Connecticut Gives Final Approval for CL&P to Self-Manage Default Service

A final Connecticut Public Utilities Regulatory Authority decision approved a default service power procurement plan for Connecticut Light & Power and United Illuminating that allows CL&P to self-manage 20% of the Standard Service portfolio.

Under the final order, for 80% of CL&P's Standard Service load and all of UI's Standard Service load, full requirements contracts will be used, with a shorter laddering period, increased procurements throughout the year, and a reduction in the time between the bid date and delivery start date.

Specifically, full requirements service contracts will be procured four times per year for 12-month terms. This will create a series of 12-month contracts that overlap by six months.

A filed procurement plan contemplated CL&P assuming responsibility for managing 20% of Standard Service load at the start of 2013, but the final order pushes back the start date for the self-managed portion of Standard Service load to the second half of 2013. This will require CL&P to procure the remaining 30% of the first half of 2013 requirements as full requirements service contracts.

The order also recognizes that UI has now already secured its full Standard Service load for 2013, and that it will conduct no further procurements for 2013 load.

PURA's decision also requires the state's Procurement Manager to submit the first yearly update to the procurement plan no later than January 1, 2014.

Standard Service is applicable to customers under 500 kW.

The order does not change the current quarterly full requirements contracts for Last Resort Service, applicable to customers 500 kW and larger.

Docket No. 12-06-02