NH Utilities Under-Recovered $50M on Default Service August 2026 Reset
New Hampshire utilities under-collected about $50 million on default energy service over two years through April 30, 2026: Eversource roughly $38 million, Liberty $9 million, Unitil $3 million. Proxy pricing set rates below actual costs. The August 1, 2026 default service reset recovered balances, hitting default customers harder than competitive supply customers who pay current costs.
By Jason Taken, Founder, Jaken Energy
Updated September 12, 2026$50 million shortfall through April 2026
Community Power Coalition of New Hampshire reported that, as of April 30, 2026, New Hampshire utilities had under-collected about $50 million in default energy service costs over the prior two years [nh-cpcnh-undercollection-2026]:
| Utility | Under-collection |
|---|---|
| Eversource | ~$38 million [nh-cpcnh-undercollection-2026] |
| Liberty | ~$9 million [nh-cpcnh-undercollection-2026] |
| Unitil | ~$3 million [nh-cpcnh-undercollection-2026] |
Balances accumulated because default service rates did not match actual procurement costs [nh-cpcnh-undercollection-2026]. Regulators had utilities use "proxy pricing" to estimate future power costs; proxies ran below market for much of the past 18 months [nh-cpcnh-undercollection-2026].
Deferred balances eventually flow into future default rates [nh-cpcnh-undercollection-2026]. The August 1, 2026 default service reset landed harder because recovery caught up [nh-oca-rate-check].
Default vs competitive pricing neutrality
More than 75 cities and towns operate Community Power programs serving 200,000+ customers [nh-cpcnh-undercollection-2026]. Competitive supply and Community Power typically recover costs in current rates [nh-cpcnh-undercollection-2026].
Default service can defer under-collections and recover later [nh-cpcnh-undercollection-2026]. That distorts comparisons when default looks artificially cheap for months, then spikes.
Liberty's proposed default rate illustration: ~21¢/kWh versus ~13¢/kWh prior period when deferred recovery compressed into a reset window [nh-cpcnh-undercollection-2026].
Cannabis Alternative Treatment Centers and future adult-use facilities should compare options using forward-all-in pricing, not a single low default month.
PUC dockets and August 2026 reset
Community Power NH pointed to active dockets [nh-cpcnh-undercollection-2026]:
- DE 26-017 Eversource 2026 default service
- DE 26-023 Liberty 2026 default service
- DE 26-024 Unitil 2026 default service
New Hampshire default energy service resets February 1 and August 1 [nh-oca-rate-check]. The Office of the Consumer Advocate urged customers to check rates now ahead of resets [nh-oca-rate-check].
Under New Hampshire switching, retail suppliers and Community Power remain options for eligible C&I accounts.
HB 1733 and cost shifting
Governor Kelly Ayotte signed HB 1733 in June 2026, reinforcing that default service costs must be recovered from default customers, not shifted to Community Power or competitive supply customers [nh-cpcnh-undercollection-2026] [nh-hb1733].
Community Power NH will monitor the law's "extraordinary circumstances" provision [nh-cpcnh-undercollection-2026]. Cultivators should confirm how their municipality's program treats reconciliation surcharges.
Worked example: deferred recovery shock
Inputs we chose for a default service account on Eversource at 100,000 kWh/month.
| Period | Illustrative default ¢/kWh | Monthly supply |
|---|---|---|
| "Proxy" year average | 13.0¢ [nh-cpcnh-undercollection-2026 context] | $13,000 |
| August reset with recovery | 18.5¢ (illustrative) | $18,500 |
| Monthly step | +$5,500 |
Competitive fixed at 16.5¢ (hypothetical) would have cost $16,500 during the proxy year (+$3,500 vs 13¢ default) but avoids a single-month cliff if recovery bunches into August [nh-cpcnh-undercollection-2026].
Run your math with PUC-published default rates for your utility and class.
Link to rate hike hearings
Eversource and Unitil also pursued delivery rate increases with PUC hearings in 2026. See our Eversource NH rate hike hearings post. Supply under-recovery and delivery cases stack on one bill.
ISO-NE wholesale trends parallel Maine 2026 standard offer increases.
Takeaway
New Hampshire utilities under-collected ~$50 million on default service through April 30, 2026 because proxy rates lagged the market [nh-cpcnh-undercollection-2026]. The August 1, 2026 reset recovered deferred balances, hitting default customers hardest [nh-oca-rate-check].
Compare Community Power, retail fixed supply, and default service on all-in forward pricing, not a temporarily low default window that precedes reconciliation.
Proxy pricing origin story
NH PUC directed proxy pricing to reduce supplier risk premiums [nh-cpcnh-undercollection-2026]. Intent was consumer savings; 18 months below cost produced $50M deferred gap [nh-cpcnh-undercollection-2026].
Liberty 21¢ illustration
Liberty's jump toward 21¢ from ~13¢ exemplifies compressed recovery [nh-cpcnh-undercollection-2026]. Medical ATCs on Liberty should verify August 2026 class rates in DE 26-023 before cash draws.
Community Power 200,000+ customers
200,000+ customers in Community Power programs compare offers using distorted default benchmarks during proxy periods [nh-cpcnh-undercollection-2026]. HB 1733 aims to stop cost shifting to competitive customers [nh-hb1733].
DE 26-017 / 026-023 / 026-024 docket map
| Docket | Utility |
|---|---|
| DE 26-017 | Eversource |
| DE 26-023 | Liberty |
| DE 26-024 | Unitil |
Track PUC orders publishing final August default rates [nh-cpcnh-undercollection-2026].
February vs August reset strategy
February 1 and August 1 resets split the year [nh-oca-rate-check]. Under-recovery may concentrate in August when summer kWh is highest for HVAC-heavy operations, amplifying $ pain [nh-cpcnh-undercollection-2026].
HB 1733 extraordinary circumstances
HB 1733 includes an extraordinary circumstances provision Community Power will monitor [nh-hb1733] [nh-cpcnh-undercollection-2026]. Cultivators in municipal programs should ask administrators how reconciliation surcharges flow to C&I members after August 2026 [nh-oca-rate-check].
Competitive neutrality principle
Community Power NH argues competition requires accurate price signals [nh-cpcnh-undercollection-2026]. When default looks cheap during proxy pricing, Community Power and retail customers may overpay relative to market if their rates track actual costs while default deferrals build [nh-cpcnh-undercollection-2026]. August 2026 resets partially realign default toward reality [nh-oca-rate-check].
DE 26-017 docket detail
Eversource DE 26-017 governs 2026 default service solicitations feeding August resets [nh-cpcnh-undercollection-2026]. Download PUC orders when published rather than relying on proxy-era quotes [nh-oca-rate-check].
Governor Ayotte HB 1733 signing
Governor Ayotte signed HB 1733 in June 2026 after Community Power advocacy on cost shifting [nh-cpcnh-undercollection-2026] [nh-hb1733]. Monitor PUC implementation orders for C&I language [nh-cpcnh-undercollection-2026].
Log August default rate PDFs
When PUC posts August 1 default rates, save PDFs next to Community Power quotes to document comparison basis [nh-oca-rate-check] [nh-cpcnh-undercollection-2026]. Compare $/kWh all-in on the same usage shape you expect in flower, not a shoulder-month average.
Why proxy pricing existed and how it failed
New Hampshire regulators directed utilities to use proxy pricing when setting default service rates to reduce supplier risk premiums [nh-cpcnh-undercollection-2026]. Proxies estimate forward power costs before procurement completes. For roughly 18 months, proxies ran below actual market costs, producing $50 million statewide under-collection through April 30, 2026 [nh-cpcnh-undercollection-2026].
Eversource ~$38 million, Liberty ~$9 million, and Unitil ~$3 million deferred balances eventually flow into future default rates [nh-cpcnh-undercollection-2026]. The August 1, 2026 reset incorporated catch-up, which is why Liberty illustrations jumped toward ~21 cents from ~13 cents in compressed recovery windows [nh-cpcnh-undercollection-2026].
Community Power enrollment for eligible towns
More than 75 cities and towns operate Community Power programs serving 200,000+ customers [nh-cpcnh-undercollection-2026]. Community Power and competitive suppliers typically recover costs in current rates, while default service deferred under-collection [nh-cpcnh-undercollection-2026].
Medical Alternative Treatment Centers should verify whether their municipality enrolls C&I accounts and how HB 1733 blocks cost shifting to competitive customers [nh-hb1733] [nh-cpcnh-undercollection-2026]. Follow New Hampshire switching guidance and track DE 26-017, DE 26-023, and DE 26-024 default service dockets [nh-cpcnh-undercollection-2026].
HB 1733 and the extraordinary circumstances clause
Governor Kelly Ayotte signed HB 1733 in June 2026, reinforcing that default service costs must be recovered from default customers, not shifted to Community Power or competitive supply customers [nh-hb1733] [nh-cpcnh-undercollection-2026]. The law includes an extraordinary circumstances provision Community Power NH will monitor [nh-cpcnh-undercollection-2026].
Cultivators should read implementation orders for C&I language before assuming competitive programs avoid reconciliation surcharges after August 2026 [nh-oca-rate-check].
February versus August reset strategy
February 1 and August 1 resets split the year [nh-oca-rate-check]. Under-recovery may concentrate in August when summer kWh is highest for HVAC-heavy operations, amplifying dollar pain [nh-cpcnh-undercollection-2026]. Model peak-month kWh when comparing default to Community Power [nh-cpcnh-undercollection-2026].
Competitive neutrality and distorted benchmarks
Community Power NH argues competition requires accurate price signals [nh-cpcnh-undercollection-2026]. When default looks cheap during proxy pricing, Community Power customers paying actual-cost rates may appear overpaying until August 2026 realigns default [nh-cpcnh-undercollection-2026] [nh-oca-rate-check].
DE 26-017 Eversource solicitation detail
Eversource DE 26-017 governs 2026 default service solicitations feeding August resets [nh-cpcnh-undercollection-2026]. Download PUC orders when published rather than relying on proxy-era quotes [nh-oca-rate-check]. Pair with New Hampshire commercial electricity rates.
Medical ATC Liberty territory caution
Liberty default volatility toward ~21 cents from ~13 cents hits medical ATCs on Liberty meters hardest in August 2026 recovery [nh-cpcnh-undercollection-2026]. Verify DE 26-023 class rates before draws tied to harvest [nh-cpcnh-undercollection-2026] [nh-oca-rate-check].
Office of the Consumer Advocate check-your-rate alert
The Office of the Consumer Advocate urged customers to check rates now ahead of February and August resets [nh-oca-rate-check]. High-kWh cultivators should compare forward-all-in Community Power, retail fixed, and default using summer kWh shapes, not shoulder-month averages [nh-oca-rate-check] [nh-cpcnh-undercollection-2026].
Link to Eversource NH delivery hearings
Eversource and Unitil pursued delivery rate increases with PUC hearings in 2026 separate from default under-recovery [nh-puc context via related post]. See Eversource NH rate hike hearings post. Supply reconciliation and delivery cases stack on one bill [nh-cpcnh-undercollection-2026] [nh-hb1733].
Compare Community Power, retail fixed supply, and default service on all-in forward pricing, not a temporarily low default window that precedes reconciliation [nh-cpcnh-undercollection-2026] [nh-oca-rate-check]. Save PUC-published August default rate PDFs beside supplier quotes to document the comparison basis used in procurement decisions [nh-oca-rate-check] [nh-hb1733].
New Hampshire utilities under-collected ~$50 million on default service through April 30, 2026 because proxy rates lagged the market [nh-cpcnh-undercollection-2026]. The August 1, 2026 reset recovered deferred balances, hitting default customers hardest while Community Power and retail supply often tracked current costs [nh-cpcnh-undercollection-2026] [nh-oca-rate-check].
Frequently asked questions
How much did New Hampshire utilities under-collect on default service?
Community Power NH reported about $50 million statewide under-collection through April 30, 2026: roughly $38 million at Eversource, $9 million at Liberty, and $3 million at Unitil.
Why did default rates lag actual costs?
At PUC direction, utilities used proxy pricing to estimate future power costs when setting default service rates. Proxy rates ran below actual market costs for much of the past 18 months.
When did the August 2026 reset hit?
New Hampshire default energy service resets February 1 and August 1. The August 1, 2026 reset incorporated deferred balances, producing sharper increases for default customers.
Does competitive supply avoid under-recovery?
Community Power and competitive suppliers generally recover costs in current rates, while default service can defer balances and recover them later through reconciliation mechanisms.
What did HB 1733 change?
Governor Ayotte signed HB 1733 in June 2026, reinforcing that default service costs should be recovered from default customers, not shifted to Community Power or competitive supply customers.
Related reading
- How to Switch Electricity Suppliers in New Hampshire: A Step-by-Step Guide for Cannabis Businesses
NH supplier switching for medical ATC accounts on Eversource, Unitil, Liberty, and NHEC: default service, enrollment, RSA 374-F rules.
- New Hampshire Commercial Electricity Rates for Cannabis Facilities
NH commercial power at 21.22 cents/kWh vs. U.S. average, Eversource G/GV/LG demand, default service monthly pricing, medical-only TCP context.
- Eversource NH Rate Hike Hearings and Unitil Request
NH PUC preps Eversource rate hike hearings; Unitil filed its own increase. What medical ATC operators should track on delivery vs default supply.
- Fixed vs. Index vs. Block-and-Index Electricity Contracts
What each supply structure means, who carries price risk, which fits a 24/7 grow load, what pass-throughs do, and a worked 12-month comparison.
- Maine 2026 Standard Offer Rate Increases
Maine 2026 standard offer supply rose 20–28%: CMP 12.72¢, Versant BHD 12.95¢, MPD 14.87¢. Cultivators should shop before the next January 1 reset.
Jason Taken founded Jaken Energy, the commercial energy procurement practice behind this site. He works with licensed cannabis operators in deregulated electricity markets to lower supply rates, manage demand charges, and evaluate efficiency upgrades.
Sources
Inline citations in this article, such as [nh-cpcnh-undercollection-2026], refer to the entries below. Links open the primary source in a new tab.
- [nh-cpcnh-undercollection-2026]Utility Supply Rates Have Fallen $50 Million Short of Actual Costs — Community Power Coalition of New Hampshire. Accessed 2026-09-12.
- [nh-oca-rate-check]Electric customers: check your rate now — New Hampshire Office of the Consumer Advocate. Accessed 2026-09-12.
- [nh-hb1733]HB 1733 relative to reconciliation of default electric service rates — New Hampshire General Court. Accessed 2026-09-12.