PSNH: Current PUC Rule Prohibits Purchase of Receivables

Rules adopted by the New Hampshire Public Utility Commission currently prohibit the purchase of electric supplier receivables in the manner sought by retail suppliers, Public Service Company of New Hampshire said in recently filed testimony.

PSNH, which opposed POR on several policy grounds in addition to the cited rule, said that Rule Puc 1203.11 (g)(2) states that, "A utility shall not disconnect a residential customer's service and notice of disconnection shall not be sent to a residential customer if any of the following conditions exist ... (2) The unpaid bill results from other than basic utility service, such as merchandise, appliance sales, or repairs."

PSNH said that Rule Puc 1202.02 defines basic utility service as "any tariffed fee or rate that has been filed with and approved by the commission ..."

"Energy service provided by competitive suppliers is not a tariffed fee or rate that has been filed with and approved by the Commission. Therefore, under Rule Puc 1203.11 (g) (2), a distribution utility cannot disconnect a residential customer for failure to pay amounts owed to a competitive supplier," PSNH said, noting that the ability of the utility to terminate a customer for receivables purchased from the supplier is a major tenet of the proposed POR programs.

"Having the distribution utility purchase the receivable created by a competitive supplier's sale in the marketplace does not transform that unpaid bill into a bill for 'basic utility service' (for which nonpayment may result in disconnection) simply because the debt is now the responsibility of the distribution utility. The unpaid bill remains a bill for a non-tariffed, unregulated service based upon a contract between the customer and the competitive supplier, and not one for basic utility service based upon a tariffed rate," PSNH said.

"[B]ecause the utility has no ability to disconnect service for failure to pay a competitive supplier's bill – even if the receivable underlying that bill is purchased by the utility – the fundamental underpinnings of a POR program do not exist in New Hampshire," PSNH said.

In separately filed testimony, Granite State Electric and Unitil each expressed reservations with respect to POR, particularly cost recovery.

Unitil, in particular, said that to the extent POR is implemented, "it should be implemented for all customers."

"That is, a retail marketer should not be able to pick and choose which customers POR applies to and which customers it does not. Purchase of receivables should provide for a level playing field between competitive suppliers and the utility, but not provide a more favorable playing field for retail marketers. This would be the case if they could discriminate among which customers POR would apply," Unitil said.

Unitil later said, however, that, "if a purchase of receivables program is implemented, it be applied to all customers under consolidated billing." Depending on how this sentence is read, it could be interpreted as allowing the supplier to serve customers outside of the POR program so long as dual billing were used.

The investigation of POR also includes other market enhancements sought by retail suppliers, including electronic access to customer information.

PSNH raised concerns on the sought electronic interface, with its witness testifying that, "[s]ome currently active marketers have already shown a propensity to do whatever it takes to sign up customers."

PSNH's witness testified that a caller representing a retail supplier, "recently called my own home trying to have me switch from PSNH's energy service by stating that PSNH's rates will be increasing on July 1. One of my job responsibilities is to provide management of PSNH's recovery of its energy costs, and as of this date even I do not know whether the Company's energy service rate will be going up, down, or staying the same on July 1. In addition, my phone number is listed on the Do-Not-Call list, making that call a violation of both federal law, as well as the Commission's regulations (Rule Puc 2004.03)."

PSNH's witness is also aware of another retail supplier, "informing a potential customer that he must choose a new electricity supplier because PSNH is no longer in the electric generation business. That was news to the customer – who happens to be a PSNH employee at Schiller Station."

Docket DE 12-097