STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS
PUBLIC UTILITIES COMMISSION
IN RE: PASCOAG FIRE DISTRICT TERMS
AND CONDITIONS FOR NON-REGULATED
POWER PRODUCERS
DOCKET NO. 2516(A)
On August 5, 1998, the Pascoag Fire District ("Pascoag") filed Terms and Conditions for Non-regulated Power Producers with the Rhode Island Public Utilities Commission ("Commission"). A copy of the proposed terms and conditions are attached to this order and incorporated by reference.
The Commission conducted a duly noticed public hearing on August 31, 1998 at the Commission's hearing room located at 100 Orange Street in Providence. During this hearing the following individuals entered appearances:
FOR PASCOAG: William L. Bernstein, Esq.
FOR THE DIVISION OF
PUBLIC UTILITIES AND
CARRIERS ("DIVISION"): Stephen Scialabba, Chief Accountant
FOR THE COMMISSION: John Spirito, Jr., Esq.
Pascoag proffered its General Manager, Theodore G. Garille, in support of its filing. Mr. Garille sponsored the proposed terms and conditions (Pascoag Exh. 1) and responded to a number of questions propounded by the Commission.
The Division expressed support for the proposed terms and conditions.
Upon an examination of the instant record, and in concert with our findings in Docket No. 2516 [1 See Commission Order No. 15634], we find the proposed Terms and Conditions for Non-regulated Power Producers reasonable and in the best interest of Pascoag's ratepayers.
Accordingly, it is
That the Pascoag Fire District's August 5, 1998 Terms and Conditions for Non-regulated Power Producers filing is hereby approved.
EFFECTIVE AT PROVIDENCE, RHODE ISLAND, ON SEPTEMBER 1, 1998, PURSUANT TO AN OPEN MEETING DECISION. WRITTEN ORDER ISSUED ON SEPTEMBER 4, 1998.
PUBLIC UTILITIES COMMISSION
James J. Malachowski, Chairman
Kate F. Racine, Commissioner
Brenda K. Gaynor, Commissioner
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THE PASCOAG FIRE DISTRICT ELECTRIC DEPARTMENT
Terms and Conditions for Non-Regulated Power Producers
The delivery of electricity shall be in accordance with the provisions of law, regulation and these Terms and Conditions for Customers who purchase power from an Outside Supplier or the Pascoag Fire District. Customers may purchase power from the Pascoag Fire District or from Outside Suppliers who meet the terms described below and are registered in good standing with the Rhode Island Division of Public Utilities and Carriers (Division) and the regional power pool (the current New England Power Pool (NEPOOL), or its successor).
1.1 Customer
The Customer is the end user taking electric service and utilizing it at his or her home or facility. The Customer must be a registered Customer of record of The Pascoag Fire District Electric Department (hereinafter, Pascoag, the District, or the distribution company). Each Customer is identified by a number assigned by Pascoag. This location identification number, which is unique to a Customer's home, facility or portion thereof is also referred to as the Customer Delivery Point.
A Customer eligible for retail choice may select Pascoag or one registered Nonregulated Power Producer (hereinafter "Outside Supplier") from which to purchase electrical power. For purposes of billing and financial responsibility, each Customer Delivery Point will also be identified as an Account by Pascoag and assigned an Account number.
1.2 Distribution Company
Whether or not Pascoag supplies electrical power for an Account, Pascoag is responsible for providing local distribution services from the Transmission Delivery Point(s), as defined within these Terms and Conditions, to the Customer Delivery Point(s) which shall be the service point for each Account.
Pascoag will:
- arrange for network transmission service on behalf of each Customer to each Customer Delivery Point,
- deliver power over distribution facilities to each Customer Delivery Point,
- provide customer service and support for delivery service,
- respond to service interruptions or power quality problems,
- handle connections and terminations,
- read meters,
- submit bills for local distribution services and generation services of the Customer's Supplier, unless the Customer requests separate billing from an Outside Supplier,
- for Customers who receive one bill for electric service, forward payments for generation service to Outside Suppliers,
- address billing inquiries for the local distribution services bill portion and the Pascoag generation services portion, if applicable,
- answer general questions about local distribution service,
- report Outside Suppliers' loads, including distribution losses, to the power pool, and
- report loads to Outside Suppliers electronically.
Pascoag will provide Standard Offer Power Supply service to any Customer who is not purchasing their requirements from an Outside Supplier.
1.3 Suppliers
The District is authorized to supply electrical power at retail within its service territory.
An Outside Supplier is a non-regulated power producer who has registered with the Division as a provider of electric generation service to Customers in Rhode Island.
Outside Suppliers shall comply with the Commission Reliability and Responsibility Regulations for Non-regulated Power Producers. Suppliers shall be responsible for providing firm, all-requirements service, subject to interruptions by the District, to meet the needs of each Account being served and to deliver the associated capacity and energy to a point or points on Montaup Electric Company's (Montaup) transmission system, or on the transmission systems of others that provide transmission service to Montaup under filed tariffs or contracts to serve Pascoag's distribution system, as well as provide any and all necessary installed and operating reserves and ancillary services required to serve each Account's load. Montaup will deliver the associated capacity and energy to Pascoag under its tariff for Local Network Service and the NEPOOL (ISO NE) transmission tariff.
All Outside Suppliers shall meet the requirements of these Terms and Conditions.
1.3.1 NEPOOL Registration
Each Outside Supplier must meet all registration requirements established by law and regulation, and be a member of NEPOOL, [1 Membership in NEPOOL is open to any person or organization engaged in the electric utility business (the generation and/or transmission and/or distribution of electricity for consumption by the public, or the purchase, as principal or broker, of electric energy and/or capacity for resale at wholesale), whether in the United States of America or Canada or a state or province or a political subdivision thereof or a duly established agency of any of them, a private corporation, a partnership, an individual, an electric cooperative or any other person or organization recognized in law as capable of owning property and contracting with respect thereto. No person or organization shall be deemed to be eligible for membership if the generation, transmission, or distribution of electricity by such person or organization is primarily conducted to provide electricity for consumption by such person or organization or an affiliated person or organization.] having an own-load dispatch established within the NEPOOL billing system (as defined by NEPOOL) or have an agreement in place with a NEPOOL member whereby the NEPOOL member agrees to include the load to be served by the Outside Supplier in its own-load dispatch.
Outside Suppliers must provide to Pascoag written notification of the name of the NEPOOL participant in whose NEPOOL own-load dispatch the Outside Supplier's loads are to be included. This information needs to be provided to Pascoag one time, and must be received prior to the Outside Supplier's enrollment of its first Customer. If the NEPOOL participant has more than one own-load dispatch, the Outside Supplier shall designate the one in which its loads are to be included.
1.3.2 Customer Selection of an Outside Supplier
When a Customer chooses an Outside Supplier, that Outside Supplier must provide Pascoag with certain information via electronic file transfer. The Supplier transaction information, which includes specifics regarding customer identification and billing selection for generation service, must be received at least ten (10) business days prior to the commencement of service.
If the data is incomplete or incorrect, the District will not be able to enroll the Customer with the new Outside Supplier and the Outside Supplier will be notified electronically of the error, so that the data may be corrected and resubmitted for processing
If the data is correct, Pascoag will electronically inform the new Outside Supplier of the commencement date for service (coincident with the Customer's next scheduled meter read date after telemetering installation, if applicable.) Pascoag will inform the outgoing Outside Supplier, as applicable, of the termination date for service. If the District or outgoing Outside Supplier indicates an intention to challenge the legitimacy of the change, the Customer will not be enrolled with the new Outside Supplier, and the new Outside Supplier will receive notice of the challenge. In the event of such a dispute, the Customer will remain enrolled with their existing Supplier unless, and until, the District receives a written confirmation from the customer or an authorized representative of the Customer, stating unambiguously that the District or outgoing Outside Supplier is to be dropped and the new Outside Supplier has been selected. The District will then enroll the Customer with the new Outside Supplier, subject to any timing restrictions that could delay such enrollment to the next scheduled meter read date. The District shall have no liability or responsibility for the consequences to Outside Suppliers or to the Customer for complying in such case with the Customer's instructions regarding enrollment with an Outside Supplier.
Only in cases of a documented enrollment dispute between Outside Suppliers will the District enroll a Customer with a new Outside Supplier solely upon the instructions of a Customer. All other enrollments must follow the procedures set forth in these terms and conditions.
Whenever an Account becomes inactive, such as when there's a change in occupant, the Outside Supplier assignment for that Account is discontinued. If the new Customer wishes to select the same Outside Supplier for a new account, the Outside Supplier must submit a new request for Customer enrollment accordingly.
Customers will begin service from their chosen Outside Supplier on the Customer's normal cycle meter read date following notification, except when notification occurs ten(10) or fewer business days prior to the cycle meter read date or in the event of delay due to telemetering installation. In that case, the assignment will be made on the cycle meter read date in the following month. Suppliers will be charged an administrative fee of Five Dollars ($5) by Pascoag for each submitted Customer enrollment or change. No fee will be charged for a Customer first eligible for retail choice who elects to move from Standard Offer Service to service from an Outside Supplier.
Suppliers requesting the enrollment of a new customer, or a customer switching to them, will be presumed to have obtained such authorization by an approved method. Such a request, to the District, that contains the customer's account number and name will be deemed as confirmation of the Customer's consent.
1.4 Dispute Resolution
Pascoag will not be responsible for the resolution of disputes between Outside Suppliers and Customers. Any disputes relating to compliance with these terms and conditions or the regulations of the Commission or Division may be referred by the District, the Outside Supplier or the Customer to the Division and such disputes shall be subject to the regulatory oversight of the Division or Commission, as applicable.
2.1 Supplier Billing
The District shall issue a single bill for electric service to all Customers in its service territory; provided, however, that Customers of Outside Suppliers may request the Outside Supplier to provide separate bills for electricity supply. Should a Customer opt for a separate generation bill, each Outside Supplier will be responsible for billing their Customers for the cost of generation service provided by the Outside Supplier and collection of amounts due to the Outside Supplier from their Customers. Pascoag will read meters on a monthly cycle and will use reasonable efforts to provide to the Outside Supplier(s) on the next business day following the meter read, an electronic file containing the applicable billing determinants and records of billing data for each Account.
The District will make a diligent effort to read all Customer's meters in accordance with its terms and conditions, as approved by the Commission. All electronic files, with the exception of payments, will be transmitted using the Advantis Value Added Network (VAN). Payment of funds collected on behalf of the Outside Supplier are transferred electronically via an Automated Clearing House (ACH) bank funds transfer. VAN rates are set by Advantis. The cost of using the VAN is borne by the Outside Supplier.
Pascoag offers the following billing services:
2.1.1 Complete Billing Service
Pascoag will provide complete billing service for Customers who receive Standard Offer Power Supply with rates and pricing structures to be implemented under a cost of service study and rate design for designated Pascoag customer classes as approved from time to time by the Commission.
For Customers that have selected Outside Suppliers, under the Complete billing service, the Outside Suppliers would provide Pascoag with rates and pricing structures to be implemented for designated Pascoag customer classes. Pascoag would use the supplied rates to calculate the Outside Supplier portion of Customer bills, then integrate this billing with the Transmission, Distribution and Transition Charge components in a single mailing to the Customer. The Outside Supplier is responsible for collection of past due accounts for the Outside Suppliers' portion of Customers' bills.
Outside Suppliers must adhere to Customer classes and rate/pricing structures, which meet the availability clauses of Pascoag's retail delivery tariffs on file with the Commission.
Upon receipt of Customer payments, Pascoag will provide a file for the Outside Supplier summarizing all revenue from the Outside Supplier's sales which have been received and recorded by midnight of that business day, e.g., notification of any payment received on Monday normally will be forwarded to the Outside Supplier by midnight on Monday.
Payments to Outside Suppliers will be made in a lump sum for all Customer revenue due to the Outside Supplier for a given day. This lump sum Outside Supplier payment will be transferred via a two-day Automated Clearing House (ACH) transaction and credited to a predetermined Outside Supplier bank account. The electronic file containing the detail records supporting this transaction will be available to Outside Suppliers only. This money transfer will take place on the 2nd or 4th Friday of the month, as necessary, following payment receipt, when the money has become available to the Company. Each Outside Supplier must provide Pascoag with the name of the receiving bank, routing and transmit number (ABA number) and bank account number to facilitate this transfer. The account detail of the Outside Supplier credited amounts will be provided by a separately transmitted electronic file which includes a detailed payment breakdown of individual Customer payments.
Existing Pascoag service fees, such as interest charges for unpaid balances, bad check charges, etc., shall remain in effect and be assessed, as applicable, to each Account according to the District's Terms and Conditions for Electric Service, applicable to all Customers.
2.1.2 Passthru Billing Service
Pascoag will provide Passthru Billing Service to Outside Suppliers for those Customers that have elected to receive a separate bill for generation from the Outside Supplier. Pascoag reserves the right to obtain confirmation from a Customer being served by an Outside Supplier that such election has been made. Under this option, Pascoag will electronically transmit to the Outside Supplier Customers' usage/demand information obtained via meter reads to the Outside Supplier's VAN. With this billing option, Outside Suppliers will use this data to calculate Customer bills and mail a separate Outside Supplier bill to the Customer.
2.1.3 Passback Billing Service
Pascoag is willing to provide Passback Billing Service for Outside Suppliers whose Customers have elected to receive a single bill for delivery and supply of electricity. This optional service anticipates that outside suppliers will elect to maintain the confidentiality of their pricing structures. Under this option, Pascoag will pass Customers' usage and demand information obtained via meter reads to the Outside Supplier and the Outside Supplier will pass back to Pascoag a bill amount for inclusion in each Customer's bill.
If at least some Outside Suppliers have expressed an interest in this service, Pascoag will solicit such Outside Supplier inputs and propose in a supplemental filing to the Commission the specific procedures, requirements and data formats to be followed.
2.2 Service Disconnection Procedures
Should the Customer fail to pay the full amount billed by Pascoag, the District may disconnect the Customer pursuant to the current Commission procedures for disconnection which apply to Customers of the applicable rate class. Pascoag will provide notification electronically to the Outside Supplier of any Customer receiving a final bill as a result of a disconnection. Once a final bill is issued to the Customer, supply to the Customer is no longer the obligation of the Outside Supplier. Pascoag shall not be liable for any and all revenue losses to the Outside Supplier for participants lost to any disconnection.
The Outside Supplier may discontinue supply to a Customer in conformance with the specific Customer/ Outside Supplier contract. Outside Suppliers will provide Pascoag with electronic notice of intent to discontinue supply ten (10) or more business days prior to the Customer's scheduled meter read. Service by the Outside Supplier will terminate upon the next scheduled meter read from the time of this written notice. Customers whose service from an Outside Supplier is discontinued will become Standard Offer Power Customers of Pascoag upon the prepayment of a deposit, unless or until they enroll with a new Outside Supplier.
2.3 Distribution Service Interruptions
Pascoag shall provide firm local distribution service to each Customer. In the event that the loading of the distribution system, or a portion thereof, must be reduced for safe and reliable operation, such reduction in loading will be proportionately allocated among all Customers whose load contributes to the need for the reduction. Such proportional curtailments can only be accommodated within acceptable operating practices and in compliance with NEPOOL directives.
In the event of power outages or any other service interruptions, which the District is required to make for planned maintenance of the distribution system, Pascoag shall restore electrical service to Customers according to normal service restoration or other operational procedures.
2.4 Release of Customer Information
The disclosure of public records is made only in compliance with the Access to Public Records Act, R.I.G.L., Sections 38-2 et. seq. (APRA) or Open Meetings Law, Sections42-46-1 et. seq., as applicable, and only as otherwise permitted by law.
Outside Suppliers seeking information about electric department customers will be instructed to obtain a written consent from the customer before Pascoag will disclose any such information, not otherwise protected from disclosure by law.
The written consent should include a statement substantially the same as the following:
"[CUSTOMER] authorizes Pascoag Fire District Electric Department to disclose the following information to [NAME OF Outside Supplier] about [CUSTOMER]:
[DESCRIPTION OF INFORMATION]"
The customer must sign the written consent. If the customer is a company, an officer on behalf of the company must sign it.
Pascoag reserves the right to provide the standard billing information directly to the Customer, who in such case will have the discretion to provide it to a prospective Outside Supplier. In such case, Pascoag will inform the prospective Outside Supplier that the data has been delivered to the Customer and may be obtained directly from the Customer.
3.1 Meters
The meter that is currently installed at a customer site will be used to meet the basic distribution company and supplier billing requirements as well as any load estimation process requirements. Pascoag will own all billing meters, and have sole responsibility for meter reading, lockouts, and programming changes.
3.2 Telemetering Installation
For a Customer who selects an Outside Supplier, a computer based remote meter reading device will be installed at the customer site to obtain hourly loads.
Once Pascoag electronically informs the new Outside Supplier of the expected commencement date for service, the Outside Supplier must arrange for the installation by the District of telemetering for use in the daily load reporting process. Any requests for additional metering and/or telecommunication capabilities for rate calculations should be made at the same time. The Outside Supplier is responsible for all installation and operating costs.
At the discretion of the District, the Outside Supplier may arrange for the installation and commissioning of all the necessary equipment (using a licensed electrician) in accordance with the District's standards and the conditions listed herein.
3.3 Ownership and Maintenance Responsibilities
The District owns all billing meters and is responsible for their installation, maintenance, and testing for accuracy. Either the Customer or the Outside Supplier, under the terms approved by the Commission may request tests of meter accuracy.
Generating units operated by Outside Suppliers are dispatched by NEPOOL to meet the region's electrical requirements reliably, and at the lowest possible cost. As a result, an Outside Supplier's electricity production may not match the demand of its Customers. In each hour some Outside Suppliers with low cost production units are net sellers of electricity to NEPOOL, while other Outside Suppliers are purchasing power from NEPOOL to meet the demand of their Customers. To determine the extent to which Outside Suppliers are net buyers or sellers on an hourly basis, it is necessary to estimate the hourly aggregate demand for all of the Customers served by each Outside Supplier ("own-load"). The distribution company is responsible for estimating each Outside Supplier's "own-load" within the distribution company's service territory, as well as the total Standard Rate Offer Service load, and reporting the hourly results to NEPOOL and the Outside Supplier on a daily basis.
The District has no system wide basis for obtaining the real time demand for each of its customers.
In order that each Outside Supplier be able to obtain hourly loads to report to NEPOOL for inclusion in the Outside Supplier's own-load dispatch, appropriate data will be generated from the computer based remote meter reading devices installed by the District at each Customer's premises.
A description of the process follows:
4.1 Aggregate Usage Information
Scale the class load shapes appropriately for each individual customer based on the usage level of the customer relative to the class average usage level. Calculate a factor for each customer, which reflects their relative usage level and includes an adjustment for distribution losses ("load adjustment factor"). Aggregate the load adjustment factors across the customers served by each Outside Supplier in each class.
4.2 Develop Preliminary Estimate of Hourly Loads
Produce a preliminary estimate of each Outside Supplier's hourly loads by combining that day's class load shapes with the Outside Supplier's total load adjustment factors. Aggregate the loads across the classes for each Outside Supplier.
4.3 Reconcile to Meters at Transmission Delivery Points
Adjust the preliminary hourly Outside Supplier estimates so that their sum is equal to the District's actual hourly metered loads (as metered at the point of delivery to the distribution system) by allocating any differences to Outside Suppliers in proportion to their estimated load.
4.4 Incorporate Transmission Losses
Transmission losses will be approximated and added to the results of the previous steps.
4.5 Monthly Reconciliation Process
The monthly process improves the estimates of Outside Supplier loads by incorporating the most recent customer usage information, which is available after the monthly meter readings are processed. The District will make diligent efforts to read all Customer's meters in accordance with its terms and conditions as approved by the Commission. A comparison is made between customers' estimated and actual usage, by billing cycle, then summed across billing cycles for each Outside Supplier. The ratio between the actual kWh and the estimated kWh reflects the kWh amount for which the Outside Supplier may have been overcharged or undercharged by the power pool during the month. This ratio is used to develop a kWh adjustment amount for each Outside Supplier for the calendar month. The sums of the adjustments for all outside suppliers is zero because the total kWh is still constrained to equal the District's actual hourly-metered loads during the month.
4.6 Error Handling
The process of outside supplier load estimation is not perfectly accurate and cannot be made perfectly accurate without large scale investment in special metering to record the hourly usage of all customers, as well as hourly line losses. Accordingly, some level of error will typically be reflected in the estimates.
To the extent that errors are identified, by the District, through the monthly reconciliation process, discovery of metering errors, or any other means, the District will quantify and communicate these errors to NEPOOL and the Outside Supplier for adjustment of supplier settlement results in accordance with NEPOOL rules. The District will not be directly responsible for making such adjustments, nor shall the District be responsible for reimbursing suppliers. NEPOOL settlement rules and procedures, including the applicability of any time limitations, shall be the exclusive means available to Outside Suppliers for obtaining settlement adjustments and reimbursements arising out of any errors in Outside Suppliers' estimated loads.
5.1 Reporting to NEPOOL
Pascoag is responsible for reporting a set of hourly loads for each designated Outside Supplier and their aggregate Customers to NEPOOL usually on a daily basis. The daily reporting of the hourly loads, and later reconciliation adjustments will be provided to NEPOOL in accordance with their scheduling requirements.
5.2 Definition of Outside Supplier Delivery Point
Outside Suppliers shall be obligated to deliver the capacity and energy actually used by each Account to a point or points on the Montaup transmission system ("Outside Supplier Delivery Point") where firm service is available. Outside Suppliers shall be obligated to arrange for and pay all costs associated with delivery of its capacity and energy to the Outside Supplier Delivery Point(s).
Montaup and/or BVE will transmit the power received to Pascoag and deliver it to the interconnection(s) between Montaup's transmission system and Pascoag's local distribution system (Transmission Delivery Points). This service will be provided to Pascoag by Montaup under a transmission tariff on file at the Federal Energy Regulatory Commission and by agreement with BVE.
Pascoag will provide local distribution service to deliver the power from the Transmission Delivery Points to the applicable Accounts (Customer Delivery Points).
5.3 Back up Supply Obligations
Since the load for each Account will be included in the Outside Supplier's own-load dispatch at NEPOOL, the Outside Supplier will be responsible for obtaining any back up supply that it may need. This supply can be obtained from other supply sources or through service offered by NEPOOL to cover energy and/or capacity deficiencies.
5.4 Losses
To compensate for transmission and distribution system losses and Pascoag use requirements, Pascoag requires Outside Suppliers to provide an additional quantity of electricity and associated ancillary services. The quantities actually delivered to each Outside Supplier's retail Customers, in aggregate, in each hour of the billing period, as estimated by the District, shall be scaled to include appropriate distribution and transmission loss factors.
Outside Suppliers providing generation service to Pascoag local distribution service Customers from outside of NEPOOL will be responsible for any and all losses incurred on other transmission systems, which may also include losses on facilities linking generation to NEPOOL facilities.
The District shall not be liable to an Outside Supplier under any theory of recovery for any and all economic losses incurred by the Outside Supplier (including without limitation lost profits and purchased power costs) caused by the failure of the District to deliver electricity because of Service Problems. For purposes of this paragraph, the term "Service Problems" means any service interruption, power outage, fluctuation in voltage, amperage, or harmonics, discontinuance of service, reversal of service, or irregular service caused by accident, labor difficulties, condition of fuel supply or equipment, actions of transmission services provider(s) and suppliers, federal or state agency order, failure to receive any electricity for which the District or Outside Supplier has contracted, or any causes beyond the District's immediate control.
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