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DPU Largely Strikes Grid Modernization Investment From Eversource (Nstar) Rate Case

Storage, EV Investments Permitted

December 1, 2017

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

The Massachusetts DPU, in an order on a rate case for Eversource (Nstar and WMECO) largely struck from consideration in the rate case proposed investments by the utilities in a host of grid modernization initiatives, with the exception of the energy storage and electric vehicle proposals

Other than the EV and storage proposals, Eversource's proposed grid modernization investments will be addressed in a separate proceeding specific to reviewing grid modernization proposals (D.P.U. 15-122)

The DPU said that addressing the grid modernization proposals in docket 15-122 would allow for a more robust review of the proposals

In the separate grid modernization proceeding, the utility has proposed time-varying utility supply options that RESA had raised competitive concerns about, due to alleged preferential treatment for meter/usage data access for utility-supplied dynamic pricing customers (see story here)

The DPU did address in the rate case proposed storage and EV projects from Eversource

The DPU approved two storage "demonstration" projects proposed by Eversource, phase one Martha’s Vineyard project and the Wellfleet project

The Department approves a budget not to exceed $15 million for phase one of the Martha’s Vineyard project (5.0 MW) and a budget not to exceed $40 million for the Wellfleet project (12 MW).

However, the DPU denied, as insufficiently supported, storage projects at New Bedford and Pittsfield, and, as premature, a larger, phase two of the Martha’s Vineyard project

The DPU did find that the specific storage investments by the utility were consistent with state law

Regarding EVs, the DPU approved the proposed $45 million EV infrastructure program which includes two primary components: (1) increased investment in long dwell-time EV charging make-ready infrastructure in public and workplace settings and at multi-unit dwellings (MUD); and (2) increased market education and outreach targeting potential car buyers in the Companies’ service territories

The Department declined to open a separate proceeding to address specific issues related to distribution company involvement in EV charging at this time. Rather, the Department encourages the EDCs to coordinate the EV infrastructure program with other distribution companies and state and regional EV initiatives, and include issues such as rate design and demand response in the stakeholder meetings. The Department directs the EDCs to collect EV charging data, as site hosts are selected, that can be used to develop TOU rates and a potential EV demand response pilot program.

In the rate case, the DPU approved the consolidation of the NSTAR and WMECO operating companies; however, rate design issues (such as changes to basic service and rate class consolidation) were previously reserved to a future order in a second phase of the case

The DPU said, "The Department finds that the corporate consolidation of NSTAR Electric and WMECo will not, in itself, result in any changes to the rates, prices, charges, or terms and conditions applicable to NSTAR’s or WMECo’s customers."

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