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Groups Urge Regulator To Open Contemplated Grid Modernization Proceeding

Review Of Barriers To Offering Of Dynamic Pricing By Competitive Retail Suppliers


April 22, 2019

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

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The Acadia Center, the Cape Light Compact JPE, Conservation Law Foundation, Green Energy Consumers Alliance, and Northeast Clean Energy Council (the "Parties") requested that the Massachusetts Department of Public Utilities (the "Department" or "DPU") immediately commence its investigation into the deployment of customer-facing grid modernization investments pursuant to its Grid Modernization Order dated May 10, 2018 in Docket 15-120

As previously reported by EnergyChoiceMatters.com, the DPU in its May 10 order rejected the territory-wide deployment of AMI

However, in such order, the DPU said that it, "remains committed to the pursuit of advanced metering functionality as a means to achieve our grid modernization objectives. We intend to open an investigation to consider the next steps for cost-effective deployment of customer-facing investments."

The Department in its prior order had stated that its investigation:

• would explore "whether a targeted deployment of advanced metering functionality to certain customer groups (for example, new net metering and electric vehicle customers) is cost-effective and otherwise in the public interest."

• would consider the technical specifications required to deploy advanced metering functionality to "customer groups that are likely to be engaged and participate in dynamic pricing, and have the greatest potential to use these technologies to benefit themselves and the system as a whole to lower system costs and offset peak generation."

• would seek to enable competitive supply customers, including municipal aggregation customers, to offer dynamic pricing by considering the obstacles to that participation (e.g., billing, data access).

"The Parties appeal to the Department to commence this investigation with all due haste," the Parties said

The Parties further said that, "In addition, given that the Department has found that 'the level of customer participation in [time-varying rates ('TVR')] directly affects the cost-effectiveness of the deployment of advanced metering functionality,' it is urgent to begin the process of addressing barriers to widespread participation in TVR. In particular, given the ever-increasing number of Commonwealth ratepayers on competitive supply and municipal aggregation, TVR must be rolled out in a manner that allows all customers to participate, regardless of supplier. It is time for the Department to act on its intent to investigate the steps that must be taken to enable competitive suppliers and municipal aggregators to offer dynamic pricing and thus to meaningfully participate in the modernized grid. See Order at 137. The Department's proposal to investigate the deployment of advanced metering infrastructure using a targeted approach represents a reasonable jumping off point to restart this aspect of grid modernization after its decision to defer advanced metering in its Order. Id. at 135-36. The numerous potential benefits from advanced metering infrastructure cannot be achieved until its actual deployment. Given that the investigation and roll out of targeted deployment will take significant time, the Department should not further stall progress. The Commonwealth cannot and should not afford further delay in advancing grid modernization as part of its fight against the ongoing effects of climate change."

D.P.U. 15-120

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