Retail Supplier Proposes Retail Auction in Massachusetts, Other Retail Market Enhancements

A retail supplier has proposed that the Massachusetts DPU consider a retail opt-out auction of certain customers.

Specifically, Green Mountain Energy made the proposal as an alternative to the disposition of current customers in the Nstar Green generation rate option, whose future is currently being reviewed by the DPU and whose current structure has been called "unsustainable" by the utility (see related story today).

Green Mountain Energy proposed that Nstar Green be terminated, and that upon termination Nstar should conduct an outreach program to the remaining customers advising them of their renewable energy choices in the competitive market. Licensed retail suppliers offering renewable energy products should be provided with a list of current Nstar customers along with contact information, as part of any outreach effort, Green Mountain said.

However, Green Mountain Energy also offered that, "[i]n the alternative DPU may wish to consider an opt-out auction among retail suppliers offering renewable energy products for the right to serve remaining Green program customers."

"The proceeds from an auction could be applied toward reducing remaining Green program costs as well as NSTARs' obligation for the above-market renewable supply contracts. For example, an auction that requires a minimum bid of $100 per customer could net more than $500,000 based on the current number of customers in the program," Green Mountain said.

Current Nstar Green enrollment is approximately 5,600 customers.

Additionally, Green Mountain Energy proposed a series of retail market enhancements for expanding the competitive retail renewable energy options for Massachusetts residential and small commercial customers, most of which (given their nature) would likely apply to the retail market as a whole, if implemented.

Specifically, Green Mountain recommended that the DPU form a work group dedicated to overcoming obstacles to customers seeking to purchase renewable energy from retail suppliers, such as day-one enrollment for new service connections, enrollments with an easy and unique identifier instead of the utility account number, allowing customers to retain their retail supplier service when moving within the territory, the ability for suppliers to charge for non-commodity related energy services and products on the utility consolidated bill, and consumer education.

Docket 13-80

See Related Story Today: Retail Suppliers Seek to Terminate "Unsustainable" Nstar Green Generation Option