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Advocating for Cape and Vineyard Residents…

On January 14, 2022, Eversource filed a rate case with the Department of Public Utilities (DPU). The Cape Light Compact Governing Board discussed this proceeding and had concerns regarding Eversource’s proposal. The Board voted to petition the DPU to intervene in this proceeding, which was approved.

This is NSTAR Electric’s second fully litigated rate case since the 1980’s (the first was filed in 2017). This rate case will determine the charges Eversource is allowed to impose on the distribution side of the electric bill, and will affect all residents and businesses on Cape Cod and Martha’s Vineyard. The Compact is working on your behalf to assess the impact that this proposal will have on Cape and Vineyard ratepayers.

2022 Rate Case

Compact staff and consultants participated in this proceeding and kept the Compact Governing Board updated along the way. Below are key points that the Compact’s participation focused on:

  • Rate Design: The Compact and its consultants identified two issues related to rate design in Eversource’s proposal. The Compact submitted testimony related to these issues. Eversource did not follow DPU precedent in calculating its target revenue allocation. The method used by Eversource results in a cost shift for non-residential customer classes from the Boston area to all other regions. The Compact and its consultants identified corrections and other issues in Eversource’s cost-of-service study (which is used to determine the revenue allocation and associated rates). Eversource made some of the corrections during the proceeding. These issues related to the way that infrastructure costs are split between primary (commercial and industrial) and secondary (residential) customers.
  • Bill Impacts: Eversource proposed increasing the fixed customer charge for Rate R-1 Residential customers from $7 to $10. This could increase bills for low-usage customers and also reduce the incentive for energy efficiency or behind-the-meter generation because the charge is fixed and non-by passable. The Compact submitted testimony on this issue. The Compact proposed that the increased customer charge should be phased in gradually over three years.
  • Performance-Based Ratemaking (“PBR”) Policy Considerations: Eversource proposed a ten-year PBR term, which would also mean that Eversource would not have another full base rate case before the DPU for ten years. Eversource’s current PBR term is five years. Extending the term is of concern because rate cases provide some accountability and transparency of electric utilities and because of the likelihood of significant, material changes to the electric industry over the next ten years (electrification, distributed generation, etc.). The Compact registered its concerns in is briefs submitted to the DPU.
  • Energy Efficiency Tariff: Proposed changes to the Energy Efficiency Tariff would result in higher bills for low income customers.

2022 Rate Case Links

To view all of the filings within this docket, please go to the DPU File Room website and type in 22-22.

There are many filings within this docket, so the Compact has provided links to some of the documents below that provide a high-level overview of what Eversource is proposing and what typical bill impacts will be for Cape and Vineyard ratepayers:

Cape Light Compact issued eight sets of Information Requests to Eversource (these can be found in the DPU file room).

On April 29, 2022, Cape Light Compact and its expert witnesses filed Direct Testimony:

On June 24, 2022, Cape Light Compact and its expert witnesses filed Surrebuttal Testimony:

On July 26, 2022, Cape Light Compact and its expert witness filed Supplemental Testimony.

2017 Rate Case

On January 17, 2017, Eversource filed a rate case with the Department of Public Utilities (DPU). Cape Light Compact Governing Board discussed this proceeding and had concerns regarding Eversource’s proposed rate case. The Board voted to petition the DPU to intervene in this proceeding, which was approved.

Please review the Summary document outlining the Orders that the Department of Public Utilities issued.

Below are some of the points that the Compact focused on, on behalf of Cape Cod and Martha’s Vineyard ratepayers.

  • Shift in Cost – from 6/1/17 proposal filed by Eversource
    • Eversource is proposing to shift $30 million in costs annually from Western MA customers to Eastern MA residential customers. Costs incurred to provide service to Western MA customers should be borne by those customers and not Eastern MA customers.
    • This proposal also includes shifting costs from Eastern MA commercial customers to Eastern MA residential customers. Costs incurred to provide service to commercial customers should not be borne by residential customers.
  • Customer Charge: Eversource is proposing to shift “fixed” distribution costs from the usage-variable volumetric (per kWh) energy charge to a fixed customer charge. This could increase bills for low-usage and seasonal customers. It also lessens the incentive for energy efficiency and behind-the-meter generation, which reduce the kilowatt hours a customer needs to purchase from the grid.
  • Demand Charge: Eversource proposes to impose a demand charge for new net-metered customers interconnected on or after 1/1/2018 (for residential customers) and on or after 1/1/2019 (for commercial customers). These customers will also be required to pay for the new demand meter. The Compact is concerned about the adverse impacts this will have on new renewable energy projects (such as residential PV) and ratepayers.
  • Performance-Based Recovery: Eversource is proposing moving to Performance-Based Rate Making (PBRM), a change from the current traditional cost-of-service ratemaking.
  • Rate Consolidation: Eversource is proposing to consolidate rate classes, which will result in the termination of seasonal rates, among other changes.

To view all of the filings within this docket, please go to the DPU File Room website and type in 17-05.

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