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{***} “This order approves the Public Service Company of New Hampshire d/b/a Eversource Energy (Eversource or the Company) proposal, made in response to a Commission directive, for the expansion of its ISO-New England market-based procurement tranche to 30 percent of the default Energy Service load for its Small Customer Group, which includes residential Energy Service customers, and 100 percent of the load for Eversource’s Large Customer Group, which includes commercial and industrial (C&I) Energy Service customers. The changes regarding market-based procurement are to be implemented for the February 1, 2025 to July 31, 2025 Energy Service period, and are expected to provide cost savings for residential and C&I default Energy Service customers.”{***}

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.

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.

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.  

As background: {***} “On June 20, 2024, the Commission issued Order No. 27,022, in which it required Eversource to file a proposal for the Company’s upcoming February-July 2025 Energy Service period that would include the following components: (1) an ISO-New England market-based procurement tranche of at least 30 percent, with no upper bound, for the Small Customer Group, and full (100 percent) ISO-New England market-based procurement for the Large Customer Group, along the lines approved by the Commission in Order Nos. 26,994 and 27,005 and this instant Order, with the following adjustments, and with an explanation of the Company’s choice of the given tranche size provided by the Company for the DE 24-046 – 2 – Small Customer Group; (2) a modification wherein the “proxy price” for these market-based procurement tranches for the Small Customer Group would be an average of (a) the four-year rolling weighted average of ISO-New England market prices in the New Hampshire load zone, and (b) the NYMEX futures prices for the upcoming six-month energy service period for ISO-New England; (3) a continuation of the monthly pricing approach for the Large Customer Group, with an appropriate proxy price.

The Commission expanded this market-based procurement approach due to ongoing evidence that prevailing ISO-New England market prices, including all cost components, were markedly lower than those prices for third-party requirements contracts entered into by the Company to serve its Energy Service load. See Id. at 8; see also Order No. 26,994, (April 12, 2024) at 1-2. 

On July 30, 2024, Eversource made its proposal pursuant to the requirements of Order No. 27,022, in a petition filed in this instant Docket No. DE 24-046.”  The proposal and subsequent docket filings, other than any information for which confidential treatment is requested of or granted by the Commission, are posted on the Commission’s website here. {***}

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 integrate 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.

Order Approving Eversource Modifications to Energy Service Procurement  (10/15/2024)

DE 24-046  (Opened 06/18/2024)

Public Service Company of New Hampshire d/b/a Eversource Energy – 2024 Energy Service Solicitations