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PUC Approves New Purchase Of Receivables Program
The New Hampshire Public Utility Commission approves revised tariff and Electric Supplier Trading Partner Agreement at Unitil to implement a new purchase of receivables (POR) program.
Under the adopted revisions, it is important to emphasize that retail suppliers will be required to use POR for all utility consolidated billing at Unitil in New Hampshire.
There will be two separate POR discount rates -one for Residential service and General Service classes. These discount rates will include uncollectibles, administrative costs, and reconciliation.
“In this order, the Commission adopts the report and recommendations contained in Hearing Examiner Fuller’s March 17, 2025, report and hereby APPROVES Unitil Energy Systems, Inc. (Unitil or the Company) proposed revisions to its “Competitive Electric Supplier Trading Partner Agreement” (TPA) and “Terms and Conditions for Competitive Suppliers Tariff” (Tariff) and ORDERS Unitil to commence implementation as outlined in the Report.”
- DESCRIPTION OF THE PROPOSED TPA AND TARIFF REVISIONS
“As discussed in Order No. 27,036, before implementing the POR program, Unitil’s TPA for competitive electric power suppliers (CEPS) and Community Power Aggregators (CPAs) acting as load-serving entities need to be revised. The revisions must incorporate POR as a condition of consolidated billing services. See Hearing Exhibit 6 at 13. Specifically, an entity seeking consolidated billing services must agree to sell Unitil its receivables at the applicable Discount Percentage Rate (DPR). The Tariff must also be revised to reflect the DPR. The TPA applies to CEPs and CPAs acting as load-serving entities in ISO New England. See Id. There are 20 to 25 unique suppliers providing energy services to Unitil customers. See Hearing Transcript at 20.
Updates to the TPA and Tariff include:
- Amending the TPA and Tariff to include the requirement that all suppliers choose consolidated billing service and will be automatically enrolled in the POR program;
- Amending the TPA and Tariff to allow for the calculation of two separate DPRs for the Residential and General Service classes.
- Amending the TPA and Tariff to effectuate that payments to Participating Suppliers shall be made monthly based on the combined average payment period for all Customers on Default Service and Consolidated Billing Service and that the payment date is calculated based on actual historical data for the most recent calendar year and will remain in effect for a 12-month period beginning August 1st (reflecting the Commission’s modification to the effective date)(subject to a different effective date for initial implementation).
- Amending the TPA and Tariff to confirm that Unitil will pay Participating Suppliers for existing accounts receivable of customers billed under Consolidated Billing at the start of the POR program.
- Amending the TPA and Tariff to confirm that Unitil will make an annual reconciliation filing on or before March 1st each year (subject to a different date for initial implementation), providing the DPR calculations and the payment date for the forthcoming year.
- COMMISSION ANALYSIS
“RSA 53-E:9 requires utility POR programs to: (1) make timely payment of amounts due to Suppliers for electricity supply and related services less a DPR; (2) calculate the DPR to recover costs related to the POR program; and (3) periodically adjust the DPR, subject to the Commission’s approval. Pursuant to RSA 53-E:9, I, Suppliers may include competitive electric power suppliers, such as CEPSs, if proposed by the utility and found by the Commission, after notice and hearing, to be for the public good.
After reviewing the Report, the Commission adopts the Hearing Examiner’s recommendation to APPROVE the amendments to the TPA and Tariff. The second stage of this proceeding was necessary to provide details for the implementation of POR previously approved by the Commission in Order 27,036. The Commission finds that the parties’ proposed revisions to the Tariff and TPA are based upon the record in this proceeding, that the proposed agreements and Tariff are the product of extensive and detailed negotiations involving all parties to this proceeding, and address concerns offered by the parties represented to the Commission earlier on in this proceeding.1 The Commission appreciates that all parties worked together to present revisions that are easy to understand and implement. The revisions to the TPA and Tariff provide clarity to the Company’s suppliers and customers on the implementation of the POR program, including how and when the DPR will be calculated.”
Order (03/18/2025)
DE 23-002 (01/10/2023)
(Unitil Energy Systems, Inc. Proposed Purchase of Receivables Program)
