What’s driving NH’s electric rates?

DAY ON FRIDAY. WELCOME TO NEW HAMPSHIRE’S. BUSINESS. I’M FRED KOCHER. ALMOST ALL RESIDENTIAL ELECTRIC RATES IN NEW HAMPSHIRE WENT UP AUGUST 1ST. AND COMMERCIAL INDUSTRIAL RATES ARE REPORTEDLY GOING UP, TOO. WE’RE GOING TO FIND OUT WHAT’S DRIVING THEM. FROM MY GUESTS WHO JUST WROTE THIS IN JULY. QUOTE, IT’S A BIG DEAL BECAUSE ELECTRIC DISTRIBUTION RATES THE CHARGES YOU PAY VIA YOUR UTILITY BILL FOR THE POLES AND WIRES THAT CONNECT YOU TO THE GRID ARE INCREASING WELL AHEAD OF INFLATION. IT’S GENERALLY AGREED HERE IN ALMOST EVERYWHERE THAT WE ARE IN AN ELECTRICITY AFFORDABILITY CRISIS, HE SAID. AND THE PERSON WHO WROTE THAT IS NEW HAMPSHIRE’S CONSUMER ADVOCATE IN THE OFFICE OF CONSUMER ADVOCATE, DONALD CREECE, WHO IS A LAWYER AND REPRESENTS NEW HAMPSHIRE CONSUMERS BEFORE THE PUBLIC UTILITIES COMMISSION AND OTHER AGENCIES. AND HE JOINS ME IN THE STUDIO. WELCOME. NICE TO HAVE YOU HERE. GREAT TO BE WITH YOU TODAY, FRED. LET’S LOOK AT THE FIRST LINE OF COMMERCIAL UTILITIES AND THE ELECTRIC RATES. AND YOU CAN SEE EVERSOURCE, LIBERTY, UNITIL AND THE KILOWATT HOUR INCREASE. AND THEN THE, THE TYPICAL MONTHLY COST OVER ON THE FAR RIGHT SIDE. UP AND THEN DOWN BELOW SUPPLY, TRANSMISSION, DISTRIBUTION, CUSTOMER CHARGE, WHICH ALL GOES INTO THOSE PRICES. DON, WHAT IS HAPPENING WITH THESE RATES AND PRICES? WHAT DRIVING THEM? WELL, THE COST OF WHOLESALE ELECTRICITY IN THE ENTIRE REGION OF NEW ENGLAND IS GOING UP. AND THE ENERGY RATES THAT JUST WENT INTO EFFECT OVER THE NEXT SIX MONTHS, INCLUDING THE TWO REALLY COLD MONTHS OF DECEMBER AND JANUARY, THE WHOLESALE PRICE OF ELECTRICITY SKYROCKETED DURING THOSE TWO MONTHS. AND YOU SEE THAT REFLECTED IN THE RATES THAT WENT INTO EFFECT ON AUGUST 1ST. AND IT’S A DOUBLE WHAMMY IF YOU HAPPEN TO BE AN EVERSOURCE CUSTOMER. 70% OF GRANITE STATERS ARE THEIR FIXED MONTHLY CHARGE, WHICH IS THE PRICE OF ADMISSION, JUST WENT UP FROM ABOUT $15 TO A LITTLE LESS THAN $20. THAT’S A WHOPPING BIG INCREASE, AND THE EVERSOURCE SPOKESMAN SPOKESMAN SAID THEY’RE REVIEWING THAT DECISION BY THE PUC. YES, THEY ARE. BUT IN THE MEANTIME, THAT $20 A MONTH FEE IS IN EFFECT FOR EVERY EVERSOURCE CUSTOMER. NOW, THE PUC ALSO ESTABLISHED A NEW METHOD, AS YOU KNOW, TO SET ELECTRIC RATES BASED ON THE COST OF LIVING RATHER THAN THE COST OF SERVICES. WHAT CAUSED THAT? WELL, THE PUBLIC UTILITIES COMMISSION ENCOURAGED EVERSOURCE TO MAKE A PROPOSAL FOR SO-CALLED PERFORMANCE BASED RATE MAKING. THAT’S A NEW FANCY, NEW WAY OF DOING RATES. THAT GIVES THE COMPANY AUTOMATIC RATE INCREASES BASED ON INFLATION IN THE ECONOMY AND THEIR PERFORMANCE. AND I THINK THERE’S REASON TO BE SKEPTICAL ABOUT THAT. YEAH. AND THEN ALL THE RESIDENTIAL ELECTRIC RATES FOR TWO MORE MAJOR ELECTRIC UTILITIES PROVIDERS, AND HERE THEY ARE. AND NEW HAMPSHIRE ELECTRIC RATES AS OF AUGUST 1ST, NEW HAMPSHIRE ELECTRIC COOPERATIVE 8.9 TO 11.5 CENTS KILOWATT HOURS UP. AND NEW HAMPSHIRE COMMUNITY POWER COALITION, 9.7 TO 13 POINT 2 OR 13.7 KILOWATT HOUR, UP. HOW COMPETITIVE ARE THOSE RATES? OF THOSE LAST TWO PROVIDERS WITH THE COMMERCIAL UTILITIES, HOW COMPETITIVE ARE THEY? WELL, IT USED TO BE THAT THE COMMUNITY POWER COALITION WAS BEATING THE UTILITIES ON THE PRICE OF THE ELECTRICITY, BUT THEY HAVE TO DIG THEMSELVES OUT OF A HOLE THEY DUG LAST WINTER. AND SO THEY’VE HAD TO BASICALLY ADD A LITTLE PREMIUM TO THEIR RATES IN ORDER TO REBUILD THEIR FINANCIAL RESERVES. SO ALL OF A SUDDEN, IF YOU’RE IN A COMMUNITY POWER COALITION TOWN, YOU HAVE A CHOICE TO MAKE BECAUSE THEY’RE NOT CHEAPER THAN THE UTILITY ANYMORE. INTERESTING, INTERESTING. WE’LL GET BACK TO THAT SOMEDAY. HERE. ELECTRIC SALES TO U.S. COMMERCIAL AND INDUSTRIAL SECTORS. SALES TO COMMERCIAL SECTOR TO RISE 3% IN 2025 AND 4.5% IN 26. AND SALES TO INDUSTRIAL SECTOR. THIS IS NATIONALLY NOW TO RISE 2% IN 25 AND 3.5 AND 26. THAT’S JUST A NOTE. AND FINALLY. DAWN, RECENT A MAJOR CHANGES WITH UTILITY SALES IN NEW HAMPSHIRE. A SIGNIFICANT CHANGE IN THE SALE. AND WE JUST TALKED ABOUT IT. AND THAT’S THE COMMUNITY POWER COALITION 64 NEW HAMPSHIRE COMMUNITIES AND FOUR COUNTIES SIGNED UP TO RECEIVE POWER FROM THEM, FROM THE COMMUNITY POWER COALITION OF NEW HAMPSHIRE. AS OF MAY 1ST. AND WHAT IMPACT ARE THEY HAVING ON THE COMMERCIAL UTILITIES TAKING BUSINESS AWAY? I THINK THAT’S A REALLY TRANSFORMED THE ELECTRIC INDUSTRY IN NEW HAMPSHIRE. AND IN THE LONG RUN, I THINK IT’S GOOD FOR CONSUMERS BECAUSE IT GIVES EVERYBODY IN THOSE TOWNS A MEANINGFUL CHOICE TO MAKE BETWEEN THE UTILITIES POWER AND THE COMMUNITY POWER AGGREGATION POWER. DONALD CREESE, CONSUMER ADVOCATE IN THE STATE OF NEW HAMPSHIRE. THANK YOU. NICE TO HAVE YOU HERE. ALL TOO SHORT, BUT INFORMATIVE. THANK YOU. IF YOU MISSED PART OF THIS, YOU CAN GO TO WMUR.COM WHERE IT WILL BE POS