Regulator Approves Increase Which Nearly Quintuples Cost of Retail Supplier Referral Program

The Massachusetts DPU, in an order on an Eversource (Nstar, WMECO) rate case, has approved a significant increase in the charge for suppliers to participate in the retail supply customer referral program, but rejected (for now) a host of changes to the supplier terms and conditions (supplier tariff)

The DPU approved Eversource's proposed changes in various fees charged to suppliers, finding that these are not part of uniform model terms and conditions for supplier tariff, and that opposing parties (RESA and other retail suppliers) did not show that the proposed new fees were not reflective of the utility's actual costs

Specifically, among the adopted revised fees is that, at WMECO, suppliers in the customer referral program will be charged a pro rata share of a total cost of $246,000 annually. This compares to the current fee which is a pro rata share of a total cost of $53,000 annually

RESA noted that currently there is no supplier participation in the WMECO referral program because the existing fees are too high

Regarding the new fees, the DPU said, "the intervenors did not argue that the actual costs provided in Exhibit ES-RDP-17, Schedule RDP-5 were incorrect, provide examples on how the costs were inflated, or demonstrate how the costs could be lower."

"Instead, the intervenors argued that the proposed fee increases were excessive, unreasonable, and would create a barrier to participation in the Supplier Referral Program. The Department has reviewed the Companies’ calculations and assumptions and finds that proposed fees for the Supplier Referral Program are based on costs that Companies actually incur associated with these functions and, therefore, are reasonable and transparent (Exh. ES-RDP-17, Sch. RDP-5). As a result, the Department approves the fee increases and changes to Appendix A, to the extent that the proposed changes remain consistent with the Companies’ current Competitive Supply Terms and Conditions," the DPU said

The DPU, however, rejected other changes to Eversource's supplier tariff, due to their departure from the state's model terms and conditions for such tariffs and finding that Eversource did not sustain its burden in showing the changes are appropriate

Most notable among these rejected changes was a proposal to allow customers to inform the utility if the customer wishes to be protected from unwanted solicitation from competitive suppliers

Eversource had also proposed changes that were intended to:

(1) allow a customer to inform the EDCs if the customer wishes to be protected from unwanted solicitation from competitive suppliers;

(2) require customers to provide authorization for the release of historical use information;

(3) require the Companies to release customer information to competitive suppliers unless the customer has notified the Companies of his or her wish to be protected from unwanted solicitations;

(4) require the Companies to transfer customers to basic service upon default of a competitive supplier;

(5) require a signed new service contract with a competitive supplier after reinstatement of defaulted supplier service;

(6) include rules required for competitive suppliers and competitive REA suppliers to participate in ISO New England; and

(7) address competitive supplier and customer load estimation

Due to the significant nature of the changes, the DPU said, "we find that the Companies’ proposal would benefit from advance discussion with competitive suppliers, after which time the Companies may make a filing with the Department for review and approval of any changes to the Competitive Supplier Terms and Conditions. Thus, in this circumstance, the Companies first should reach out to competitive suppliers to review significant revisions to the Competitive Supplier Terms and Conditions. Subsequently, as part of any filing with the Department seeking review and approval to revise the Competitive Supplier Terms and Conditions, the Companies must demonstrate their efforts in conferring with competitive suppliers."

"Based on these considerations, at this time, the Department denies the Companies’ proposed changes to the Competitive Supplier Terms and Conditions, and the proposal to consolidate the Competitive Supplier Terms and Conditions and the Terms and Conditions for WMECO Green Options Suppliers," the DPU said

The DPU also approved proposed revised fees for interval load data access and load pulse data access