Mahati Guttikonda Senior Counsel Legal Department

October 30, 2013 VIA EMAIL Leonard Silverstein Utility Consumer Assistance Specialist NYS Department of Public Service 3 Empire State Plaza Albany, New York 12223

Re:

Case 12-G-0544 In the Matter of the Commission's Examination of The Brooklyn Union Gas Company d/b/a National Grid NY's Earnings Computation Provisions and Other Continuing Elements of the Applicable Rate Plan

Dear Mr. Silverstein: Pursuant to the Joint Proposal adopted by the Commission on June 13,2013 in the abovereferenced matter, The Brooklyn Union Gas Company d/b/a National Grid NY hereby submits the attached quarterly report to Staff and the Department of States Utility Intervention Unit regarding Low Income Discount Program participation and grants of re-establishment fee waivers. Please contact Kathryn Granger at (315) 460-7134 or kathryn.granger@nationalgrid.com with any questions on this report.

Sincerely, /s/ Mahati Guttikonda__ Mahati Guttikonda

CC:

Kathryn Granger, National Grid Gregg Collar, UIU (via email) Saul Rigberg, UIU (via email)

40 Sylvan Road, Waltham, MA T : (781) 907-1855 F : (781) 907-5701

Mahati.Guttikonda@nationalgrid.com

www.nationalgrid.com

CASE 12-G-0544 -

In the Matter of the Commission's Examination of The Brooklyn Union Gas Company d/b/a National Grid NY's Earnings Computation Provisions and Other Continuing Elements of the Applicable Rate Plan.

KeySpan Energy Delivery New York (KEDNY): Low Income Discount Rate Program

Quarterly Report for Quarter Ended September 30, 2013

I. BACKGROUND The Brooklyn Union Gas Company d/b/a National Grid NY (KEDNY1 or National Grid NY or the Company) is committed to meeting the special needs of its low income customers and provides various services to customers who are unable to make full payment on their utility bills. The Low Income Discount Rate Program (Residential Reduced Rate

Program or Program) provides eligible low income customers a reduction in the Minimum Charge section of their bill. On December 21, 2007, the New York State Public Service Commission (the Commission or the PSC) adopted the Companys Gas Rates Joint Proposal (or JP-4) filed in agreement with a number of active parties in Case 06-G-1185 and expanding the thenexisting low income discount rate program for KEDNYs residential customers to 60,000 participants.2 On June 13, 2013 the Commission adopted the Companys Joint Proposal (JP) in Case 12-G-0544.3 The JP increased the funding for the Low Income Discount Program to $10.4 million for Rate Years 6 and 7, ending December 31, 2013 and December 31, 2014, respectively. Since Rate Year 6 covers a period beginning January 1, 2013 but the proposed low income discounts are not effective until July 1, 2013, the JP provides for a one-time low income bill credit of $15.00 per eligible residential heating customer in Rate Year Six to provide low income customers with the equivalent of a full year of enhanced discounts. $0.2 million annually of the
The Brooklyn Union Gas Company was also formerly known as KeySpan Energy Delivery of New York (KEDNY). 2 Order Adopting Gas Rate Plans for KeySpan Energy Delivery of New York and KeySpan Energy Delivery Long Island (issued and effective December 21, 2007) (hereinafter December 21, 2007 Order), Case No. 06-G-1185; Gas Rates Joint Proposal (Oct. 10, 2007), Case No. 06-G-1185. 3 Case 12-G-0544, In the Matter of the Commissions Examination of The Brooklyn Union Gas Company d/b/a National Grid NYs Earnings Computation Provisions and Other Continuing Elements of the Applicable Rate Plan, Order Adopting Terms of a Joint Proposal (issued and effective June 13, 2013); Case 12-G-0544 In the Matter of the Commissions Examination of The Brooklyn Union Gas Company d/b/a National Grid NYs Earnings Computation Provisions and Other Continuing Elements of the Applicable Rate Plan, Joint Proposal (dated February 22, 2013).
1

$10.4 million funding level is projected to be used to provide for one-time waivers of reestablishment fees for customers who are eligible for the Low Income Discount Program and have had their service disconnected for non-payment. To the extent the actual costs of the low income program differ from a $10.4 million threshold in Rate Year 6 and $4.4 million in Rate Year 7, the variance will be deferred for future recovery from, or credit to, customers. The JP requires submission of quarterly reports to Staff and the Department of States Utility Intervention Unit regarding program participation and its granting of re-establishment fee waivers.

II. KEDNY LOW INCOME DISCOUNT RATE PROGRAM DESCRIPTION KEDNYs Low Income Discount Rate Program offers discount rates to eligible low income customers. Residential non-heating customers are offered a $3.00 discount in the For residential heating customers, KEDNY offers a $10.50

minimum charge per month.

discount in the minimum charge per month. The Company also offers a seasonal winter discount (November through April) of approximately 50% off of the second rate block for heating customers. Beginning July 1, 2013, the Low Income Discount Rates (excluding the $0.76 billing charge) are: "Residential Reduced Rate" Resi Non-Heating Monthly First 3 therms $10.74 Next 47 therms $0.3369 Excess 50 therms $0.1833

"Residential Reduced Rate" Resi Heating Monthly (Summer) (May to October) First 3 therms $7.69 Next 47 therms $0.5644 2

Excess 50 therms

$0.2333

"Residential Reduced Rate" Resi Heating Monthly (Winter) (November to April) First 3 therms $7.69 Next 47 therms $0.2844 Excess 50 therms $0.2333 A. Eligibility To qualify for the Program, customers must satisfy the following requirements: the customer must be using gas service at their principal residence; they must have (1) a one or two-family gas heating or non-heating account in their name or (2) separately metered units in a multiple dwelling; and they must also be currently enrolled in one of the following programs: o o o o o o o o o Temporary Assistance for Needy Families (Family Assistance) Safety Net Assistance - Public Assistance Supplemental Security Income (SSI) Medicaid Food Stamps Low Income Home Energy Assistance Program (LIHEAP) Veteran's Disability Pension Veteran's Surviving Spouse Pension Child Health Plus.

The Company believes that these eligibility criteria reasonably identify those customers most in need of assistance with their energy bills and most likely to benefit from the Program. B. Outreach KEDNY notifies customers of the availability of the Low Income Discount Rate Program through: Contact Center Representatives Bill inserts Consumer Advocates

Eligible customers are enrolled in the Low Income Discount Rate Program in the following ways: submitting an application4 along with documentation stating which of the following programs they receive benefits from: o Temporary Assistance for Needy Families (Family Assistance) o Safety Net Assistance - Public Assistance o Supplemental Security Income (SSI) o Medicaid o Food Stamps o Low Income Home Energy Assistance Program (LIHEAP) o Veteran's Disability Pension o Veteran's Surviving Spouse Pension o Child Health; automatic enrollment upon receipt of a LIHEAP grant; automatic enrollment upon acceptance into the On-Track program; automatic enrollment upon receipt of a guarantee of payment from New York Citys Housing Resources Administration (HRA) for customers who receive Direct Vouchers from HRA.

III. LOW INCOME PARTICIPATION The Company is confident that through its outreach, customer service efforts, and program design, including auto-enrollment of certain customers, the KEDNY Low Income Discount Rate Program is reaching customers.

Applications are available at any of the four (4) local Customer Offices or mailed to customers by a Customer Service Representative.

For the quarter ended September 30, 2013, participation totaled 60,933 customers. The table below shows the participation of heating and non-heating customers at the end of September 2013. # of heating customers 38,659 # of non-heating customers 22,274 Total 60,933

September 2013

Exhibit A, attached hereto, fully describes participation in the Program on a monthly basis for 2013.

For the quarter ended September 30, 2013, the number of customers granted reestablishment fee waivers was 826. Exhibit B, attached hereto, provides the number of reestablishment fee waivers on a monthly basis for 2013.

CONCLUSION The Company is committed to meeting the special needs of its low income customers and to improving the overall success of its low income programs. The Company respectfully submits this quarterly report on low income participation and re-establishment fee waiver grants for the KEDNY Low Income Discount Rate Program.

Respectfully submitted, The Brooklyn Union Gas Company d/b/a National Grid NY

By:

/s/ Mahati Guttikonda Senior Counsel National Grid 40 Sylvan Road Waltham, MA (781) 907-1855 Mahati.Guttikonda@nationalgrid.com

CC:

Leonard Silverstein, DPS Staff Gregg Collar, UIU Saul Rigberg, UIU

Exhibit A:

KEDNY Low Income Discount Rate Program Participation

2013

Jan-13 62,610

Feb-13 62,947

Mar-13 63,045

Apr-13 62,685

May-13 62,110

Jun-13 61,813

Jul-13 61,449

Aug-13 61,076

Sep-13 60,933

Oct-13

Nov-13

Dec-13

# of Customers

KEDNY Low Income Discount (Residential Reduced Rate) Program Participation 75,000 # of Customers 70,000 65,000 60,000 55,000 50,000 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Month

Exhibit B:

KEDNY Re-establishment Fee Waivers

2013

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13 222

Aug-13 340

Sep-13 264

Oct-13

Nov-13

Dec-13

# of Re-establishment Fee waivers

# of Re-establishment fee w aivers 400 350

N um be r of W a iv e rs

300 250 200 150 100 50 0 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Month Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13