NY State Public Service Commission launches pilot program to reduce energy costs

The New York State Public Service Commission approved a pilot program for Consolidated Edison Company of New York designed to help residential and small business customers better manage their energy costs through the use of smart meters.

The pilot stems from an initiative launched in 2016 to further the use of smart meters for Con Edison customers. As part of that order, the commission directed Con Edison to develop a pilot program to test new rate structures through its investment in these smart meters.

The pilot program approved this week will allow customers with smart meters to optimize their electricity usage. Specifically, the rate structures will allow customers to more closely align delivery charges with the cost of providing delivery service and are primarily demand-based. In contrast, current rates for these customer groups are based on energy consumption. The program will also provide insights about customer acceptance, satisfaction, and preferences, as well as bill and peak demand impacts. This will help reduce peak demand and, in turn, infrastructure costs, which will help to reduce costs for all customers.

“Con Edison’s pricing pilot program is a careful and innovative approach to allow New Yorkers to use accurate price signals to lower their energy costs,” Commission Chair John Rhodes said. “Improving consumer choice and affordability is a guiding principle of our clean energy policies.”

The pilot program will be implemented on about 67,000 customers with smart meters from Staten Island, Westchester County, and Brooklyn areas. All customers in this program will be provided a one-year price guarantee but may discontinue service under the program at any time. It is expected to conclude in March 2022. The results will be analyzed to inform the company and regulators whether the program should be expanded.