New Hampshire Approves Settlement for Compensation to PNE Customers Dropped to Default Service

The New Hampshire PUC yesterday approved, without modification, a settlement to resolve investigations into PNE Energy Supply, LLC (PNE), and Resident Power Natural Gas & Electric Solutions, LLC (Resident Power) relating to the mass transition of PNE customers to default service due to PNE's prior default at ISO New England.

As previously reported (see prior story), the adopted settlement provides that all former PNE customers placed on default service with PSNH on February 20, 2013, will receive a one-time payment of $9.50 as a result of being placed on default service. The $9.50 payment to each customer shall be reduced by any amount owed by the customer to PNE under the PNE terms and conditions prior to February 20, 2013

Noting protests to the settlement by the consumer advocate and PSNH, the PUC said, "we acknowledge, as Staff acknowledges, that there is much work to be done in enhancing New Hampshire's new regulatory framework for competitive energy suppliers as the competitive retail electricity market continues to develop."

"That said, customers do bear a burden of due diligence in selecting a competitive supplier, with the understanding that such suppliers are subject to a much lighter regime of regulatory oversight and can, as recent events show, encounter financial difficulty," the PUC said.

Other salient details of the settlement include a requirement that PNE provide surety in the minimum amount of $200,000 before re-starting operations as a retail supplier in New Hampshire.