Retail Supplier Payments to be Drastically Reduced Under Draft Settlements with Connecticut PURA Regarding RPS Accounting Dispute

Two retail electric suppliers have reached draft settlements with the Connecticut PURA regarding a PURA decision which originally ordered the imposition of what the suppliers saw as excessive alternative compliance payments.

As previously reported, a recent PURA decision regarding supplier 2010 RPS compliance did not allow several suppliers to claim RECs which the suppliers said they used for Connecticut, because PURA found that the RECs were not properly accounted for in NEPOOL GIS, as they were not settled in the Connecticut Subaccount. The suppliers argued that PURA lacked authority to exclude the RECs on such technical grounds, and that their purchase of RECs met the statutory requirements. Suppliers filed for relief in state court.

Specifically, PURA's original decision had ordered Discount Power, Inc. (DPI) to pay $1.6 million in alternative compliance payments, and had ordered Starion Energy to pay $341,000 in alternative compliance payments (ACPs).

Under a settlement with PURA, Discount Power would pay $225,000, "in lieu of, and in full satisfaction of, any and all ACPs ordered to be paid by DPI in the 2010 RPS Decision."

Under a settlement with PURA, Starion Energy would pay $63,000, "in lieu of, and in full satisfaction of, any and all ACPs ordered to be paid by Starion in the 2010 RPS Decision."

Under the separate settlements, PURA shall not take any adverse licensing action against the two suppliers on account of the issues raised and/or resolved in the RPS matter.

The settlement with Discount Power also provides that PURA agrees that the 2010 RECs purchased by Discount Power in excess of those needed for 2010 compliance will be, for purposes of Reg. Conn. State Agencies § 16-245a-1 (Banking Renewable Certificates), counted as if properly accounted for in accordance with the then-current operating rules of the NEPOOL GIS in accordance with Reg. Conn. State Agencies § 16-245a-1(b) and § 16-245a-1(e).

A draft decision issued by PURA would authorize the Authority to execute both settlements.

Docket 11-09-03 et. al.