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NH PUC Defers Consideration Of More Frequently Reconciling Default Energy Service Rates
The New Hampshire PUC has deferred consideration of more frequently reconciling the default energy service rate at Granite State Electric (Liberty Utilities).
“This order authorizes Liberty to recover the costs of power supply through default energy service (ES, or Default Service)1 rates for effect for the six-month period of August 1, 2024, through January 31, 2025. The updated Default Service rate is 10.976 cents per kilowatt hour (kWh) for Liberty’s Small Customer Group, which includes residential customers taking Default Service from Liberty.”
“[T]he Commission’s decision on the Company’s proposal for mid-year energy service Reconciliations is DEFERRED, as delineated in this Order, with consideration of this proposal to be made in a future phase of this proceeding;” {Emphasis added.}
Currently, default service electric rates for the small customer group at Granite State Electric are fixed for six-month periods (August through January; and February through July).
Reconciliations, which include the Energy Service Adjustment Factor and Energy Service Cost Reclassification Adjustment Factor, are addressed on an annual basis, with reconciliation factors, filed in May, incorporated into the default service rate effective with the August rate change, and continuing until reset under the annual reconciliation process.
Granite State Electric had proposed implementing a mid-year reconciliation for default service rates, citing the new use of ISO-NE market purchases for 20% of small customer default service. Granite State Electric proposed adjusting the reconciliation factors in December, to be effective for the default service pricing period February 1 through July 31 (rather than using the factors in place for the prior August through January period)
Citing the potential for actual small customer default service costs to “deviate materially” from forecasts, due to the 20% ISO-NE market purchases, Granite State Electric sought approval to use its discretion to implement a mid-year reconciliation, if needed, “to avoid or address inordinately large deferral balances that may occur.”
The PSC cited a desire to continue spreading reconciliations over 12 months and said that it requires more information to determine how mid-year reconciliations would impact 12-month recovery of reconciliation balances.
Like the PUC action recently directed at PSNH, the PUC ordered Granite State Electric to, in its default service proposal for the 6-month period beginning February 1, 2025, file a proposal to serve small customer default service through at least 30% ISO-NE market purchases (with the PUC not directing an upper bound for any proposal for increased ISO-NE market purchases).
The PUC also directed that Granite State Electric should file a proposal to serve 100% of its large customer group default service from ISO-NE market purchases.
The PUC will consider such directed proposals for default service for the period starting February 1, 2025, in a further phase of the default service proceeding.
Order No. 27,027 Approving Petition for August 1, 2024 to January 31, 2025 Rates (06/27/2024)
Proposed Energy Service Reconciliation (0528/2024)
Proposed Energy Service Reconciliation Attachments (0528/2024)
Liberty Utilities (Granite State Electric) Corp. d/b/a Liberty 2024 Default Service Solicitations (04/11/2024)
DE 24-061 (04/11/2024)
Liberty Utilities (Granite State Electric) Corp. d/b/a Liberty – 2024 Default Service Solicitations
