N.H. PUC Approves PSNH Energy Service Rate

The New Hampshire PUC has approved a new energy service rate of 8.67 cents per kWh for Public Service of New Hampshire for 2011.

The new energy service rate applies to all non-shopping customers (all classes), and compares to PSNH's original estimate of 8.68 cents per kWh for the 2011 rate, and the rate of 8.78 cents per kWh for the second half of 2010. While described as the rate for energy service for 2011, PSNH, or another party, may seek an adjustment effective July 1, 2011 to reflect updated costs.

The reduction versus the initial estimate reflects a slight decrease in market prices, as well as a $5 million credit to energy service rates from the sale of coal. PSNH explained that it had purchased the coal under contract and decided to sell the coal as that particular coal was attracting high prices in the metallurgical market.

PSNH's original estimate of the 2011 energy service rate was based on migration remaining steady at the 30.7% level experienced as of August 31, 2010. In updating the estimate to 8.67 cents per kWh, PSNH used actual migration from November 2010, which was 31.8%. In proposing the revised estimate, PSNH still did not presume that customers will migrate more or less in 2011 than the then-current actual level.