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PUC To Consider Recovering Default Service Reconciliations On Nonbypassable Basis
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Customers shopping with a competitive retail electric supplier in New Hampshire are at risk for paying for costs related to default service, under a ruling from the state's PUC
Specifically, the New Hampshire PUC has opined that recovering default energy service (ES) reconciliation amounts through the nonbypassable Stranded Cost
Recovery Charge (SCRC) could be an "equitable" and "reasonable" approach, due to
the "backstop" nature of default energy service
The PUC made this observation in considering a large prior-period under-collection
balance of $6.5 million in default service costs for the large customer group at Public Service of New Hampshire (Eversource)
The PUC directed PSNH to prepare a proposal to integrate the ES
Reconciliation Adjustment Factor charges (default service reconciliation) into the SCRC. Such proposal would be subject to future PUC review prior to implementation.
The PUC rejected allocating this Large Customer Group default service under-collection
balance to the small customer group, with the PUC stating that, "consolidation of the reconciliation charges between the
Large and Small Customer Groups as an expedient would be unjust and unreasonable
cross-subsidization and cost-shifting[.]"
The PUC also directed that PSNH file a proposal to procure more default service supplies directly through the ISO New England market
"With Community Aggregation accelerating, the decline in ES
sales for the Large Customer Group, resulting under-collections, and the wide ongoing
pricing differential between requirements contract prices and ISO-New England
prevailing market prices, as evidenced by Eversource's ongoing monthly reporting, the
Commission believes it is appropriate to expand the market-based procurement
program for the Company," the PUC said
For the February-July 2025 default service period, the PUC directed that PSNH file a proposal for Small Customer Group ES supplies that would
include, "an ISO-New England market-based procurement
tranche of at least 30 percent, with no upper bound[.]"
Currently, ISO-NE market purchases are used for 12.5% of Small Customer default service
The PUC directed that PSNH file a proposal to serve Large Customer default service through 100% ISO-NE market purchases
Docket DE 24-046
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Directs Utility To File Proposal To Serve At Least 30% Of Mass Market SOS Load Under ISO Market Purchases
June 28, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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