Dominion on Eversource Rate Increase: Don’t Blame Us.
A July 27th message from Dominion to legislators about the Eversource electricity rate increase that has roiled Connecticut customers:
Good afternoon,
I hope this email finds you well. My name is Weezie Nuara; I am Dominion Energy’s state policy director for New England. As you know, Dominion Energy is owner and operator of Millstone Nuclear Power Station in Waterford, Connecticut. I look forward to meeting you in person and working together on Connecticut’s clean energy future.
You may have seen reports today that state-approved power purchase agreements with Millstone Station are to blame for recent increases in Eversource’s retail electricity rates. We do not believe this captures the full story, so I wanted to provide some additional information on the Millstone agreements, which are a great deal for Connecticut consumers. The power is being sold at a flat rate of 4.999 cents/kWh, the lowest price for a carbon-free resource in Connecticut published to date. And, the contract is for 10 years, so that ensures consumers lock in low-price, zero-carbon electricity for a long time.
As Eversource explains in its June 19, 2020 letter to the Connecticut Public Utilities Regulatory Authority (PURA), July 1 retail rate changes will result in an overall increase of $5.58 (or 3.5%) for a typical residential customer using 700 kWh per month. The overall increase comes from an increase in the transmission service rate charge and an increase in the nonbypassable federally mandated congestion cost (NBFMCC) charge. They are offset in large part by a decrease in the power supply charge (Eversource’s standard service rate) which typically drops during the second half of the year. On July 1, Eversource’s standard service rate for power supply dropped from 9.414 cents/kWh to 7.375 cents/kWh. [As I noted above, the contract price for Millstone’s carbon-free energy is 4.999 cents/kWh.]
The costs associated with Millstone’s power purchase agreements have been incorporated into the NBFMCC charge. The NBFMCC charge seeks recovery for 23 different services and programs approved by state and federal regulators. The state’s contracts with Millstone are just one of those line items.
Finally, Millstone’s contracts went into effect in October 2019 after a competitive solicitation for zero-carbon resources and approval by state regulators. With Millstone, the state can make great strides toward meeting its 100% zero-carbon electric sector goal by 2040, as directed by Governor Lamont’s Executive Order No. 3. Dominion Energy is proud to partner with the state in achieving its ambitious carbon-reduction goals and appreciates the state’s efforts to ensure that Millstone Station continues to deliver round-the-clock, carbon-free electricity to Connecticut homes and businesses for years to come.
Thank you for your time, and please do not hesitate to reach out with any questions.
Respectfully,
Weezie