United States: Challenges Brought Against LICAP Charges
Several parties are in the process of challenging the locational installed capacity (LICAP) charges that are set to begin in New England in 2006.
The Massachusetts attorney general, Rhode Island attorney general, Rhode Island Division of Public Utilities and Carriers, and New Hampshire Office of Consumer Advocate recently filed a joint brief telling the Federal Energy Regulatory Commission to reject the LICAP rate plan and its associated schedule of fees. Massachusetts stated that the LICAP proposal that “so heavily favors the generation industry at the expense of rate payers, fails to achieve an adequate balance between customer and investor interests.”
Other parties, including Connecticut Attorney General Richard Blumenthal, also are challenging LICAP, estimated to cost rate payers US$14.5 billion, a 20% rate increase over five years for the average residential customer.
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