Utility Reports Cost of Recent Retail Supplier Default

Connecticut Light & Power has reported to PURA the costs arising from its transfer of People's Power & Gas' customers to default service due to People's Power & Gas' default at ISO New England last month (the default has since been cured).

The total cost of the transfer, to date, was reported to be about $2,300.

"The only direct costs were related to the mailings required to CL&P customers affected by the supplier switch. Harder to quantify are the significant hours spent by CL&P staff and support teams ... CL&P continues to incur additional expenses as a result of PPG's financial default," CL&P said.

CL&P reported that it sent approximately 2,800 customer letters at a cost of $1,365.

CL&P also reported $960 resulting from IT "Hammer Work", meaning the process of moving customers from PPG to default service with IT programming.

CL&P also reported that the PPG default and transfer required 10 hours of legal time, 60 hours of time from managers or above, and 150 hours from supervisors and below. The time required for IT analysis, development, testing, and implementation was 42 hours.