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Increase In Nstar Residential, Commercial POR Discount Approved

May 1, 2017

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The Massachusetts DPU approved new purchase of receivables discount rates (standard complete billing percentages) at Nstar (Eversource), effective May 1, 2017.

The adopted May 1, 2017 Nstar Massachusetts POR discounts are:

              Residential  Commercial  Industrial
Uncollectible    1.23%        0.21%       0.01%
Admin Cost       0.01%        0.01%       0.01%
Reconciliation   0.06%        0.04%       0*
Total            1.30%        0.26%       0.02%*

*Note that under the POR calculation mechanism, Nstar's reconciliation factor for industrial customers results in a reconciliation discount rate component of -0.08%, and an overall negative industrial POR discount. Due to previously reported issues with the application of a negative discount rate, Nstar proposes to repeat the process implemented last year in a similar situation

Specifically, rather than applying a negative POR discount, Nstar will remove the negative discount component from the POR calculation (resulting in the 0.02% discount for industrial customers), and will make a one-time payment to each affected retail supplier serving industrial customers to refund the reconciliation amount that otherwise would have been returned via the negative POR discount rate.

For comparison, Nstar's prior POR discounts were:

              Residential  Commercial  Industrial
Uncollectible    1.23%        0.17%       0.06%
Admin Cost       0.01%        0.01%       0.01%
Reconciliation  -0.25%       -0.05%       0%*
Total            0.99%        0.13%       0.07%*

* Reflected removal of negative reconciliation discount, refund via one-time payment to suppliers.

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