Ads for The Commonwealth of Massachusetts Department Of Public Utilities in Boston, MA

THE COMMONWEALTH OF MASSACHUSETTS DEPARTMENT OF PUBLIC UTILITIES SECOND NOTICE OF FILING AND PUBLIC HEARING D.P.U. 22-22 March 4, 2022 Petition of NSTAR Electric Company, doing business as Eversource Energy, pursuant to G.L. c. 164, 94 and 220 CMR 5.00, for Approval of a General Increase in Base Distribution Rates for Electric Service and a Performance Based Ratemaking Plan. On January 14, 2022, NSTAR Electric Company, doing business as Eversource Energy ("NSTAR Electric" or "Company"), filed a petition with the Department of Public Utilities ("Department") for an increase in electric base distribution rates. The Department has docketed this matter as D.P.U. 22-22 and has suspended the effective date of the proposed rate increase until December 1, 2022, to investigate the propriety of the Company's request. The Company represents that it will implement any change in rates beginning on January 1, 2023. The Company was last granted an increase in base distribution rates in NSTAR Electric Company/Western Massachusetts Electric Company, D.P.U. 17-05 (2017). NSTAR Electric seeks to increase its rates to generate $89,477,862 in additional revenues. The Company proposes to transfer costs recovered through certain reconciling mechanisms, which totaled $58,184,827 in calendar year 2020, to base distribution rates, effective December 1, 2022. Based on this proposal, the proposed overall increase to distribution revenues is $147,662,689, which represents a 13.2 percent increase in distribution revenue. The Company also proposes to implement a performance-based ratemaking ("PBR") plan, which would allow NSTAR Electric to adjust its base distribution rates on an annual basis through the application of a revenue-cap formula. The Company proposes to implement the PBR plan for a term of ten years with certain conditions, including the filing of mid-term rate schedules to update the cost of service and to provide sales and capital expenditure forecasts through the end of the proposed PBR term. Within the proposed ten-year PBR plan, NSTAR Electric proposes to invest $955.6 million to address its reliability-based electrification plans, which the Company states includes the installation of new substations, feeders, and distribution and transmission lines necessary to support customer demand over the long term. NSTAR Electric also proposes numerous individual performance metrics to gauge the Company's progress on its PBR plan commitments. As an alternative to the proposed ten year PBR plan, NSTAR Electric proposes a PBR plan with a five-year term. As part of its filing, NSTAR Electric also makes proposals regarding the implementation of advanced metering infrastructure and associated cost recovery, and the review and treatment of certain grid modernization, SMART program, and solar investments. Further, NSTAR Electric proposes certain changes to its storm fund mechanism, vegetation management program, and service quality reporting. The Company also makes proposals regarding the recovery of certain property taxes and prior period pension costs. Additionally, NSTAR Electric proposes post-test year adjustments to certain expense categories and to the Company's capital structure. NSTAR Electric's filing also includes a number of rate design proposals, including refining existing tariff definitions and rate classes in the small and medium general service categories; introducing or expanding non-demand price options for small general service customers; eliminating unique, legacy rate designs involving declining blocks or seasonal pricing; eliminating or closing certain small, optional time-of-use rate classes; and revising the allocation and design of transmission rates, the allocation factors applicable to reconciling rates, and LED streetlight pricing. The Department also will consider proposals regarding the discontinuance of full revenue decoupling for NSTAR Electric. 2022-2024 Three-Year Energy Efficiency Plans, D.P.U. 21-120 through D.P.U. 21-129, at 230-235 & n.146 (January 31, 2022). The foregoing is not intended to be an exhaustive list of issues set forth in NSTAR Electric's filing. Additional information regarding the foregoing proposals, and all other proposals set forth by NSTAR Electric, can be found in the Company's filing. NSTAR Electric states that if its petition is approved as requested, customers can expect the following bill impacts: For residential non-heating customers: A typical residential non-heating customer using 530 kilowatt-hours ("kWh") of electricity per month in the Company's Eastern Massachusetts service area can expect a monthly bill increase of $7.14 (5.2 percent); A typical residential non-heating customer using 549 kWh of electricity per month in the Company's Western Massachusetts service area can expect a monthly bill increase of $7.29 (5.4 percent); A typical residential non-heating low-income customer using 480 kWh of electricity per month in the Company's Eastern Massachusetts service area can expect a monthly bill increase of $4.32 (5.9 percent); and A typical residential non-heating low-income customer using 586 kWh of electricity per month in the Company's Western Massachusetts service area can expect a monthly bill increase of $4.86 (5.5 percent). For residential heating customers: A typical residential heating customer using 744 kWh of electricity per month in the Company's Eastern Massachusetts service area can expect a monthly bill increase of $17.12 (9.5 percent); A typical residential heating customer using 805 kWh of electricity per month in the Company's Western Massachusetts service area can expect a monthly bill increase of $18.29 (9.9 percent); A typical residential heating low-income customer using 843 kWh of electricity per month in the Company's Eastern Massachusetts service area can expect a monthly bill increase of $12.16 (9.9 percent); and A typical residential heating low-income customer using 993 kWh of electricity per month in the Company's Western Massachusetts service area can expect a monthly bill increase of $13.99 (10.2 percent). For Commercial and Industrial Customers: Commercial and industrial customers can expect bill impacts to vary depending on usage and rate class. Commercial and industrial customers should contact the Company, as indicated below, for specific bill impacts. The Attorney General of the Commonwealth of Massachusetts ("Attorney General") filed a notice of intervention in this matter pursuant to G.L. c. 12, 11E(a). Further, pursuant to G.L. c. 12, 11E(b), the Attorney General filed a notice of retention of experts and consultants to assist in her investigation of the Company's filing and has requested Department approval to spend up to $550,000 in this regard. Pursuant to G.L. c. 12, 11E(b), the costs incurred by the Attorney General relative to her retention of experts and consultants may be rec