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PUC Makes Changes To Default Service Rate Setting
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The New Hampshire PUC has made several changes to how electricity default service rates are established at Unitil
Specifically, the PUC has changed how the proxy price is set for the default service supplies which are sourced directly from the ISO New England market. The PUC also modified the reconciliation period for default service rates
The PUC maintained the use of ISO-NE market purchases for 50% of the small customer group default service, and 50% of the medium customer group default service, with the remaining 50% served under load following contracts procured via competitive RFP
The PUC ordered that, effective immediately, Unitil shall use a six-month reconciliation process for SOS rates, compared to the current 12-month reconciliation process
Due to the timing of when Unitil files its proposed reconciliations, the six-month reconciliation will include about 3 months of actual monthly data, and a forecast of reconciliations needed for the remaining three months of the 6-month default service pricing period
The PUC also stressed that the six-month reconciliation will still be subject to "inter-period rollover", if so ordered by the PUC, based on market conditions
The change in the calculation of the proxy price used to set retail default service rates stems from an Office of Consumer Advocate proposal to use direct purchases of futures contracts in the default service supply portfolio
Citing risks, the PUC declined to adopt the use of direct purchases of futures contracts for SOS at this time
However, the PUC said that future prices should be considered in setting the proxy price for the ISO-NE sourced portion of default service, to reduce potential under-recoveries
OCA had specifically proposed to use ICE settlement futures two years prior to delivery for the proxy price calculation
Noting that Unitil would need time to implement a change in the proxy price calculation, the PUC ordered that, starting August 1, 2026, the proxy price for the portion of SOS sourced from ISO-NE shall be set at the futures price on the ICE for the New Hampshire load zone settled 24 months in advance of delivery.
OCA had also proposed that default service reconciliation balances should be subject to carrying charges
The PUC said that this carrying charge issue is "worthy" of further study, but said that the question is better addressed in a rate case
The PUC approved a new Small Customer Group (including residential) all-in default service rate at Unitil of 12.061 cents per kWh for the period February 1, 2026 to July 31, 2026, up from the current rate of 11.777 cents per kWh
The Unitil G2 all-in default service rate was set at 11.253 cents per kWh for the period February 1, 2026
through July 31, 2026, up from the current 11.050 cents per kWh
Approved new all-in SOS electric rates for the Large Customer Group (G1) at Unitil are as follows:
Constellation was selected to serve 50% of the default service load for the small customer group, and 50% of the default service load for the medium customer group, each for a 6-month period starting February 1, 2026
Unitil - Docket DE 25-032
Granite State Electric
Separately, Granite State Electric (Liberty Utilities) filed with the New Hampshire PUC proposed default service electricity rates for the period February 1, 2026 through July 31, 2026. The rates remain subject to PUC approval
In setting proposed rates, which for small customers are based 50% on full requirements contracts and 50% on ISO-NE market purchases, GSE said that the methodology for the proxy price estimate, "was modified slightly to capture the
greater value between the current self-supply estimate methodology and the weighted
power forward energy estimate pulled at the time final bids were received."
GSE reported that, "this modification increases the February self-supply value from
$119.96/MWh to $144.39/MWh, representing an approximate increase of $24.42/MWh
to the Large Customer Group and an increase of $12.21/MWh for the Small Customer
Group when weighted with the full-service requirements winning bid."
GSE said that this change will lead to retail rates more reflective of energy costs
For the Small Customer Group (Residential and Small Commercial and Industrial), GSE proposes that the all-in default service rate for the period February 1, 2026 through July 31, 2026 be set at $0.13735 per kWh, or about 10% higher than the current rate of $0.12420 per kWh
For the Large Customer Group, GSE proposes monthly all-in SOS rates as follows:
Addressing an ongoing concern about bad debt costs recovered through SOS rates, GSE did not propose any changes as part of its proposed SOS rate filing, and said that a later phase of the proceeding, addressing reconciliation, would be the more appropriate venue to consider changes related to bad debt
GSE through an RFP selected Five
Elements Energy, LLC as the winning bidder to supply 50% of the small customer group SOS for the six-month period February 1, 2026, through July 31, 2026.
GSE Docket DE 25-030
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Another Utility Makes Modification To Calculation
Residential, SCI SOS Rate Increasing 10%
December 12, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
February 2026 $0.11944 per kWh
March 2026 $0.06807 per kWh
April 2026 $0.05862 per kWh
May 2026 $0.05652 per kWh
June 2026 $0.06396 per kWh
July 2026 $0.08136 per kWh
2026
February $0.18504 / kWh
March $0.12179 / kWh
April $0.11104 / kWh
May $0.10805 / kWh
June $0.11524 / kWh
July $0.12768 / kWh
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