Faced with lower revenues attributed to the economic slowdown and cool summer weather, Public Service of New Hampshire (PSNH) is seeking approval from the New Hampshire Public Utilities Commission (NHPUC) to change its rate structure.
PSNH wants to diminish the impact of usage on electric bills by charging higher base rates for delivery charges.
I’ve not read the company’s application to NHPUC, but from the various press reports I’ve read it appears as though the argument is that the costs of delivery electricity are rising at a rate that exceeds what can be recovered on a per-kilowatt-hour basis.
In essence, public utilities have two primary costs. The first is the cost of actually supplying electricity. PSNH, and its parent company, Northeast Utilities, both generate power from their own plants as well as purchase electricity from other power suppliers.
The second significant expense is that of building and maintaining power transmission lines, including those that transport power to individual homes and businesses and those that make up the power grid.
While the cost of generating electricity appears to be fairly stable at the present time, the costs of transporting that electricity continue to escalate. For PSNH and its parent company to continue providing what it considers acceptable returns to its investors, it is claiming a need to raise the basic fees for delivery.
In essence, what this will mean is that even people who are devoted to reducing their energy consumption are going to be faced with higher utility bills. Yes, if PSNH and Northeast Utilities have their way, and it’s likely they will, consumers will be expected to pay more for less in order to satisfy investors.
Meanwhile, I suggest contacting the Office of Consumer Advocate at NHPUC to let them know how you feel.
This is the End and a New Beginning
7 months ago
