65- 407 C.M.R. ch. 301, § 2

Current through 2024-25, June 19, 2024

Section 407-301-2 - Rates, Charges and Procedures for Initiating and Terminating Standard Offer Service

A.Rates and Rate Schedules

1.Establishment and Filing of Rates

Rates for standard offer service shall be established, maintained and modified pursuant to the provisions of this subsection and the bidding and selection processes of section 8. Rates for standard offer service shall be available for public inspection at the Commission's office, and at the office maintained by the transmission and distribution utility in whose service territory the standard offer providers are authorized to provide service.

2.Standard Offer Classes

a.Investor-Owned Transmission and Distribution Utility Service Territories

Unless otherwise specified in the request for standard offer bids issued pursuant to section 8 of this Chapter, for each investor-owned transmission and distribution utility service territory there shall be the following three standard offer classes:

i.Residential and small non-residential. This standard offer class shall contain customers taking service as residential customers under the terms and conditions of the transmission and distribution utility and non-residential customers that are taking service under a core customer class rate schedule of the transmission and distribution utility that does not include a demand charge. Residential and small non-residential customers include customers that are not taking service under a core customer class rate schedule, but would be eligible to take service as a residential customer or as a non-residential customer from a core customer class rate schedule that does not include a demand charge.

ii.Medium non-residential. This standard offer class shall contain non-residential customers that are taking service under a core customer class rate schedule of the transmission and distribution utility that includes a demand charge and in which a customer's maximum demand shall not exceed 500 kW, or the kW breakpoint that is closest to but does not exceed 500 kW. Medium non-residential customers include customers that are not taking service under a core customer class rate schedule, but are eligible to take service from a core customer rate schedule that includes a demand charge and a maximum demand limit that does not exceed 500 kW, or the kW breakpoint that is closest to but does not exceed 500 kW.

iii.Large non-residential. This standard offer class shall contain non-residential customers that are not small non-residential or medium non-residential customers.

b.Consumer-Owned Transmission and Distribution Utility Service Territories

For each consumer-owned transmission and distribution utility service territory there may be, at the utility's option, a single standard offer service class that shall contain all customers in the service territory of the consumer-owned transmission and distribution utility or the three standard offer classes specified in section 2(A)(2).

3.Rate Structure

For the residential and small non-residential standard offer class and for all standard offer service in a consumer-owned utility service territory with a single standard offer class, the standard offer rate shall be an amount per kWh that does not vary by level of usage, or by time of year or day. The rate structure shall not include any demand charges nor any amounts charged on a per customer or fixed-charge basis.

For the medium and large non-residential standard offer classes, the rate structure may include demand and kWh charges and may reflect seasonal and time-of-day differentiation. The time-of-day differentiation must be compatible with the transmission and distribution utility's core rate structure for customers in the standard offer class. The rate structure for the medium and large non-residential standard offer classes shall not include any amounts charged on a per customer or fixed-charge basis.

4.Division of Load; Averaged Rates

If the Commission selects more than one standard offer provider for a standard offer class within a transmission and distribution utility's service territory, each standard offer provider shall be responsible for a specified portion of the total standard offer requirement of the class. Rates for the standard offer class and for each rate element within the standard offer class shall be equal to the weighted average of the rates of all standard offer providers selected for the class . Customers shall not be assigned to a specified standard offer provider.

5.Geographic Averaging of Rates

Rates, terms and conditions for standard offer service shall not vary within the transmission and distribution utility's service territory on the basis of customer location.

6.Charges for Billing and Administration

The transmission and distribution utility shall charge the standard offer provider(s) the utility's incremental costs of administering standard offer service, including providing basic bill issuance, bill calculation, and collections. These charges shall be consistent with Chapter 322 of the Commission's Rules.

B.Establishment and Re-establishment of Standard Offer Service

1.For Nonselecting Customers Existing on March 1, 2000

Standard offer service shall be provided beginning on March 1, 2000 to any customer who has not obtained electric generation service from a competitive electricity provider on that date. There shall be no fee for a customer to establish standard offer service in this manner.

2.For New Customers After March 1, 2000

Standard offer service shall be provided to any customer who establishes a new service within a transmission and distribution utility's service territory after March 1, 2000, and who does not obtain electric generation service from a competitive electricity provider at that time. There shall be no fee for a customer to establish standard offer service in this manner. Nothing in this paragraph shall relieve the customer from Commission-authorized charges for the construction of transmission and distribution facilities to serve any new location pursuant to the terms and conditions of the transmission and distribution utility on file with the Commission.

3.For Customers Returning from Competitive Service

Any customer taking service from a competitive electricity provider may terminate service with a competitive electricity provider and elect standard offer service at any time, upon notice to the customer's transmission and distribution utility as required by subsection D and subject to any applicable transfer fees required by subsection E.

C.Termination of Standard Offer Service

1.Unlimited Termination of Standard Offer Service by Residential and Small Non-residential Customers

Any individual customer or account in a residential and small non-residential standard offer class or any customer or account with a demand of 50 kilowatts or less in the service territory of a consumer-owned transmission and distribution utility having a single standard offer class may terminate standard offer service and obtain generation service from a competitive electricity provider, at any time, by obtaining service from a competitive electricity provider under the provisions in subsection D and subject to any applicable transfer fees required by subsection E. No opt-out fee shall be required unless the Commission establishes such a fee pursuant to the provisions of paragraph 3 below.

2.Termination of Standard Offer Service by Medium and Large Non-Residential Customers and Aggregated Sets of Customers; Applicability of Opt-Out Fee

a.Applicability of Paragraph

The provisions of this paragraph shall apply to all individual customers or accounts in a medium or large non-residential standard offer class, to any customer or account with a demand of greater than 50 kilowatts in the service territory of a consumer-owned transmission and distribution utility with a single standard offer class, and to any competitive electricity provider or aggregator that serves a set of customers whose demand in the aggregate is greater than 50 kilowatts.

b.Termination of Standard Offer Service By Original Standard Offer Customer

Any customer in a medium or large non-residential standard offer class, any customer with a demand of greater than 50 kilowatts in the service territory of a consumer-owned transmission and distribution utility with a single standard offer class, or any set of customers having a demand of greater than 50 kilowatts who has never obtained generation service from a competitive electricity provider may terminate standard offer service by obtaining generation service from a competitive electricity provider under the provisions in subsection D and subject to any applicable fees required by subsection E.

c.Termination of Standard Offer Service Prior to March 1, 2001 By Previous Competitive Market Customer; Opt-Out Charge

A customer or account in a medium or large non-residential standard offer class, a customer or account with a demand of greater than 50 kilowatts in the service territory of a consumer-owned transmission and distribution utility with a single standard offer class or an aggregated group of customers having a demand of greater than 50 kilowatts who has previously obtained generation service from a competitive electricity provider and who has reestablished standard offer service may, prior to March 1, 2001, terminate standard offer service and return to competitive provider service upon payment of an opt-out charge.

The opt-out charge shall equal the amount of that customer's, or aggregated group of customers', average monthly bill for the most recent period that the customer has taken standard offer service. If the customer has not taken standard offer service for a full month, the transmission and distribution utility shall calculate a monthly bill amount using the customer's average daily consumption. All opt-out charges shall be collected by the transmission and distribution utility and paid to the standard offer service provider(s). Any customer or aggregator terminating standard offer service pursuant to this paragraph shall provide notice to the transmission and distribution utility and pay any applicable administrative fees as provided in subsection E. An aggregator shall be responsible for the payment of any charge applicable to an aggregated group due under this subsection.

d.Termination of Standard Offer Service on or After March 1, 2001 By Previous Competitive Market Customer; Opt-Out Fee

A customer in a medium or large non-residential standard offer class, or a customer with a demand of greater than 50 kilowatts in the service territory of a consumer-owned transmission and distribution utility with a single standard offer class who has previously obtained generation service from a competitive electricity provider and who has transferred to standard offer service may, on or after March 1, 2001, terminate standard offer service and return to competitive provider service:

i. without payment of an opt-out fee if 12 months or more have elapsed since the customer most recently established standard offer service; or

ii. without payment of an opt-out fee if the customer takes service in northern Maine unless the Commission establishes a charge pursuant to the provisions of paragraph 3 below; or

iii. upon payment of an opt-out fee.

The opt-out fee shall equal two times the amount of the highest standard offer bill of the customer during the most recent period that the customer has taken standard offer service unless the Commission has increased the amount of the opt-out fee pursuant to the provisions of paragraph 3 below. If the customer has not taken standard offer service for a full month, the transmission and distribution utility shall calculate a monthly bill amount using the customer's average daily consumption. The transmission and distribution utility shall make reasonable efforts to collect the opt-out charge. In the event the customer during its return to standard offer service was served by more than one standard offer provider, the utility shall apportion the fee among the standard offer providers on the basis of the number of months each provider provided service to the customer. The customer shall notify the transmission and distribution utility that is required to pay an opt-out fee pursuant to this provision prior to the termination of standard offer service.

e.Establishment of Higher Opt-Out Fee

The Commission may establish a higher opt-out fee by order upon a finding that such action is necessary to accomplish the deterrent purposes of this paragraph or to obtain reasonably priced standard offer service.

3.Application of Fees or Restrictions to Residential and Small Non-Residential Customers and Customers in Northern Maine

a. The opt-out requirements provided for in paragraph 2(d) shall apply to a competitive electricity provider or an aggregator who serves a set of customers in the residential and small non-residential standard offer class, which set has an aggregate demand of greater than 50 kilowatts, and who induces that set of customers to re-enter standard offer service, and within 12 months of such re-entry, to return to competitive service. This provision shall not apply if the customers are in northern Maine unless the Commission otherwise provides pursuant to paragraph 3(b).

b. If the Commission finds that there is good cause to deter frequent transfers in or out of standard offer service by customers in the residential and small non-residential standard offer class, customers having a demand of 50 kilowatts or less in the service territory of a consumer-owned transmission and distribution utility with a single standard offer class, or customers in northern Maine, the Commission by order may impose an opt-out charge, a re-entry charge, or other deterrent measures. The Commission may require transmission and distribution utilities to include any charges or other measures required pursuant to this paragraph in their terms and conditions.

D.Notice; Transfer of Service; Bill Calculation

1.Notice of Transfer into Standard Offer Service

A customer who intends to transfer into standard offer service shall do so by notifying the transmission and distribution utility or by canceling service with its competitive electricity provider.

2.Transfer into Standard Offer Service

If the customer notifies the transmission and distribution utility no less than 2 business days before the customer's next normally scheduled meter read date, the transmission and distribution utility shall transfer the customer on the customer's next meter read date. Otherwise, transfer will occur on the following meter read date. Upon request by the customer, the transmission and distribution utility shall assign the customer's usage to the standard offer provider(s) on a date that is not the customer's meter read date pursuant to section 2(D)(5). The transmission and distribution utility shall accommodate the request to the greatest extent practicable.

3.Notice of Transfer out of Standard Offer Service

Notice that a standard offer service customer will terminate standard offer service and obtain service from a competitive electricity provider shall be provided to the transmission and distribution utility by the customer's competitive electricity provider pursuant to provisions in Chapter 322 of the Commission's Rules.

4.Transfer out of Standard Offer Service

If the competitive electricity provider notifies the transmission and distribution utility no less than two business days before the customer's next meter read date, the transmission and distribution utility shall transfer the customer on the customer's next meter read date. Otherwise, transfer will occur on the subsequent read date.

5.Calculation of Bill for Transfer on Other Than Meter-Reading Date

For any transfer into standard offer service on a date other than the next meter read date for that customer, the transmission and distribution utility shall determine the customer's consumption from the date of the previous meter reading to the date of the change of service by prorating the customer's metered consumption from the date of the last meter reading to the date of the next meter reading, and shall prorate demand levels by a method determined in its contract with the competitive electricity provider. Alternatively, if requested by the customer, the transmission and distribution utility shall perform an unscheduled meter reading. For either service, the transmission and distribution utility shall charge a transfer fee as provided in subsection E.

E.Charges for Costs of Transfer

The transmission and distribution utility shall charge the customer its incremental cost for transferring the customer into standard offer service on a date other than the meter read date. Alternatively, if the competitive electricity provider requested the transfer pursuant to provisions in Chapter 322, the charge shall be paid by the competitive electricity provider. The transmission and distribution utility shall establish these charges in its terms and conditions on file with the Commission. Separate charges shall be established for bill proration and unscheduled meter reading services described in subsection D(4).

65- 407 C.M.R. ch. 301, § 2