Stakeholders Respond to Mass. Proposal to Limit Cost Recovery for Gas Expansion

Business groups and environmental advocates expressed divergent views on a proposal by the Massachusetts Department of Public Utilities that would require new gas customers to cover the entire cost of connecting to the system.

The department’s draft policy would end the utility practice of including the costs of connecting new customers into rate base. This is currently allowed if the utility expects to recover the costs through distribution fees from the new customers over an extended period.

The AGO and a range of environmental nonprofits called for the DPU to add language establishing strict criteria for the exemptions that would allow a project’s connection costs to be covered by ratepayers.

“The draft policy should establish a clear and consistent methodology for assessing a demonstrable reduction in GHG emissions for proposed line extensions serving new construction,” wrote a coalition of environmental groups led by Rewiring America and the Acadia Center.

To read the full article from RTO Insider, click here.