Public Service Company of New Hampshire, 073120 NHPUC, 26, 386
|Docket Nº:||Order 26, 386|
|Opinion Judge:||Dianne Martin, Chairwoman|
|Judge Panel:||Kathryn M. Bailey, Michael S. Giaimo Commissioners|
|Case Date:||July 31, 2020|
Petition to Change Transmission Cost Adjustment Mechanism Rates
Order Approving Change to Transmission Cost Adjustment Mechanism Rates
Matthew J. Fossum, Esq., on behalf of Public Service Company of New Hampshire d/b/a Eversource Energy; and Lynn Fabrizio, Esq., on behalf of Commission Staff.
Dianne Martin, Chairwoman
This order approves an increase to transmission cost adjustment mechanism rates for Eversource customers effective with services rendered on and after August 1, 2020. For residential customers, the rate will increase from 2.241 cents per kWh to 3.011 cents per kWh. The transmission cost adjustment mechanism is one of three rate components that will change on August 1.
The Commission approved the creation of Eversource's transmission cost adjustment mechanism (TCAM) for the reconciliation and recovery of transmission expenses and revenues in Docket No. DE 06-028, Eversource's 2006 distribution rate case. See Public Service Co. of N.H., Order No. 24, 750 at 23 (May 25, 2007). By letter dated June 2, 2020, Public Service Company of New Hampshire d/b/a Eversource Energy (Eversource, or the Company) asked the Commission to open this docket to set a new average TCAM rate. The Commission issued an Order of Notice on June 25.
On July 10, Eversource filed a petition to increase the TCAM rate from the current overall average rate of 2.051 cents per kilowatt hour (kWh) to 2.679 cents per kWh, for effect on August 1. Eversource also submitted a lead/lag study of transmission-related receipts and revenues, which it had used in the calculation of the proposed average TCAM rate. On July 15, Eversource filed certain revisions to the petition to update its calculations. A web-enabled hearing was held as scheduled on July 22. After the hearing, the Company filed Exhibit 2 in response to a record request of the Commission, including a revised calculation of the proposed overall average TCAM rate of 2.758 cents per kWh.
The petition and subsequent docket filings, other than any information for which confidential treatment is requested of or granted by the Commission, are posted on the Commission's website at http://www.puc.nh.gov/Regulatory/Docketbk/2020/20-085.html.
POSITIONS OF THE PARTIES AND STAFF
Eversource's TCAM rate allows the Company to recover in full certain Federal Energy Regulatory Commission (FERC) approved transmission costs. The proposed average TCAM rate is based on a reconciliation of historic and forecasted transmission costs, using the latest transmission rates approved by FERC.
Eversource's TCAM rate calculation includes two groups of transmission costs. The first group consists of four categories of wholesale transmission costs, including: (1) regional network service (RNS) costs, (2) local network service (LNS) costs, (3) RNS reliability costs, and (4) scheduling and dispatch costs. All of those costs are regulated by FERC. The second group of costs includes Hydro-Quebec support costs offset by related revenues, and the TCAM working capital allowance.
RNS costs are the costs required to support regional transmission infrastructure throughout New England. RNS costs are billed to...
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