Opportunity For A Competitive Market To Develop

Electric deregulation has been introduced on a utility-by-utility basis, and is now available in 88% of New Hampshire communities. Over time, electric deregulation will provide consumers with the benefits of a competitive electric market.

Currently, the service territories for Unitil and Connecticut Valley Electric Company (CVEC) are not open to electric competition due to their participation in a Federal lawsuit. Municipal utilities throughout the state are also not open to electric competition and are not required to participate because they already pass on savings to their cutomers by purchasing electricity at wholesale prices.

[TOP]

How Will It Work?

A competitive electric market will take time to develop.

Regulated Market - in the past, the Public Utilities Commission regulated the electric utilities and set the rates.

Transition Service - during this initial time period, stable and predictable prices are provided. This gives consumers time to learn about electric deregulation and how to make an informed choice. The time period may be different for each electric distribution company.

Competitive Market - after the period of transition service, energy prices will be at market levels. Consumers can choose from different energy suppliers that offer competing prices and/or services.

Once a competitive market develops, consumers will be able to choose their energy supplier, the company that will sell them electricity at a price determined by the market. A consumer's current electric utility will become their electric distribution company, and will continue to deliver the electricity to their home or business. The price for the delivery of the electricity will be determined by the Commission.

For now, consumers can remain with their electric distribution company, which will purchase and deliver electricity to them at transition service prices. After a competitive market develops, consumers who cannot find an energy supplier will be able to obtain power from a designated default service provider.

[TOP]

How Is New Hampshire Different From California?

New Hampshire, like other states in the nation, has been watching California closely to try to prevent similar energy problems. The New England states are working together to develop a market structure that will guard against the market design flaws seen in California.

In California, one of the largest problems has been a rapidly growing demand for energy, but without the development of new generation sources to meet that demand. New Hampshire's demand has not grown nearly as fast, yet we have been actively developing new sources of energy. Two new power plants are in the process of coming on line, and we have access to other generation sources throughout New England. Consumers are also protected from price fluctuations during the transition service period, as the prices are fixed during that time.

[TOP]

When Can I Choose A Supplier?

An active competitive electric market takes time to develop. Energy suppliers need time to learn about each state, and to go through the process to get registered. Suppliers must be registered to ensure that they meet all the requirements to supply electricity in New Hampshire.

This transition period will also give New Hampshire consumers and businesses time to learn about how to make the choice that's right for them. The Commission has detailed, easy-to-understand information available and will provide a list of suppliers as they become registered.

[TOP]

Want To Learn More?

Informative brochures are available in English and Spanish, and speakers are available to give presentations to community groups and businesses. Take this time now to get informed, so that you are ready to make a choice when suppliers become active in your area. Call the toll-free Answer Center at 1-800-528-2070 to order material or to request a speaker.