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New Hampshire
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EXECUTIVE SUMMARY
Updated: 10/01/05    Source: EC Power
NH - Electric Choice
On February 28, 1997, the Public Utilities Commission issued its plan to restructure the electric industry in New Hampshire. Five of New Hampshire's six electric utilities filed a lawsuit with the federal court opposing the Commission's plan. Since that time, the State and the Commission have worked very hard to resolve the issues raised in the federal lawsuit in a manner that is fair to both consumers and the utilities.

As a result, Granite State Electric Company presented the Commission with a voluntary settlement offer in the spring of 1998. In late June 1998, the Commission accepted the Granite State proposal with some modifications. As a result of the settlement, Granite State Electric customers saw rate decreases of up to 17%. While customers saw immediate rate decreases, they did not have choice until almost a year later. The first competitive energy supplier registration application was received by the Commission on June 1, 1999.

In July 1998, a second settlement offer was presented to the Commission, this time by the New Hampshire Electric Cooperative. The Commission approved NHEC's proposal to implement retail choice in September 1998. A limited number of NHEC customers had the opportunity to choose their own competitive energy suppliers in the fall of 1999 as part of NHEC's live test of its system capabilities. Electric choice became available to all of NHEC's customers on January 1, 2000 with customers seeing immediate rate decreases of approximately 20%.

Subsequent settlement offers from PSNH and Concord Electric/Exeter and Hampton were submitted to and approved by the Commission resulting in the implementation of electric choice in the PSNH service area on May 1, 2001 and an overall rate decrease of approximately 15%. Concord Electric and Exeter and Hampton Electric, which merged into Unitil Energy Systems on December 1, 2002, will introduce electric choice on May 1, 2003. With the introduction of electric choice in the Unitil Energy Systems service area, more than 98% of the state will be open to electric competition.

While customers of Connecticut Valley Electric Company have yet to see electric choice come to their service area, the recent announcement of PSNH's proposed acquisition of CVEC could bring electric choice to those customers by 2004. The purchase of CVEC by PSNH must be approved by the Commission and, if approved, would not only implement choice in the CVEC service area but also result in lower rates to CVEC customers.

Even with all these changes, it will take time for the competitive market to develop in the state. During this period, customers can purchase their electricity service through a transition service option provided by their electric distribution utility. This transition service period will give consumers time to learn about electric choice while allowing the competitive market time to develop.

Natural Gas Competition
New Hampshire has restructured its natural gas industry to allow commercial and industrial (C&I) end-users in the state to choose between purchasing gas supply directly from third party suppliers (deregulated) or purchasing gas supply from the utility and using their local gas utility for "transportation" or delivery service only (regulated). In 1993, the Commission approved transportation-only rates, requiring daily metering. In 2001, the Commission approved non-daily-metered delivery service to C&I customers, providing the opportunity for both large and small C&I customers to choose bundled or unbundled service.

Due to the limited number of gas marketers serving New Hampshire and the failure of residential gas choice programs in other states to provide savings to residential customers, the Commission decided not to move forward with residential choice programs until after evaluating the results of the expanded C&I program and new choice initiatives being offered in other jurisdictions. Residential customers still purchase both gas commodity and delivery service from their local gas utility.

If you should encounter any problems or need further information, please call (713) 356-0060.
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