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PURA orders group study process for nonresidential DER interconnections, approves cost-sharing approach
Summary
The Public Utilities Regulatory Authority directed Connecticut electric distribution companies to adopt a group study process to assess cumulative impacts of multiple nonresidential distributed energy resource projects and to share upgrade costs among group members; the panel approved the decision after a roll call that included one "no" vote.
The Public Utilities Regulatory Authority on Feb. 19 approved a decision requiring Connecticuts electric distribution companies (EDCs) to include a group study process in distributed energy resource (DER) interconnection guidelines for nonresidential projects. The panel adopted staffs recommendation after debate and a roll-call vote in which one commissioner recorded a no vote.
Authority staff described the group study process as a mechanism by which an EDC would study cumulative system impacts of multiple distributed generation projects in a geographic area, design a single system upgrade to accommodate all projects in the study group, and—where appropriate—design upgrades sized to allow future interconnections and regional load growth. Under the decision the cost of such a system upgrade would be shared among the members of the group and distribution system repairs and future interconnecting customers.
The decision specifies that any costs assigned to distribution customers will be treated as utility capital costs recoverable through the utilitys next rate case under traditional ratemaking principles; the Authority said it would conduct a prudence review of such costs at the time of cost recovery filings. The Authority also left open the option to establish a different cost-recovery mechanism in a subsequent proceeding or in an EDCs next rate case.
Commissioner comments: one commissioner expressed support for the aims of the docket but said the decision lacks a specific revenue mechanism and signaled a preference for a near-term pay-as-you-go method for transparency and cost control; that commissioner announced a no vote. Other commissioners said trackers can be appropriate tools but cautioned against multiple overlapping trackers and expressed support for the decision because it allows broader planning while leaving other mechanisms available.
Outcome and next steps: The Authority adopted the decision directing EDCs to add the group study process to their DER interconnection guidelines and to implement the cost-sharing approach described. The Authority will consider cost recovery and any alternative mechanisms in later proceedings or in rate cases, when it said it would evaluate the prudence of assigned costs.
