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Dispute at PURA: should PBR startup costs be recovered via RAM or through base rates?
Summary
Utilities told PURA they expect incremental implementation costs to stand up IDSP, PIM tracking and reporting and asked for a timely recovery mechanism (the RAM); consumer advocates (OCC, CIEC) argued these are baseline business costs that belong in base distribution rates and urged PURA to require cost estimates before finalizing PBR orders.
At oral argument, investor-owned utilities asked PURA for a clear path to recover incremental implementation costs associated with standing up Performance-Based Ratemaking (PBR) — including new staff, contractors and IT systems for Integrated Distribution System Planning (IDSP) and PIM tracking — while consumer advocates urged caution and said such costs belong in base-rate proceedings.
Eversource and UI said the IDSP and PBR obligations will require ‘‘incremental headcount, new IT systems and contractors’’ before those costs can be included in base rates. Counsel asked PURA to allow recovery of such near-term, but potentially material, costs through the revenue adjustment mechanism (RAM) or…
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