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Nstar To Combine POR Rates Into Single Discount Applicable To East, West Service Areas

Nstar Residential Discount Falls 30% Versus Current East Rate, But Would Have Been Even Lower Without Consolidation

March 18, 2019

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Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The following story is brought free of charge to readers by EC Infosystems, the exclusive EDI provider of EnergyChoiceMatters.com

Nstar (Eversource) has filed new proposed purchase of receivables discount rates (standard complete billing percentages) to be effective May 1, 2019.

In doing so, Nstar proposes to consolidate the POR discounts for its east and west (WMECO) service areas, for each customer class, into a single discount per customer class across its entire service area

The rates remain subject to DPU approval.

The proposed May 1, 2019 Nstar Massachusetts POR discounts are:

Nstar - East & West, May 1, 2019 (Proposed)
              Residential  Commercial  Industrial
Uncollectible    1.22%       0.19%       0.03%
Admin Cost       0.00%       0.00%       0.00%
Reconciliation  -0.28%      -0.07%     [-0.11%]*
Total            0.94%       0.12%       0.03%*

* Pursuant to past practice, Nstar will set the total industrial discount equal to the Uncollectible discount of 0.03%. Rather than incorporating the reconciliation refund amount into the POR discount, Nstar will make a one-time payment to each affected retail supplier serving industrial customers in Nstar's service territory.

Without the proposed consolidation, the POR discounts would have been as follows for each rate division, effective May 1, 2019

Nstar - East, May 1, 2019 (Illustrative)
              Residential  Commercial  Industrial
Uncollectible    1.03%       0.18%       0.03%
Admin Cost       0.00%       0.00%       0.00%
Reconciliation  -0.22%      -0.09%      -0.10%
Total            0.81%       0.09%      -0.07%


Nstar - West, May 1, 2019 (Illustrative)
           Residential  Commercial  Industrial  Other
Uncollectible   2.20%       0.28%     0.02%    -0.04%
Admin Cost      0.00%       0.00%     0.00%     0.00%
Reconciliation -0.74%       0.14%    -0.13%    -0.07%
Total           1.46%       0.42%    -0.11%    -0.11%

For comparison, Nstar's current POR discounts for the East rate zones are:

              Residential  Commercial  Industrial
Uncollectible    1.26%        0.30%       0.18%
Admin Cost       0.00%        0.00%       0.00%
Reconciliation   0.04%        0.10%       0.15%
Total            1.30%        0.40%       0.33%

For comparison, Nstar's current POR discounts for the West (WMECO) rate zone are:

           Residential  Commercial  Industrial  Other
Uncollectible   2.84%       0.14%     0.22%     0.05%
Admin Cost      0.00%       0.00%     0.00%     0.00%
Reconciliation  0.09%       0.01%     0.19%     0.05%
Total           2.93%       0.16%*    0.41%     0.09%*

*Amounts are reproduced [sic] as listed in 
2018 WMECO filing and (for totals) DPU order

D.P.U. 19-POR-2

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