Discount Rate Authorized for Returning Default Service Customers

New Hampshire Public Utilities Commission authorized Public Service Company of New Hampshire (PSNH) to institute two different default energy rate schedules, a standard rate for those customers who have never left the utility for a competitive energy supplier and a discounted, albeit “above market,” rate for customers who took service with an alternative provider and then return to the utility’s default service. According to the utility, such pricing flexibility is necessary in order for it to compete effectively against other suppliers. The PSC had rejected an earlier proposal citing a potential for gaming by consumers and cross-subsidy concerns, but found that the revised discount rate plan addressed these issues and would not give the utility an undue advantage over competitive suppliers. Re Public Service Co. of New Hampshire, DE 11-216, Order No. 25,488, Apr. 8, 2013 (N.H.P.U.C.). For more analysis, subscribe to URN.