State Opens Rulemaking Into Utility-Affiliate Transaction Rules

The New Hampshire PUC has ordered that a rulemaking be opened examining regulation under Puc 2100, relating to standards of conduct and related procedures governing the relationship between a distribution company and its affiliates transacting business in New Hampshire.

The PUC's action was in response to a petition from the New England Power Generators Association, which alleged that a transmission project from Northeast Utilities was being improperly subsidized by Public Service Company of New Hampshire ratepayers.

The PUC said that NEPGA's requested rulemaking, "is essentially a complaint against PSNH, containing numerous factual allegations more appropriate to an adjudication than to a rulemaking."

However, the PUC nonetheless decided to open a rulemaking proceeding to consider whether Puc 2100 should be modified, "in light of the continued evolution of energy markets in New Hampshire and New England, as well as our evolving role in public utility regulation," but stressed that rulemakings are meant to address issues of general applicability and not to address problems or issues associated with a specific party or circumstance.

The PUC denied the specific rule modifications requested by NEPGA as too narrowly focused on a single competitive project.

"Our grant of rulemaking does not signal our agreement with any of the factual allegations contained in NEPGA's request or in PSNH's response," the PUC said.

Docket DRM 14-234