MA DPU Waives Recalculation Fees for Residential and Small C&I, Establishes Tracking Mechanism
April 15, 2015
On April Thirteenth, MA D.P.U. ordered utilities to eliminate the recalculation fees for residential and small C&I customers who switch from their electric utility to supplier, keeping the fees for medium-large C&I customers and tracking when utility-supplier switches are made.
In their investigation beginning last year, the D.P.U. argued that waiving the fees would open the barriers to entry small customers face who consider competitive supply, since their default rate is fixed and furthermore suppliers are less likely to “game the system” on an individual basis with small users.
For medium-large C&I customers, the D.P.U. reasoned that the fees prevent customers from “gaming the system” between utility and supplier rates since their default service is variable, and with larger usage they are usually offered custom contracts by suppliers.
While Eversource supported the D.P.U. on waiving the recalculation fees, National Grid disagreed with such a measure.
The proposed tracking mechanism would measure both the degree utilities would charge customers without the recalculation fees, and the extent suppliers “game the system” by switching customers seasonally from their utility.
