Con Edison’s “Market Supply Charge” (MSC) and Monthly Adjustment Charge (MAC)
The PSC approved a very complicated method for establishing Con Edison rates for energy supply which incorporates the prices of the spot markets run by the New York ISO for energy, capacity, and ancillary services. Prices for these services comprise the “Market Supply Charge” or “MSC.”
Because not all electric service bought by Con Edison for its customers is purchased at the spot market rates, a multi-factored “monthly adjustment charge” or “MAC” takes into account 27 other variable factors each month.
Four times a year rates for energy supply are published in Con Edison Tariffs for the next three months, containing rates based on estimates of the MSC and MAC. But these are not the actual rates charged. Each month, Con Edison files statements of the MSC and MAC adjustments to the previously filed estimates.
As a result of the quarterly estimates and monthly adjustments to those, future Con Edison rates cannot be known. Frequently the monthly adjustments to the estimated residential rates have exceeded three cents/kWh.
In addition to the MSC/MAC charges, Con Edison charges include delivery service rates. To know the current rate charged for full service, one must combine the delivery rates with the filed MSC/MAC charges for a month and take into account the monthly MSC/MAC adjustments.
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