Regulator Seeks Briefs On Authority To Use Long-Term Contracts, Currently Treated On Nonbypassable Basis, To Meet Default Service Load

Part Of Inquiry Into Spike In Non-supply Costs On Customer Bills

August 26, 2020

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Reporting by Paul Ring • ring@energychoicematters.com

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In seeking briefs concerning recent rate increases in nonbypassable transmission and other non-supply charges, the Connecticut PURA has raised the issue of applying electricity supplies currently purchased under long-term contracts, and sold into the wholesale market with no impact on the price to compare, to meet small customer default service load

Customers at the Connecticut utilities have seen spikes in July in the non-supply portion of their bills, due in part to FERC-related transmission charges (treated as nonbypassable non-supply charges under the state's restructuring) as well as costs under long-term energy contracts with the Millstone nuclear plant, whose output is sold into the wholesale market and costs/benefits allocated on a nonbypassable basis. Summer usage, including increased residential usage due to COVID, have also accounted for bill increases. CL&P said that approximately 88% of the July bill impacts, on average, were attributable to increased customer usage

However, PURA has now raised issues related to default service in the proceeding

Specifically, in seeking briefs on several questions regarding the Millstone long-term PPAs, PURA asked stakeholders to, "Discuss whether Conn. Gen. Stat. 16a-3m dictates the EDCs’ disposition of Millstone generated energy, specifically addressing whether the sale of Millstone generated energy directly to standard service customers is prohibited and whether the statute defines what constitutes the 'net costs' of the PPAs."

"Assuming that the sale of Millstone generated energy to standard service customers is permissible, separately address any regulatory approvals, changes, or other actions required to achieve such sale," PURA directed in the request for briefs

Docket 20-01-01

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