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Utility Seeks To Make Default Service Reconciliation Nonbypassable For All Customer Classes

November 25, 2024

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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Public Service of New Hampshire (Eversource) is seeking to treat default service reconciliations for all customer classes, including mass market customers, on a nonbypassable basis

PSNH's proposal was made after the New Hampshire PUC 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, in making this observation, had been addressing what was, at the time, a forecast $6.5 million under-recovery in large customer default service costs. The PUC directed that PSNH provide a proposal to recover default service reconciliations on a nonbypassable basis as part of PSNH's next filing to adjust the nonbypassable Stranded Cost Recovery Charge (SCRC). The PUC did not specifically address what customer classes should be included in any nonbypassable reconciliation

See background here

As part of its new SCRC filing, PSNH proposes to include, in the SCRC, reconciliation balances arising from default service for both the large customer default service group, and small customer default service group.

PSNH noted that, at this time, the only default service reconciliation balance available to be included in the nonbypassable SCRC is the previously set aside deferral of under-recovered large customer ES costs, which is now about $6.9 million.

Witnesses for PSNH cited the "backstop" nature of default service as making nonbypassable reconciliations of default service costs, "equitable and reasonable".

"[A]ll distribution customers benefit from the universal availability of default service as an alternative choice or last resort backstop option," PSNH's witnesses said

Witnesses for PSNH also noted that electricity default service reconciliations in Massachusetts, where PSNH has an affiliated utility, are generally addressed on a nonbypassable basis

With respect to the $6.9 million large customer default service under-collected balance that PSNH would initially include in the nonbypassable SCRC, PSNH said that this balance results in an adder of 0.093 cents/kWh to the SCRC. PSNH proposes to apply this same adder to all customers under the SCRC (including residential), not only customers eligible for large default service

Docket DE 24-112

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