New Hampshire Finds PSNH Properly Charged Switching Fee to Retail Supplier for Customers Defaulted to Utility Supply

The New Hampshire PUC ruled that Public Service Company of New Hampshire properly charged PNE Energy Supply a $5 switching fee for customers which were defaulted to PSNH for supply due to PNE's default at ISO New England.

The PUC ruled that PSNH properly charged $38,570 to PNE because the $5 fee applies to supplier-initiated switches, and PNE, by agreeing to the ISO tariff which requires the switch to default service upon a supplier's default, essentially initiated the switch by allowing itself to default, triggering well-known consequences.

"When PNE agreed to the ISO-NE Tariff as a condition of becoming a supplier, PNE knew that its suspension would result in the automatic assignment of its customers. In that sense, PNE initiated the drop of its own customers when it engaged in the conduct that caused its suspension," the PUC said.

The PUC noted that its decision is consistent with its prior finding that the $5 selection charge shall only be applied once for a switch, not to both the old and new supplier as had been PSNH's practice.

Docket IR 13-233