State Allows for Utilities to Combine/Drop Default Service Procurement, Engage in Greater Self-Managed Load

A Connecticut PURA final decision has granted the electric distribution companies, upon the consent of the state's procurement manager, greater flexibility to drop, add, or combine Standard Service procurement dates, and to increase the amount of default load self-managed by the utilities.

Under the order, each EDC will schedule four Standard Service procurements per year, in a pattern of 6- and/or 12-month contracts, such that each rate period will reflect an average of contracts awarded during approximately three to four different procurement dates. The EDCs, with the consent of the procurement manager (PM), may add or drop procurement events if warranted, while still ensuring a diversity of procurement dates, PURA said. For example, if the PM and the EDCs reject all bids on a procurement day, an additional procurement date would be scheduled. Alternatively, if sufficient contracts at favorable prices have been awarded to complete a service term, the remaining procurements for that service term would not be needed, PURA said

PURA also granted the procurement manager and EDCs greater flexibility to adjust the quantity of Standard Service supply that may be procured through EDC supply portfolio self-management.

"If facts and circumstances exist that lead the PM and EDCs to believe that all bids received during a SS procurement should be rejected or that a scheduled procurement should be cancelled, the PM may authorize the either [sic] of EDCs to self-manage portions of SS load. The Authority wants to make clear that it is approving the PM's ability to direct EDC procurement of SS through self-management as a structural feature of the Plan. In other words, the PM does not have to seek an amendment or interim approval to exercise this option to vary the level of EDC self-management," PURA said.

The procurement manager shall "notify" the Authority in writing immediately upon making a decision to direct the EDCs to procure a greater portion through self-managed procurements than is currently approved – 30% for CL&P and 0% for UI.

PURA approved the disclosure of limited information relating to self-managed load, under the terms proposed by the procurement manager, but rejected calls from retail suppliers for greater disclosure.

Docket 12-06-02RE01