Jesse O. from Glendale, CA but working on a New York project. I'm going through Con Edison's commercial tariffs and finding all sorts of fees and charges that aren't immediately obvious in the main rate schedules. There's something called a "Revenue Decoupling Mechanism" and "Delivery Service Adjustment" that seem to add significant costs. Has anyone worked extensively with Con Ed and can shed light on what these actually represent? Client is looking at Service Class 2 - Secondary.
Hidden fees in Consolidated Edison tariffs NYC
Diane M. from Wilmington, DE here. I worked with Con Ed about two years ago on a large customer analysis. The Revenue Decoupling Mechanism is basically Con Ed's way of recovering revenue when sales decline - it's adjusted periodically based on actual vs projected sales. The Delivery Service Adjustment is related to their infrastructure investments and gets trued up annually. Both are per kWh charges that get added to your base delivery rates. New York has some of the most complex tariff structures I've encountered.
Gerald N. from Charlottesville, VA chiming in. Don't forget about the MTA surcharge and the 18-a assessment that show up on Con Ed bills. The MTA surcharge helps fund public transit and varies by customer class. The 18-a assessment is a state-mandated charge for energy efficiency programs. These aren't always clearly listed in the main tariff schedules but they definitely impact total costs. Also watch out for the merchant function charge which applies to supply service.
Diane and Gerald, thanks for the explanations. I found the MTA surcharge you mentioned Gerald - it's currently $0.003768 per kWh for Service Class 2. The Revenue Decoupling Mechanism is showing as $0.001234 per kWh this quarter. When you add all these riders and adjustments together, it's adding about 15% to the base delivery charges. No wonder New York electricity rates are so high!
Alice M. from Rochester, NY here. Jesse, you're discovering why New York commercial rate analysis takes so much longer than other states. We also have the System Benefits Charge, Renewable Portfolio Standard charge, and various other state-mandated fees that get layered on top. I always tell clients to budget at least 20% above the basic tariff rates just for all the riders and adjustments. Con Ed updates many of these quarterly so they're constantly changing too.
Todd from Portland, OR here. We think Oregon rates are complex but New York takes it to another level. Jesse, are you also dealing with the capacity charges and ICAP tags for larger customers? Those can be significant costs that aren't immediately obvious in the tariff structure. The capacity charges are based on your contribution to the system peak and can vary significantly year to year.
Todd, yes the ICAP charges are another layer of complexity. This particular customer is around 500 kW so they'll definitely be subject to capacity charges. I'm starting to think New York deliberately makes these tariffs complicated to discourage analysis! Between all the riders, adjustments, surcharges, and capacity costs, the effective rate is almost double what the basic tariff schedule suggests. Thanks everyone for helping me navigate this maze.