MA AGO Calls for Complete Investigation Of National Grid

After residents testified before the Worcester City Council on March 31, National Grid reduced its request for reimbursement for cost overruns for the smart meter pilot program:

$15M instead of $27M
The AG did intervene on April 19 and called for a full investigation, here is the link:
The DPU appears to have ignored her.
The DPU has approved an increase for MA ratepayers to cover the excess charges
http://web1.env.state.ma.us/DPU/FileRoomAPI/api/Attachments/Get/?path=16-28%2f1628_Order_42916.pdf
to read the order…
The Company’s filing is designed to recover $14,791,900 in smart grid pilot program costs both incurred in 2015 and under-recovered from prior years. To recover these costs, the Company seeks approval of the following for effect May 1, 2016: (1) revised Smart Grid Customer Cost Adjustment Factors (“SGCCAF”) pursuant to its basic service tariff, M.D.P.U. No. 1250; and (2) revised Smart Grid Distribution Adjustment Factors (“SGDAF”) pursuant to its smart grid adjustment provision tariff, M.D.P.U. No. 1238. The Department docketed this matter as D.P.U. 16-28.
In this proceeding, the Company proposes to recover $8,954,786 in customer-facing pilot program costs from its basic service customers, which includes $6,781,437 in customer-facing pilot program costs incurred in 2015 plus an under-recovery of $2,173,348 in customer-facing costs from prior years (Exh. MHK-3, at 1). 2 To collect these customer-facing costs, the Company proposes following revised SGCCAFs for effect May 1, 2016: Table 1: Proposed SGCCAFs 3 Customer Group SGCCAFs ($/kWh) Residential/Streetlight $0.00120 Commercial $0.00118 Industrial $0.00155 In addition, the Company proposes to recover $5,837,114 in grid-facing pilot program costs from its distribution customers, which includes $5,744,486 in grid-facing pilot program 

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THE COMMONWEALTH OF MASSACHUSETTS OFFICE OF THE ATTORNEY GENERAL

ONE ASHBURTON PLACE BOSTON, MASSACHUSETTS 02108 (617) 727-2200

Re: Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid, D.P.U. 16-28

Dear Secretary Marini:

On March 15, 2016, Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid (“Company”) filed a petition with the Department of Public Utilities (“Department”) seeking approval of recovery of the Company’s costs through December 31, 2015 for its Smart Grid Pilot Program in Worcester, Massachusetts (“Pilot Program”), and for approval of the Company’s proposed Smart Grid Customer Cost Adjustment Factors (“SGCCAFs”) and Smart Grid Distribution Factors (“SGDAFs”), for effect May 1, 2016. Pursuant to the Department’s April 1, 2016 Notice of Filing and Request for Comments, the Office of the Attorney General submits this letter as its preliminary comments.

The Office of the Attorney General requests that the Department fully investigate the Company’s proposed recovery of its Pilot Program costs and its proposed SGCCAFs and SGDAFs in an administrative adjudication. Such formal investigation should provide the opportunity for a full procedural schedule with dates for discovery, expert testimony, evidentiary hearings, and submission of briefs, and should comply with all other requirements set forth in G.L. c. 30A, § 11.1

Sincerely,

/s/ Shannon S. Beale

Shannon S. Beale

Assistant Attorney General

 

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