PUC Approves Utility's New Purchase Of Receivables Program In Nisi Order

March 19, 2024

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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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In an order nisi, the New Hampshire PUC approved a settlement agreement between New Hampshire Electric Cooperative, Inc. (NHEC) and the New Hampshire Department of Energy (DOE) for implementation of a purchase of receivables (POR) program at NHEC.

Being issued on a nisi basis, the order affords notice and opportunity for hearing to the parties in the underlying adjudicative proceeding and other interested persons. Parties may object to the order by March 29, 2024. Barring a supplemental order in response to any such pleadings, the order shall be effective April 18, 2024

Under the settlement, every community aggregation program (CPA) and competitive electric power supplier (CEPS) that elects to use consolidated billing for its customers will be required to participate in NHEC’s POR program.

The proposed POR program will not be offered for member accounts billed separately by a CPA or CEPS.

Monthly payments under POR will be reduced by a discount percentage rate (DPR). A unique DPR will apply for residential vs. non-residential members due to the differences in uncollectible write-off percentages.

The DPR will be comprised of an uncollectible percentage (UP) component and an administrative cost percentage (ACP) component.

The UP component will be based on actual write-off data for residential and non-residential accounts, less non-capital-credit recoveries, divided by the corresponding billed amounts for all bill components (including charges for energy service provided by NHEC as well as energy service provided by a CPA or CEPS), for the most recent two-year period, which will be determined as of the NHEC’s fall write-off. NHEC will use actual write-off data for the previous 24-month period as an alternative to including a prior period reconciliation in the calculation of the DPR.

The ACP component will reflect costs specific to the implementation of the POR program, amortized over a five-year period. NHEC estimates the costs associated with the proposal to be $400,000, which includes both Electronic Data Interface (EDI) module software changes and all estimated incremental costs necessary to implement the POR program, which include staff time, as well as legal and other associated costs.

The ACP will be the same for both residential and non-residential accounts

The settlement listed "anticipated initial DPRs" under the adopted methodology using then-current (Sept. 2023) data and estimates, but the listed DPRs were expressly provided for illustrative purposes only, and are not effective.

Illustrative DPRs
             Residential     Non-Residential
UP             0.098%            0.016%
ACP            5.326%            5.326%
Total DPR      5.424%            5.342% 
 

Docket DE 23-001

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