New Hampshire

Restructuring Overview  |   Public Benefits  |  Restructuring Resources  |  Consumer Protection

Legislation Passed
Electric Y Gas N

1996, HB 1392; Initial Restructuring Bill

1997, DR 96-150; Refined Restructuring Bill

1998, HB 1527; Anti-Slamming

2000, SB 472; Authorization of Rate Reduction Financing for PSNH

Electric
Overview

• 1998-2001: Granite State Electric was the first company to deregulate, in 1998; its transition period would have expired in June 2002, but the state legislature voted to allow the Public Utilities Commission to expand the transition period for another five years (until May 2006). The transition to electric supply competition in New Hampshire began on May 1, after the U.S. Supreme Court denied an attempt by two consumer groups to overturn the electricity deregulation agreement between the state and Public Service of New Hampshire, the state's largest utility.
• Unitil's settlement with the New Hampshire Public Utility Commission delayed restructuring of its two utilities -- Exeter & Hampton Electric and Concord Electric -- until May 2003 instead of November 2002 as originally planned. Under the new restructuring plan, the PUC will approve the merger of the two subsidiaries into a single distribution utility with about 68,000 users. Unitil will then sell its current supply portfolio of about 180 mW and contract for an energy supplier for a three-year transition period. The PUC will review the portfolio and energy purchase contracts and clear the way for full competition to start May 2003.
• Public Service's rates dropped 11% when competition began on May 1, in addition to a 5% rate drop in October 2000. Unitil dropped its rates 15% on August 1, 2001. Residential and small commercial rates are capped during the transition to full competition. The PUC has the authority to adjust electric rates for both utilities every six months to reflect the real cost of power.
• June 2002: The PUC allowed Constellation Power Source to continue providing standard offer power to Granite State Electric's (GSE) 38,000 retail users between July 1, 2002 and April 30, 2006. GSE, a National Grid subsidiary, began deregulation in 1998, and its standard offer service was due to terminate June 30, 2002. All remaining GSE standard offer users were supposed to be transferred to the competitive market on that date. But virtually all customers remained on the standard offer service, and the PUC decided to extend the current system.
• September 2002: Under a settlement with the Governor’s Office of Energy and Community Services, the Office of Consumer Advocate and the Business and Industry Association, Unitil will combine its New Hampshire distribution operations into a single company named Unitil Energy Systems, Inc. (UES), increase its distribution charges for the first time in almost 20 years, decrease its power supply related charges, and continue the process to restructure its power supply operations and implement Customer Choice by May 1, 2003. Unitil will recover fully the stranded costs that result from its power supply restructuring and will implement an anticipated net rate decrease of about one percent at the time of Customer Choice.
• May 2003: Governor Craig Benson signs Senate Bill 170, which allows Public Service of New Hampshire to keep its hydropower and fossil generation assets until April 30, 2006, unless the PUC determines that it is in ratepayers' interest for the company to sell off the plants: If market prices drop below PSNH's prices, the utilities commission could instruct PSNH to divest its assets.

Choice Status

• Suppliers are not actively pursuing residential customers as this time, and no residential offers are available in the areas open to competition.

Natural Gas
Overview

• There are no competitive natural gas suppliers serving residential customers.
• A 2000 Public Utilities Commission report on possible natural gas deregulation recommends that unbundling efforts be first directed at allowing competition for the smaller commercial/industrial sector before any consideration of unbundling for residential customers.

Choice education
Power Is Choice
1-800-528-2070
www.powerischoice.com/
This state website explains electric restructuring in New Hampshire, consumer rights, and available energy assistance programs. The site lists electric suppliers serving residential customers.

Suppliers
www.powerischoice.com/pages/supplier.html

Public Benefits

New Hampshire's restructuring law authorized system benefit charges to fund energy efficiency, renewable energy and low-income programs, but only energy efficiency and low-income programs have been funded so far. The portion of the SBC for low-income electric bill assistance is expected to raise $13.2 million annually once competition is fully underway. Currently, interim rate assistance programs are operated by most utilities. The energy efficiency portion of the SBC raises about $6.9 million annually. (Follow the links for details on the state’s low-income energy and general residential energy programs.

Aggregation - buying coops

• Aggregators of electricity load that do not take ownership of power and do not represent any supplier interest are not public utilities, but must notify the PUC of their intent to do business. Municipalities that aggregate electric power or energy services for their citizens are not public utilities.
• Any municipality or county may aggregate retail electric customers within its boundaries who consent to being included in an aggregation program. The municipality or county, or a group of such entities, can enter into agreements for electric power supply, demand side management, conservation, meter reading, customer service and other related services.
• Municipal aggregators of electricity load and municipalities operating electric utilities are authorized to aggregate other services commonly and regularly billed to customers. Customers can select any service or combination of services offered.
• Once an aggregation program is adopted by the governing body of a municipality or county, all customers will be mailed written notification. No retail electric customer can be included in the program unless the customer affirmatively responds to the notification or requests in writing to be included in the program.

State Restructuring Resources

Utility Regulatory Commission
Public Utilities Commission
1-800-528-2070
www.puc.state.nh.us/

Consumer advocate
New Hampshire Department of Justice
The Consumer Protection and Antitrust Bureau
603-271-3658
www.state.nh.us/nhdoj/Consumer/cpb.html
 
Consumer Protection

Disconnection policy

• Between December and April 1, utilities must obtain approval from the Public Utilities Commission before disconnecting natural gas and electric service to residential customers age 65 and older. During these protection dates, residential customers cannot be disconnected if arrears are less than $400 for electric heating, $300 for gas and steam heating and $175 for nonheating uses.
• During the winter protection period, utilities must allow customers who are unable to pay a bill in full the opportunity to pay the overdue balance over the six months following the winter period, in addition to current bills.
• Utilities must delay disconnection of residential service for nonpayment for up to 30 days if a physician certifies that a medical emergency exists at the customer’s residence. The certificate may be renewed monthly, but the customer is required to negotiate a payment arrangement during the period.
• Competitive energy suppliers must provide 10 working days’ written notice to residential and small commercial customers prior to terminating the provision of generation service when the customer has failed to meet any of the terms of the agreement for service.

Deferred payments

• When a residential customer is unable to pay the total arrearage due, the utility must continue to provide service if the customer agrees to a payment arrangement.

Customer service

• When selecting a new energy supplier, customers have the right to receive certain information. The following information must be provided by the energy supplier before it can sign up any new customer: 1) all prices of the services being offered, including any penalties or fees; how long the energy supplier will guarantee its quoted price and terms; how long customers will need to continue purchasing energy from the energy supplier; a description of how to settle a problem if customers are unhappy with the service; an explanation of how customers will be billed for the energy they use; and the toll-free telephone number of the New Hampshire Public Utilities Commission's Consumer Affairs Division.

Right to cancel

• There may be a fee, which varies by company, for ending or switching a contract with an energy supplier.

Billing and collections

Competitive energy suppliers must include the following information on their bills:

• The starting and ending date of the billing period; any fixed monthly charges; the price structure for kilowatt hour use; the prior meter reading; and the current meter reading;
• The total kilowatt hours used during the billing period which shall include for customers on a time-of-use or similar pricing schedule, the total kilowatt hours used broken down by time of use;
• Any applicable penalty date and the related penalty;
• Any other factors necessary to compute the charges;
• An itemized breakdown of the charges, including any late fee, penalty or aggregation fee if applicable;
• The average price per kilowatt hour used during that billing period;
• A statement that the customer has the right to request actual consumption information for each billing period during the prior year or the months therein during which the competitive energy supplier provided the customer with generation service;
• The telephone number of the supplier's customer service department or customer service contact person; and
• The toll-free telephone number of the commission's consumer affairs division.

Supplier licensing

These are interim regulations
Competitive energy suppliers must pay a $500 registration fee and:

• Demonstrate a minimum level of financial resources and the ability to provide customers with the level of service they agree to purchase;
• Engage in fair business practices and comply with all applicable consumer protection laws and rules;
• Disclose, and make available to the public, information that will enable customers to make informed choices regarding the supply of their power; and
• Demonstrate they have qualified to do business and are subject to service of process in New Hampshire.

Telemarketing

• Energy suppliers may only make telemarketing calls between the hours of 8:00 am and 9:00 p.m. Customers have the right to tell them to place the customer name on a "Do Not Call" list. If customers put their name on the list, that supplier is not allowed to contact them with future telemarketing calls.

Dispute resolution

• When a customer files a complaint with the commission's consumer affairs division, either orally or in writing, against a supplier alleging that the competitive energy supplier is not in compliance with the provisions of Commission rules and regulations, the Commission's consumer affairs division is authorized to begin an informal investigation.
• The competitive energy supplier must provide any relevant information to the consumer assistance department that would help the department investigate and resolve the dispute.
• If a competitive energy supplier feels the complaint does not constitute on its face a violation of Commission rules or applicable statues or administrative law, it may request a hearing before the Commission.

Privacy

• To protect the customer's privacy, competitive energy suppliers must obtain prior express consent from the customer before the customer's request to be placed on a do-not-call list can be shared with or forwarded to a party other than the competitive energy supplier on whose behalf the solicitation is being made.