Utility To Exit Self-Supply Function For Default Service, Cites Risks To Shareholders

Connecticut Light & Power (Eversource) has informed PURA that it will cease its voluntary self-supply of a portion of Standard Service effective January 1, 2018

"The Company has determined that the inherent risks and exposures resulting from its voluntary self-supply activities are too substantial for its shareholders to bear," CL&P said in a filing

When Connecticut default service protocols were revised to allow EDCs to self-manage a portion of the supply, CL&P initially self-managed 20% of Standard Service supplies, though the authorized percentage later increased and varied over time

While CL&P did not opine further on its decision in a notice to PURA, United Illuminating, in a filing commenting on CL&P's notice and broader issues related to mandates imposed on EDCs, made note of a recent revised settlement between CL&P and PURA Prosecutorial Staff concerning RPS compliance for CL&P's portion of self-managed Standard Service portfolio.

In such revised settlement, CL&P agrees to, among other things, make a $56,000 contribution, at shareholders' expense, to the state's clean energy fund and conservation and load management fund. The revised settlement followed an earlier settlement which PURA had rejected as inconsistent with RPS compliance settlements involving retail suppliers (see story here). The revised settlement removes the earlier sought 50% reduction in the settlement payment amount that had been contained in the earlier settlement. The earlier settlement had sought the reduced payment on the grounds that such reduction was warranted given the alleged ratepayer savings from CL&P's self-managed Standard Service portfolio