Utilities in New Hampshire plan to significantly cut their electric supply rates in the coming months.Eversource said Thursday that, if approved by the New Hampshire Public Utilities Commissions, its new rate for residential customers would drop from 20.2 cents per kWh to about 12.6 cents per kWh, a drop of 37.6%. Eversource said that rate would be down from 22.6 cents per kWh at the same time last year, a drop of 44.2%. The effect on a customer's total bill will depend on how much energy is used, their rate category and weather conditions.If the supply rate decrease is approved by the PUC, Eversource said an average New Hampshire residential customer could see an overall decrease of about $46, or 24%, on their bill.The new rates would be in effect from Aug. 1 to Jan. 31."With the unprecedented volatility in the energy markets hitting our customers hard in the last year, we're pleased to let them know that some relief is coming with the new supply rate in August," said Eversource executive vice president Penni Conner in a written statement.The new rates only apply to New Hampshire customers who receive Eversource's default service rate and not those who receive their energy from a community power program or competitive supplier, Eversource said.Similarly, Unitil filed last week for a default service rate of 13.25 centers per kWh. The utility said that would result in a decrease of about $76 for the average customer starting Aug. 1. Unitil's current supply rate is 25.9 cents per kWh.In New Hampshire, the energy supply price for Eversource and Unitil changes twice a year, on Feb. 1 and Aug. 1. Eversource said the price reflects what it pays generators for the power that customers use, and it doesn't make a profit on the cost.Eversource warned that the energy market is volatile, and rates could rise again this winter.The utility also noted that energy use increases on average 25% during the summer, and it urged customers to take advantage of energy efficiency programs to help reduce electricity use.
MANCHESTER, N.H. —
Utilities in New Hampshire plan to significantly cut their electric supply rates in the coming months.
Eversource said Thursday that, if approved by the New Hampshire Public Utilities Commissions, its new rate for residential customers would drop from 20.2 cents per kWh to about 12.6 cents per kWh, a drop of 37.6%.
Eversource said that rate would be down from 22.6 cents per kWh at the same time last year, a drop of 44.2%. The effect on a customer's total bill will depend on how much energy is used, their rate category and weather conditions.
If the supply rate decrease is approved by the PUC, Eversource said an average New Hampshire residential customer could see an overall decrease of about $46, or 24%, on their bill.
The new rates would be in effect from Aug. 1 to Jan. 31.
"With the unprecedented volatility in the energy markets hitting our customers hard in the last year, we're pleased to let them know that some relief is coming with the new supply rate in August," said Eversource executive vice president Penni Conner in a written statement.
The new rates only apply to New Hampshire customers who receive Eversource's default service rate and not those who receive their energy from a community power program or competitive supplier, Eversource said.
Similarly, Unitil filed last week for a default service rate of 13.25 centers per kWh. The utility said that would result in a decrease of about $76 for the average customer starting Aug. 1. Unitil's current supply rate is 25.9 cents per kWh.
In New Hampshire, the energy supply price for Eversource and Unitil changes twice a year, on Feb. 1 and Aug. 1. Eversource said the price reflects what it pays generators for the power that customers use, and it doesn't make a profit on the cost.
Eversource warned that the energy market is volatile, and rates could rise again this winter.
The utility also noted that energy use increases on average 25% during the summer, and it urged customers to take advantage of energy efficiency programs to help reduce electricity use.
As an energy industry expert with a thorough understanding of utility operations, energy markets, and regulatory dynamics, I can confidently analyze the information provided in the article about utilities in New Hampshire planning to cut their electric supply rates.
Eversource's Proposed Rate Cut: Eversource, one of the major utilities in New Hampshire, has proposed a significant decrease in its electric supply rates for residential customers. The proposed reduction, from 20.2 cents per kWh to approximately 12.6 cents per kWh, represents a substantial 37.6% drop. Moreover, when compared to the previous year's rate of 22.6 cents per kWh, this marks a noteworthy 44.2% decrease. Eversource attributes this reduction to a response to the unprecedented volatility in energy markets over the past year.
Impact on Customer Bills: The impact on individual customer bills will vary based on factors such as energy consumption, rate category, and weather conditions. Eversource estimates that, if approved by the New Hampshire Public Utilities Commission (PUC), the average residential customer could experience an overall decrease of about $46, translating to a 24% reduction in their bill. This reduction is significant and provides relief to customers who have faced challenges due to market fluctuations.
Duration and Conditions of the New Rates: The proposed new rates are set to be in effect from August 1 to January 31. It's important to note that these changes are specific to customers who receive Eversource's default service rate. Customers obtaining energy from alternative sources, such as community power programs or competitive suppliers, are not subject to these rate adjustments.
Unitil's Rate Adjustment: Another utility, Unitil, has also filed for a default service rate adjustment, seeking to decrease its rate from 25.9 cents per kWh to 13.25 cents per kWh. If approved, this would result in an estimated $76 decrease for the average customer starting August 1.
Timing of Rate Changes: In New Hampshire, the energy supply prices for Eversource and Unitil undergo adjustments twice a year, specifically on February 1 and August 1. Eversource clarifies that the prices reflect what the utility pays generators for the power consumed by customers, emphasizing that the company does not make a profit on these costs.
Cautionary Notes and Considerations: Despite the positive news of rate reductions, Eversource issues a cautionary statement about the volatility of the energy market. The utility warns that rates could potentially rise again during the winter, emphasizing the unpredictable nature of energy markets.
Summer Energy Use and Efficiency Programs: The article also highlights a notable 25% increase in energy use during the summer. In response, Eversource encourages customers to take advantage of energy efficiency programs to help reduce electricity consumption.
In conclusion, the proposed rate cuts by Eversource and Unitil in New Hampshire, if approved, indicate a strategic response to market challenges, providing tangible benefits to residential customers. However, the energy market's inherent volatility and the seasonal fluctuations in energy demand underscore the need for consumers to remain vigilant and explore efficiency measures to manage their electricity usage effectively.
