Negotiations Ongoing Regarding Massachusetts POR

Negotiations are continuing among electric distribution companies and retail suppliers regarding purchase of receivables in Massachusetts.

As previously reported, the DPU has indicated its willingness to facilitate negotiations to allow final action on POR compliance plans, which have been pending before the Department for about a year, and had directed parties to report on their status by July 24.

Last week, in separate letters, the distribution companies and retail suppliers reported that negotiations are ongoing. No party requested an immediate intervention by the DPU into the process.

Retail suppliers said that they would provide the distribution companies with settlement proposals on July 31.

Retail suppliers said that parties will provide a further report to the Hearing Officer by August 17, 2012, regarding the status of the settlement discussions.

The retail suppliers are negotiating with each distribution company individually. If and when either side believes that their one-on-one settlement discussions are not likely to be productive, the retail suppliers propose that either party may request that a joint meeting with the Hearing Officer be scheduled, at which time, the issues having to do with that particular company will be discussed with the goal of an amicable resolution.

As previously reported, Fitchburg Gas and Electric has said that POR cannot be implemented under its current CIS. Fitchburg Gas & Electric reported that its new CIS implementation project is expected to begin in January 2013. Industry best practices indicate that a CIS implementation typically takes between 18-24 months, and Fitchburg Gas & Electric expects a similar timeline.