PSNH Seeks July 1st Rate Adjustments
Energy Service Charge Decreased five percent
Public Service of New Hampshire (PSNH) has updated its filings with the NH Public Utilities Commission (PUC) for a series of rates adjustments on July 1st, including a reduction in the Energy Service charge. Hearings on these filings are scheduled to begin next week.
PSNH is requesting the Energy Service rate be reduced by more than five percent, to 7.93 cents per kWh. State regulators adjust PSNH’s Energy Service rate at least annually, to reflect the company’s actual cost of producing or purchasing energy for its customers. The primary reason for the decrease in PSNH’s Energy Service rate is low energy market prices and a forecasted reduction in ongoing operating costs at PSNH’s power generating facilities. Customers purchasing energy from a supplier other than PSNH will not be impacted by the Energy Service rate decrease and will continue to pay their supplier rate.
PSNH is also requesting the Stranded Cost Recovery Charge rate be increased, primarily to recover costs associated with a State-supported agreement to purchase power from five independently-owned biomass power plants.
Adjustments are also being sought to distribution and transmission rates. Transmission rates recover costs related to the delivery of electricity through the high voltage transmission system, while distribution rates recover costs related to the maintenance and operation of PSNH’s local distribution system. The distribution rate increase is a scheduled step increase that is a provision of PSNH’s last rate case with the PUC. The change in the transmission rate is based on costs allocated by ISO-New England, the regional entity that oversees the New England electric grid.
Taken together, the rate adjustments will mean that PSNH’s residential Energy Service customers using 500 kWh of electricity per month will see an increase of 1.6 percent on their monthly bills. These rate adjustments are not final and are subject to review and approval by the NH PUC.