Con Edison for Cannabis Facilities: SC 2, SC 9, the Market Supply Charge, and ESCO Billing

Service area and NYISO zone

Consolidated Edison Company of New York delivers electricity to all five boroughs except most of the Rockaways and to most of Westchester County. In NYISO terms that is Zone J (New York City) and Zone I (Westchester), where both delivery and capacity costs are the highest in the state [coned-rates]. NYISO's installed capacity market sets a separate, higher requirement for the New York City locality [nyiso-markets], and that cost flows into every supply price in the territory, utility or ESCO.

Con Edison's electric tariff is P.S.C. No. 10, the Schedule for Electricity Service; a separate P.S.C. No. 12 covers delivery of New York Power Authority (PASNY) power [coned-rates]. Cannabis facilities are on P.S.C. No. 10.

The commercial delivery classes

Class	Who	What it bills
SC 2 General Small	General-use accounts whose requirements do not exceed 10 kW	Customer charge and per-kWh delivery; no demand charge [coned-rates]
SC 9 General Large	General-use accounts at 10 kW and above, with rate periods by voltage and time-of-day options	Customer charge, per-kWh delivery, and per-kW demand charge; default-supply customers also pay the Market Supply Charge with a per-kW Demand Supply component [coned-rates] [coned-rates-faq]

The 10 kW boundary is the lowest small-class ceiling among New York's utilities. National Grid upstate keeps accounts on a non-demand class up to 100 kW; Con Edison moves them to demand billing at 10 kW [coned-rates]. In practice:

• A cultivation facility of any size is SC 9. A single flowering room of LED fixtures exceeds 10 kW.
• An extraction lab is SC 9. One chiller does it.
• A dispensary is usually SC 9 once it has a few tons of cooling and reach-in coolers, and might stay on SC 2 only if it is small and its equipment is light.

Placement is determined by the account's measured demand, so a store that opens on SC 2 and adds a walk-in cooler can be moved to SC 9 later. The dispensary page covers what that boundary means for a store.

How demand and Demand Supply charges work

On SC 9, two different per-kW charges can appear:

1. Delivery demand. Con Edison's charge for the wires, sized to your peak. This is billed whether you take utility supply or an ESCO [coned-rates].
2. Demand Supply. For demand-billed plans, Con Edison splits supply into Energy Supply, determined per kWh, and Demand Supply, determined per kW; the Demand Supply charge is the estimated cost of capacity [coned-rates-faq]. This only applies to customers on utility supply. An ESCO customer pays for capacity through the ESCO contract instead.

That second point is why "does an ESCO help with demand charges" has a two-part answer in Con Edison territory. The delivery demand charge stays. The capacity charge moves from Con Edison's formula to the ESCO's, and in Zone J that is a large number. Whether the ESCO fixes it or passes it through is the most important line in the contract.

Managing the peak still pays under either arrangement. Peak demand vs peak usage explains why a short spike sets the month; demand charges explained covers the tactics. A grow that staggers rooms and a lab that sequences equipment starts both cut the kW that appears on the delivery demand line.

The Market Supply Charge and the rest of default supply

If you never choose an ESCO, Con Edison supplies you and bills the Market Supply Charge (MSC). Con Edison calculates the MSC from NYISO day-ahead market prices adjusted for load shape and losses, and provides a calculator for it [coned-rates-faq]. The total supply charge on a default bill is made up of Supply, the Merchant Function Charge, and the Clean Energy Standard Supply Surcharge, among other items [coned-rates-faq]. Because the MSC is built from monthly market results, it changes every month.

Two practical consequences. First, there is no single Con Edison price to compare; use a trailing twelve-month average of your supply line. Second, the Merchant Function Charge only applies when you buy supply from Con Edison [coned-rates-faq], so when comparing an ESCO offer, add up everything that leaves the bill when you switch, not just the energy price.

Interconnection and metering notes for a grow

New York City grows are usually in existing industrial buildings, and the electrical service is often the constraint on canopy size. Three things to settle with Con Edison early:

• Service capacity. A Tier 3 grow can need close to a megawatt of service. Ask for a load letter and service upgrade timeline before signing the lease; the new facility buildout FAQ covers the sequence.
• Voltage. SC 9 has rate periods by voltage [coned-rates]. Taking service at higher voltage and owning the transformer lowers delivery cost but is a capital decision.
• Interval metering. OCM requires at least one interval meter at every indoor and mixed-light cultivation site [ny-9nycrr-125-1]. Confirm whether Con Edison's meter on the account records intervals you can access, or install your own on the grow side so the OCM report and the ESCO data come from one source.

Summer humidity is the climate driver here. Dew points in the 60s F are routine from June through September downstate [noaa-cag-new-york], so a New York City grow's peak lands in the same afternoons when Zone J capacity is tightest. That timing is what makes a fixed-capacity ESCO contract worth pricing for a downstate grow that cannot shift its lights.

Standby and backup power have their own service classifications at Con Edison; the rates FAQ lists standby provisions for SC 2, 5, 8, 9, 12, and 13 [coned-rates-faq]. A grow planning on-site generation should read the backup generator page and ask Con Edison how standby service would be billed before buying a unit.

Efficiency programs

Con Edison's Commercial and Industrial Energy Efficiency Program covers lighting and lighting controls, HVAC, motors, variable frequency drives, chiller and refrigeration upgrades, compressed air, and industrial process improvements, with a Custom Program for technologies outside the standard list [coned-ci-program]. Incentives cannot exceed 50 percent of project cost or 100 percent of a single measure's cost, with maximums of $1 million for electric measures and $250,000 for gas [coned-ci-program]. Energy study incentives cover 50 percent of pre-approved assessment costs up to $67,000 for combined electric and gas studies [coned-ci-program]. All projects must be pre-approved by Con Edison, which pays the approved amount when the project is done [coned-ci-program].

For a grow facing the OCM 2.2 micromoles per joule lighting deadline [ny-9nycrr-125-1], the order of operations is: apply for pre-approval, get it, then order fixtures.

Zone J capacity and SC 9 demand

Con Edison SC 9 General Large covers demand-metered general class at 10 kW and above with rate periods by voltage and time-of-day options [coned-rates]. Zone J New York City carries the highest ICAP costs in the state [nyiso-markets]. Pull current SC 9 per-kW demand charges from PSC No. 10 leaves before budgeting [coned-rates].

OCM 2.2 micromoles per joule deadline

9 NYCRR 125.1 requires horticultural lighting at least 2.2 micromoles per joule for Tier 3-5 cultivators by first license renewal [ny-9nycrr-125-1]. Con Edison efficiency pre-approval must precede fixture orders for rebate eligibility [coned-ci-program]. Interval meters are mandatory for indoor and mixed-light licensees [ny-9nycrr-125-1].

Demand Supply and Merchant Function Charge

SC 9 customers on utility supply pay Market Supply Charge, Demand Supply, and Merchant Function Charge [coned-rates]. ESCO enrollment removes utility supply lines but not delivery demand [coned-rates]. Compare ESCO offers to trailing twelve-month supply average [ny-dps-esco-info].

Additional procurement and tariff notes

Zone J New York City carries highest ICAP in the state [nyiso-markets]. SC 9 per-kW demand requires current PSC No. 10 leaves [coned-rates].

Additional load and utility notes

9 NYCRR 125.1 sets 2.2 micromoles per joule for Tier 3-5 by first renewal [ny-9nycrr-125-1]. Con Edison rebates require pre-approval before fixture purchase [coned-ci-program].

How ESCO supply interacts with Con Edison billing

Con Edison is one of the six investor-owned utilities open to PSC-eligible ESCOs [ny-dps-esco-info]. When you enroll with an ESCO:

• Con Edison keeps delivering, keeps the meter, and keeps outage responsibility.
• The Market Supply Charge, Demand Supply, and Merchant Function Charge come off the bill [coned-rates-faq].
• The ESCO's supply charge goes on. Under utility consolidated billing it appears on the Con Edison bill; under dual billing the ESCO bills separately [ny-dps-esco-info].
• SC 9 delivery charges, including the delivery demand charge, are unchanged.

The switching guide covers eligibility, the Reset Order's mass-market rules for very small accounts, and enrollment timing. For the full New York picture, start at the state hub or the rate page.