|
|
|
|
|
PUC Orders Changes To Default Service Rate Setting, Addresses SOS Reconciliation Balance
The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com
The New Hampshire PUC, in separate orders, has adopted changes, or ordered the study of potential changes, to various aspect of electricity default service rate calculations at Public Service Company of New Hampshire (Eversource) and Granite State Electric (Liberty Utilities)
PSNH
The PUC addressed a previously reported reconciliation balance related to default service at PSNH that resulted from erroneous over-reporting of the large customer group's load (and under-reporting of the small customer group's load)
PSNH had sought to re-allocate a $4 million reconciliation balance from the large customer group to the small customer group, for collection, due to these errors
Due to concerns about potential retroactive ratemaking, the PUC only authorized PSNH to re-allocate $1.483 million of the reconciliation balance, specifically associated with the August 2023 - July 2024 reconciliation period, from the large customer group to the small customer group for collection (and serving to recoup prior benefits enjoyed by the small customer group due to the load reporting error)
In doing so, the PUC said that it accepted a proposal from the state's Department of Energy for the allocation of $1.483 million to the small customer group, and that the allocation to the small customer group will be recovered over a 6-month period
DOE had specifically proposed that recovery of this allocation of $1.483 million to the small customer group be reflected in rates for the February 2026 to July 2026 default service pricing period. The PUC was not explicit as to whether the PUC accepted this part of DOE's proposal, or whether the collection period would be the August 2026 to January 2027 default service period. In approving PSNH's default service procurements, the PUC was not explicit as to whether any changes would be needed to the February 2026 to July 2026 default rates as previously filed by PSNH, in order to address the directed re-allocation of this reconciliation balance
The PUC did note that the updated energy service rate for the PSNH small customer group is 11.303 cents per kWh for the February 2026 to July 2026 period, which is understood not to reflect any re-allocation of the reconciliation balance
The PUC ordered PSNH to, in its next default service filing, include a proposal for a six-month reconciliation cycle for default service rates, compared to the current 12-month cycle
Additionally, the PUC directed PSNH to, in its next default service filing, include testimony concerning the potential use of a futures-price based proxy-price development methodology, as recently adopted at Unitil-NH (see background here)
The PUC maintained the current use of ISO NE direct market purchase for 50% of PSNH small customer default service (with 50% filled via load following contracts).
Winning SOS suppliers for the PSNH small customer group for the February 2026 to July 2026 period were Macquarie Energy, LLC (25% of the overall SOS obligation), Hartree Partners, LP (12.5%) and NextEra Energy Marketing, LLC (12.5%)
PSNH -- Docket DE 25-017
Granite State Electric
At Granite State Electric, the PUC directed that GSE shall set proxy prices, used in setting default service rates, based solely on ISO-NE futures, effective with the August 1, 2026 pricing period
At GSE, 50% of small customer SOS is procured via full requirements contracts, with 50% procured from ISO-NE market purchases. The PUC maintained this split
Regarding the proxy price for ISO-NE market purchases, the PUC specifically ordered that the proxy shall be set at the futures price on the ICE for the New Hampshire load zone settled 24 months in advance of delivery.
The PUC also ordered GSE to propose a six-month reconciliation cycle for default service rates, compared to the current 12-month cycle, starting in August 2026. At one point, the PUC said that it would, "require [emphasis added] Liberty to initiate a six-month, rather than 12-month, reconciliation cycle for the Company’s Default Service accounting," but later text in the order, and the ordering paragraph, suggest that GSE must only file a proposal for 6-month reconciliations, subject to further PUC order on the proposal
The PUC stressed that even under a 6-month reconciliation, "reconciliation balances may be subject to inter-period rollover, as ordered by the Commission, if appropriate to respond to market conditions."
For the Small Customer Group (Residential and Small Commercial and Industrial) at GSE, the PUC approved an all-in default service rate for the period February 1, 2026 through July 31, 2026 of $0.13735 per kWh, or about 10% higher than the current rate of $0.12420 per kWh
For the GSE Large Customer Group, the PUC approved monthly all-in SOS rates as follows:
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
ADVERTISEMENT Copyright 2025 EnergyChoiceMatters.com. Unauthorized copying, retransmission, or republication
prohibited. You are not permitted to copy any work or text of EnergyChoiceMatters.com without the separate and express written consent of EnergyChoiceMatters.com
December 22, 2025
Email This Story
Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
2026 GSE Large Customer Group
February $0.18504 / kWh
March $0.12179 / kWh
April $0.11104 / kWh
May $0.10805 / kWh
June $0.11524 / kWh
July $0.12768 / kWh
NEW Jobs on RetailEnergyJobs.com:
• NEW -- Account Executive (Commercial Retail Energy)
|
|
|
|
|