PUC Raps Utility's, "Lack Of Care And Attention To Regulatory Responsibilities" Regarding Default Service Filing

The New Hampshire PUC has approved the results of the recent procurement of energy service (default service) suppliers at Liberty Utilities ("Liberty", or Granite State Electric) for the period August 1, 2019, through January 31, 2020

As exclusively first reported by EnergyChoiceMatters.com, for the Small Customer Group, the all-in default service rate (now approved by the PUC) for the period of August 1, 2019, through January 31, 2020, is $0.07710 per kWh, or 7% lower than the current rate of $0.08299. The Small Customer Group includes customers taking service under Domestic Service Rate D; Domestic Service - Optional Peak Load Pricing Rate D-10; Outdoor Lighting Service Rate M; Limited Total Electrical Living Rate T; General Service Rate G-3; and Limited Commercial Space Heating Rate V

All rates in this story are all-in rates reflecting the RPS adder, reconciliation, and the Energy Service Cost Reclassification Adjustment

The monthly default service rates for the period of August 1, 2019, through January 31, 2020, for the Large Customer Group are below. The Large Customer Group includes customers taking service under General Long-Hour Service Rate G-2 and General Service Time-Of-Use Rate G-1

Large Customer Group Default Service ($/kWh)
August 2019       $0.05959
September 2019    $0.05880
October 2019      $0.05905
November 2019     $0.06951
December 2019     $0.09042
January 2020      $0.10663

While the PUC approved the rates from the procurement, the PUC expressed concern with the timing of Liberty Utilities' filing of audits of its Energy Service Adjustment Factor (ESAF) and Energy Service Cost Reclassification Adjustment Factor (ESCRAF), as well as a subsequent reconciliation filing

The PUC stated, "We share the concern and frustration noted by Staff and the OCA about the timing of Liberty’s filing of the results of the required audit of its ESAF and ESCRAF. Order No. 26,150 clearly required that an audit be conducted of the ESAF and the ESCRAF and related accounts and balances in time to allow an audit of those results by Staff to be reflected in this reconciliation filing."

The PUC said that, when questioned in December of 2018, a company witness testified the company was "absolutely" on track to be able to address the issue in the spring 2019 reconciliation filing.

But the PUC said, "Liberty’s filing on June 7, 2019, did not provide Audit Staff a reasonable amount of time to complete its review of the audit. The audit results should have been filed for review well before the reconciliation filing."

"Our review of the filing of the audit raised another timing issue. Liberty’s reconciliation filing on Friday, June 7, provided only 5 working days before the energy service rate filing was submitted on June 17. The hearing was two days after the energy service filing. Liberty and the Commission had previously planned for the work required for review of a typical reconciliation filing. In Docket No. DE 15-010, the Commission required that the reconciliation filing be made at least 30 days before the energy service rate filing. In 2016, 2017, and 2018, Liberty made its reconciliation filings on dates in May that were 29, 26, and 33 days prior to the respective energy service rate filings. While two of the three filings were not in compliance with Order No. 25,806, the filings were made early enough for Commission Staff and the OCA to review and consider the issues presented," the PUC said

"This year’s filing was untimely and demonstrated a lack of care and attention to regulatory responsibilities. By submitting the filing so close in time to the energy service rate filing, Liberty disregarded the very 30-day filing requirement the Company proposed and which the Commission approved less than five years ago. This cannot happen again," the PUC said

"[W]e remind Liberty that it must file the annual reconciliation associated with the energy service rates no later than 30 days before the energy service rate filing. If Liberty is unable to meet that deadline, it must seek an extension of time or other appropriate relief. Future violations of the reconciliation filing requirements may result in regulatory fines," the PUC said

The PUC approved the winning bidders from the procurement

As previously reported, NextEra Energy Marketing, LLC was the winning bidder to provide default service to the Small Customer Group for the six-month period August 1, 2019, through January 31, 2020

Calpine Energy Services, L.P was the winning bidder to provide default service to the Large Customer Group for the six-month period August 1, 2019, through January 31, 2020.

Docket DE 19-059