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May 14, 2013

MA Grid Modernization: Steering Committee Meeting – May 14, 2013 Regulatory Policy Models: Miscellaneous Background Information. May 14, 2013. Historic Electricity Rates – Illustrative Example. Current Rates and Riders in Massachusetts. Transmission Charge (FERC) Customer Charge

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May 14, 2013

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  1. MA Grid Modernization:Steering Committee Meeting – May 14, 2013Regulatory Policy Models:Miscellaneous Background Information May 14, 2013

  2. Historic Electricity Rates – Illustrative Example

  3. Current Rates and Riders in Massachusetts • Transmission Charge (FERC) • Customer Charge • Distribution Charge • Transition Charge • Riders: • Residential Assistance Adjustment Charge • Demand Side Management Charge • Energy Efficiency Reconciliation Factor • Renewable Energy Charge • Net Metering Recovery Surcharge • Solar Program Cost Adjustment • Smart Grid Adjustment Factors • Pension Adjustment Factor • Incremental Capital Expenditure Charge Note: the actual set of riders varies by utility.

  4. Current Customer Classes – Illustrative Example

  5. Current Service Quality Standards - Summary • Annual SQ performance reports compare each company’s annual performance to its historical performance (Not to an absolute standard). • Benchmarks based on historical performance by company (3 year minimum, 10 year maximum of data). • Companies report on penalty benchmarks. • Companies report on customer service guarantees. • Companies submit non-penalty reporting data.

  6. Current SQ Standards – Penalty Benchmarks

  7. Current SQ Standards – Customer Service Guarantee • Awards $50.00 payment for • Service appointments missed • Lack of notification for planned outages • Payments must be paid immediately to customers • Payments are subtracted from maximum penalty of 2.5% of transmission and distribution revenues

  8. Current SQ Standards – Annual Reporting • Customer Surveys • Restricted Work Day Rate • Electric Distribution Line Loss • Damage to electric company property exceeding $50,000 • Damage to any property exceeding $5,000 for gas companies • Interruptions due to Major Excludable Events • Tree Trimming Policy • Capital Expenditures • Spare Parts Inventory • IEEE-I366 Performance • Staffing Levels • Emergency Response Times • Transmission & Distribution Revenue • Feeder Circuit Report • Sustained Electric Service Interruptions reported as they occur

  9. DPU Service Quality NOI – Docket 12-120 • DPU asks whether it should consider: • customer level reliability • Worker safety incident metric • Website quality metric • Quality and accuracy of communication with customers • Penalties associated with responses to downed wires • Distributed generation interconnection timelines • Adding any other SQ metrics • Eliminating any existing metrics • Different benchmarks • National or regional standard • Increasing over time • Comments have been submitted. • Reply comments due soon.

  10. Regulatory Models - Summary

  11. Regulatory Models – Attorney General’s Office

  12. Regulatory Models – National Grid Transition Menu

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