Non-Unanimous Stipulation Filed to Set Alternative Default Service Rate at PSNH

Public Service Company of New Hampshire, Staff of the New Hampshire PUC, and the Office of the Consumer Advocate have filed a non-unanimous stipulation which would establish the alternative default energy service rate (Rate ADE) applicable to certain customers returning to PSNH for power supply after service with a competitive supplier

Specifically, Rate ADE would apply to customers returning to PSNH supply after at least 12 consecutive months on competitive supply. Initially, Rate ADE would apply to such returning customers taking delivery service under Primary General Service Rate GV, Large General Service Rate LG, or Backup Service Rate B. Within nine months of implementation for these rate classes, Rate ADE would be made available to customers of all rate classes.

The stipulation leaves to the Commission the amount of time that a customer must take Rate ADE prior to qualifying for a return to standard default service (Rate DE). During this minimum stay-out from standard default service, the customer may freely migrate back to competitive supply without resetting the start of the minimum stay-out period, unless the customer returns to competitive supply for 12 consecutive months, at which time the minimum stay-out would reset.

The price of Rate ADE shall be based upon PSNH's forecast of the marginal cost to provide full requirements service to the New Hampshire load zone, plus an adder equal to the non-operating costs of the Merrimack Scrubber.

The forecast of marginal costs shall include forward energy market prices, forward capacity market prices, forecasted ancillary service costs, forecasted ISO-NE market administration costs, and forecasted renewable portfolio standard compliance costs, all of which shall be determined in a manner consistent with that utilized in PSNH's filings for Rate DE.

Rate ADE would be set annually, to take effect January 1, based on such marginal costs.

If PSNH's projections of marginal costs for the remaining months of an annual period have increased by at least 75% of the amount of the adder, Rate ADE shall be closed temporarily to returning customers. If Rate ADE is closed, returning customers would be placed on Rate DE until Rate ADE reopens, and the time spent on Rate DE would count towards the completion of the minimum stay-out provision.

If the described cost increase is forecast at the time of the monthly filing made on or about May 15, PSNH shall also file a request for Commission authorization to increase Rate ADE effective July 1.

If PSNH's projections of marginal costs for the remaining months of an annual period have decreased by at least 75% of the amount of the adder, PSNH shall file a request for Commission authorization to decrease Rate ADE. The request shall be filed on or about the same date that PSNH typically files its request for a July 1 modification of Rate DE.

The stipulation would provide that Rate ADE shall be in effect as a "pilot" rate for a period of 36 months, starting January 1, 2013 or a date selected by the PUC.