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DERS 2023-2025 EPSP Minor Amendment, AUC Decision 28902-D01-2024

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Rates – Adjustment


The AUC approved the request from Direct Energy Regulated Services (“DERS”) to amend the Confidential Schedule E of its 2023-2025 energy price setting plan (“EPSP”).


The AUC approved the 2023-2025 EPSP in Decision 27950-D01-2023.

Pertinent Issues

In the current proceeding, DERS proposed to amend two tables in the Confidential Schedule E of the EPSP to allow for more even procurement of forward-market electricity hedge products. DERS submitted that, since the release of Decision 27950-D01-2023, it has experienced a significant reduction in the number of regulated rate option (“RRO”) customers and a corresponding decrease in load. This has led to procurement occurring very early in the 120-day allowable price implementation period (“APIP”). DERS explained that, depending on the price trends throughout the APIP, the change in customers and the corresponding load can create costs or benefits for customers. DERS also submitted that it cannot slow the procurement to match the APIP.

The AUC found that it was important for procurement to be spread out as evenly as practical over the 120-day APIP to smooth out spikes in the forward-market prices that may occur over the APIP. The AUC concluded that the proposed amendments resulted in more even procurement over the APIP avoiding full procurement being completed too early in the APIP.

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