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Mass. DPU Allows Recovery of Nstar Green Under-recovery from Basic Service Customers
June 29, 2011
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The Massachusetts DPU has approved Nstar's proposal to collect an under-recovery in the optional Nstar Green product from all basic service customers over a one-year period (10-161).
The application of the costs to all basic service customers is a one-time action resulting from the relatively large existing $2.943 million under-recovery of Nstar Green, which was chiefly caused by the use of inaccurate energy market price forecasts in setting the Nstar Green rates.
The DPU said that collection all of the existing under-recovery in Nstar Green rates would not be appropriate as it may force customers of off the product, which would only accelerate under-collections and result in costs being assigned to basic service customers regardless. Going forward, Nstar Green reconciliations will only apply to Nstar Green customers.
Additionally, the DPU ordered Nstar to update the energy market price forecast used in Nstar Green every six months, and accordingly adjust the Nstar Green rates every six months.
This rate change shall occur regardless of the magnitude of the change in the Nstar Green adders resulting from the changed forecast. Nstar had proposed adjusting the Nstar Green adders only when the updated energy market price forecasts would change the Green 100 percent adder by ten percent or more.
The six-month Nstar Green rate changes shall occur coincident with the semi-annual update to mass market basic service rates. Any new Nstar Green reconciliations will also occur at the same time.
The DPU also approved new adders for Nstar Green of 2.534 cents per kWh for the 50 percent option and 4.971 cents per kWh for the 100 percent option.
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