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Draft Order From Choice State Regulator Would Rescind Cost Recovery Mechanism For AMI Deployment
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A proposed decision from the Connecticut PURA would rescind in its entirety a 2024 PURA order which had established a cost recovery mechanism for AMI deployments at Connecticut Light & Power (the "Company") separate from base distribution rates
The draft order would rescind the 2024 CL&P AMI cost recovery order due to, among other reasons, what the draft order terms, "the Company’s [CL&P]
decision to delay implementing AMI[.]"
Notwithstanding the 2024 AMI cost recovery order, CL&P has stated that certain "identified obstacles" have stymied AMI deployment. Such stated obstacles include the treatment of “one-time” O&M expenses and what CL&P termed the “misapplication” of the prudence standard by PURA
According to the draft order, CL&P provided three scenarios for the deployment of AMI for the Authority
to consider. Under scenario 1, which is said to be the Company’s preferred scenario, the Company
would use the requests for proposals it conducted prior to the issuance of the AMI
Decision and the AMI Cost Recovery Decision for deployment of AMI in Massachusetts.
Under scenario 2, the Company
would “start from scratch” by reevaluating the technology selections made in
Massachusetts, as well evaluating and selecting either technology used for AMI
implementation in Massachusetts or new technology. Under scenario 3,
which is the Company’s least favored scenario, the Company would gradually deploy AMI
as legacy advanced meter reading (AMR) meters reach their useful lives.
Each scenario requires the Company to update, at a minimum, its
customer information system (CIS) and meter data management system (MDMS) before
the Company can begin deploying AMI. The Company had stated that the system
updates are estimated to take three years to complete.
Of note is that retail suppliers have said that the AMI and other systems used by CL&P's affiliate in Massachusetts are not capable of providing interval data in the granularity needed for wholesale settlement based on AMI (see story here)
The draft would find that, "the Authority finds the Company’s decision to delay implementing AMI
provides cause for rescinding the AMI Cost Recovery Decision. Importantly, the decision
to implement AMI within its distribution system, including the specific functionality of AMI
and the deployment schedule, is solely within the discretion of the Company. The
Authority’s role is generally limited to assessing the reasonableness and prudency of such
investments and granting cost recovery through rates".
The draft would find that, "The AMI Tariff was established at the request of the Company to accelerate the
Company’s deployment of AMI over five instead of ten years. AMI Cost Recovery
Decision, pp. 1, 3, 5–6, 20. However, since the Authority established the AMI Tariff, the
Company has not made any AMI-related investments or otherwise moved forward with
AMI in Connecticut. Tr., 112:7–16. In fact, the Company has yet to submit for review and
approval a final AMI Plan or an updated benefit-cost analysis (BCA), both of which are required prior to AMI implementation. AMI Cost Recovery Decision, pp. 31–33; AMI
Decision, pp. 10–11, 58. Rather, between December 2024 and January 2026, the
Company spent $8.57 million on AMR meters, which the Company uses when it replaces
existing meters and installs new meters."
The draft would find that, "Consequently, the record shows that the AMI Tariff has not motivated or
accelerated any AMI deployment as intended. As such, the Authority finds that the
primary rationale for establishing the AMI Tariff is no longer applicable, supporting the
rescission of the AMI Cost Recovery Decision."
In addition to what the draft terms CL&P's decision to delay AMI deployment, the draft also cited the following as supporting rescission of the AMI cost recovery decision: CL&P's impending distribution rate
case, and the passage of Public Act No. 25-173 which permits securitization of AMI
costs.
Docket 17-10-46RE04
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May 29, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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