8-KOther Events

EVERSOURCE ENERGY 8-K Report, Corporate Update (Jul 8, 2009)

Filed July 8, 2009For Securities:ES

Summary

This 8-K filing from Eversource Energy (ES), specifically concerning its subsidiary Public Service Company of New Hampshire (PSNH), reports on the status of temporary rate adjustments. PSNH had initially requested a temporary increase of $36.4 million in annual distribution service revenues, with a revised effective date of August 1, 2009. Alongside this, PSNH requested changes to its Energy Service (ES), Stranded Cost Recovery Charge (SCRC), and Transmission Cost Adjustment Mechanism (TCAM) rates. Crucially, PSNH and the Commission Staff have reached a Settlement Agreement for temporary rates, proposing a $25.6 million increase in annual distribution service revenues. Importantly, this agreed-upon temporary increase, when combined with anticipated reductions in ES, SCRC, and TCAM rates, is projected to result in a net decrease of approximately 1% in the overall rates billed to customers who receive energy service directly from PSNH. A public hearing is scheduled for July 13, 2009, to consider this settlement.

Key Highlights

  • 1PSNH and Commission Staff have entered into a Settlement Agreement regarding temporary rate increases.
  • 2The agreed-upon temporary increase in annual distribution service revenues is $25.6 million.
  • 3This temporary increase is set to be effective August 1, 2009, subject to Commission approval.
  • 4PSNH also filed for a permanent increase in annual distribution service revenues of approximately $51 million, effective August 1, 2009.
  • 5The net effect of the temporary rate adjustment and associated changes in ES, SCRC, and TCAM rates is expected to be a 1% decrease in customer bills for those taking energy service from PSNH.
  • 6The temporary rate level is subject to reconciliation once a permanent distribution rate change is approved.
  • 7A hearing to consider the Settlement Agreement is scheduled for July 13, 2009.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report that Public Service Company of New Hampshire (PSNH), a subsidiary of Eversource Energy, and the New Hampshire Public Utilities Commission Staff have reached a Settlement Agreement regarding PSNH's request for temporary rate adjustments.

The Settlement Agreement proposes a temporary increase of $25.6 million in PSNH's annual distribution service revenues. This is lower than the originally requested $36.4 million.

While there is an agreed-upon temporary increase in distribution service rates, it is expected to be fully offset by reductions in other rates, such as the Energy Service (ES) rate. The net effect is projected to be a decrease of approximately 1% in the total rates billed to customers who take energy service from PSNH.

The temporary rate changes, if approved by the Commission following the July 13, 2009 hearing, are expected to be effective August 1, 2009.