PUC Formally Opens Investigation Of Default Service Procurements & Rate Setting, Given Market Conditions & Higher Costs

September 6, 2022

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The New Hampshire PUC formally opened an investigatory proceeding to examine all pertinent aspects of RPS, electricity Default Service, and COG [gas utility cost-of-gas] procurements in New Hampshire, and related Commission processes.

The PUC's intent to open such a proceeding had been first reported by EnergyChoiceMatters.com earlier this year

"This year, 2022, has brought to the fore an increasing cost structure for most if not all categories of energy commodities procured by the utilities regulated by the Commission: electrical energy contracts from ISO-New England suppliers entered into by electric utilities to serve Default Service customers; the potential impacts to Default Service due to Community Power Aggregations (CPAs) pursuant to RSA Chapter 53-E; and natural gas and propane procurements made by gas utilities to serve customer load, and covered under the terms of the COG Tariffs of each gas utility. As indicated in our recent Orders regarding these matters, the Commission is concerned regarding the potential impact such cost escalations have and may continue to have on New Hampshire residents, businesses, and institutions. The regulated utilities themselves have also expressed this concern and a willingness to work with the Commission, the New Hampshire Department of Energy (DOE), and other interested stakeholders to improve these processes, to the greatest extent that is technically feasible, with a goal of improving outcomes for New Hampshire consumers," the PUC said

"The purpose is to engage stakeholders in an open, overarching, and collaborative process that is free of certain procedural constraints that exist in adjudicative dockets. The results may take the form of non-binding guidance, procedural and/or operational changes on the part of the Commission, a decision by the Commission to initiate one or more rulemaking or adjudicative dockets, a report with information that may benefit legislators, or some combination of the above," the PUC said

The PUC said that the investigation will review questions related to: the processes related to RPS, Default Service including impacts of CPAs [municipal aggregations], and COG procurements by utilities; the ratemaking and calculation methodologies used for same; and the processes used by the Commission and participating parties for developing data and recommendations, including, but not necessarily limited to:

1. The timing and other approaches historically used by New Hampshire utilities for RPS, Default Service, and COG procurements, and data regarding outcomes correlated with different approaches;

2. Potential enhancements to Commission review proceedings for RPS, Default Service, and COG matters, including timing of RPS, Default Service, and COG filings and proposed rate effective dates;

3. A comparison of different United States jurisdictions with regards to these issues and the approaches used;

4. New Hampshire electric and gas utilities' internal planning approaches to these issues; and

5. The potential to leverage a regional approach to these procurements coordinated by the parent companies of these New Hampshire utilities, which have affiliates in other New England states (e.g. Maine, Massachusetts, Connecticut) and through ISO-New England markets.

The PUC scheduled a prehearing conference to occur on October 5, 2022

Docket IR 22-053

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