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Utilities File To Remove Supply Costs From Bypassable Rates
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In accordance with a prior order, the Massachusetts natural gas distribution utilities have filed compliance tariffs to remove certain gas supply costs from bypassable rates
In a recent order, the DPU addressed certain incremental supply costs derived from the
need to ensure that there is sufficient capacity available to serve capacity-exempt
customers on the LDCs' systems.
Generally, the DPU directed the LDCs to
develop tariff changes designed to eliminate any subsidization of capacity-exempt
customers by sales and capacity-eligible customers for incremental supply required to
meet operational flow orders from the gas pipelines
On behalf of its various LDCs in Massachusetts, Eversource filed proposed revisions to include a new System Supply Factor,
which is designed to recover incremental supply costs from all customers, including
capacity-exempt customers, to ensure sufficient supply is available to meet the hourly
requirements needed to ensure there is adequate pressures into the distribution system.
Eversource said, "This new System Supply Factor('SSF') is modeled on a tariffed factor that was utilized
by National Grid’s Rhode Island affiliate."
Eversource said that these proposed tariff
revisions exclude gas costs associated with the incremental supply procured to ensure a
sufficient capacity available to meet system hourly flow requirements being recovered
through the Local Distribution Adjustment
Clause (LDAC) from being recovered through the Seasonal Cost of Gas Adjustment Clause (CGAC).
Eversource said that these proposed tariff revisions require a
capacity-exempt customer seeking Default Service for the peak winter season on or
before November 1st to notify its local distribution company by June 1st of that year.
Eversource said that the tariff changes seek a May 1, 2024
effective date to allow sufficient time for implementation for the LDCs while also
allowing time for the Department’s review and for comments to be provided by interested
stakeholders.
National Grid filed essentially the same proposed tariff changes for its Massachusetts LDCs
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October 31, 2023
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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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