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Another Utility to See 15¢ Small Customer Default Service Rate (Bills Jump 50%)

September 30, 2014

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Copyright 2010-14 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

The New Hampshire PUC has approved new default service electric rates at Granite State Electric (Liberty Utilities), resulting in bill increases of 39%-59% depending on customer class and usage.

As a result of the bid solicitation and selection process, the overall bill impact for residential customers using 665 kilowatt hours (kWh) per month (the average usage for Liberty's residential customers for the 12-month period ending August 2014) is an increase of $51.57 or 46.7% from $110.48 per month to $162.05 per month.

For other customers in the Small Customer Group, the monthly bill impact will be an increase ranging from 38.9% to 53.4%.

Specifically, the total default service rate for Granite State Electric residential and small C&I customers for the period November 2014 to April 2015 will be 15.487¢/kWh. This includes reconciliation and reclassification, the RPS adder, and the RGGI credit.

Total default service rates for medium and large C&I customers, including reconciliation and reclassification, the RPS adder, and the RGGI credit, are below: (¢/kWh):

Nov       8.453
Dec      17.502
Jan      21.900
Feb      21.171
Mar      12.733
Apr       7.642

The PUC rejected proposals from the Office of Consumer Advocate to require a new round of competitive bidding, or alternatively spread out the higher costs over a longer period. Granite State Electric had noted that if costs were spread out over a loner period, "customers could pay lower rates over the winter period and then leave Liberty for competitive supply, leaving any remaining costs deferred from the winter period to be recovered through higher-than-market rates from customers who did not migrate to competitive suppliers."

Mindful of the rate increases, the PUC, "encourage[d] customers to take advantage of whatever measures are available to help them reduce their electric usage, obtain lower prices from a competitor, and manage their winter bills."

"Residential customers who have not considered taking power from competitive suppliers should review offers from competitive suppliers that are registered to do business in New Hampshire. Customers should be aware that competitive suppliers can offer service under terms that are different from those required of electric utilities and customers should examine carefully the terms and conditions offered to make sure that the service offered matches their needs. Variable rates and termination clauses are two provisions that require particularly close examination, because they can significantly increase a customer's bill under certain circumstances," the PUC said.

NextEra Energy Power Marketing LLC will supply default service for the Large Customer Group for the three-month period November 2014 through January 2015, and the three-month period from February 2015 through April 2015. Energy America LLC will provide default service to the Small Customer Group for the November 2014 through April 2015 six-month period.

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