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Regulator Opens Docket For Default Service Procurement Changes After Governor Signs New Law
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The Connecticut PURA has assigned Docket 12-06-02RE04 for a review of the Power Procurement Plan for electricity standard service as a result of Public Act 25-173, which was signed by Gov. Ned Lamont on July 1
Among other things, Public Act 25-173 requires that the standard service (default service under 500 kW) procurement plan "shall" include a requirement that the EDCs be able to "engage in dynamic market
purchases" for not less than 25% of the standard service
load, subject to various terms including risk
mitigation, as further described below
The prior statute provided that the standard service procurement, in addition to load following contracts, "may" include any other contracts, including, but not
limited to, contracts for generation or other electricity market products
and financial contracts. This provision remains, but the new law also requires EDCs to be able to engage in dynamic market
purchases
Under Public Act 25-173,
"dynamic market purchases" means the purchase of energy, capacity or
other market products necessary to serve standard service electric load
using market purchases in the regional independent system operator
markets, financial contracts or other variable procurement techniques
Specifically, Public Act 25-173 mandates that the procurement plan, "requir[e] each electric distribution company, individually or
jointly, to develop and maintain the ability to engage in dynamic market
purchases for not less than twenty-five per cent of the standard service
load in a flexible manner designed to allow such company to purchase
energy products during periods of lower energy cost, subject to a risk
mitigation provision pursuant to subdivision (1) of subsection (b) of this
section, based on the active monitoring of day-ahead and real-time
energy markets[.]"
In setting retail standard service rates, a proxy price would be used for the
portion of standard service procured through dynamic market purchases
Public Act 25-173 also requires, among other things, consideration of the use of fixed price energy supply standard service wholesale contracts, in addition to full requirements contracts
More specifically, Public Act 25-173 requires the state's existing default service procurement manager to propose amendments to the procurement plan that "shall" include, but not be limited to, modifications regarding the "potential" use of:
(i)
multiple competitive solicitations each year for the procurement of
energy at intervals identified in the procurement plan, or as determined
from time to time by the procurement manager to serve the best interests
of the ratepayers, provided such determination is in accordance with the
applicable provisions of the procurement plan
(ii) contracts with
durations not exceeding three years for the procurement of energy, and
(iii) fixed-price energy supply contracts in addition to full requirements
contracts
Public Act 25-173 would allow the EDCs to dedicate any nuclear power purchases mandated by state law to standard service, upon PURA approval. The energy, capacity or other products from such nuclear procurements, if dedicated to standard service, shall be
recovered through generation service charges
Public Act 25-173 would also allow the procurement manager to deviate from the procurement plan where, "the procurement manager determines that an interim
amendment to, or a temporary nonconformity with, the procurement
plan may substantially further the goal of effectively procuring standard
service while minimizing standard service cost volatility in relation to a
specific procurement[.]"
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July 9, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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