Liberty Utilities Requests Rate Reduction

Liberty Utilities has filed a request for summer electric energy service rates with the New Hampshire Public Utilities Commission, according to a press statement.

The company asked the NHPUC to approve a residential rate of 6.8 cents/kWh. If approved, the average residential Liberty customer will see a $47.25 reduction in their monthly bills, according to the company.

“We are extremely happy that customers will see a reduction in their electric bills this summer,” said John Shore, spokesman for Liberty Utilities. “Customers have been faced with record high electric prices all winter. Finally, relief is on the way.”

According to the statement, the energy service rate represents the cost the utility pays for electricity on the energy market. Liberty Utilities does not profit on the charge; they pass along the cost to customers without marking up the price.

“We don’t generate our own electricity so we purchase it from wholesale marketers,” said Shore. “As expected, market prices dropped significantly compared to last winter. We were able to secure contracts with rates that are even lower than last summer.”

The current winter energy service rate for residential customers is 15.4 cents/kWh. The rate drop to 6.8 cents/kWh on May 1, 2015, will represent a 55.6 percent decrease.

Once approved by the NHPUC, the residential rate will be fixed from May 1, 2015, through Oct. 30, 2015. Rates for commercial and industrial customers will see similar reductions during this period.

Shore cautioned that rates would likely increase for the winter 2015/2016 season.

“Until we see more natural gas pipeline capacity in New England, electric prices will continue to be high in winter,” said Shore. “Hopefully they won’t be as high next winter, but we certainly expect the price to increase again on November 1st.”

The NHPUC is expected to rule on the request by March 30.