1 / 9

Massachusetts Electric Restructuring Roundtable Retail Competition, Default Service, and LMP

Massachusetts Electric Restructuring Roundtable Retail Competition, Default Service, and LMP. February 28, 2003 Paul Vasington Chairman, Mass. DTE. Issues. Review recent order on LMP Review other issues to be decided General thoughts on default service and retail competition.

vian
Download Presentation

Massachusetts Electric Restructuring Roundtable Retail Competition, Default Service, and LMP

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Massachusetts Electric Restructuring Roundtable Retail Competition, Default Service, and LMP February 28, 2003 Paul Vasington Chairman, Mass. DTE

  2. Issues • Review recent order on LMP • Review other issues to be decided • General thoughts on default service and retail competition

  3. Default Service, DTE 02-40 • Investigation opened, June 2002 • Comments filed in August and September • Order on LMP issued February 13, 2003 • Order on other issues coming soon

  4. DTE 02-40-A, 2/13/03 • With SMD starting March 1, 2003, prices for load will be calculated for eight zones in New England. • Massachusetts will consist of three zones: NEMA/Boston, SEMA, and West/Central. • Cambridge, Commonwealth, FG&E, and Western Mass. Electric are each within one zone. • Service territory for Mass. Electric crosses all three zones. • Service territory for Boston Edison crosses two zones: NEMA and SEMA.

  5. DTE 02-40-A (cont.) • The issue is whether retail prices for these two companies should be procured and differentiated by zone or averaged. • The DTE decided that supply for default service should be procured by load zone. • Default service prices for residential and small commercial customers will be averaged across load zones. • To the extent that procurement costs are different between zones, default service prices for medium and large C&I customers will be different based on the zone the customer is located in.

  6. DTE 02-40-A (cont.) • Reasons for decision • “For medium and large C&I customers, for which an active competitive market has already developed, default service rates should, wherever practicable and as soon as practicable, be set in a manner that does not undermine this competition.” • “[F]or residential and small C&I customers for whom there are currently few competitive options, it is appropriate to treat LMP differently. … zone-differentiated default service rates would have little effect [on competition] at this time.”

  7. DTE 02-40-A (cont.) • What does this mean? • Prices may be different for BECo and MECo large and medium C&I customers. • Other customers will see no difference within the service territory. • Companies with customers in NEMA (BECo, Cambridge, and MECo) may see higher prices due to expectations of congestion.

  8. Default Service, DTE 02-40 • Other issues • Costs to be included in default service prices; • Procurement and pricing; • Providers of default service.

  9. General Thoughts • Competition and restructuring has not failed. • Standard Offer should end as scheduled. • Default service is not punishment.

More Related