Surprise! PSNH Seeks Increase to Default Service Rate on January 1

Public Service Company of New Hampshire has filed to increase its default service rate on January 1.

A September estimate had forecast a decrease in the default service rate for 2015.

However, PSNH said that it is now seeking to set the default service rate at 10.56¢/kWh for the period starting January 1, 2015, versus the current 9.87¢/kWh (both rates include the scrubber adder).

PSNH had previously estimated that the default service rate starting January 1, 2015 would be 9.61 ¢/kWh, inclusive of scrubber costs

"A main cause of the energy charge adjustment is the increase in the cost of fuel and energy needed to meet overall customer demand," PSNH said

Although PSNH is now seeking a default service rate increase versus the earlier forecast decrease, PSNH noted that its relatively minimal increase, "stands in contrast to other utilities in the region which in some cases have doubled their energy charge."

"The regional energy market is extremely volatile and has resulted in very high energy costs in the winter months," said PSNH spokesperson Martin Murray. "We are exposed to some of that, but have the benefit of owning and operating our own power generation fleet, which provides our customers with more stable pricing."