Utility commissions in almost a dozen jurisdictions have canceled hearings and revised procedural schedules in several pending electric and natural gas rate cases. A few utilities have committed to delay the implementation of rates, in order to avoid burdening customers amid the difficult circumstances created by the COVID-19 pandemic.
The New England grid operator has proposed a long-term, market-based solution to the region’s energy security problem as the power generation fleet moves towards a mix of energy-limited resources. With the retirement of resources with stored fuel, the system is increasingly reliant on facilities that run on just-in-time natural gas deliveries and weather-dependent wind and solar energy. To address the ensuing challenge, the grid operator proposes to improve the current market structure by creating incentives for the region’s fleet to invest in the energy supply arrangements and technologies on which the region depends.
Amid the economic downturn ensuing from the pandemic, state utility regulators are faced with the challenging task of protecting customers from power shutoffs while also considering costs incurred by utilities. A growing number of state commissions are directing utilities to establish a regulatory asset account to capture and track COVID-19-related incremental costs.
The volatile situation created by the COVID-19 spread has prompted state utility commissions to respond with new directives and guidance on a number of proceedings. Regulators have responded with various measures, including suspending service disconnections, transitioning to virtual meetings, and delaying rate cases.
