New Hampshire Cuts Default Service Rate at PSNH

The New Hampshire PUC has approved a reduction in Public Service of New Hampshire's energy service rate applicable to all default service customers, establishing a rate lower than that sought by PSNH.

Specifically, the PUC set the non-Scrubber portion of the PSNH energy service rate as 6.13 cents per kWh, effective July 1, 2012

The current non-Scrubber portion of the energy service rate is 7.77 cents, and PSNH had sought a reduction to 6.95 cents.

The PUC, however, cut the non-Scrubber portion of the energy service rate to 6.13 cents after denying PSNH's request to defer a $40 million over-recovery over an 18-month period, as the PUC applied the entire $40 million over-collection to energy service rates which take effect July 1, 2012.

The total bypassable energy service rate also includes a temporary Scrubber rate of 0.98 cents per kWh, which was not affected by the PUC's ruling.

During a hearing on the energy service rate, PSNH reported that the most recent calculation of customer migration to competitive supply was 38.5% as of the end of May.

The PUC also directed PSNH to, "undertake a systematic review of operation, materials and capital costs, including personnel costs, associated with the operations of its fossil fuel plants given the low capacity factors of these units in recent years and the current expectation of them remaining low over the next few years."

"The review should also include any costs that are billed to the fossil plants such as engineering and regulatory support. PSNH shall provide details regarding its review and analysis at the time it makes its next energy service rate filing. The Company shall also provide actual cost calculations for calendar year 2011 and develop an updated forecast of costs and expenses associated with the operation of its fossil fuel plants for calendar years 2012 and 2013 for the Commission's review and evaluation. For the units at Merrimack Station, the directive is limited to non-Scrubber related operations and other costs," the PUC ordered.