Governor Signs Law Requiring Utilities To Offer Purchase Of Receivables (POR) To Municipal Aggregations

New Hampshire Gov. Chris Sununu has signed HB 315 which, among other things, requires utilities to offer purchase of receivables (POR) to municipal aggregations

Under the relevant section of the bill, the term "supplier" means, "an aggregator functioning as a load serving entity under this chapter or a competitive electricity supplier serving an aggregation under this chapter." The chapter solely relates to aggregations by municipalities or similar government entities.

HB 315 further specifies that, "The term [supplier] shall also include competitive electricity suppliers generally to the extent and for such customer rate classes as the commission finds, after notice and hearing, that it is for the public good. Such a determination shall be on a utility-specific basis, if proposed and assented to by the utility."

With the term supplier being thusly defined, the new law provides that, "Each electric distribution utility shall propose to the commission for review and approval a program for the purchase of receivables of the supplier in which the utility shall pay in a timely manner the amounts due such suppliers from customers for electricity supply and related services less a discount percentage rate equal to the utility’s actual uncollectible rate, adjusted to recover capitalized and operating costs specific to the implementation and operation of the purchase of receivables program, including working capital."

The law states, "Additionally, such discount rate adjustments shall include a pro rata share of the cost of administering collection efforts such that the utility’s participation in the purchase of receivables program shall not require the utility or non-participating consumers to assume any costs arising from its use. Such pro rata costs must include, but not be limited to, any increases in the utility’s bad debt write-offs attributable to participants in the purchase of receivables program, as approved by the commission. However, the allocation of costs arising from different rate components and determination of the uncollectible rate shall be equitably allocated between such suppliers, utility provided default service, and other utility charges that are a part of consolidated billing by the utility as approved by the commission."

The discount percentage rate shall be subject to periodic adjustment as approved by the commission, the law provides