Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Ram Procedural Review topic
No spam. Unsubscribe anytime.
PURA adopts procedural changes to RAM reviews to help mitigate wholesale price swings; no immediate rate effect
Summary
PURA approved procedural reforms for annual rate-adjustment mechanisms (RAM) for Eversource and United Illuminating to better monitor the net cost effects of power purchase agreements tied to locational marginal price (LMP) volatility; the decision does not change current electricity rates.
The Public Utilities Regulatory Authority on Dec. 10 adopted a procedural decision to refine how the state's electric distribution companies report and how the Authority monitors the net cost effects of embedded power purchase agreements within the non-bypassable federally-mandated congestion charge.
Authority staff presenter Mr. Norton described a two-step analysis for monitoring monthly net cost fluctuations tied to LMP changes and said the decision establishes structure for potentially adjusting rates between the currently scheduled standard service and RAM rate adjustments. Norton emphasized that "Importantly, nothing within this present decision will have any impact on current electricity rates."
The decision directs the EDCs to provide alternative calculations for treatment of non-hardship uncollectible expenses in the 2026 RAM and lays out potential future adoption of a 12-coincident-peak and energy cost allocator for NBFMCC costs and an energy allocator for Eversource’s system benefits charge. Commissioners complimented staff work and noted the procedural measures are intended to reduce the risk of sudden rate shocks tied to wholesale market volatility.
Chairman Tom Weil announced he had recused himself from participation in the docket due to prior representation of parties in the proceeding and abstained from the vote. The motion to adopt the procedural decision was moved and seconded; Vice Chairman David Arconti and Commissioners Jan Beecher and Holly Cheeseman voted to adopt the decision.
