UI Files Exceptions to Bypassable GSC Admin. Adder

United Illuminating has filed exceptions to the Connecticut DPUC's draft finding that the Generation Services Charge Administrative Adder should remain bypassable (10-08-01).

As only noted in Matters (12/14), UI had sought to make the GSC Administrative Adder nonbypassable as part of a reconciliation proceeding. In the draft order (12/23), the DPUC, "reaffirms that it is most appropriate to recover expenses that are generation related in the GSC rate."

UI called the draft finding "flawed," arguing that the costs recovered under the Generation Services Charge Administrative Adder should be nonbypassable since they do not vary with migration.

"The GSC Administrative Adder relates to administrative services that the Company must provide no matter how many - or how few - customers take Standard Service from the Company. As the Department is aware, migration continues to increase. As a result, the costs associated with the GSC Administrative Adder are borne by a smaller number of customers, thereby increasing their GSC rate as well as the overall UI average system electric rate," UI said.

"For instance, approximately 2/3rds of UI's system load is currently served by alternate suppliers. Therefore, the remaining 1/3rd of UI's system is paying the entire cost of these items, resulting in an adder that is three times greater than it would be if the costs were equitably allocated. Electric distribution rates continue to be a subject of much debate in Connecticut. Spreading costs that are attributable to all customers among all customers is not only fair but also serves to more accurately reflect UI's retail rates," UI added.