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History
- Referred to energy and telecommunications
- Referred to energy and telecommunications
Full text
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Title of bill
An act in relation to authorizing and directing the public service commission to study the feasibility of eliminating demand metering
Purpose
To authorize and direct the public service commission to study the feasibility of eliminating demand metering.
Summary of provisions
This legislation would authorize and direct the public service commission to study the feasibility of eliminating demand metering by electric companies.
Justification
Nonresidential electric consumers are charged for the electricity that they consume, however, they are also subject to another charge, as read by a separate meter, known as a demand meter.
The demand meter measures a customer's electric demand, or the "share" of fixed cost required for a power plant to maintain capacity, as well as the actual energy for kilowatt hours used by the consumer.
A demand meter's needle advances as electricity consumption increases. The demand meter records the highest average kilowatts reached and maintained within an interval period (i.e. 5 min., 15 min.).
If within one billing cycle the demand reaches 50kW and stays there for 15 minutes, the meter needle remains at 50kW unless or until electricity use exceeds that level. If the demand later reaches 55kW and stays there for 15 minutes, the needle will then stay at 55. The new index point is maintained, even when the electricity use is below 55kW, until the meter reader comes to record the demand and resets the meter back to zero.
For many small businesses, particularly those businesses that operate on a seasonal basis, the demand meter represents an unfair obligation. Many businesses are subject to a rate based upon their highest fifteen minute interval of energy consumption, regardless of whether that business is operating year round. Seasonal businesses that operate for a few months during the year are still subject to the demand meter rate despite the fact that their energy usage is well below that rate for most of the year. This legislation would simply authorize and direct the public service commission to conduct a study on the feasibility of removing the demand meter charge.
Legislative history
2007-08, S.1605; 2005-06, S.6915
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.