Retail Suppliers, National Grid Agree on Start Date for Purchase of Receivables in Massachusetts

National Grid and retail suppliers have reached a consensus start date for implementing purchase of receivables in National Grid's Massachusetts electric service territories.

Specifically, per a consensus compliance filing, National Grid's POR program shall take effect within three months after final DPU approval of the utility's POR implementation plan, but no earlier than April 6, 2014.

Similar to Nstar, the consensus compliance filing would set the uncollectibles component of POR at National Grid as, for the first year of program operation, the uncollectible expense for the participating Customer Class based on actual data, excluding uncollectible expenses related to amounts billed by the utility for Generation Service purchased from Competitive Suppliers, divided by the total amounts billed by the utility, including late payment fees if included in uncollectible expense and excluding amounts billed by the utility for Generation Service purchased from Competitive Suppliers, to that participating Customer Class.

The period used to calculate the first year Uncollectible Percentage will be the same period as that used/reflected in the calculation of its uncollectible costs associated with the amounts the utility bills for Basic Service supply.

The consensus compliance filing also establishes that Administrative Costs of the POR program shall include the amortization of costs over three years, including carrying costs calculated at the utility's short-term borrowing rate

The consensus compliance filing did not include specific discount rates.

Docket 10-53