State Sets Discussion Of Whether Additional TOU Options Should Be Offered To Non-shopping Customers, If Default Service Becomes An Opt-out TOU Rate

The Massachusetts DPU has issued an agenda for an October 21 to October 22 technical conference concerning the DPU's investigation of time-varying rates for electricity default service (basic service)

The DPU has said that it will "expeditiously" investigate the use of opt-out time of use rates for default service, after the Massachusetts Department of Energy Resources proposed that the default basic service rate be a two-tier TOU rate (peak and off peak) with a four-hour peak period of 4 PM to 8 PM, with the ability of the customer to opt out to another default service rate

See full details on DOER's TOU proposal in ECM's prior story here

Among other things, the technical conference will discuss whether additional, optional TOU rates should be offered to basic service customers in addition to the default TOU option

In particular, the offering of an opt-in Critical Peak Pricing (CPP) rate, or other opt-in TOU rates that are more "dynamic" than the opt-out TOU rate, will be discussed

The conference will also address whether a basic service CPP should be coordinated with existing demand response offerings (e.g., ConnectedSolutions), and if so, how. ConnectedSolutions allows the utilities to control smart thermostats and home batteries for enrollees

Additionally, the technical conference will discuss the rate design for basic service customers who opt-out of TOU

The conference is to address: "Should the EDCs maintain a flat, non-seasonal rate option consistent with current rates or some other rate design option(s) for customers who wish to opt-out?"

Stakeholders will also consider whether participation in ConnectedSolutions or a similar offering should be required for customers opting-out of TOU default service

The technical conference will also address any changes needed to the EDCs’ IT and billing systems and standard service procurements to implement time varying rates; and associated implementation timelines

Among other things, the EDCs are directed to describe the "fastest implementable option" for TVR, and provide the TVR design that could be implemented in the shortest timeframe, including the principal design elements and the estimated implementation timeline. This option should include TVR design elements that can be implemented as advanced meters are installed, but ahead of full advanced meter deployment, a hearing officer directed

Other issues to be discussed include the ratio between prices in TOU periods, the number of TOU periods and their times, and seasonality

Docket 26-62