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OCA Activity - GasCase Update: Modified: 8/7/09 This update contains information about selected dockets with activity since the last Board meeting.
1. DG 06-098 Northern Utilities, Inc. Long Range Integrated Resource Plan In June 2006, Northern filed its Long Range Integrated Resource Plan (IRP) for the period 2006 through 2012. The IRP provides details of Northern’s resource planning process and strategies based on its current forecasts of requirements and present market conditions. Because Northern operates a unified system for customers in New Hampshire and Maine, Northern’s IRP is also being reviewed by the Maine PUC. The parties last met on May 10, 2007. In April 2008, Staff, the OCA and a competitive supplier, Hess, sent a proposed Settlement Agreement to Northern. In early June, the Company responded. Since then, the OCA has participated in discussions with the Staff of the NH Commission and the Maine PUC concerning the Company’s counter proposal. On October 13, 2008, Staff sent a revised settlement proposal, which the OCA supported, to the Company. The Company rejected the proposal on November 5, 2008. Unitil acquired Northern in December 2008 and has restarted discussions in this case. 2. DG 07-033 Northern Utilities, Inc. and DG 07-050 National Grid Summer COGs and Cash Working Capital Issues In addition to the typical cost of gas issues, these proceedings, which have been joined informally, included the issue of carrying costs for cash for working capital needs, and the transition for both companies to accrual-based accounting. A settlement was filed between Staff and Northern on April 3, 2009. And a settlement between National Grid and Staff was filed on July 31, 2009. The OCA is not taking a position at this time. We now await a hearing date from the Commission. 3. DG 07-072 Carrying Charge Rate to Calculate the Cost of Supply-Related Working Capital On June 25, 2007, the Commission opened this docket to consider an issue that arose in Northern’s 2007 Summer Cost of Gas proceeding, (DG 07-033) and a proceeding concerning KeySpan Indirect Gas Costs (DG 07-050). The Commission described the issue to be “the appropriate carrying charge rate to calculate the cost of supply-related working capital.” In September 2007, the Commission granted a motion of Northern and KeySpan to split the proceeding into two phases. The first phase, which continues to date, concerns whether the existing practice of applying the overall cost of capital as the return on working capital should be changed to using a short-term debt rate. Discovery began in February 2008 and technical sessions were convened. Staff filed the testimony (original and three revisions) of its consultant, James Rothschild, which generally recommends that when feasible the short-term debt rate be used as the appropriate carrying charge rate to calculate the cost of supply-related working capital for cash working capital. The utilities filed testimony on August 29, 2008 questioning the conclusions of Staff’s consultant. At a hearing on October 15, Staff attempted to present a new version of its written direct testimony. The Companies and the OCA objected to the late revised testimony. Rather than continue with the hearing, the parties agreed to postpone it until a date after December 1. The parties also agreed that Staff would circulate a correct copy of the latest iteration of its direct testimony, that the parties would meet in a technical session after that, and that the Companies could also file revised testimony. On December 5, 2008 the Companies filed supplemental testimony. A final hearing was scheduled for February 4. On January 27 Staff requested that the hearing be postponed to allow for settlement discussions. A settlement agreement between Unitil and Staff was filed on March 24, 2009. On July 24, 2009 a settlement agreement between KeySpan(National Grid) and Staff was filed . The OCA has not taken a position at this time. We now await a hearing date from the Commission. 4. DG 08-009 Energy North Natural Gas d/b/a National Grid NH (Grid) delivery rate case On February 25, 2008, Grid filed a petition seeking permanent delivery rates that are designed to produce an increase of $9.9 million in annual revenues, representing a 5.6% increase in total revenues. Grid is also proposing a re-design of the delivery rates, which would double the customer charge and decrease the volumetric charge, which would result in a higher overall percentage increase to the residential class than to larger customers. If approved, annual gas costs for a typical residential heating customer will increase by 6.4%, and, for residential non-heating customers, annual gas costs will increase by 8.5%. The temporary rate hearing was held on August 5. On October 31, 2008 the OCA filed the testimony of Lee Smith and Art Freitas, of La Capra Associates, on the issue of rate design, as well as the testimony of Ken Traum, on several other issues. Staff and NH Legal Assistance also filed testimony. On December 15, 2008 Grid filed rebuttal testimony. On January 23, 2009 the parties filed a Partial Settlement Agreement signed by all the parties, including the OCA, resolving all issues except the Return on Equity. The final hearing was held on January 28-29, 2009. Briefs and closing statements on the appropriate Return on Equity were filed on February 13, 2009. The Commission issued Order No. 24,972 on May 29, 2009 approving an ROE of 9.54%, which will result in a rate decrease on July 1, 2009. On June 29, 2009 the company filed a motion for rehearing or reconsideration. On July 7, 2009 the OCA filed an objection to that motion. We now await a Commission Order. 5. DG 09-038 NH Gas Corporation Gas Rate Case On February 27, 2009 NH Gas filed notice of intent to file a rate case around April 1, 2009. The company serves approximately 1,100 customers in Keene. The OCA plans to monitor the case. The Commission issued Order No 24,964 on April 30, 2009 approving the temporary rates. The permanent phase of the case is now underway with discovery responses to Staff and the OCA provided on July 31. 6. DG 09-049 National Grid Natural Natural Gas Energy Efficiency Program May 2009- Dec. 2010 On March 12, 2009 EnergyNorth Natural Gas, Inc. D/B/A National Grid NH (EnergyNorth) filed its Energy Efficiency Plan for the twenty-month period beginning May 1, 2009 through December 31, 2010. On May 8, 2009 the company filed a revised plan. The OCA raised some concerns at the final hearing, but was supportive of the 20 month period. The final hearing was held on May 12, 2009. Because the hearing was held after May 1, the date when the prior program expired, Grid sought and received Commission approval to continue operating the existing efficiency programs until the new programs are approved. On July 31, 2009 the Commission approved the settlement. For more information visit www.thinksmartthinkgreen.com, or www.nationalgrid.com. 7. DG 09-053 Northern Utilities (Unitil) Natural Gas Energy Efficiency Program May 2009-Dec. 2010 On March 12, 2009 Northern Utilities filed its Energy Efficiency Plan for the twenty-month period beginning May 1, 2009 to December 31, 2010. The Commission issued an Order of Notice on March 19, 2009 setting a technical session for April 2 and the final hearing for April 21. The final hearing was held on April 21, 2009. The OCA was supportive of the 20 month concept but did not have sufficient time to review the company’s proposal. The Commission issued Order No. on May 21, 2009 approving the programs. For more information go to www.northernutilities.com.
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