BY KATHERINE BOURQUE
It is supply rate season in New Hampshire, that time of year when all energy providers in the state file new rates for the upcoming six-month period beginning Feb. 1.
Oftentimes, these filing periods provide a snapshot of New England’s energy market and lead to good conversations among utilities, policymakers, regulators and customers about what external factors are driving costs for our region.
Katherine Bourque
For the upcoming six-month period, the news is favorable. After a large price spike tied to global uncertainty following the Russian invasion of Ukraine in 2022, the market has stabilized, and costs have fallen consistently. Likewise, new third-party providers in New Hampshire have created more choices for communities than ever before in the state, something Unitil wholeheartedly supports for our customers.
In this new market, default service serves an important role for customers. As a distribution utility that does not own generation assets, we are required to secure “default” or “basic service” supply for customers that opt not to seek or cannot secure an alternative provider.
We secure bids for this supply for six-month periods beginning February through August, as directed by the New Hampshire Public Utilities Commission. Unitil neither benefits nor profits from providing default service to customers, and we have long advocated for all customers to explore and consider the options provided by third-party suppliers to find the alternative that best meets their needs.
Default supply has become what supporters of utility restructuring hoped it would when regional utilities were directed to divest their generation assets — a stable, protected option customers could rely on if they did not, or could not, choose a third-party supplier. All customers benefit from always having this option available, whether they utilize it or sign on with a competitive supplier.
As customers more frequently move between third-party options, it is important to understand the process by which they may return to default service and the rates they can expect depending on when they do so.
Unitil customers who return to default service are placed onto a variable monthly rate until the start of the next six-month period. As such, customers that return to default service in January will be placed on the fixed default service for the six months beginning Feb. 1, but those who return after Feb. 1 will be on a variable rate until Aug. 1, at which point they will move to a fixed rate.
This is because the flat rate is not representative of the average cost of the customer’s energy if they are only enrolled for a portion of the period. The actual market cost of electricity is seasonal; it is highest at the peaks of summer and wintertime and lower in spring and fall.
The variable rate more accurately reflects the market cost of energy at the time customers use it. It is important to balance the need for an affordable rate for all with the need to keep the rate stable and reflective of the current market, regardless of how many customers leave or rejoin default service in any one period.
Explaining to customers the complexities of energy service is important to us because we believe the best decisions regarding customers’ energy needs are made when they are well-informed. As the role of supply changes and more customers take firmer control of their energy choices, we will keep our customers informed of the options available to them.
A full list of Unitil’s fixed and variable supply rates are available at Unitil.com. More information can also be found on the third-party supplier page of our website. As always, Unitil’s customer service representatives stand ready to answer questions about your energy service at 1-888-301-7700.
Katherine Bourque is senior vice president, external affairs, and chief customer officer at Unitil. She joined Unitil in 2019 as the company’s director of government affairs and has extensive experience in energy policy, legislative process and public affairs.
