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Conn. Draft Would Retain Bypassable GSC Admin. Adder
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December 23,
2010
A draft Connecticut DPUC decision would deny United Illuminating's request to move
the Generation Service Charge (GSC) Administrative Adder from the bypassable Generation
Service Charge rate component to the Non-
As only noted in Matters (12/14), UI recommended that the DPUC consider making the GSC administrative adder nonbypassable, "because such costs should be spread across all customers since they do not change when customers switch suppliers." UI's request was made in a proceeding typically reserved for routine reconciliation matters.
In the draft, the Department would, "den[y] UI's request to move from the GSC to the nonbypassable FMCC the expenses that don't change when customers leave standard service."
"The Department reaffirms that it is most appropriate to recover expenses that are generation related in the GSC rate," the draft states.
The draft also noted that one item in the nonbypassable FMCC that is increasing each
year is the expenses related to the contracts for differences (CfDs), both the capacity
contracts and the peaking generation contracts. "As these costs grow, the Department
believes it is important to scrutinize the details and assumptions behind the actual
amounts that are under review as well as the projections that are used to set rates
for the following period. Therefore, the Department will order the companies to
submit in their semi-
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