This bill mandates that the public utilities commission utilize fixed-price contracts for default electric service procurement, thereby reducing reliance on real-time or day-ahead market purchases. Specifically, it amends RSA 374-F:3, V(e) to stipulate that any alternative means for providing transition or default services to residential and small commercial customers must exclusively involve fixed-price contracts. The bill allows for purchases from the real-time or day-ahead ISO New England markets only if fixed-price contracts of adequate size cannot be secured. Additionally, it establishes that any necessary reconciliations for overpayment or underpayment of default service rates due to market purchases will be managed through future adjustments to the default service rates, rather than as a non-bypassable charge.

The bill also introduces a provision that reconciliations must be amortized over a maximum of two consecutive default service rate cycles, starting with the February 2027 cycle. This approach aims to minimize customer risk and mitigate price volatility while ensuring that the development of competitive markets is not unduly harmed. The effective date of the act is set to be upon its passage.

Statutes affected:
Introduced: 374-F:3
As Amended by the House: 374-F:3
HB1733 text: 374-F:3