DPUC Maintains Bypassable GSC Administrative Adder

The Connecticut DPUC has denied United Illuminating's request to move certain costs from the bypassable Generation Services Charge to the nonbypassable Federally Mandated Congestion Charge (FMCC), in a final order in a reconciliation proceeding (10-08-01).

UI had proposed moving costs of Standard Service that do not vary with migration, which are currently collected through the Generation Services Charge administrative adder, to the nonbypassable FMCC. Such costs include supply procurement administration, payroll and IT support for supply functions, and certain EDI costs (12/14).

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

The Department's final order also noted that one item in the nonbypassable FMCC that is increasing each year is the expenses related to the Contracts for Differences, 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 DPUC said.