In response to months of intolerably high default electricity service costs, The New Hampshire Public Utilities Commission (NHPUC) has embraced the spot electricity market of our regional electric grid operator, ISO-NE. Rates had been over 20₵ per kilowatt-hour and as high as 25₵ during the first seven months of this year. Relying on supply from ISO-NE’s day-ahead and real-time energy markets, the new procurement programs will be analogous to Actual Energy’s.
At Eversource NH (formerly Public Service of New Hampshire), a fact-finding mission is underway. So far, the numbers are astounding. For the small customer group, hypothetical supply costs were about 4.8₵ using ISO-NE markets-based supply compared to 12.6₵ under the default service tariff. That makes 62% savings!
Eversource NH had been urged to pursue a market-based strategy under DE-043:
“The Commission recognizes that although we do not have regulatory authority over Eversource’s power supply since the Company divested itself of its generation/power supply assets several years ago, the Commission has the ability to oversee the procurement process, to ensure that the ES service prices are robustly competitive. In light of this responsibility, we encourage the Company to explore, for its upcoming ES solicitation, the possibility of including a day-ahead and real-time ISO-NE market-based procurement element for a portion of its Small Customer Group load, given the potential for better pricing outcomes for ES customers. Such an element could include up to two (12.5%) tranches of Small Customer Group load, or 25 percent in total of that load class.”
Unitil, which covers the Concord area and seacoast New Hampshire, was also ordered to solicit market-based default service supply alternatives for small and medium customers starting in August of 2024 under DE-054:
“In light of the empirical data developed through IR 22-053, and the monthly data being submitted by the Company in this docket, the Commission believes that the time is right to develop an ISO-New England market-based component for energy service procurement for UES’s small and medium customer groups. To that end, we order UES to develop a proposal, for submission to the Commission no later than January 22, 2024, for an ISO-New England market-based procurement tranche of 10 to 20 percent, through whatever combination of direct day-ahead and real-time ISO-New England market acquisitions the Company finds advisable, for the Company’s upcoming August 2024-January 2025 energy service period for the Company’s small and medium customer groups.”
Finally, The Rhode Island PUC has already stepped onto the same turf. Docket No. 23-01-EL – Last Resort Service Procurement Plan outlines how “spot market purchases” will be incorporated into Last Resort Service. 10% of the load is being supplied through the spot market for the October 2023 to March 2024 time period.
We at Actual Energy consider the New Hampshire and Rhode Island PUCs’ actions equating to a strong endorsement of our electricity supply process. PUC’s have a fiduciary responsibility to rate payers, especially small customers. Furthermore, Actual Energy delivers wholesale electricity exactly at the spot wholesale price and without any hidden charges or risk premiums. Our track record is incredible over an extended period of time. We can readily calculate a historical analysis with your company’s data. The value inherent in our service demands your consideration. If you have interest, questions or comments please do not hesitate to contact your Actual Energy representative or me directly.
Peter Duprey | Director of Research