{"id":2541,"date":"2023-01-25T05:00:00","date_gmt":"2023-01-25T05:00:00","guid":{"rendered":"https:\/\/spragueoperati.wpenginepowered.com\/regulatory-matters-fourth-quarter-2022\/"},"modified":"2025-09-17T12:25:01","modified_gmt":"2025-09-17T12:25:01","slug":"regulatory-matters-fourth-quarter-2022","status":"publish","type":"post","link":"https:\/\/www.spragueenergy.com\/fr\/regulatory-matters-fourth-quarter-2022\/","title":{"rendered":"Regulatory Matters: Fourth Quarter 2022"},"content":{"rendered":"

Sprague Regulatory Matters is provided as a courtesy to our customers. Please note that the information contained in Sprague Regulatory Matters is for informational purposes only and should not be construed as legal or business advice on any subject matter. You should not act or refrain from acting on the basis of any information included in this without seeking legal or professional advice.<\/em><\/span><\/p>\n

Federal Energy Regulatory Commission<\/span><\/em><\/span>
\nNational \u2013 Electric & Natural Gas<\/span><\/p>\n

President Biden has named Commissioner Willie Phillips Acting Chairman of the Federal Energy Regulatory Commission. Phillips joined the Commission in December 2021, prior to that he served as the Chairman of the District of Columbia Public Service Commission and has an extensive background in the areas of public utility regulation,\u00a0bulk power system reliability, and corporate governance. Prior to that, Phillips served as Assistant General Counsel for the North American Electric Reliability Corporation. Acting Chairman Phillips has a\u00a0Juris Doctor<\/i>\u00a0from Howard University School of Law, and a Bachelor of Science from the University of Montevallo.<\/span>
\nExiting the Merchant Function Taskforce<\/em><\/span>
\nOhio \u2013 Natural Gas<\/span><\/p>\n

Columbia Gas of Ohio agreed to convene a collaborative process to discuss the potential exit from the merchant function for non-residential customers whereby Columbia Gas procures natural gas supply for its customers. Signatories to the agreement include Columbia Gas of Ohio, the Public Utilities Commission of Ohio, the Office of the Ohio Consumers\u2019 Counsel, Interstate Gas Supply, the Retail Energy Supply Association, and several large customers and industrial groups. The agreement\u00a0provides that, “Columbia shall convene a Non-Residential Customer Exit the Merchant Function Taskforce with participation open to the parties and interested stakeholders to discuss the specific details of a filing regarding a potential modification or exit by Columbia from the merchant function for non-residential customers (i.e., non-residential customers that consume 300 Mcf or more on an annual basis).”\u00a0 <\/i>The taskforce will not address an exit of the merchant function for residential consumers.<\/span>
\nISO New England Mystic Cost of Service Agreement<\/em><\/span>
\nMassachusetts \u2013 Electric<\/span><\/p>\n

The Massachusetts Department of Public Utilities denied a petition from National Grid that sought to exclude the responsibility for costs resulting from the ISO New England\u2019s Mystic Cost-of-Service (COS) Agreement from electricity basic\/default service bids, with bidders instead passing through to National Grid their actual costs related to the Mystic COS Agreement. These are payments to Mystic resources – electric generation and associated liquified natural gas facilities – retained for fuel security in New\u00a0England. National Grid asked the Department to remove this component of the costs on which basic\/default service rates are based and instead allow the Company to recover any difference between estimated and actual costs from all ratepayers whether taking competitive electric supply or basic\/default service. In its decision, the Department noted: (1) This cost component is not unique to basic\/default service supplies as all competitive suppliers must take these into account;\u00a0(2) If approved, National Grid\u2019s request would be substantially altering its basic\/default service offering from that of other Massachusetts electric utilities; and (3) Mystic COS Agreement costs were not raised by any company, including National Grid, as a reason for wholesale suppliers\u2019 recent reluctance to bid, or for why the bids that were received were unreasonably high and ultimately rejected. The\u00a0Department denied the petition, stating that not enough information was provided to justify the proposal.\u00a0 “Considering our decision … it would be premature to address the substantive issues raised by the commenters regarding the effect of including basic service costs in base distribution rates paid by all customers (e.g., subsidization, price signals, retail market competition).”<\/i><\/span>
\nRenewable Natural Gas Legislation<\/em><\/span>
\nNew Jersey \u2013 Natural Gas<\/span><\/p>\n

Legislation has been introduced in New Jersey, Assembly Bill 577 (https:\/\/njleg.state.nj.us\/bill-search\/2022\/A577<\/a>) that if ultimately enacted, would direct the New Jersey Board of Public Utilities to establish the procurement of renewable natural gas and investment in infrastructure by a gas public utility. This proposed legislation requires the New Jersey Board adopt a ratemaking mechanism that\u00a0ensures the recovery of prudently incurred costs made pursuant to the bill. In addition, when a utility procures renewable natural gas from a third party, the utility is to purchase the supply at prices and on terms consistent with conditions in the market for renewable natural gas. This has been referred to committee and awaits further action.<\/span><\/p>\n

Status of Electric Competition<\/em><\/span>
\nOhio \u2013 Electric<\/span><\/p>\n

The Ohio Public Utilities Commission mission requires it to facilitate competitive markets for electric choice.\u00a0 In doing so, the Commission monitors markets to determine whether robust competition exists. In a competitive market, there are many companies, each with a portion of the entire sales and consumers. Data from 2021 shows that the number of Certified Retail Electric Services (CRES) companies has remained stable over the past few years: 125 to 130 electricity marketers are certified in Ohio and roughly 100 of them are reporting\u00a0sales. Additional analysis shows that there is higher market concentration for\u00a0residential consumers and lower concentration for commercial and industrial consumers.<\/span><\/p>\n

Transmission Buildout to Deliver Affordable, Clean Electricity<\/em><\/span>
\nThe White House \u2013 Electric<\/span><\/p>\n

President Biden announced that the Department of Energy is accepting applications for a combined $13 billion in grant funding available under the bipartisan infrastructure law (FACT SHEET:\u00a0The Biden-Harris Administration Advances Transmission Buildout to Deliver Affordable, Clean Electricity | The White House<\/a>).\u00a0The development of thousands of miles of new and upgraded transmission lines will help reduce electricity costs, prevent power outages in the face of extreme weather, and create jobs in the clean energy sector.\u00a0\u201cAn estimated 70 percent of the nation\u2019s transmission lines are over 25 years old, and this aging infrastructure makes American communities,\u00a0<\/i>critical infrastructure, and economic interests vulnerable. New and upgraded transmission lines deliver electricity to where it\u2019s needed, whether that means delivering wind and solar power to towns and cities across the country or moving power from one region to another that needs it in the face of storms, heat waves, and other extreme weather. An expanded transmission system is also critical to cost-effectively achieving the President\u2019s goals of reducing greenhouse gas emissions 50-52% below 2005 levels in 2030 and achieving 100% clean electricity by 2035.\u201d<\/em><\/span><\/p>\n

Disclaimer of Liability\u00a0<\/span><\/p>\n

Every effort is made to provide accurate and complete information in Sprague\u2019s Regulatory Matters. However, Sprague cannot guarantee that there will be no errors. Sprague makes no claims, promises or guarantees about the accuracy, completeness, or adequacy of the contents and expressly disclaims liability for errors and omissions in the contents of this update.<\/em><\/p>\n

Neither Sprague, nor its employees make any warranty, expressed or implied or statutory, including but not limited to the warranties of noninfringement of third-party rights, title, and the warranties of merchantability and fitness for a particular purpose with respect to content available from Regulatory Matters. Neither does Sprague assume any legal liability for any direct, indirect or any other loss or damage of any kind for the accuracy, completeness, or usefulness of any information, product, or process disclosed herein, and does not represent that use of such information, product, or process would not infringe on privately owned rights.\u00a0 <\/em><\/p>\n

The materials presented in Regulatory Matters may not reflect the most current regulatory or legal developments, verdicts or settlements, etc. The content may be changed, improved, or revised without notice.<\/em><\/p>\n

Copyright Statement\u00a0<\/span><\/span><\/p>\n

All content within the Sprague Regulatory Matters is the property of Sprague unless otherwise stated. All rights reserved. No part of Regulatory Matters may be reproduced, transmitted or copied in any form or by any means without the prior written consent of Sprague<\/span>.<\/em><\/p>","protected":false},"excerpt":{"rendered":"

Sprague Regulatory Matters is provided as a courtesy to our customers. Please note that the information contained in Sprague Regulatory Matters is for informational purposes only and should not be […]<\/p>\n","protected":false},"author":1,"featured_media":47411,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"sfsi_plus_gutenberg_text_before_share":"","sfsi_plus_gutenberg_show_text_before_share":"","sfsi_plus_gutenberg_icon_type":"","sfsi_plus_gutenberg_icon_alignemt":"","sfsi_plus_gutenburg_max_per_row":"","footnotes":""},"categories":[26,24,27],"tags":[],"class_list":["post-2541","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-electricity","category-natural-gas","category-regulatory-news"],"acf":[],"yoast_head":"\nRegulatory Matters: Fourth Quarter 2022 - Sprague Energy<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.spragueenergy.com\/fr\/regulatory-matters-fourth-quarter-2022\/\" \/>\n<meta property=\"og:locale\" content=\"fr_CA\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Regulatory Matters: Fourth Quarter 2022\" \/>\n<meta property=\"og:description\" content=\"Sprague Regulatory Matters is provided as a courtesy to our customers. 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