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Utility Says Direct Market Purchases For Default Service Cannot Feasibly Be Implemented Prior To Fall 2026 Procurement
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In a data response at the Connecticut PURA, United Illuminating said that the October 2026 procurement cycle for standard service (default service) is not a feasible target for UI to implement "dynamic purchasing" (supplies sourced by the utility directly from the ISO New England market) for a portion of standard service
UI's data response came in a PURA proceeding considering changes to the default service procurement methodology, including the use of dynamic purchasing. See ECM's prior story for full background
UI said that, upon a final order from PURA for UI to engage in dynamic purchasing for standard service, "there will
be a period of time, perhaps 18 months, required to fully complete the following implementation
activities," with UI listing such as: Retention of specialized forecasting and market consultants; Hiring and onboarding of dynamic procurement FTEs; Systems specification, configuration, and integration; Development and testing of proxy pricing, forecasting, and risk models; Readiness review and Procurement Manager approval
UI noted that PURA's tentative schedule in PURA's investigation of changes to the default service procurement plan contemplates a final order in October 2026, or just shortly before the October 2026 procurement
For dynamic purchasing without hedging, UI estimates that 3 full-time employees would be required for dynamic purchasing
using spot market scenarios and no hedging. The associated high-level cost estimate is
approximately $700,000.
For dynamic purchasing with hedging, UI estimates the staffing requirements to be higher at
8–10 full-time employees with an associated high-level cost estimate of approximately $1.6 million.
UI said, "Effective implementation of dynamic purchasing may also require engagement of a third-party
consultant with specialized expertise in load forecasting, wholesale market analytics, and risk
modeling, in addition to the hiring of dedicated full-time employees with significant procurement,
trading, and risk-management experience. These skills are highly specialized and not widely
available in the labor market, and both consultant selection and FTE recruitment are expected to
require extended lead times. Accelerating these processes would increase execution and
compliance risk."
UI also noted that it has fully procured Standard Service supply for the second
half of 2026, and has partially procured the first half of 2027, per the existing method for default service procurement
As of publication time, a data response from Connecticut Light & Power concerning the question of implementation timing for dynamic purchasing was not available.
12-06-02RE05
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April 27, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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