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Utility Proposes To Increase Default Service Rates By 1-2¢ Due To, In Part, Start Of Opt-out Aggregations
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Granite State Electric (GSE or Liberty Utilities) in New Hampshire has proposed an approximately 1¢/kWh increase in small customer default service rates, and an approximately 2¢/kWh increase in large customer default service rates, due to, among other things, the impact of the start of several opt-out municipal aggregations, and the interaction of such loss of default service load with a pending $8 million under-recovery balance for default service
GSE presented testimony to the New Hampshire PUC addressing a previously reported under-collection in electric default service costs. GSE reported an under-collection of $8.3 million in default service costs for the reconciliation period ending July 31, 2025. The PUC only authorized recovery of about $4 million of such balance in rates by July 2026
Much of GSE's testimony addresses calculations already provided to the PUC during a hearing last June, with GSE confirming such calculations are correct
However, in a new development, GSE reported on the start of several opt-out CCAs in its service area
GSE recommended updates to the reconciliation factors included in the current default service rates, in light of the lower default service load, with the revised rates to be in place for May through July 2026 (July 2026 being the end of the current SOS pricing term). GSE's recommendation on this point is still based on recovery of only $4 million of the under-collection through July 2026
GSE's recommendation would increase the default service rate by $0.01105 per kWh for the small customer group, and would increase the default service rate by $0.02293 per kWh for the large customer group.
The small customer default service rate would specifically increase to $0.14840 per kWh, from the current $0.13735 per kWh.
The large customer SOS rates vary by month, but would generally increase by $0.02293 per kWh
GSE said that this interim increase would, "at best," (ignoring a potential additional CCA that could further reduce SOS load) recover an additional $800,000 in default service revenues over the months of May to July 2026.
GSE said that its recommended interim adjustment will not even assure recovery of the $4.1 million reconciliation (one-half the balance) that the
PUC authorized for recovery through SOS rates by July 2026.
GSE renewed its previously reported recommendation for more frequent default service reconciliations, with amortization of large balances, citing, among other things, the increased use of direct ISO-NE market purchases for part of SOS
GSE also noted, "However, with Default Energy Service load rapidly eroding, carrying large
under-recoveries for prolonged periods may not be an acceptable or sustainable solution."
Docket No. DE 25-030
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March 3, 2026
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Reporting by Paul Ring • ring@energychoicematters.com
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