PUC Approves Change In Default Service Pricing Applicable To Customers Who Returned From Competitive Retail Supply

The New Hampshire PUC has approved new electric default service rates at Unitil Energy Systems, Inc. for the eight-month period beginning December 1, 2022

In doing so, the PUC approved a tariff change concerning the default service rate applicable to non-G1 customers (residential and small/medium commercial customers) returning to default service from a competitive retail supplier (or self-supply).

Non-G1 customers who return to default service from retail supply will still be placed on the monthly variable default service rate until the end of the applicable default service price period (which are generally six months long)

However, at the start of the next default service price period, these Non-G1 customers, who recently returned to SOS and who had been served on variable rates immediately upon their return, will automatically be moved to the fixed rate option at the start of this new default service pricing period. Such customers may "opt-out" and elect to remain on variable-priced default service by notifying the utility.

In contrast, under the current tariff, Non-G1 customers who are placed on the variable rate when returning to default service must affirmatively select to leave variable-priced SOS and switch to fixed price default service at the start of the next default service price period. Currently, customers not making such an affirmative election continue to be served under monthly variable SOS rates.

With respect to default service pricing for the latest procurement, Unitil's residential fixed default service rate (small customer group), including the RPS adder, will be 25.925 cents per kWh for the period December 1, 2022 through July 31, 2023. That's over 150% higher than the current rate of 10.117 cents per kWh

The eight-month rate period reflects a previously approved change, beginning in 2023, for the start dates of Unitil's semi-annual rate periods to be August 1 and February 1, rather than the current start dates of June 1 and December 1.

Unitil's residential default service rate under the monthly variable option will be as follows (all rates include RPS adder and are in $/kWh):

Dec-22     $0.33417
Jan-23     $0.41371
Feb-23     $0.39238
Mar-23     $0.24738
Apr-23     $0.16463
May-23     $0.14418
Jun-23     $0.13638
Jul-23     $0.15801

For small and medium commercial customers (G2 and OL Class, medium customer group), Unitil's fixed default service rate, including the RPS adder, will be 25.375 cents per kWh for the eight-month period beginning December 1, 2022, which is 170% higher than the current rate of 9.370 cents per kWh.

Unitil's small/medium commercial default service rate under the monthly variable option will be as follows (all rates include RPS adder and are in $/kWh):

Dec-22     $0.33339
Jan-23     $0.42015
Feb-23     $0.40017
Mar-23     $0.24841
Apr-23     $0.16270
May-23     $0.14129
Jun-23     $0.14036
Jul-23     $0.16058

Constellation Energy Generation, LLC was the winning bidder for the small customer (Non-G1) supply requirement (100% share) and medium customer (Non-G1) supply requirement (100% share) at Unitil NH. Hydro Quebec Energy Services was the winning bidder for the large customer (G1) supply requirement (100% share). All three winning supply contracts are for a period of eight months, starting December 1, 2022