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Review of National Grid's Rate Design Proposal
Synapse has been retained to evaluate National Grid’s Massachusetts rate design proposals, filed as part of its 2016 rate case. In its application, the Company proposed to impose tiered customer charges on residential and small commercial customers intended to act as a proxy for a demand charge. Synapse submitted testimony that demonstrated why the Company’s proposal not only failed to improve customer equity, but would also be unnecessarily complex, difficult for customers to respond to, and would undermine price signals for energy efficiency and distributed energy resources. Specifically, Synapse conducted statistical analysis to show that the Company’s proposed proxy for a demand charge was no better of an indicator of customer demand than an energy charge, and also failed to account for customer demand diversity and the coincidence with system peak demands.