Energy Choice
                            

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Retail Suppliers Seek Count of Capacity Exempt Customers Under New Definition; Warn Count Could Be Lower Than PUC Intended, "Severely" Harm Market

July 14, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Global Montello Group Corp. and Sprague Operating Resources LLC asked the Maine PUC to order Northern Utilities, Inc. (Unitil) to expeditiously provide information allowing suppliers to determine the total number of customers eligible to be Capacity Exempt under recent changes adopted by the PUC, as the suppliers also sought clarification of the PUC's order.

As previously reported, each customer that commenced "delivery service" on Northern’s system as of November 1, 2005, and who uses greater than 25,000 ccf/yr as measured through one or more meters at a specific location, is eligible to participate in the open season to elect to be Capacity Exempt.

Furthermore, for Capacity Assigned customers, the PUC ordered that the resources in Northern's portfolio will now be assigned to marketers based on 100% of customer demand, rather than at the 50% level reflected in the existing program.

Click here for details on the retail choice program changes

Regarding customers now eligible to be Capacity Exempt under such criteria, the suppliers said that, "the commercial information available to Global and Sprague leads them to believe there are far fewer customers eligible for the open season as they understand it than presupposed in the 2016 Annual Report that apparently underpins the findings in the July 7 Order."

"If there are fewer customers eligible than the Commission intended to be eligible, then the impact on the competitive market is likely to be severe, and the impact on customers now subject to [the new] 100% capacity assignment under the July 7 Order is likely to be adverse, be deemed confiscatory and constitute impairment," the suppliers said

The number of customers now eligible to be Capacity Exempt, "is a specific fact that is not known, was not subject to discovery, but is required in order to determine whether there is a basis for rehearing or appeal," the suppliers said

"Accordingly, Global and Sprague respectfully request that Northern be ordered to provide the list requested herein (under confidential treatment, if necessary) to the parties, including Global and Sprague, within five (5) business days, but in any event no later than noon on July 20, 2016," the suppliers said

Specifically, the suppliers asked that the Commission order Northern to provide a list of all customers currently on Northern’s system taking sales or delivery service who commenced service prior to November 1, 2005, by name, address, number of meters, and date service commenced. This is accomplished by issuing a query to Northern’s customer information system. The purpose of this is to: (1) to determine the total number of eligible customers; (2) allow marketers an equal opportunity to communicate directly and freely with all customers so eligible; (3) to confirm the existing customers served by the marketers (who have no way of knowing when their current customers commenced service by Northern); and (4) to provide a check (or another set of eyes) on the communications plan required by the July 7 Order.

Additionally, the suppliers said that the Commission, "should clarify that eligibility for participation in the open season includes all customers on Northern’s system as of November 1, 2005 who now use greater than 25,000 ccf/year as measured through one or more meters at a specific location."

"The facts in the case show conclusively that Northern has not acquired any long-term supplies since 2005 (and would not do so without the planning criteria approved by the Commission’s order in this proceeding). Therefore, under the Commission’s reasoning, all customers, including both delivery and sales customers using greater than 25,000 ccf/yr should be eligible for the open season," the suppliers said

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