Eversource Energy : NSTAR Electric Rate Order

The Commonwealth of Massachusetts

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DEPARTMENT OF PUBLIC UTILITIES

D.P.U. 22-22

November 30, 2022

Petition of NSTAR Electric Company, doing business as Eversource Energy, pursuant to G.L. c. 164, § 94 and 220 CMR 5.00, for Approval of a General Increase in Base Distribution Rates for Electric Service and a Performance Based Ratemaking Plan.

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APPEARANCES: Cheryl M. Kimball, Esq.

Danielle C. Winter, Esq.

Jessica Buno Ralston, Esq.

Kerri A. Mahoney, Esq.

99 High Street, Ste 2900

Boston, Massachusetts 02110

FOR: NSTAR ELECTRIC COMPANY

Petitioner

Maura Healey, Attorney General

Commonwealth of Massachusetts

By: Joseph W. Rogers

Matthew E. Saunders

Elizabeth Anderson

Shannon S. Beale

Jacquelyn K. Bihrle

Jo Ann Bodemer

Donald W. Boecke

Jonathan F. Dinerstein

Jessica R. Freedman

Ashley Gagnon

Chris Modlish

Assistant Attorneys General

Kelly Caiazzo

Special Assistant Attorney General

Office of Ratepayer Advocacy

One Ashburton Place

Boston, Massachusetts 02108

Intervenor

D.P.U. 22-22

Page ii

Department of Energy Resources

Commonwealth of Massachusetts

Robert H. Hoaglund II, General Counsel

Rachel Graham Evans, Deputy General Counsel

Ben Dobbs, Deputy General Counsel

100 Cambridge Street, Suite 1020

Boston, Massachusetts 02114

Intervenor

Jerrold Oppenheim, Esq.

57 Middle Street

Gloucester, Massachusetts 01930

FOR: THE LOW-INCOME WEATHERIZATION AND

FUEL ASSISTANCE PROGRAM NETWORK

Intervenor

Amy E. Boyd, Esq.

Kyle T. Murray, Esq.

198 Tremont Street, Suite 415

Boston, Massachusetts 02111

FOR: ACADIA CENTER

Intervenor

Audrey Eidelman Kiernan, Esq.

Rebecca F. Zachas, Esq.

BCK LAW, P.C.

1337 Massachusetts Avenue, Box 314

Arlington, Massachusetts 02476

FOR: CAPE LIGHT COMPACT JPE

Intervenor

Priya Gandbhir, Esq.

Conservation Law Foundation

62 Summer Street

Boston, Massachusetts 02110

FOR: CONSERVATION LAW FOUNDATION

Intervenor

D.P.U. 22-22

Page iii

Brooke Skulley, Esq.

Stacey M. Donnelly, Esq.

National Grid

40 Sylvan Road

Waltham, Massachusetts 02451

FOR: MASSACHUSETTS ELECTRIC COMPANY

AND NANTUCKET ELECTRIC COMPANY

Intervenor

Jeremy McDiarmid, Esq.

Northeast Clean Energy Council, Inc.

444 Somerville Avenue

Somerville, Massachusetts 02143

FOR: NORTHEAST CLEAN ENERGY COUNCIL,

INC.

Intervenor

Robert Ruddock, Esq.

Ruddock Office

436 Pleasant Street

Belmont, Massachusetts 02478

FOR: THE ENERGY CONSORTIUM

Intervenor

Kevin Conroy, Esq.

Zachary Gerson, Esq.

Cloe Pippin, Esq.

Foley Hoag LLP

155 Seaport Boulevard

Boston, Massachusetts 02210-2600

FOR: UNIVERSITY OF MASSACHUSETTS

Intervenor

Jay Myers, Esq.

Locke Lord LLP

111 Huntington Avenue

Boston, Massachusetts 02199

FOR: POWEROPTIONS, INC.

Limited Intervenor

D.P.U. 22-22

Page iv

Charles S. McLaughlin, Jr.

Senior Town Attorney

Town of Barnstable

367 Main Street

Hyannis, Massachusetts 02601

FOR: TOWN OF BARNSTABLE

Limited Intervenor

Walter A. Foskett, Esq.

Robert D. Shapiro, Esq. Duncan & Allen

35 Braintree Hill Office Park, Suite 201 Braintree, Massachusetts 02184

FOR: NRG HOME f/k/a RELIANT ENERGY NORTHEAST LLC, DIRECT ENERGY SERVICES, LLC, DIRECT ENERGY BUSINESS, LLC, DIRECT ENERGY BUSINESS MARKETING, LLC, GREEN MOUNTAIN ENERGY COMPANY, ENERGY PLUS HOLDINGS LLC, and XOOM ENERGY MASSACHUSETTS, LLC

Joint Limited Participants

Melissa M. Horne, Esq.

HIGGINS, CAVANAGH & COONEY, LLP

10 Dorrance Street, Suite 400

Providence, Rhode Island 02903

FOR: WALMART, INC.

Limited Participant

D.P.U. 22-22				Page v
				TABLE OF CONTENTS
I.	INTRODUCTION ...................................................................................	1
II.	PROCEDURAL HISTORY .......................................................................	3
III.	COMPANY'S TEST YEAR.......................................................................	8
	A.	Introduction ..................................................................................	8
	B.	Analysis and Findings .....................................................................	9
IV.	PERFORMANCE BASED RATEMAKING PROPOSAL .................................	12
	A.	Introduction .................................................................................	12
	B.	PBR Mechanism Components ...........................................................	15
		1.	PBR Plan Term ...................................................................	15
		2.	Productivity Offset ...............................................................	15
		3.	Inflation Index and Floor........................................................	18
		4.	Consumer Dividend ..............................................................	18
		5.	Post-Test-Year Capital Additions..............................................	19
		6.	ROERA Factor ....................................................................	21
		7.	Cost Treatment of Critical Infrastructure ....................................	22
		8.	ESM .................................................................................	23
		9.	Exogenous Cost Factor ..........................................................	24
	C.	Positions of the Parties ...................................................................	25
		1.	Attorney General .................................................................	25
		2.	DOER...............................................................................	32
		3.	Acadia Center .....................................................................	33
		4.	Cape Light Compact .............................................................	34
		5.	CLF .................................................................................	35
		6.	TEC and PowerOptions .........................................................	36
		7.	UMass	..............................................................................	37
		8.	Company ...........................................................................	37
			a.	Introduction ...............................................................	37
			b.	PBR Plan Components .................................................	39
	D.	Analysis and Findings ....................................................................	44
		1.	Introduction ........................................................................	44
		2.	Department Ratemaking Authority ............................................	45
		3.	Evaluation Criteria for PBR ....................................................	47
		4.	Rationale for PBR ................................................................	48
		5.	PBR Plan Components...........................................................	53
			a.	PBR Plan Term ..........................................................	53
			b.	Productivity Offset ......................................................	56
			c.	Inflation Index and Floor ..............................................	57
			d.	Consumer Dividend .....................................................	59