The Massachusetts Department of Public Utilities (DPU) is a state agency that is responsible for oversight of investor-owned electric power and natural gas in the Commonwealth and has as part of its mission ensuring that utility consumers are provided with the most reliable service at the lowest possible cost, overseeing the energy facilities siting process and ensuring that residential ratepayers’ rights are protected.
In light of current petitions before the DPU by National Grid and Eversource, one may question whether the DPU will fulfill its mission and protect ratepayers from helping pay for new over-sized gas pipeline infrastructure.
Why is it important to speak out against these petitions in the work to stop the proposed Tennessee Gas Northeast Energy Direct (NED) project? In 2015, the proposed NED pipeline project had contract commitments for less than half of the pipeline capacity. Now if National Grid gets approval from the DPU for its petition for a firm transportation capacity contract this could help Tennessee Gas show FERC that the proposed NED project is needed for more gas supplies.
Another reason why it is important to speak out against both the National Grid and Eversource petitions is that the utilities want approval to put in place a tariff to recover costs of getting gas capacity from Tennessee Gas (NED) and Access Northeast (ANE). This includes costs pertaining to the transportation contract, the cost of a capacity manager, and administrative costs. In the National Grid petition, the company even suggests getting approval for an Innovation Incentive “equal to 2.75 percent of total fixed contract payments” according to written testimony given to the DPU in the National Grid filing in January. This tariff would be figured as a cost per KwH used by all customers and put on the distribution side of bill if approved.
Almost 20 years ago, the Legislature passed the Restructuring Act of 1997 to restructure the utility industry and separate electricity generation from electricity distribution. But in their petitions, National Grid proposes to have a firm transportation capacity contract with Tennessee Gas/Northeast Energy Direct (NED-16-07) and Access Northeast (ANE-16-05) where generating plants can then get gas from National Grid (a distributor of electricity). The generating plants then sell the electricity produced back to National Grid.
This does not sound like a separation of electricity generation from distribution. The DPU (Docket 15-37) did rule in 2015 that electricity distribution companies could have capacity contracts with such pipelines as the Tennessee Gas NED project. At this time, Attorney General Maura Healey’s office and the Conservation Law Foundation are both challenging this ruling in court and calling for the Supreme Judicial Court to reverse the DPU order issued in October. The case should be heard later this spring.
Now both National Grid and Eversource propose to have all ratepayers pay the bill for these contracts as part of a tariff. If someone does not use National Grid or Eversource as a supplier they would still have to pay the tariff imposed on the distribution side of their bill and thus help pay for new over-sized gas infra-structure.
As a state, we cannot afford to be locked into a concentration of fossil fuels such as natural gas for the next 20 years. Bringing more gas into the state for power plants, which already use about 40 percent to 45 percent natural gas for electricity generation, means more of an imbalance. This proposed pipeline is an over-sized response to the region’s future energy needs. The energy industry is calling for more energy infra-structure to meet peak energy needs that happen 30 or fewer days out of the year. But as seen in a study released by the attorney general’s office, new large-scale pipelines are not needed and thus these petitions should be rejected.
What can people do to question these DPU petitions and the tariff? Many people cannot go to Boston to testify at the public hearings, but people can submit written comments to the hearing officer for each petition. Written comments for the National Grid petition (16-07) can be submitted to Jeffrey Leupold at Jeffrey.Leupold@state.ma.us until May 11. Comments for the Eversource petition (15-181) can be submitted to Laura Koepnick at Laura.Koepnick@state.ma.us until May 23. A copy of comments should also be sent to dpu.efiling@state.ma.us. For more information about later hearings on these petitions in Walpole and Stoughton and for more details of the DPU petitions see www.nofrackedgasinmass.org/dpu-issues-and-actions/ or www.northquabbinenergy.org/wordpress.
People may also send copies of their comments to the DPU to Gov. Charlie Baker and their legislators.
Pat Larson lives in Orange.