1 Electric Utilities; Restructuring Policy Principles; Default Service Rate. Amend RSA 374-F:3, V(c) to read as follows:

(c) Default service should be designed to provide a safety net and to assure universal access and system integrity. Default service should be procured through the competitive market and may be administered by independent third parties. Any prudently incurred costs arising from compliance with the renewable portfolio standards of RSA 362-F for default service or purchased power agreements shall be recovered through the default service charge. The allocation of the costs of administering default service should be borne by the customers of default service in a manner approved by the commission. If the commission determines it to be in the public interest, the commission may implement measures to discourage misuse, or long-term use, of default service. Revenues, if any, generated from such measures should be used to defray stranded costs.

2 Effective Date. This act shall take effect 60 days after its passage.

1 Electric Utilities; Restructuring Policy Principles; Default Service Rate. Amend RSA 374-F:3, V(c) to read as follows:

(c) Default service shall be designed to provide a safety net and to assure universal access , reasonable price stability, and system integrity. Default service shall be procured through the competitive market and may be administered by independent third parties. In order to provide price stability, the commission shall oversee the timing and terms of energy service contracts between the regulated public utilities and energy providers and shall approve such procurement of energy from power supply agreements using varying lengths and terms and laddering of agreements, which shall balance the goals of producing just, reasonable, and reasonably stable retail rates with the need to reflect underlying wholesale market prices. The commission shall review contracts on a quarterly basis, and permitting a mix of short (3 to 6 month duration), medium (6 to 12 month duration) and long-term (12 to 18 month duration) purchase power contracts. Any prudently incurred costs arising from compliance with the renewable portfolio standards of RSA 362-F for default service or purchased power agreements shall be recovered through the default service charge. The allocation of the costs of administering default service should be borne by the customers of default service in a manner approved by the commission. If the commission determines it to be in the public interest, the commission may implement measures to discourage misuse, or long-term use, of default service. Revenues, if any, generated from such measures should be used to defray stranded costs.

2 Effective Date. This act shall take effect 60 days after its passage.