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Mass. Refines LDC Margin-sharing Plan

Fortnightly Magazine - November 1 1996

The Massachusetts Department of Public Utilities (DPU) has clarified an earlier ruling on sharing revenues that local distribution companies (LDCs) receive from certain interruptible services and capacity-release transactions. In that ruling, the DPU had established that LDCs could retain 25 percent of margins above a designated threshold. Re Interruptible Transportation/Capacity Release, D.P.U. 93-141-A , Feb. 14, 1996 (Mass.D.P.U.).

The DPU ruled that LDCs must 1) establish a threshold level for margin-sharing based on the 12-month period ending April 30, 1996; 2) include revenues from offsystem sales in the margin-sharing program and credit them to firm sales customers; and 3) separately calculate, rather than aggregate, the margins derived from each of the interruptible services as well as from capacity-release transactions and offsystem sales. Re Interruptible Transportation/Capacity Release, D.P.U. 93-141-B, Feb. 14, 1996 (Mass.D.P.U.). t

Phillip S. Cross is an associate legal editor of PUBLIC



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