Regulator Directs Utilities To Calculate "Incremental" Costs To Low-Income Customers, Impact On Subsidies, Due To Customers Being Served By A Competitive Retail Supplier, Not Default Service

June 17, 2020

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Reporting by Paul Ring • ring@energychoicematters.com

As part of its new proceeding (story here) examining the impact of the competitive retail electric and gas markets on low-income customers and ratepayer subsidies, the Massachusetts DPU has issued information requests to the electric and natural gas distribution companies directing the utilities the calculate the "incremental" cost impacts to low-income customers and ratepayer assistance programs resulting from customer shopping

For example, the DPU directed the EDCs to report the total supply costs billed to R-2 (residential assistance) customers served by individual competitive suppliers, and the supply costs that would have been billed to R-2 customers served by individual competitive suppliers if all such customers were on the fixed basic service rate

From this comparison, the DPU directs the calculation of the "incremental" cost to shopping R-2 customers, including how much of such incremental cost was borne by the individual customer, and how much was recovered through the residential assistance adjustment factor (RAAF). A similar calculation was directed for the impact on arrearage management programs (AMP)

The DPU further directs, from this total, the calculation of typical rate and monthly bill impacts resulting from R-2 customer shopping

Natural gas utilities were directed to provide similar information

Docket 19-07

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