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Regulator Won't Adjust Mechanisms Used For Recovering Uncollectible Expenses (Generation vs. Nonbypassable)
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In an annual rate adjustment proceeding, the Connecticut PURA declined to adjust the current mechanisms used to recover non-hardship (NHS) uncollectible expenses
PURA had used the annual proceeding to review the different treatment of NHS uncollectibles at the two electric utilities
Connecticut Light & Power (Eversource) recovers NHS uncollectible expenses within its Generation Service Charge (GSC), the Non-Bypassable Federally Mandated Congestion Charge (NBFMCC), the Electric System Improvements (ESI) charge, and base distribution rates. United Illuminating allocates the NHS uncollectible expenses within its Generation Service Charge, the Transmission Adjustment Clause (TAC), and base distribution rates
PURA said, "While these divergent allocation approaches persist, any changes to the NHS uncollectible allocations are best implemented through each EDCs next base distribution rate case."
PURA said, "A change made to the allocation methodology that would either reduce or increase the allocation of non-hardship uncollectible expenses to the GSC, outside of a traditional rate case, would cause the EDCs to either not recover the full expense or recover more than the actual expense."
PURA did direct the EDCs to further report on NHS uncollectibles
Specifically, PURA directed that in the next annual proceeding, the EDCs shall include an additional alternate calculation for the treatment of NHS uncollectible expenses using the methodology referenced in Docket Nos. 07-01-01 and 08-07-04, which allocated NHS uncollectible expenses to the GSC mechanism and base distribution rates only (with the allocation of the NHS uncollectible expenses to the GSC being in the proportion of GSC revenues compared to the total revenues reported by the EDC).
PURA stated, "the request for an additional alternate calculation is not intended, and should not be construed as direction, to change the way in which the EDCs recover NHS uncollectible expenses. Rather, this requested filing is intended to assist the Authority in better understanding the implications of potential future allocations, which would be determined in each EDCs’ respective base distribution rate case."
Aside from the allocation of NHS uncollectibles, PURA had also raised, earlier in the proceeding, the length of the look-back period used to set the NHS uncollectibles related to the GSC (3 months vs. 12 months), but PURA did not specifically address this issue in the final order, aside from keeping the EDCs' current mechanisms in place. CL&P uses a 3-month look-back, while UI uses a 12-month look-back.
Docket 24-12-05
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December 10, 2025
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Reporting by Paul Ring • ring@energychoicematters.com
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