Now You Have the Power
1998 marked the end of the preparations for electric retail competition in New Hampshire and the beginning of competition in certain market areas. The final step will be restructuring of the industry, which in New Hampshire will happen on a utility by utility basis as each utility reaches an agreement with the Commission on its specific issues. HB 1392 required the New Hampshire Public Utilities Commission to implement full retail electric choice between January 1, 1998 and June 30, 1998. When it appeared implementation was going to be delayed due to the pending federal court litigation, legislative approval was granted to move the deadline beyond the June 30, 1998 date.

In July of 1998, the NH Public Utilities Commission approved an Offer of Settlement for Electric Restructuring submitted by Granite State Electric Company, making Granite State Electric the first franchise area in New Hampshire to be opened to retail competition. As a result of the settlement, Granite State Electric customers saw an immediate reduction in rates. The settlement also authorized Granite State to proceed with implementing retail choice in its service territory and required a sharing of costs associated with the utility's nuclear assets between ratepayers and shareholders.

A second New Hampshire electric company, the New Hampshire Electric Cooperative (NHEC), also has an approved agreement with the New Hampshire Public Utilities Commission to introduce competition into its service area. A February 1999 ruling by the Federal Energy Regulatory Commission that NHEC does not have to reimburse PSNH for electric energy its members purchase from competitive energy suppliers has cleared the way for NHEC to move forward.

A limited number of NHEC customers will have the opportunity to choose an energy supplier beginning in summer of 1999. NHEC plans to move forward with implementing retail choice for all of its customers sometime in the fall of 1999.

In the implementation of retail competition, and particularly in a franchise area-by-franchise area phase, an important component to ensure success involves a consumer education program. The program is critical in helping residents and small business owners understand the changes that will take place in the purchase of their electricity and make informed choices.

With a policy change that has as fundamental a citizen impact as changing how consumers buy their electricity, the state has a responsibility to prepare consumers to achieve the benefits of such change. The role of a public education effort in the transition to a competitive electric energy market place is:

• To make New Hampshire consumers aware how electric energy will be supplied in the new competitive energy marketplace;
• To explain how the change to competition will affect them;
• To provide New Hampshire consumers with the tools to make an informed choice from among competitive alternatives;
• To enable them to understand the implications of their choice.

Role Of The Public Utilities Commission
What will change once the state moves to full retail choice is the Commission will no longer regulate the prices for the generation component of consumers' electric bills. The marketplace, through competition among electric suppliers, will determine the price paid for the generation component. However, the Commission will continue to ensure consumer protection, safety and reliability of service. The Commission will also regulate the rates for the distribution and transmission components.

Another role of the Commission will be to educate New Hampshire consumers so they can make informed choices. The Commission will not tell people what their choice should be. Rather, the Commission will help consumers better understand retail electric competition so that consumers can make the choice that is best for them.

To accomplish these objectives, the New Hampshire Public Utilities Commission will be the neutral resource and voice, providing factual information without editorial and will implement a public education program which:

• Provides New Hampshire consumers with the tools they need to understand and participate in New Hampshire's competitive energy market; and
• Encourages consumers to investigate the broader issues and implications of a competitive energy market which may affect them.