PSNH Updates Projected Default Service, Alternative Default Service Rates

Public Service Company of New Hampshire has filed updated projections of its 2012 energy (default) service rate, and the alternative default energy service rate, to reflect costs of the Merrimack Scrubber Project which are now known.

PSNH's preliminary all-in energy service rate for 2012 is 9.57 cents per kWh, which is the composite rate made up of the initial energy service rate filed on September 23, 2011 (8.39 cents) plus the incorporation of the initial preliminary Scrubber impact. Within this rate is a proposed three-year amortization of the 2011 Scrubber-related under recovery which mitigates the initial rate impact.

The 9.57 cents total is not a formal rate proposal, which will be made with updated cost and market data prior to a December 2011 hearing on the energy service rate.

PSNH also updated its indicative alternative default energy service rate to reflect non-operating costs of the Scrubber. As only reported by Matters, the alternative default energy service rate is a newly proposed rate for certain customers returning to default service from competitive supply (see 9/28 discussion for terms, limitations).

The preliminary proposed rate for alternative default energy service, effective January 1, 2012, is 7.86 cents per kilowatt-hour.

This reflects non-operating costs of the Scrubber, 0.97 cents per kilowatt-hour, added to the marginal cost of providing energy service, which is 6.89 cents per kilowatt-hour.

As in the case of PSNH's standard energy service rate, PSNH will update the calculation of the alternative default energy service rate prior to the December hearing to incorporate the most recent information available on forward market prices and Scrubber costs.