State Proposes Mechanism to Mitigate, Defer Doubling of Default Service Rates

The Massachusetts DPU has issued for comment a specific proposal that would have the effect of blunting the otherwise doubling of National Grid's default service rates for the period starting November 1, through a blending process with recovery occurring over a longer period.

The DPU sought on the following method to calculate National Grid's standard basic service rates for its residential and small C&I customers over the twelve-month period November 1, 2014 through October 31, 2015:

"Under this method, National Grid would calculate the standard basic service rates for the six-month period November 1, 2014 through April 30, 2015 based on the weighted average of: (1) the standard basic service rate for the period November 1, 2014 through April 30, 2015 approved by the Department on September 23, 2014; and (2) a proxy weighted average standard basic service rate for the period May 1, 2015 through October 31, 2015, using the monthly bids submitted by the winning suppliers selected by National Grid in its most recent basic service solicitation to provide 50 percent of its basic service supply for that six-month period. At the time that the results of National Grid's next solicitation are known (at which time National Grid will solicit the remaining 50 percent of its basic service supply requirement for that period), National Grid would calculate the standard basic service rates effective May 1, 2015 according to the method described above, replacing the proxy rate described above with the actual rates that otherwise would go into effect on May 1, 2015."

Docket 14-BSF-D3-A