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PUC Confirms Deferral Of 89% Of Default Service Reconciliation Balance
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The New Hampshire PUC issued an order stating that it will "abide" by the conclusion made by Granite State Electric (Liberty Utilities) concerning interpretation of the PUC's recent order implementing mitigated interim default service reconciliation factors, and the resulting amount of the reconciliation balance to defer
As first reported by EnergyChoiceMatters.com (story here), the New Hampshire PUC mitigated the 21¢ per kWh small customer electric default service rate which had been calculated at Granite State Electric (Liberty Utilities), with the 21¢ rate having included a reconciliation factor of about 7 cents per kWh
The PUC instead ordered that the small customer default service rate at GSE shall be 15.835 cents per kWh starting August 1, 2026
The PUC arrived at this rate by establishing a "provisional" Energy Service Adjustment Factor (ESAF, or reconciliation) charge of 1.157 cents per kWh for the small customer group effective August 1, 2026, which is the current level of the ESAF
Additionally, the PUC said that GSE shall defer "50%" of the reconciliation balance
GSE sought clarification of the percentage of the deferral balance, in light of the specific rates used for the mitigated interim ESAFs adopted by the PUC
Specifically, GSE explained that using the current levels of the ESAFs as ordered by the PUC results in a deferral exceeding 50% of the existing reconciliation balance (with the deferral under the directed ESAFs actually reaching nearly 90%). GSE projects that use of the ordered ESAFs as discussed above will result in the collection of only $918,288 over the August 1, 2026 through July 31, 2027 period. This is 10.8% of the current $8.5 million under-recovery (leading to an 89% deferral).
The PUC responded to GSE's motion for clarification of the deferral percentage by stating, "Regarding the question of deferral percentage for the default service reconciliation under-collections, the Commission herein states that it will abide by Liberty’s conclusion regarding the deferral percentage, see Technical Statement at Bates Page 3."
The referenced "conclusion" by GSE concerning the deferral percentage had stated as follows: "To clarify, using the ordered ESAFs of 2.123 cents per kWh for the Large Customer
Group and 1.157 cents per kWh for the Small Customer Group, the expected
revenues, based on Liberty’s Default Energy Service load forecast for the period
August 1, 2026 to July 31, 2027, is only $918,288 ($0.02123 x 18,654,055 kWh) +
($0.01157 x 45,139,385 kWh). This is 10.8% of the $8,512,778 under-recovery
($918,288 / $8,512,778). Therefore, the effective amount that the Commission has
ordered Liberty to defer without carrying charges is not 50% of the under recovery.
The amount that will be deferred under Order No. 28,231 is 89.2% of the total
under-recovery as of May 31, 2026."
The PUC also confirmed that, through such direction regarding the ESAF, the PUC established the following monthly large customer group SOS rates at GSE (in the PUC's prior order, while an updated ESAF was provided, the resulting SOS rates were not listed for large customers):
GSE, Large Customer Group, $ per kWh
August 2026 - $0.11890
September 2026 - $0.11468
October 2026 - $0.11471
November 2026 - $0.12288
December 2026 - $0.17797
January 2027 - $0.22683
Docket DE 26-023
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July 2, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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