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Eversource pitches performance-based multiyear plan and new storm cost recovery mechanism
Summary
Eversource presented a proposed Performance-Based Multiyear Rate Plan (PBMRP) with metrics, a 4-year stay-out provision and a proposed Storm Cost Recovery Adjustment Factor (SCRAF) designed to recover ~$60M/year for catastrophic storms and $4M/year for prestaging; parties signaled interest in detailed review and policy discussion.
Eversource urged PURA to consider a new performance-based multiyear rate plan (PBMRP) that would include a multi-year revenue cap and performance metrics. Bridal O'Brien described components of the leadership testimony and the PBMRP, saying the filing "includes a performance based multiyear rate plan or the PBMRP" and outlined proposed metrics and reporting designed for the authority's consideration.
On storm recovery, the company proposed a Storm Cost Recovery Adjustment Factor (SCRAF) to provide consistent base-rate storm funding: Eversource said the SCRAF would provide "about $60,000,000 a year for catastrophic storms and about $4,000,000 a year for prestaging," and would increase the storm deferral threshold from the current $4,000,000 to about $5,400,000. The filing also includes transactional detail for 14 storms the company said total about $157,000,000 and supporting invoices prepared for prudence review.
Why it matters: the PBMRP and SCRAF would change the mechanics of how capital and storm costs flow into rates and the timing of recovery, shifting policy questions about incentives, risk-sharing and transparency into the adjudicative record. Commissioners said such structural proposals may benefit from targeted technical sessions so stakeholders and staff can discuss policy choices outside an evidentiary hearing setting.
Some intervenors expressed skepticism about new recovery mechanisms without more detail; others supported targeted policy dialogue in advance of hearings. PURA asked parties to flag specific issues they want covered in any technical sessions.
