Energy Choice
                            

Matters

Regulator Denies Utility's Sought Tariff Change Which Had Been Opposed, Called "Unprecedented" By Retail Supplier

June 1, 2017

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

The Massachusetts DPU has denied a tariff change sought by National Grid under which the utility had sought to extend the number of days that a competitive electric supplier must submit a switch, from two to four days prior to the scheduled meter read date, for the switch to occur at the next meter read

As described by the DPU, National Grid had sought the change due to an "unintended consequence" of a 2015 billing system revision, which is requiring National Grid, under certain circumstances, to perform manual corrections to the customer’s billing account to meet the current two-day standard (see prior story for detailed background)

Choice Energy, LLC called the proposal, "unprecedented," in the Massachusetts market, and said that it would lead to customer dissatisfaction by delaying enrollments and drops that would have met the old standard but not the new four-day window. Direct Energy also objected to the proposal.

The DPU noted that the current two-day standard was adopted by the Department in establishing model terms and conditions for supplier tariffs. The DPU noted that in adopting the model terms and conditions, the Department had further stated that, "any deviations from the Model Terms and Conditions must be fully supported."

"National Grid in its initial filing simply provided the proposed tariffs along with a cover letter explaining the changes. The lack of direct testimony or other evidence supporting the appropriateness of the change put the burden on the Department and intervenors to rehabilitate the record through discovery and cross examination. The Department has long held that a petitioning company should provide a reasonable, reviewable, and appropriately documented filing for Department approval," the DPU said

"Regardless of the reviewability of the Company’s petition, the Department has further concerns regarding approving such tariff changes. For example, the Company is unable at this time to quantify the number of manual corrections that are related to the current two-day notice provision. Without such quantification, the Department is unable to ensure that granting the four-day notice provision will actually fix the purported problem or whether there are other facts at stake that the Company should be considering. In addition, the Company does not provide any legal support for its proposed tariff changes. For these reasons, we find that the Company did not fully support its proposal by fact and law as required for any changes to a company’s terms and conditions that differ from the model terms and conditions," the DPU said

"In addition, the Department takes into account the fact that the existing two-business day notice requirement has been in effect for all of the investor-owned utilities in the Commonwealth since the beginning of industry restructuring. Further, no other distribution company in Massachusetts has adopted a four-business day notice requirement. While this does not preclude the Department from approving the Company’s proposal to revise the existing notice requirement, nor, as the Company notes does it preclude the Company or any company from seeking to make such a change in the future where such changes resulted in efficiencies beneficial to customers, the Department determines that in this instance customers and the competitive market will be best served by attaining as much uniformity as reasonable among the electric distribution companies and the marketplace at large," the DPU said

"Based on these factors, the Department finds it appropriate to disallow the Company’s proposed tariff revisions," the DPU ordered

In a footnote, the DPU said, "The issue raised by National Grid may be alleviated to the extent that the Company can encourage competitive suppliers and municipal aggregators to voluntarily comply with a four-day notice provision."

Docket D.P.U. 16-193

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