The Massachusetts Attorney General has sought DPU action to mitigate spikes in winter rates and extend the state’s Winter Moratorium by one month.
On October 2, 2014, Massachusetts Attorney General (AG) Martha Coakley wrote to the Department of Public Utilities (DPU) requesting an investigation into ways to mitigate National Grid’s winter rate spikes that will begin on November 1 and address potential increases to other distribution companies’ basic rates. In a separate letter, the AG’s Office requested DPU to extend the end-date of the state’s Winter Moratorium from March 15, 2015 to April 15, 2015 to prevent shutting of electric and gas supplies due to inability to pay heating bills when temperatures could still be cold. Massachusetts provides a Winter Moratorium from November 15 to March 15 each year for low-income households that are unable to pay heating bills.
National Grid filed its basic service winter rates (November 1, 2014 through April 30, 2015) on September 16 and received DPU approval on September 23. Compared to last year, National Grid’s new winter rates will increase residential electric bills by 37 percent or approximately $33/month through the winter period. Basic Service Rates for residential customers on the fixed price option will increase from $0.083/kWh to $0.162/kWh; by comparison, last year’s winter rate for residential customers on fixed price option was $0.10025/kWh.
The letter noted that the the rate increases of 37 percent from last winter and 100 percent from current rates are not gradual and do not provide sufficient time to adjust consumption patterns. It requested DPU to work with National Grid and other stakeholders to determine if any part of the cost recovery of Winter 2014/2015 residential Basic Service rates may be deferred to the next six-month period (May 1, 2015 through October 31, 2015) to smooth out the rate impacts. It also sought more flexibility in recovery time for Basic Service supply costs for other rate classes.
The AG’s Office sought a separate generic investigation into the sufficiency of competition in the electricity market, with regard to basic service procurement practices, effect of ISO New England’s winter reliability plans, and effect of current gas transportation constraints on winter energy prices. It also urged DPU to explore initiatives to provide customers with greater notice of changes.
Originally published by EnerKnol.
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