Procurement Manager Seeks Changes To Default Service Products

Connecticut's default service procurement manager has asked PURA for approval of a change in the procurement process for the July and October 2023 "Standard Service" electricity supply procurements

The procurement manager's request specifically listed only "Standard Service" and did not use the term "Last Resort Service"

The procurement manager is seeking to allow the EDCs to accept both "all in bids," which is the currently authorized product, as well as "standard service" bids with the Mystic Reliability Must Run (RMR) contract related costs removed for the July and October 2023 Standard Service procurements.

The procurement manager said, "While this process change is currently allowed under the 2018 Procurement Plan, this filing seeks advanced confirmation that PURA will provide cost recovery under Conn. Gen. Stat. § 16-244m(c) for ISO charges that the suppliers do not include in their bids; specifically, the portion of the cost of service for Mystic Units 8 & 9 attributable to such standard service load. The Procurement Manager therefore seeks confirmation from PURA that -- if the Procurement Manager approves one or more standard service bids from wholesale electric suppliers that require standard service customers to pay separately for the costs of Mystic Units 8 & 9 attributable to such standard service load -- then in accordance with Conn. Gen. Stat. § 16-244m(c) such 'costs of procurement for standard service shall be borne solely by the standard service customers' through the Generation Services Charge and/or Bypassable Federally Mandated Congestion Charge."

Under this change, the July and October 2023 Standard Service procurements would offer each supplier the opportunity to submit two types of bids. The first would be the traditional, all-in Standard Service bid (which currently includes the bidders’ estimates of the costs of the Mystic RMR and related risk premium). The second option would allow bidders to submit a bid without including any estimated costs associated with the Mystic RMR contract. If this option is chosen by the Procurement Manager, the EDCs would add an estimated cost of the Mystic RMR, approved by the Procurement Manager, to the prospective Standard Service rate and true up that charge with all other true-ups in the appropriate future RAM proceeding. For the Authority’s consideration, the EDCs anticipate that the range of the Mystic RMR Option "b" adder that would be added to the rates associated with any selected Option “b” bid would be in the range of $0.01 and $0.015/kwhr