Publ ublic U Utilities es C Commiss ssion Ov Over erview - - PowerPoint PPT Presentation

Publ ublic U Utilities es C Commiss ssion Ov Over erview

Dianne Martin and Michael Giaimo

Presentation to the Office of Consumer Advocate Residential Ratepayers Advisory Board

January 27, 2020 Chairwoman and Commissioner

New Hampshire Public Utilities

Missio ion Stateme ment

• To ensure that customers of regulated utilities receive safe,

adequate and reliable service at just and reasonable rates

• To foster competition where appropriate
• To provide necessary customer protection
• To provide a thorough but efficient regulatory process that is

fair, open and innovative

• To perform our responsibilities

ethically and professionally in a challenging and supportive work environment

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Budget a and O Org C Char art

• PUC Budget is approximately $10 million to satisfy our core mission
• This represents a cost of about 37¢ per $100 spent on utility services

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Balance P ce Public a c and Ut Utility ity I Interests ts

RSA 363:17-a Commission as Arbiter “The commission shall be the arbiter between the interests of the customer and the interests of the regulated utilities”

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PUC’s Le Level o l of Regulatio ion Varie ies b by Industry

5

Water/ Sewer Natural Gas Electric Telecom

Commercial & Industrial customers have competitive supply

• ptions

Commercial & Industrial, and Residential customers have competitive supply

• ptions

(Left to Right) Most to Least Heavily Regulated by the PUC

OCA Advisory Board Meeting January 27, 2020

Avoid R Redundan ancy

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Safety

Pipeline Safety

Inspect natural gas, methane and certain propane facilities to ensure compliance with federal and state requirements pertaining to design, construction, operation, and maintenance of facilities

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Underground Damage Prevention

Enforce the underground utility damage prevention program to ensure safety and minimize damage; served by Dig Safe

Emergency Preparedness

Coordinate with other state agencies when Emergency Operations Center is activated, collect and distribute emergency response activities of the affected utilities

Security

Inspect physical plants of energy providers; monitor cyber security plans of electric and gas utilities

Electric Safety & Reliability

Investigate and report on injuries resulting from contact with utility infrastructure; lead coordination efforts for system restorations and conduct exercises in preparation

Engineering and GIS

Maintain Geographic Information System that contains critical infrastructure for energy and telecommunication providers in the state

OCA Advisory Board Meeting January 27, 2020

Key S Stats: A : Averaging 2 225 D Dock

• ckets Per

er Y Yea ear

Majority of dockets are electricity related

50 100 150 200 250 FY 2016 FY 2017 FY 2018 FY 2019

Commission Dockets

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Key S Stats ts: A Aver eragin ing Ov Over er 1 100 Or Order ers P Per Y Year

20 40 60 80 100 120 140 160 FY 2016 FY 2017 FY 2018 FY 2019

Commission Orders

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Key S Stats ts: 9 9,000 I Inquiries M Made t e to P PUC UC/Year

Majority of inquiries are electricity related

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Elec ectr tric R c Rates es – Bi Bill Co Components

• Delivery
• Customer Charge
• Transmission (FERC)
• Distribution (PUC)
• NHEC as member-owned coop

has minimal PUC rate regulation

• Energy
• Varies by utility and time of year
• Other components
• System Benefits Charge
• Stranded Cost

Energy, $56.52, 44.6% RPS, $2.31, 1.8% Customer Charge, $12.69, 10.0% Distribution, $25.88, 20.4% Transmission, $12.74, 10.1% Stranded Cost, $12.92, 10.2% System Benefits, $3.66, 2.9%

Eversource Electric Rate Components Resident Using 625 kWh/month Total Bill: $126.72

Based on rates in effect January 2019

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Key C Cost D t Driver ers F For E Elec ectr trici city ty

• There are major costs drivers

facing the region which impact New Hampshire electricity costs, including:

• Natural gas prices
• Plant additions and retirements
• Transmission investments
• Energy Efficiency and solar

investments

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Evol

• luti

tion

• n o
• f t

the R e Region ion’s Ener ergy M Mix

• Major shift from oil and

coal to natural gas

• Region has added 12,000

MWs of natural gas-fired generation over past two decades

• Nuclear still represents

about 30% of generation

• Likely to go down with

retirement of Pilgrim

• Coal and oil once

represented 40% of generation; last year ~2%

Source: ISO New England, New England Power Grid 2018-2019 Profile

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15% 31% 8% 7% 22% 18% 49% 30% 10% 8% 1% 1% 0% 10% 20% 30% 40% 50% 60% 2000 2018

OCA Advisory Board Meeting January 27, 2020

Natural G l Gas Plays M Majo jor R Role

• le i

in R Reg egional Energy Por

• rtfolio

io a and C Cos

• st

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Wholesale Electricity Prices Track Natural Gas

OCA Advisory Board Meeting January 27, 2020

Earlier ier T Today … … Low L Location tion M Marginal P Prices ces

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Fuel M Mix a and C Cost C Chan ange D During C Cold Spells

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LMPs can be $17/MWh as they were earlier today, or they can be orders of magnitude greater than that amount during extreme cold spells when coal and oil generation is dispatched

Source: https://www.iso-ne.com/about/key-stats/resource-mix/

OCA Advisory Board Meeting January 27, 2020

Whol

• les

esale le Power er C Cost B t Brea eakdown: E Ener ergy

2 4 6 8 10 12 14 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Annual Wholesale Energy Market Value ($Billion)

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Emissions Do Down O Over P r Past T Two De Decad ades

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• Air emissions from regional

generators have decreased

• ver the last two decades
• From 2001 to 2017, annual

emissions from SO2, NOX, and CO2 declined significantly

• More efficient generation,

and the addition of renewables including solar has helped lower emissions region-wide

• 74%
• 98%
• 34%

NOx SO2 CO2

Kiloton reductions 2001-2017

Source: ISO New England, New England Power Grid 2018-2019 Profile)

OCA Advisory Board Meeting January 27, 2020

Whol

• les

esale le Power er C Cost B t Brea eakdown: C Capaci city ty

1 2 3 4 5 6 7 8 9 10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23

FCA Clearing Price $/kw-month

$3-$4 Billion Annual Cost to Region

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$10 Billion in R Region ional T l Transmission

• n

Inves estm tment o

• ver

er Decade

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2 4 6 8 10 12 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Cumulative Regional Investments in Transmission

OCA Advisory Board Meeting January 27, 2020

NH P Pays I Its Share o e of R Reg egion

• nal T

Transmis ission

• n
• Capacity and transmission

costs are a function of peak demand

• NH represents ~ 9.4%
• f region’s electricity

consumption

• PUC and OCA continually

working on ways to mitigate these costs

• To extent utilities can curb

use – customers will see reduced capacity and transmission costs

ISO-NE 2018 Network Load by State

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Loo

• okin

king A Ahea ead: W What W We A e Are e Watching F For

• r

In Regiona nal D Discus ussion n

• Pay careful attention to additional

transmission development that can increase Regional Network Service

• Continue to push for competition,

challenge high ROEs at FERC,

• ppose overly conservative and

expensive reliability standards

• Work with utilities to try and lower peak demand which will

effectively reduce energy, capacity, and transmission costs

• Oppose other state policies and regional efforts that are

unreasonable and shift costs to New Hampshire ratepayers

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