State's Energy Department Opens Investigation Of Default Service Design, Procurement

The New Hampshire Department of Energy (Department or DOE) has opened an investigation into the design and procurement of electricity default service

The investigation will include consideration of issues including:

• Are current energy service procurement methodologies adequately addressing the restructuring policy principles identified in RSA 374-F:3 or would an alternative method provide a better opportunity to accomplish the policy principles?

• More analysis of the methodologies used by other restructured states that provide default/ provider of last resort energy service.

• The potential benefits and risks of using self-supply for default service as a replacement for the current, six-month competitive procurement method.

• Whether the current procurement methodologies are providing sufficiently market-based pricing for energy service by accurately representing risks that market participants face when responding to energy service requests for proposals issued by New Hampshire’s regulated utilities.

• Whether an alternative procurement methodology might provide a more robust approach at delivering prices with lower risk premium amounts under a variety of market conditions.

• Would a change to an alternative energy service procurement method create market disturbances resulting in undesired market outcomes?

"In order to research these topics further and develop corresponding policy, the Department intends to retain the services of an outside expert to review the Report and produce a report which will address the issues identified above as well as other relevant and related topics," the Department said

"The Department’s goal is to provide its report by December 1, 2023 in order to inform policy makers on issues related to energy service procurement under the current paradigm of electric utility restructuring," the Department said

In response, the New Hampshire PUC closed its own investigation (IR 22-053) of such default service issues, pending future developments and the upcoming Department of Energy investigation regarding such matters.

"We ... appreciate the DOE, as the energy policy arm of the State, offering its effort and input to add to the Commission’s work and providing recommendations to policy makers by December 1, 2023, at the conclusion of the DOE Investigation. Therefore, we view the work of this investigation [PUC IR 22-053] to be concluded, and we will close this docket forthwith," the PUC said