Nstar Seeks 24 Month Reconciliation of Nstar Green Under-recovery

Nstar is seeking to recover the latest under-recovery of its Nstar Green optional generation product over a 24-month period, rather than the 12-month period contemplated in a prior DPU order.

The under-recovery relates to the period October 2010 through June 2011, and amounts to $541,000. Nstar said that most of the under-recovery resulted from the period before March 2011, at which time the Nstar Green rates were adjusted to be consistent with current market forecasts.

Specifically, Nstar is seeking to raise the 50% Nstar Green adder from 2.534 cents per kWh to 3.328 cents per kWh, and is seeking to raise the 100% Nstar Green adder from 4.791 cents per kWh to 6.379 cents per kWh.

The sought increases include a reconciliation adjustment for customers taking 50 percent Green Service of 0.365 cents per kWh and a reconciliation adjustment for customers taking 100 percent Green Service of 0.731 cents per kWh.

These per-kWh adjustments are designed to recover the $541,000 under-recovery from Nstar Green customers over a 24-month period.

In a June order, the DPU directed Nstar to reconcile the six-month Nstar Green under- or over-recoveries over the subsequent twelve-month period. The at-issue reconciliation concerns a longer period since Nstar is currently transitioning to six-month Nstar Green rate adjustments.

Nstar said that collection of the $541,000 over a 12-month period, "would increase the price for NSTAR Green considerably."

"In order to dampen the price impact and maintain a more accurate price signal," Nstar recommended that a 24-month recovery period be used.