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Utility Calculates That Default Service Reconciliation Factor Would Be 8¢/kWh For A Year, PUC Orders Alternatives For Consideration
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Granite State Electric (Liberty Utilities) has filed in its New Hampshire PUC default service proceeding a preliminary calculation of its default service reconciliation balance for the most recent 12-month term, with such balance being an under-recovery of SOS costs in the amount of approximately $9 million ($6.1
million for the small customer group, and $2.7 million for the large customer group).
The vast majority of the updated total under-recovery reflects a pending $8.3 million prior under-recovery which has been deferred and which the PUC has not yet resolved. This $8.3 million prior under-recovery is included in the $9 million total
GSE specifically did not propose any reconciliation recovery rate, or default service rates in general, in providing a preliminary update on the reconciliation balance
However, GSE did provide an illustrative calculation of what the reconciliation rate would need to be in order to recover the under-collection over the next 12 months
Specifically, GSE's small customer group would need to pay an Energy Service Adjustment Factor of $0.08149 per kWh, and GSE's large customer group would need to pay an Energy Service Adjustment Factor of $0.10283 per kWh, to eliminate the under-recovery during the next 12-month period. These charges would be in addition to the energy supply default service rate
GSE said that, "in light of the high rates
that would result from this initial reconciliation, the Company will be working with the
Department of Energy ('DOE'), Office of the Consumer Advocate ('OCA'), and other
parties before its June 11, 2026, filing to determine how best to address the large under8
recovery and the continued loss of Default Energy Service to CAPs [Community Aggregation Programs]."
Aside from the existing under-recovery, GSE said that factors resulting in the increased reconciliation balance include that start of additional opt-out aggregations, payment of net metering credits and foregone revenue (SOS sales) due to net metered customers' use of their own supply, and, "material differences
between the supply revenues and supply costs (i.e., differences between actual costs and
20 the Base Energy Service rates charged)."
GSE also proposed tariff language that would allow it to recover the under-collection over a longer period of time, with such period to be established by the PUC. GSE's tariff language is not explicit that such reconciliation charges during such extended recovery period would remain bypassable
The PUC directed that, when GSE does, this week, file its proposed new default service rates for the period August 2026 to January 2027, GSE shall present "alternative rate scenarios", in which GSE shall (1) provide the default service rates which would result if the reconciliation balance in question remains partially deferred, as ordered previously and which is the current treatment, and (2) provide an alternative rate scenario if the balance were to be recovered pursuant to GSE's preferred reconciliation remedy
Until further order by the PUC, GSE shall continue to apply the previously ordered deferral-account treatments to the reconciliation balance
Additionally concerning default service at GSE, the PUC set aside, in part, its December 2025 order which had changed the calculation of the default service proxy price at GSE, and which had changed the reconciliation cycle
As previously reported by ECM (full story here), the PUC in December 2025 had directed GSE, starting with the 6-month SOS period starting in August 2026, to use, in calculating proxy prices to be used in SOS retail rates for the portion of supply sourced directly from the ISO-NE market, the futures price on the ICE for the New Hampshire load zone settled 24 months in advance of delivery.
Additionally, the PUC in December 2025 had previously ordered GSE to move to a 6-month reconciliation cycle for default service costs.
Now, the PUC has directed GSE to maintain a 12-month SOS reconciliation cycle
The PUC informed parties that it would adjudicate the proxy price and reconciliation term issues with the goal of having any changes, if any, becoming effective with GSE's February 2027 to July 2027 default service period
Unitil NH
Similar to the direction to GSE, the NH PUC set aside, in part, its December 2025 order at Unitil which had changed the calculation of the default service proxy price and which had changed the reconciliation cycle at Unitil
The PUC has now directed Unitil to use the old proxy price methodology, and to use a 12-month reconciliation period
However, the PUC's order was issued one day prior to the day on which Unitil was previously scheduled to file proposed default service rates for the 6-month period beginning August 1, 2026
Unitil did not have time to reflect the PUC's direction in the rates filed by Unitil on June 5
For reference only, Unitil, using the prior PUC direction on the proxy price and the reconciliation period, filed a residential fixed default service rate of $0.14470 per kWh for the 6-month period beginning Aug 1, 2026, and a G2 and OL (small commercial) default service rate of $0.13171 per kWh for the 6-month period beginning Aug 1, 2026.
However, such rates will need to be updated to reflect the PUC's June 4 change in the proxy price methodology and reconciliation term
The PUC informed parties in the Unitil case that the PUC would adjudicate the proxy price and reconciliation term issues with the goal of having any changes, if any, becoming effective with GSE's February 2027 to July 2027 default service period
Dockets:
GSE: Docket DE 26-023 (new reconciliation data)
GSE: Docket DE 25-030 (set-side of prior proxy price, reconciliation term order)
Unitil: Docket DE 26-024
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PUC Orders Changes In SOS Calculation At Multiple Utilities
June 8, 2026
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Reporting by Paul Ring • ring@energychoicematters.com
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