PUC Opens Investigation Of Default Service Procurement After Prices Increase 100%

The New Hampshire PUC has ordered that an investigatory docket shall address a, "statewide review of electric distribution company default service procurement practices[.]"

The default service review will be included as part of an existing investigatory docket addressing the distribution utilities role in complying with the state's RPS on behalf of default service customers.

Earlier this year, the PUC had stated, "We agree that New Hampshire’s regulated utilities’ role in RPS compliance on behalf of default service customers is ripe for further review. We will therefore open a new investigative docket to examine: 1) the role of regulated electric distribution utilities in RPS compliance; 2) whether the utilities achieve RPS compliance in a consistent manner; 3) whether the electric distribution utilities incur consistent and reasonable administrative costs associated with the RPS compliance for default service customers; and 4) whether the costs incurred for RPS compliance for default service customers by regulated electric distribution utilities are market-based."

Expansion of this previously opened investigation to include default service energy procurement was prompted by a 100% increase in default service rates at Liberty Utilities (Granite State Electric)

The PUC said that, "The Commission recognizes that the impact of these rates, though reflective of current national and global energy market conditions, is a significant concern for ratepayers. While the Commission has not had regulatory authority over power supply since New Hampshire’s generation divestiture policy was enacted, it has authority over the supply/energy service procurement process. In the current environment of rapidly rising costs, it is a good time to review this procurement process, including timing, duration, cost averaging, and best practices from other states."

With respect to Granite State Electric, the PUC approved the energy service rate (default service) for the Small Customer Group, including for the RPS, ESAF, and ESCRAF components, of 22.228 cents per kWh, a 100% increase from the current retail rate of 11.119 cents per kWh.

For the Large Customer Group, the monthly default service rates are (cents per kWh, as stated in the PUC's order):

August 2022, 18.587 cents
September 2022, 16.081 cents
October 2022, 15.134 cents
November 2022, 19.864 cents
December 2022, 34.354 cents
January 2023, 41.240 cents