This bill amends current law regarding the default service rate for electricity. It requires that the costs of procured power for default service be recovered from retail ratepayers based on a rate calculated using the rolling 5-year average of retail rates for the New England region. The base year for the 5-year average is set as January 1, 2017, and the average will be recalculated annually on or before January 10. The rates charged to retail customers cannot exceed the rolling 5-year rate, subject to the annual recalculation. The bill also allows for the recovery of prudently incurred costs related to compliance with renewable portfolio standards through the default service charge. The costs of administering default service will be borne by the customers of default service in a manner approved by the commission. The bill also allows the commission to implement measures to discourage misuse or long-term use of default service, with any revenues generated from such measures being used to defray stranded costs. The bill will take effect 60 days after its passage.

Statutes affected:
Introduced: 374-F:3