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Regulator Opens Investigation Of Time-Varying Rates For Default Service
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Following a petition from the Massachusetts Department of Energy Resources (first reported by EnergyChoiceMatters.com here), the Massachusetts DPU has opened an inquiry into the design and implementation of time-varying rates (TVR) for default service (aka basic service)
The DPU said that the DPU intends to conduct the TVR investigation "expeditiously", and build on the work of a Rate
Task Force’s "robust" stakeholder process.
The inquiry will include a review of DOER’s TVR proposals which were discussed in our prior story, but will not be limited to the DOER’s TVR proposals.
Among other proposals, DOER had proposed defaulting non-shopping customers onto a TVR for default service supply, with the ability to opt-out onto a flat default service rate
The DPU previously established a "framework" for the use of TVR in default service
that included: (1) a
default TOU default service rate with a CPP [critical peak pricing] component; and (2) the ability to opt out of the default TOU default service rate in
favor of a flat default service rate with a peak time rebate (PTR) component
The DPU previously left implementation of such default service TVR framework to a future order, intending to later address, among other issues, rate design
considerations, customer protections, any necessary modifications to the basic service (default service)
procurement process, and opt-out protocols once the utilities' grid modernization plans had been adjudicated
The DPU opened its TVR investigation by asking the utilities to report various load and peak data, and to provide analysis of such
Among other things, the DPU directed the EDCs to report on "all necessary actions" that each EDC must take before the EDC can enroll
customers in a TVR rate, including the availability of AMI data to allow competitive retail suppliers to enroll TOU customers, as discussed below
As previously reported by ECM, retail suppliers and other advocacy groups allege that the EDCs committed to the use of AMI interval data for ISO-NE load settlement under their previously approved AMI Implementation Plans and budgets. The Massachusetts electric utilities argue that using AMI interval data to settle load at ISO New England was not included in their AMI Implementation Plans approved by the Massachusetts DPU, and argue that competitive retail electric suppliers should pay the cost of EDC system upgrades to implement the use of AMI interval data for ISO-NE load settlement
To start the new TVR investigation, the DPU specifically directed the EDCs to report:
a. a schedule for implementation of TVR rates to customers based on
DOER’s recommendations;
b. the sequencing of TVR roll-out;
c. the status of AMI deployment, including AMI meters and all associated
processes and functionalities (e.g., customer information systems, meter
date management systems, etc.);
d. identification of any additional changes to AMI functionalities, billing
systems, or other operational functions to implement TVR rates based on
DOER’s recommendations;
e. identification of any additional changes to AMI functionalities, billing
systems, or other operational functions to enable TVR supply rates for
non-demand customers who receive supply from competitive suppliers or
municipal aggregation providers;
f. a description of likely tracking and reporting; and
g. a description of costs to implement TVR rates based on DOER’s
recommendations, including potential incremental implementation costs such as, but not limited to, marketing, education, and outreach, such as a customer contact center, web application, and app
portal, development and dissemination of education
materials, billing system upgrades, and back-office
customer account maintenance
Notably, the DPU directed that EDCs should report the implementation costs that would be incurred to enable TVR for the following: (1) basic service, (2) competitive suppliers, (3) transmission rates, and (4) distribution rates.
The DPU directed the EDCs to provide empirical analyses and discussion of the appropriateness of a single four-hour
peak window from 4:00 p.m. to 8:00 p.m. for each day (weekday, weekend,
holiday) during summer, shoulder, and winter seasons, with definitions for each
season
The DPU invited stakeholder comment on consumer protections and the other issues below:
1. identify and describe any consumer protections necessary for a successful
design and implementation of TVR in Massachusetts;
2. describe implementable strategies for guiding customer behavior to avoid
creating a new system (or grid pocket) peak immediately following the end of a
peak rate period;
3. identify any additional changes to AMI functionalities, billing systems, or
other operational functions required by the EDCs to enable TVR supply rates for
non-demand customers who receive supply from competitive suppliers or
municipal aggregation providers;
4. identify and describe key elements for inclusion in the EDCs’
implementation and marketing and outreach plans
After receiving utility and stakeholder input regarding TVR
implementation and rate design considerations, the DPU will determine the next
procedural steps of the TVR investigation after reviewing such submissions
Docket 26-62
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June 30, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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