Utility Proposes Changes to Default Service Procurements

Liberty Utilities (Granite State Electric) has proposed a change in the timing of its electric default service procurements in New Hampshire.

Specifically, Liberty is proposing to move the two 6-month default service periods currently commencing in May/November to two 6-month periods commencing in February/August.

"Moving to 6-month periods commencing in February and August will place the most expensive winter months (January & February) into two separate 6-month periods instead of only in the current November through April 6-month period," Liberty Utilities said.

"[T]he proposed periods would significantly reduce the price volatility that occurs between the current service periods, based on recent price estimates ... Changing the 6-month periods to commence on February 1 and August 1 should significantly decrease the price volatility between the periods, at least in the near term," Liberty Utilities said

The current default service supply contracts end on October 31, 2015. In order to move to the proposed periods, Liberty would need to either secure a 9-month supply in the next solicitation covering the period from November 2015 through July 2016 or have two solicitations covering November 2015 through January 2016 and then February 2016 through July 2016. Liberty proposes procuring a 9-month supply in the next solicitation.

Liberty proposes to file its annual default service reconciliation at least 30 days in advance of the default Service rate filing to allow time for parties to review the filing and request additional information during the discovery process. Under the current process, the reconciliation of costs for the 12-month period ending in January of the current year is filed concurrently with the March default service rate filing. Under Liberty’s proposal, the reconciliation process will commence annually in August, with a filing 30 days prior to a default service rate filing. In addition, this timing change will have the benefit of eliminating the mismatch that currently exists between the reconciliation period and the period during which rates are in effect, the company said. To implement this change, the first nine months of the reconciliation will include actual revenues and expenses, while the last three months will be based on projected revenues and expenses.

Liberty Utilities said that PUC Staff, the consumer advocate, and the state energy planning office concur with its proposed changes.