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PURA Will Not Expand Default Time of Use Pricing at United Illuminating

September  29, 2011
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Reversing a draft order, the Connecticut PURA has elected to not expand mandatory Time of Use generation rates to all default service customers at United Illuminating as originally proposed.

Ostensibly, this reversal is to allow the state's Department of Energy and Environmental Protection to address dynamic rate policy.

As only reported by Matters, the draft would have expanded mandatory TOU rates to all residential default service customers by 2019, and all commercial default service customers by 2016, under a gradual phase-in (see 8/9 for details)

In its final order published yesterday, PURA maintained, without comment, the current TOU generation rate cutoff of 2,000 kWh for residential service, and 100 kW for non-residential service.

PURA did approve the expansion of the Variable Peak Pricing generation rate option to all customers, and approved UI's expansion of Variable Peak Pricing to all 24 hours of the day, as opposed to peak periods only as done currently. Unlike TOU rates, which are fixed for a set period of time, the opt-in Variable Peak Pricing generation rates vary daily based on projected average day-ahead LMPs, plus an adder for costs of serving load not reflected in the LMP.

PURA removed from its final order all discussion of the procurement of Variable Peak Pricing supplies. Currently, per the prior direction of the DPUC, UI is to use its existing default service portfolio to serve the any Variable Peak Pricing load, but the draft had contemplated creating a separate procurement for Variable Peak Pricing customers. The final order omitted this requirement.

 

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