PUC Finds ISO Market Rates For Default Service "Successful" In Neighboring State, Encourages Consideration By Own Utility
June 16, 2023 Email This Story Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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In approving rates under the most recent default service procurement at Unitil (see new rates here), the New Hampshire PUC encouraged Unitil to explore, for its next procurement, including a portion of default service supply which would be linked to ISO New England prices, for the utility's small and medium commercial customer group
The PUC cited the recent experience of Unitil in Massachusetts in using ISO market prices for default service for non-large customers, with the PUC observing that this ISO-market procurement approach, "yielded notably lower prices," with the PUC further calling the alternative in Massachusetts, "successful"
The PUC stated, "[W]e interpret the Company’s recent efforts to
serve a portion of its Massachusetts FG&E affiliate’s load through ISO-New England
market-based procurements for default service customers, which yielded notably lower
prices, as successful. Furthermore, we see a recent general trend of higher contractual
prices for default service RFP procurements, even in times of reduced energy-market
volatility (as for the current procurement). We therefore encourage the Company to
explore, for its upcoming Default Service solicitation, the possibility of including a day-ahead and real-time ISO-NE market based procurement tranche for a portion of its
Small and Medium customer group load, given the Company affiliate’s success in
lowering prevailing default service prices."