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Utility To Change When Hardship Customers Are Dropped To Default Service
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Connecticut Light & Power (Eversource) is changing the point at which hardship customers are dropped to default service due to the customer's competitive retail supply rate exceeding the standard service rate
As previously reported, the Connecticut PURA approved a mechanism under which CL&P, when a hardship customer's retail supply rate exceeds the default service rate under a daily query, drops the customer to default service, retroactively effective to the start date of the customer's current billing period, so that the customer does not receive a bill for a rate higher than default service.
This approach may negatively impact customers for drops which occur around the time of a default service rate change (January 1 and July 1)
Since the customer's billing cycle may cover two default service pricing periods (i.e. usage both before and after January 1 or July 1), reverting the customer to the default service price as of the start of the billing cycle could result in a rate that exceeds the customer's retail supply rate, even though the new default service rate for the remainder of the billing cycle is below the retail supplier's rate
To address this, CL&P will, only for hardship drops for customers with billing periods which include service on either side of January 1 or July 1, make the drop effective on the date of the default service rate change (January 1 or July 1), rather than the (earlier) start of the customer's billing period
In brief, that means that the retail supplier's service will continue, and the supplier's rate will be charged, up until the effective date of the new, lower default service rate which prompted the drop (January 1 or July 1). The customer will be served under default service, at the new default service rate, effective January 1 or July 1
CL&P will maintain the original approach, making a hardship drop effective as of the start of the customer's billing period, for all other hardship drops.
Docket 18-06-02RE02
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June 28, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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