Massachusetts Seeks Comment on Replacing RFP Mechanism for Default Service Procurements, Change in Procurement Timing

The Massachusetts DPU has sought comment on two proposals made by stakeholders during an investigation into the provision of basic electric service

Specifically, the DPU sought comments on the use of RFPs versus a descending clock auction for procurements, and a potential change in the timing of National Grid's procurements.

Charles River Associates had suggested that the Department consider adopting an auction mechanism similar to that used in Ohio, Pennsylvania and New Jersey (which use descending clock auctions) to solicit Basic Service load, rather than the current model based on responses to Requests for Proposals.

"The Department seeks input on the ability of an auction to reduce Basic Service prices compared with procurement through RFPs, as well as comment on the pros and cons of such a procurement method from suppliers active in other jurisdictions that use an auction," the DPU said

The Attorney General had proposed that National Grid’s pricing term and procurement schedule be changed to match Eversource Energy’s term and schedule

Specifically, the AG had proposed that National Grid’s six-month terms for fixed price basic service for residential customers move from November–April and May–October terms to the calendar year terms used by Eversource: specifically, the terms of January–June and July–December.

The Department sought comments on the impact of the AG's proposal on: (1) price volatility for National Grid’s basic service customers; and (2) potential bidder responses to National Grid and Eversource Energy’s basic service RFPs.

Docket 15-40