Conn. Draft Would Retain Bypassable GSC Admin. Adder

A draft Connecticut DPUC decision would deny United Illuminating's request to move the Generation Service Charge (GSC) Administrative Adder from the bypassable Generation Service Charge rate component to the Non-Bypassable Federally Mandated Congestion Charge (NBFMCC) rate component (10-08-01).

As only noted in Matters (12/14), UI recommended that the DPUC consider making the GSC administrative adder nonbypassable, "because such costs should be spread across all customers since they do not change when customers switch suppliers." UI's request was made in a proceeding typically reserved for routine reconciliation matters.

In the draft, the Department would, "den[y] UI's request to move from the GSC to the nonbypassable FMCC the expenses that don't change when customers leave standard service."

"The Department reaffirms that it is most appropriate to recover expenses that are generation related in the GSC rate," the draft states.

The draft also noted that one item in the nonbypassable FMCC that is increasing each year is the expenses related to the contracts for differences (CfDs), both the capacity contracts and the peaking generation contracts. "As these costs grow, the Department believes it is important to scrutinize the details and assumptions behind the actual amounts that are under review as well as the projections that are used to set rates for the following period. Therefore, the Department will order the companies to submit in their semi-annual applications the details and assumptions supporting the actual and projected costs for each CfD, both capacity and peaking generation," the draft states.