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PUC Approves New Utility Minimum Stay Provisions for Customers Returning to Default Service

December 15, 2014

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Copyright 2010-14 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The New Hampshire PUC has approved changes to the design of Public Service Company of New Hampshire's alternative default service rate (Rate ADE), and related provisions applicable to customers returning to PSNH from competitive supply.

Notably, under one of the options for returning customers, customers will be required to remain with PSNH for supply for 12 months prior to being permitted to shop for a competitive supplier again.

In contrast to an earlier proposal, the PUC accepted PSNH's revised proposal to provide large customers returning to PSNH from the market two choices: Rate ADE (the alternative default service rate), or standard default service (Rate DE).

However, if the customer elects standard default service (Rate DE), the customer will be required to complete a 12-month minimum stay with PSNH prior to being able to elect a competitive supplier again.

Customers may avoid the minimum stay by electing Rate ADE at the time that they return to PSNH.

Rate ADE will be a monthly variable rate. The price, filed on the 15th of the month before the month for which the rate will be in effect, will be based on a forecast of the marginal cost to provide full requirements service to the New Hampshire load zone. The forecast of market costs includes forward energy market prices, forward capacity market prices, forecasted ancillary service costs, forecasted ISO New England market administration costs, and forecasted renewable portfolio standard compliance costs. An adder will continue to apply to Rate ADE to reflect the non-operating costs of the Merrimack Station scrubber.

In contrast, standard default service under Rate DE provides a rate that is generally fixed for six months (or 12 months if there is no mid-term adjustment).

Customers currently taking service under Rate ADE will be moved to Rate DE, and these customers may leave Rate DE at any time (but will be subject to the otherwise applicable minimum stay should they in the future shop and then return to PSNH).

The alternative default service program and provisions described above apply only to Rate LG, Rate GV, and Rate B customers.

The revised program will take effect January 1, 2015. Shopping customers who return to default service under Rate DE prior to December 31, 2014 won't be subject to the 12-month minimum stay.

Any over- or under-recoveries in Rate ADE will continue to be reconciled in Rate DE and will not be included in the calculation of Rate ADE.

Docket DE 11-216

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