Consolidated Edison : Orange and Rockland Electric and Gas Rate Order – April 14, 2022

STATE OF NEW YORK PUBLIC SERVICE COMMISSION

CASE 21-E-0074 - Proceeding on Motion of the Commission as to the Rates, Charges, Rules and Regulations of Orange and Rockland Utilities, Inc. for Electric Service.

CASE 21-G-0073 - Proceeding on Motion of the Commission as to the Rates, Charges, Rules and Regulations of Orange and Rockland Utilities, Inc. for Gas Service.

ORDER ADOPTING TERMS OF JOINT PROPOSAL AND

ESTABLISHING ELECTRIC AND GAS RATE PLANS,

WITH ADDITIONAL REQUIREMENTS

Issued and Effective: April 14, 2022

Table of Contents

I. INTRODUCTION ............................................. 2

II. BACKGROUND ............................................... 3

A. O&R's January 29, 2021, Initial Tariff Filing ............ 4

B. O&R's March 31, 2021, Updated Filing ..................... 8

C. 2019 Rate Order ......................................... 11

D. Generic Gas Planning Proceeding ......................... 13

E. CLCPA and Climate Action Council Proceedings ............ 15

III. PROCEDURAL BACKGROUND ................................... 16

IV. PUBLIC NOTICE AND COMMENTS .............................. 21

V. STATUTORY AND REGULATORY FRAMEWORK ...................... 22

VI. THE JOINT PROPOSAL'S TERMS .............................. 23

A. Term .................................................... 24

B. Rates and Revenue Levels ................................ 24

1. Common ............................................... 25

a. Rate Drivers ...................................... 25

b. Rate Mitigation ................................... 26

c. Sales Forecasts ................................... 28

i. Electric Revenue Forecasts ..................... 28

ii. Gas Revenue Forecasts .......................... 29

d. Annual Team Incentive Plan (ATIP) ................. 30 e. O&M Revenue Requirement: Institutional

Dues/Subscriptions ................................ 33

2. Electric ............................................. 36

a. Market Supply Charge/Energy Cost Adjustment ....... 36

b. Revenue Decoupling Mechanism ...................... 36

c. Other Charges ..................................... 37

3. Gas .................................................. 37

a. Gas Supply Charge/MGA ............................. 37

b. Revenue Decoupling Mechanism ...................... 38

c. Base Rate Imputations ............................. 38

d. Lost and Unaccounted for Gas ...................... 39

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C. Cost of Capital ......................................... 40

D. Additional Accounting Provisions ........................ 47

1. Amortization of Low-Income Deferrals ................. 47

2. Federal Tax Cuts and Jobs Act of 2017 ................ 51

3. Residential Customer Charges ......................... 53

E. Performance Metrics ..................................... 56

1. Electric Reliability ................................. 57

2. Gas Safety ........................................... 59

F. CLCPA Related Efforts ................................... 66

G. Major Storm Cost Reserve/Revenue Adjustment Mechanism... 82

H. Additional Electric Programs ............................ 85

1. REV Demonstration Project Costs ...................... 86

2. Pomona NWA ........................................... 89

3. Electric Vehicle (EV) Charging Programs .............. 91

4. Customer-Owned Street Light Dimming Pilot ............ 94

I. Additional Gas Programs ................................ 104

1. AMI-Enabled Natural Gas Detectors ................... 105

• 2. Review of Gas Interruptible Rates ................... 107

• 3. Non-Pipes Alternatives .............................. 107

• 4. Renewable Gas Standards ............................. 109

• 5. Pipeline Emergency Responders Initiative (PERI) ..... 113

• 6. Millennium Back Feed Project ........................ 114

• 7. Relocating Indoor Meters ............................ 116

• 8. Certified Gas Purchases Pilot ....................... 117

• 9. Refrigerant Management Initiative ................... 118

J. Customer Service ....................................... 120

1. Outreach and Education ............................... 120

2. Same-Day Electric Service Reconnections .............. 120

3. Recording Calls ...................................... 121

4. Protections During Extreme Temperatures .............. 121

5. Confirmation of Unsigned Payment Agreements .......... 122

6. Digital Customer Experience (DCX) .................... 122

7. Customer Relationship Management (CRM) System ........ 123

8. Residential Termination/Uncollectible Metric ......... 123

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9. Reconnection Fee Waiver .............................. 124

K. Electric and Gas Low-Income Assistance and Affordability

Programs ............................................... 124

L. Arrears Management ..................................... 127

M. Language Access ........................................ 129

N. Management and Operations Audit Compliance ............. 131

O. Miscellaneous Provisions ............................... 136

VII. EVALUATION UNDER PUBLIC INTEREST STANDARD .............. 138

VIII. CONCLUSION ............................................. 139

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STATE OF NEW YORK PUBLIC SERVICE COMMISSIONCOMMISSIONERS PRESENT:Rory M. Christian, Chair Diane X. Burman

James S. Alesi

Tracey A. Edwards, dissenting John B. Howard

David J. Valesky John B. MaggioreCASE 21-E-0074 -At a session of the Public Service Commission held in the City of

Albany on April 14, 2022

Proceeding on Motion of the Commission as to the Rates, Charges, Rules and Regulations of Orange and Rockland Utilities, Inc. for Electric Service.

CASE 21-G-0073 -Proceeding on Motion of the Commission as to the Rates, Charges, Rules and Regulations of Orange and Rockland Utilities, Inc. for Gas Service.

ORDER ADOPTING TERMS OF JOINT PROPOSAL AND ESTABLISHING ELECTRIC AND GAS RATE PLANS,

WITH ADDITIONAL REQUIREMENTS

(Issued and Effective April 14, 2022)