for which a CCA may receive data from the utility. The tariff amendments went into effect on December 1, 2017.
In August 2019, the Department of Public Service published the “Community Choice Aggregation Guidance Document,” providing guidance for all parties’ rules and roles in the administration of a CCA. Several municipalities within the LIPA territory have expressed interest in exploring the creation of a CCA.
Proposal:
Staff is proposing to adopt the CCA Framework into the LIPA Tariff so that Community Choice Aggregation is available in the LIPA Territory.
Per the Orders of this proceeding, and the Guidance Document, the Service Provider, PSEG Long Island, has several responsibilities, which include the following:
1 Case 14-M-0224, Community Choice Aggregation, Order Authorizing Framework for Community Choice Aggregation Opt-Out Program (issued April 21, 2016) (CCA Framework Order).
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Customer Eligibility: 1. The CCA Administrator must consult with the Service Provider on whether customers taking service that are subject to riders or other special rate treatments should be included on an opt-out basis. No customer should be included on an opt-out basis if that inclusion will interfere with a choice the customer has already made to take service pursuant to a special rate. 2. The CCA Administrator may request a monthly list from the Service Provider of new eligible customers in the municipality. There may be a cost associated with this list.

Low Income Participation: 1. For a CCA that indicates it intends to serve participants in LIPA’s low and moderate income customer discounts, the Service Provider will include, in creating the initial aggregated data set, data related to customers with utility-initiated blocks on their accounts and should also specifically break out the number of customers that fall into this category and the consumption of those customers. Subsequently, as part of the customer contact information, the Service Provider will provide a separate list containing contact information for customers with utility-initiated blocks on their accounts so that the CCA can ensure that those customers are enrolled in a guaranteed savings product.

Customer 1.
2.
3.

Outreach and CCA Development Process: The Service Provider, in consultation with Department of Public Service Staff, will develop and file a standard Data Security Agreement. CCA Administrators must file Data Protection Plans consistent with the standard Data Security Agreement. The Service Provider will not provide data for any service class that contains so few customers, or in which one customer makes up such a large portion of the load, that the aggregated information could provide significant information about an individual customer’s usage. At this time, the Service Provider will follow current policies in addressing the anonymity issue for ensuring that aggregated data is sufficiently anonymous.

Data Fee: 1. Consistent with the Commission, LIPA staff recommends a uniform fee of $0.80 per account for account data provided to CCAs. The fee will be allocated 20% for aggregated data and 80% for customer lists.

Upon approval by the Board of Trustees, the staffs of LIPA and PSEG Long Island intend to generally follow the guidance of the Public Service Commission when implementing CCAs in the LIPA Territory. Differences may incur based on LIPA’s distinctive Long Island Choice program.

Financial Impacts:

There are no expected revenue impacts for LIPA, since the reductions in revenue from the variable component of the Power Supply Charge will be directly offset by the reduction of variable

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expenses of procuring power supply. Delivery revenues and revenues received based on fixed Power Supply expenses are collected from all customers that participate in the CCA. Affected Tariff Leaves: Revised Leaves: 6A, 298 - 315 Original Leaves: 297A, 297B. Tariff leaves 298 through 315 are included for information purposes, without amendment and renumbered as Sections IX.B and IX.C. Summary of Proposed Change: The LIPA Staff is proposing to update the Tariff to enact Community Choice Aggregation in the LIPA service territory.
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Long Island Power Authority

Sixth Seventh Revised Leaf No. 6A

Table of Contents (continued):
IX. LONG ISLAND CHOICE PROGRAM
A. General Provisions .................................................................................................................. 280 1. Description and Definitions.................................................................................................. 280 2. Who is Eligible ..................................................................................................................... 281 3. Character of Service ............................................................................................................ 282 4. General Provisions .............................................................................................................. 282 5. Provisions Applicable to Participating Customers ............................................................... 283 6. Obligations of ESCOs and DRCs ........................................................................................ 285 7. ESCO or DRC License Application, Suspension and Revocation................................................................................................ 290 8. Complaint Procedures for Disputes between ESCOs or DRCs or Between and ESCO or DRC and the Authority .................................................... 295 9. Records Access, Audits, and Investigations ....................................................................... 297
B. Community Choice Aggregation ............................................................................................ 297A 1. Community Choice Aggregation.......................................................................................... 297A 2. Rules and Governance........................................................................................................ 297B
B.C. Service Classification No. 14 ESCO and DRC Services .................................................... 298
C.D. Adjustment to Rates and Charges for Participating Customers ...................................... 310
X. The Authority GREEN CHOICE PROGRAM ................................................................................. 316
A. General Provisions .................................................................................................................. 316
1. Program Description and Definitions.............................................................................. 316 2. Customer Eligibility ......................................................................................................... 316 3. Green Marketer Eligibility ............................................................................................... 317 4. Customer Enrollment Guidelines ................................................................................... 317 5. Renewable Energy Environmental Attributes Options ................................................... 318 6. Billing Service ................................................................................................................. 318 7. Conversion Transactions................................................................................................ 319 8. Preparation and Dissemination of Environmental Disclosure Statements..................... 319 9. Switching ........................................................................................................................ 320 10. Discontinuation of Green Marketer Participation............................................................ 320 11. Limitation of Liability ....................................................................................................... 321
Xl. NYSERDA LOAN INSTALLMENT PROGRAM .............................................................................. 322
XII. SECURITIZATION CHARGE ........................................................................................................... 326
XIII.DYNAMIC LOAD MANAGEMENT………………………………………………………………………..327 A. Direct Load Control Program……………………………………………………………………………327 B. Commercial System Relief Program…………………………………………………………………...330 C. Distribution Load Relief Program……………………………………………………………………….341

Effective: April 1, 2016June 1, 2020

Tariff For Electric Service

Long Island Power Authority

Original Leaf No. 297A

XI. LONG ISLAND CHOICE PROGRAM
B. Community Choice Aggregation (“CCA”) Program:
1. A CCA Program allows municipalities (villages, towns, cities and counties) to aggregate the usage of eligible Mass Market customers within a defined jurisdiction in order to secure an alternative energy supply contract on a community-wide basis.
a) Before requesting customer data from the utility for participation in a CCA Program, the municipality or their designee (CCA Administrator or ESCO) :
(1) Must sign a Data Security Agreement acceptable to the Manager, and
(2) Must have an approved implementation and data protection plan and certification of local authorization approved by the Long Island Office of the Department of Public Service.
b) Upon fulfilling the requirements in XIV.A.1, the Manager will provide the following information to the municipality or their designee in accordance with the terms and fee(s) stated herein.
(1) Aggregated customer data, including the number of customers by service class, the electric kWh by month for the past 12 months by service class. This information will be provided to the municipality or CCA Administrator within twenty days of a request.
(a) The Manager will notify the requesting party if data for any service class has so few customers, or in which one customer makes up a large portion of the load, such that the aggregated information does not pass the relevant aggregation privacy standard, as referred to in the December 14, 2017 Order.
(b) The Manager will work with the requestor to revise the request in order to address the identified reason(s) such as expanding the geographic area included in the request or combining customer classes or other means.
(c) The charge for the above aggregated data in (1) is included in the Statement of CCA Customer Data Charges.
(2) After each municipality has entered into a CCA contract with an ESCO, the Manager shall transfer customer-specific data to the municipality or CCA Administrator within five days of receipt of a request to support the mailing of opt-out notices. The data shall include all customers in the municipality eligible for opt-out treatment based on the CCA and the requirements of the Department of Public Service. The data should include:
(a) Customer of record’s name (b) Mailing Address (c) Primary Language (if available from the Company’s billing system) (d) Any additional mail address that is not the same as the service address.
(3) After the opt-out process has been completed, the Manager shall transfer account numbers for eligible customers that did not opt-out to the ESCO providing service within five days of receipt of a list of customers that opted out. These account numbers may be transmitted via electronic mail in secured, encrypted spreadsheets, through access to a secure website, or through other secure methods of transfer.
(4) The charge for the above data described in (2) and (3) is included in the Statement of CCA Customer Data Charges.

Effective: June 1, 2020

Tariff for Electric Service

Long Island Power Authority

Original Leaf No. 297B

XI. LONG ISLAND CHOICE PROGRAM (continued):
B. Community Choice Aggregation (“CCA”) Program (continued):
(5) Upon request by the municipality or CCA Administrator, the Manager will transfer updated customer data as specified in b)(2) for CCA eligible customers that became customers of the Manager since the last eligible customer list was provided and were not on a previous eligible for opt-out list. The data will be provided to the requestor within five days of the request. After the opt-out process is complete for those customers, the Manager will provide account numbers for customers that did not optout as described in (b) (3). The updated eligible customer lists will be provided without charge.
2. Rules and Governance
a) All CCAs will be created and governed in accordance with the Laws of New York State and the guidance of the Department of Public Service.
b) LIPA, municipalities participating in the CCA, and CCA administrators will follow the Community Choice Aggregation Guidance Document provided by the Department of Public Service dated August 2019, and as further amended from time to time.
c) ESCOs participating in the Community Aggregation Program must follow all applicable rules for ESCOs provided in the Long Island Choice section of this tariff, except such items specified in the Community Choice Aggregation Guidance Document, such as:
(1) Customer enrollment rules (2) Provisions of customer data to the CCA/ESCO
d) All disputes will be referred to the Department of Public Service for resolution with the Service Provider as specified under Section VI of this Tariff.
The Statement of CCA Customer Data Charges may be updated by the Authority’s Staff from time to time, in consultation with the Long Island Office of the Department of Public Service.

Effective: June 1, 2020

Tariff for Electric Service

Long Island Power Authority

First Second Revised Leaf No. 298

IX. Long Island Choice Program (continued):
B. C. SERVICE CLASSIFICATION NO. 14 ESCO and DRC Services (Rate Codes: 390)

1. Who is Eligible
ESCOs or DRCs who receive and maintain a License.
2. Character of Service Under the terms of this Service Classification, the Authority will provide information and other services to licensed ESCOs and DRCs. The types of information and services to be provided in accordance with this Tariff and the Operating Procedures include:
a) Load and billing information for Customers served by each ESCO.
b) Routine and special meter reading services.
c) Special metering facilities as requested by the Customer or ESCO.

Effective: February 1, 2002June 1, 2020

Tariff for Electric Service

Long Island Power Authority

Fifth Sixth Revised Leaf No. 299

IX. Long Island Choice Program (continued):
B. C. SERVICE CLASSIFICATION NO. 14 ESCO and DRC Services (continued): (Rate Codes: 390)
3. Rates, Charges and Credits per Month
a) Bill Credit Adjustment
Participating ESCOs and DRCs will receive a Bill Credit Adjustment.
(1) The Bill Credit Adjustment will reconcile the annual LBMP, ancillary services, ICAP, and NTAC costs included in the Long Island Choice customer’s bill credit, with the actual monthly LBMP, ancillary services, ICAP, and NTAC determined in the NYISO market.
(2) The Bill Credit Adjustment will be retained on file on a Statement of Bill Credit Adjustment for the Long Island Choice Program.
(3) The Bill Credit Adjustment will be determined as follows:
(a) The weighted average day-ahead zonal LBMP for each month will be calculated as the hourly day-ahead zonal LBMP prices, weighted by system hourly loads, minus
(b) The LBMP credit of $38.60 per MWh, plus
(c) The Authority’s avoided cost of ancillary services, minus
(d) The ancillary services bill credit of $2.10 per MWh,plus
(e) The Authority’s avoided cost of ICAP minus
(f) The ICAP bill credit of $1.10 per MWh, plus
(g) The Authority’s avoided cost of NTAC, minus
(h) The NTAC bill credit of $0.50 per MWh
(i) The result of (a) through (h) is multiplied by the “BCA Loss Factor Multiplier” found in the “Statement of Energy and Peak Demand Losses” to obtain the Bill Credit Adjustment.
(4) The Bill Credit Adjustment will be applied monthly to the aggregate consumption of the ESCO’s customers, or to each DRC’s consumption, and debited or credited to the ESCO’s or DRC’s account.
b) In addition to the Bill Credit Adjustments, Participating ESCOs and DRCs will receive reimbursement for direct NYISO charges for on-Long Island Capacity, ZECs and TOTs related to their participation in the Long Island Choice program.

Effective: January 1, 2018

Tariff for Electric Service

Long Island Power Authority

Second Third Revised Leaf No. 300

IX. Long Island Choice Program (continued):
B. C. SERVICE CLASSIFICATION NO. 14 ESCO and DRC Services (continued): (Rate Codes: 390)

[Canceled]

Effective: May 1, 2002June 1. 2020

Tariff for Electric Service

Long Island Power Authority

Second Third Revised Leaf No. 301

IX. Long Island Choice Program (continued):
B. C. SERVICE CLASSIFICATION NO. 14 ESCO and DRC Services (continued): (Rate Codes: 390)

[Canceled]

Effective: May 1, 2000June 1, 2020

Tariff for Electric Service

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Proposal Concerning Modifications to LIPA’s Tariff for