Frequently Asked Questions - Deregulation

• What is Deregulation?
  
• How does Deregulation affect me?
  
• Why does my electric bill look like it does?
  
• How can I choose an energy supplier?
  
• Do I have to choose an energy supplier?
  
• Other questions?

What is Deregulation?
Deregulation is the ability for a customer to purchase their electric energy from a supplier other than their regulated utility. The regulated utility will continue to deliver the electricity to the customer’s home or business, but the customer may choose any authorized supplier to supply the electricity.

Typically, a main element of electric utility deregulation is the ‘unbundling’ of the various components of your electric bill into main elements – such as “Transmission,” “Distribution,” and “Energy.” In some states, the regulated utilities, like PSNH, were forced to sell their power plants, which were then purchased by independent, unregulated companies. The theory is that the competitive marketplace will, over time, ensure that the price of energy stays low.

PSNH achieved a deregulation agreement with the State of New Hampshire that was approved by the Legislature and by the Public Utilities Commission and was implemented in May, 2001. It resulted at that time in an average rate decrease for all of PSNH’s customers of about 15 percent, compared to rates in effect prior to October, 2000.

One key difference between New Hampshire and other states is that the Legislature has allowed PSNH to continue to own and operate its power generation facilities, so long as it is in the economic interest of its customers to do so. Continued ownership of generation by PSNH has provided customers with a low-cost source of electric energy while giving customers the right to shop for even lower priced energy.

How does Deregulation affect me?
For now, the main change has been an updated look to your monthly electric bill. The bill provides a lot of detail about the cost of providing electricity.

Also, you are now free to choose your energy supplier, although it is expected that it may take some time for the new retail electricity marketplace to develop. PSNH, in the meantime, will continue to provide energy to its customers, at rates determined by state regulators to be our actual cost of producing or purchasing that energy.

Why does my electric bill look like it does?
Your PSNH bill is now broken down or “unbundled” into component parts. These component charges include charges for distribution, transmission, customer service, stranded cost recovery, taxes, and more. Each of these costs appears on your bill as a separate line item.

Check out a sample residential or business bill for more information about all of the component charges on your PSNH bill.

How can I choose an energy supplier?
Eventually, you may be able to shop for energy suppliers the way you now shop for long-distance phone service, or other products.

Many customers will choose a new supplier on the basis of price. Others may make their selection using other criteria, such as how a company generates its electricity, or where a supplier is located.

Click here to view the New Hampshire Public Utilities Commission’s Internet site regarding deregulation, including a list of energy suppliers certified to do business in New Hampshire.

Do I have to choose an energy supplier?
Not at this time. Deregulation plans at first called for customers to be forced to choose an energy supplier following an initial “transition” period. But, since the independent marketplace is developing so slowly, and since PSNH continues to own and maintain a fleet of economical generation facilities, customers may continue to obtain energy from PSNH.

Other Questions?
If you have a question regarding electric utility deregulation which was not answered here, it to us.