Public Service Company of New Hampshire, 073120 NHPUC, 26, 387
|Docket Nº:||Order 26, 387|
|Opinion Judge:||DIANNE MARTIN, CHAIRWOMAN|
|Judge Panel:||Kathryn M. Bailey, Michael S. Giaimo Commissioners|
|Case Date:||July 31, 2020|
Adjustment to Stranded Cost Recovery Charge
Order Approving Adjustment to Stranded Cost Recovery Charge
Jessica A. Chiavara, Esq., on behalf of Public Service Company of New Hampshire d/b/a/ Eversource Energy; and F. Anne Ross, Esq., on behalf of Commission Staff.
DIANNE MARTIN, CHAIRWOMAN
This order approves an adjustment to the Stranded Cost Recovery Charge for Eversource's customers effective with services rendered on and after August 1, 2020. For residential class customers, the average Stranded Cost Recovery Charge will increase from 1.143 cents per kWh to 1.221 cents per kWh. The stranded cost charge is one of three rate components that will change on August 1, as discussed below.
On June 11, 2020, Public Service Company of New Hampshire d/b/a Eversource Energy (Eversource or the Company) filed a petition to adjust its Stranded Cost Recovery Charge (SCRC) for the six-month period beginning August 1, 2020. The Office of the Consumer Advocate (OCA) filed a letter of participation on June 16. On July 10, Eversource updated its calculation of the SCRC rates. On July 14, the Company filed a correction to its updated rates requesting an average SCRC rate for residential customers of 1.221 cents per kilowatt hour (kWh), an increase from the current average of 1.143 cents per kWh. This average SCRC rate excludes a credit associated with the Regional Greenhouse Gas Initiative (RGGI) auction proceeds and includes a Chapter 340 Adder relating to certain over-market costs associated with the Burgess BioPower Power Purchase Agreement.1
The petition and subsequent docket filings, other than any information for which confidential treatment is requested or granted by the Commission, are posted on the Commission's website at http://www.puc.nh.gov/Regulatory/Docketbk/2020/20-095.html.
The SCRC recovery mechanism was initially established pursuant to the 1999 Agreement to Settle PSNH Restructuring in Docket No. DE 99-099 (1999 Agreement), which defined stranded costs and separated them into three categories: Part 1, Part 2, and Part 3. The original stranded costs associated with Part 1 and Part 3 have been fully recovered. In recent years, the only costs recovered through the SCRC rate mechanism have been Part 2 costs, which are "ongoing" stranded costs, consisting primarily of the over-market value of energy purchases from independent power producers (IPPs), and the amortization of payments previously made from IPP buy-downs and buy-outs approved by the Commission. Part 2 costs continue to include all costs and market revenues associated with the existing IPPs and the amortization of payments previously made for IPP buy-downs or buy-outs.
In Public Service Company of New Hampshire d/b/a Eversource Energy, Order No. 25, 920 (July 1, 2016), the Commission approved the 2015 Restructuring and Rate Stabilization Agreement (2015 Agreement). The 2015 Agreement provided for the divestiture of Eversource's generation facilities and recovery of stranded costs associated with divestiture. Pursuant to the 2015 Agreement, a portion of...
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