Connecticut Procurement Manager Seeks Greater Authority to Increase Self-Procurement of Default Service

Connecticut's default service procurement manager has requested that PURA grant the manager expanded authority to allow the manager to direct the utilities to procure an increased amount of self-managed default supplies under certain circumstances.

Specifically, the procurement manager wishes to be granted authority to direct the utilities to engage in additional self-managed load in cases where responses to full requirements RFPs are not robust or otherwise include excessive risk premiums.

In 2013, the procurement manager recommended that CL&P engage in additional self-management of default load due to uncertainty over the future of default service (due to the retail auction proposal), but had to obtain oral authorization from PURA for the change in the amount of self-procurement.

In supplemental comments to PURA, the procurement manager said, "Going forward, I recommend that the Power Procurement Plan allow the Procurement Manager to direct the utility to self-manage a portion of load due to unforeseen conditions, such as described above, or due to poor bidder responsiveness. Specifically, if we experience a Standard Service bid day with less than robust bidder participation or receive bid prices with excessive risk premia, and if there is no prospect of any improvement in market conditions, the Procurement Plan must provide for a timely alternate procurement approach. If such conditions occur, the Procurement Plan should allow the Procurement Manager to act without delay and authorize the utility to self-manage uncontracted portions of its Standard Service load. The Procurement Manager would inform PURA Commissioners of this decision during the Technical Meeting following bid day, and solicit formal review and approval of such modification in the following year's annual review of the Power Procurement Plan. This recommendation and proposed contingency plan should apply equally to both CL&P and UI."