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PUC Approves Use Of ISO Market Purchases For 30% Of Small Customer Default Service At State's Largest Utility
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Public Service Co. of New Hampshire (PSNH or Eversource) in February 2025 will begin serving 30% of mass market default energy service through purchases from the ISO New England market, as the New Hampshire PUC approved PSNH's plan to increase the amount of ISO-NE purchases used for PSNH's small customer group
Currently, 12.5% of PSNH small customer SOS load is procured via ISO-NE market purchases
As described by the PUC, the 30% of small customer SOS load to be sourced from the ISO-NE markets starting in February 2025 will be "primarily" from the day-ahead market.
PSNH, in setting a six-month fixed default service rate for small customers, will rely on a proxy price, using parameters set forth by the PUC, to price the portion of load sourced from ISO-NE markets. The retail SOS rate will reflect a combination of this proxy and the price from PSNH's full requirements contracts procured via RFP, which will still be used to provide 70% of mass market SOS
The use of ISO-NE market purchases for 30% of small customer SOS load will begin with the February 1, 2025 to July 31, 2025 default service term
For PSNH's large customer group, PSNH will source 100% of SOS supplies from ISO-NE, again, relying chiefly on the day-ahead market. A proxy price will be used to set retail SOS rates, but large customer default service rates will change monthly rather than every 6 months
The PUC cited the higher costs of full requirements contracts, versus ISO-NE market purchases, in adopting the greater reliance on the ISO-NE markets for SOS. The PUC said that the adopted changes are expected to produce "cost savings" for non-shopping customers.
Under the PUC's order, PSNH's current annual SOS reconciliation process, with reconciliations addressed solely through bypassable rates, is unchanged
As previously reported, the PUC had directed that PSNH prepare a "proposal" to "integrat[e]" a significant under-recovery in large customer SOS costs into the nonbypassable Stranded Cost Recovery Charge (SCRC). The PUC is to re-visit the issue of whether to make reconciliations nonbypassable when the PUC addresses a future filing by PSNH concerning the issue, to be made 30 days before the next SCRC annual filing (typically filed in December)
In adopting the greater use of ISO-NE market purchases at PSNH, the PUC repeated its intent to examine more significant changes in SOS products, procurements, and related matters -- including the potential use of futures contracts for default service -- in a subsequent phase of the default service proceeding to be opened in winter 2025 with a hearing expected in March 2025. See our prior story here for more details on the PUC's previously stated intent to open this new phase of the SOS review
Docket DE 24-046
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October 15, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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