Effect of LMP on Massachusetts Electrics Retail Rates

1
Effect of LMP on Massachusetts Electrics Retail
Rates

• Carlos A. Gavilondo
• VP, Distribution Regulatory Services
• Massachusetts Electric Company
• February 28, 2003

2
Mass. Electric Serves

• Approximately 1.2 million customers
• Peak load of approximately 4,500 MW
• Customers in each Load Zone
• NEMA/Boston 23
• WCMA 47
• SEMA 30

3
Massachusetts Load Zones

4
LMP Effect on Retail Rates

• Depends on Supply Type, Load Zone and Customer
  Rate Class
• Standard Offer Customers
• SOS customers will see no zonal price
  differentials, regardless of zone or size
• Settlement rates
• 836,000 customers, 61 of total kWh deliveries
• Some Default Service and Competitive Supply
  Customers will see zonal effects

5
Default Service Competitive Supply

• Default Service Customers
• No zonal difference prior to May 1, 2003
• Beginning May 1
• Large and Medium-sized customers will see zonal
  prices
• 3,900 customers, 7 of total kWh deliveries
• Small commercial and residential customers will
  not see zonal prices i.e., zonal default service
  bids will be averaged across the 3 zones
• 346,000 customers, 13 of total kWh deliveries
• Competitive Supply Customers
• Depends on contract
• 20,000 customers, 19 of kWh deliveries

6
Steps on the Road to LMP Implementation

• Assign each customer to a Load Zone
• Based on customers electric supply source
• Maintained in CIS
• Included in supplier EBTs
• Reflected on customer lists available to
  suppliers
• Indicated on customer bills as of March 3

7
Portion of Sample Bill
8
More Steps on the Road to LMP Implementation

• Procure Default Service Zonally
• Zonal procurements by customer class (although
  average pricing for small customers)
• RFPs issued last week
• Finalize protocol for monitoring and reflecting
  zonal changes communications etc.

9
Final Thought . . .

• Youve got to be very careful if you dont know
  where youre going, because you might not get
  there.
• Yogi Bera