The New York Public Service Commission ordered the state’s major natural gas utilities to file special delivery rates for nonresidential customers who operate their own gas-fired distribution generation (DG) units, a move that should result in lower costs for DG operators and provide incentives for more widespread use.

The utilities were given 90 days to tailor new rates to customer usage profiles, with the idea that the new cost structure would be in place for three years. The chairman of the PSC, William Flynn, said the order would help lower electricity costs, reduce emissions, and improve reliability by giving small-scale generations a leg up.

“As we encourage more development of efficient small power production facilities through fairer rates, we not only open up a valuable option for customers, but we also enhance our state’s economy,” Flynn said.