1. New Electric Tariff
for
Campus/Multi-building
Distributed Generation Customers
Offset Standby Tariff
4.10.2012

2. OFFSET TARIFF WEBINAR
Webinar format
• Due to large number of participants, lines are muted:
– Use the “chat box” feature to send questions to David Logsdon (Host)
• We will address questions at the end of the presentation
– Frequently asked questions (FAQs) and slides will be posted to www.coned.com/dg
– Follow-up: jollym@coned.com
2

3. OFFSET TARIFF WEBINAR
Presenters
Margarett Jolly
DG Ombudsperson, Engineering and Planning
Denise DeRosa
Director, Rate Engineering
Thomas Mimnagh
Department Manager, Customer Engineering
3

4. OFFSET TARIFF WEBINAR
Agenda
 Introduction: Robert Schimmenti
 Introduction to Distributed Generation (DG) Landscape
and Standby Service
 Schematic Arrangement for New Tariff
 New Tariff Details
 Next Steps and Resources
 Q&A
4

5. OFFSET TARIFF WEBINAR
Opening remarks
Robert Schimmenti, Vice President,
Engineering and Planning
5

6. OFFSET TARIFF WEBINAR
Distributed generation (DG) in Con Edison territory
Projected DG Growth
800
700
600
High Case
500
MW
400 Base Case
300 Existing ICE CHP
200 Existing GT CHP
100
Existing PV, MT and
FC CHP
0
Margarett Jolly 6

7. OFFSET TARIFF WEBINAR
Introduction to Standby service
• Standby service Customers typically connect their DG behind the
Customer meter
• DG ahead of the meter
– Current tariff allows Customer with DG to connect to Company‟s high-
tension distribution system and serve its single low-tension Standby
account
– Proposed new tariff would allow Customer with DG to connect to the
Company‟s high-tension distribution system and serve two or more of its
accounts as Standby accounts on a Campus setting (“premises”)
• Generators subject to all interconnection requirements
Margarett Jolly 7

8. OFFSET TARIFF WEBINAR
Typical large electric Customer (without generator)
Transmission Substation Distribution Street Customer
Transformers
Meter
Delivery costs are recovered primarily through kW and kWh charges
Denise DeRosa 8

9. OFFSET TARIFF WEBINAR
Electric Standby Rate for Customers with generation
Transmission Street Customer
Substation Distribution
Transformers
Meter
Generator
Contract Demand Charge (Customer‟s maximum connected load)
• A fixed charge that recovers local distribution system costs
• Contract Demand may be set by Customer or Con Edison
• Contract Demand increases to any higher measured peak kW; Charge for
exceedance if Customer selected the Contract Demand
Example: Customer sets Contract Demand at 8 MW
• New peak measured at 10 MW
• Reset Contract Demand to 10 MW; exceedance charge for 2 MW
Denise DeRosa 9

10. OFFSET TARIFF WEBINAR
Electric Standby Rate for Customers with generation
Transmission Distribution Street Customer
Substation
Transformers
Meter
Generator
Daily as-used demand charge
• Variable charge which recovers shared system (upstream) costs
• Peak kW metered in each relevant time period
• Monthly As-Used is sum of daily as-used charges
Example: Application of Daily as-used demand charge
• Generator output = 8 MW
• Daily peak demand registered on meter = 2 MW
• Daily as-used demand charge applied to 2 MW
Denise DeRosa 10

11. OFFSET TARIFF WEBINAR
New tariff overview – schematic
Customer‟s Buildings
Meter
Transmission Substation Distribution
Meter
Meter
Meter Generator
Thomas Mimnagh 11

12. OFFSET TARIFF WEBINAR
New tariff overview – applicability
Customer‟s Buildings
Meter
Transmission Substation Distribution
Meter
Meter
Meter Generator
“Campus-setting” Customer builds a generator designed to use Con
Edison‟s distribution system to supply Customer‟s multiple accounts
– Buildings within same footprint (“premises”)
– Accounts all billed to the same Customer
Thomas Mimnagh 12

13. OFFSET TARIFF WEBINAR
Contract Demand for Offset Customer
Customer‟s Buildings
Meter
Transmission Substation Distribution
Meter
Meter
Meter Generator
Contract demand: Fixed charge, recovers costs of „local‟ facilities
• Contract Demand – based on maximum demand of each offsetting account
• Set with Company concurrence
• Will increase to any higher measured kW – without additional charge
Thomas Mimnagh 13

14. OFFSET TARIFF WEBINAR
As-used Daily Demand for Offset Customer
Customer‟s Buildings
Meter
Transmission Substation Distribution
Meter
Meter
Meter Generator
Daily as-used demand recovers costs for use of shared T&D
• Measured as peak for each day after mathematically reducing allocated
generation
Example follows
Thomas Mimnagh 14

15. OFFSET TARIFF WEBINAR
New tariff overview – measure of Daily As-Used Demand
Customer‟s Buildings
Meter #1
Transmission Substation Distribution
#2
Meter
#3
Meter
Meter Generator
Generator Exporting 8MW
As-Used Daily Demand – Highest in Relevant Period for each Account
Account #1 Account #2 Account #3
Import - Total of 10 MW 3 MW 5 MW 2 MW
Allocation of 8 MW of Export 3 x(8/10) = 2.4MW 5x(8/10) = 4MW 2x(8/10) = 1.6MW
As-Used Demand 3 - 2.4 = 0.6MW 5 - 4 = 1MW 2 - 1.6 = 0.4MW
Thomas Mimnagh 15

16. OFFSET TARIFF WEBINAR
Additional new tariff components
• Generator(s) sized over 2 MW to 20 MW in aggregate to meet loads of the
Standby service accounts
• Customer responsible for installing and maintaining meter communications
• kWhr delivery charges (SBC, RPS) apply to total kWh of each importing
account
• Monthly Adjustment Charges (MAC) aligned with associated billing
determinants
• Reactive Power Demand Charge per kVar for each account - also charged to
generating facility
• Available to Customers served under PASNY tariff
Margarett Jolly 16

17. OFFSET TARIFF WEBINAR
Next steps and resources
Con Edison filed proposed Offset Tariff with PSC March 19th
• Docket Number - Case 11-E-0299
• Comment period after notice has been posted in NYS Register
• Expect to be reviewed or at the PSC June Open Session
Resources
• DG Ombudsperson: Margarett Jolly (jollym@coned.com/212-460-3328)
• DG Project Applications: Tom McAndrews (mcandrewst@coned.com/212-460-4490)
• www.coned.com/dg and www.coned.com/es
• Electronic Tariff – Standby Terms and Conditions now General Rule 20. Standby service rates
contained in each applicable Service Classification.
• DOB CHP Systems Guide
• Con Edison DG/CHP Customer Guide
• Con Edison High Tension Handbook and High Tension Specification EO-2022
Margarett Jolly 17

18. New Electric Tariff
for
Campus/Multi-building
Distributed Generation Customers
Offset Standby Tariff
Questions
4.10.2012