Annual Assessment Frequently Asked Questions

What statutory provision authorizes the Department to assess public utilities and non-public utility providers?  
RSA 363-A authorizes the Department to annually assess public utilities and certain non-public utility providers for its expenses as well as expenses of the Public Utilities Commission and Office of the Consumer Advocate. 
  
How are assessments calculated?
Rather than assessing all entities that are registered with the Department based on revenue earned, certain entities are assessed a set dollar amount, or a direct assessment, while others are subject to a specified minimum amount, or minimum assessment.  

What is a direct assessment? 
Direct assessments are specified dollar amounts that apply to certain non-public utility providers:

• Competitive natural gas suppliers (CNGS): $10,000 
• Competitive electric power suppliers (CEPS): $10,000 
• Natural Gas Aggregators: $2,000 
• Electric Aggregators: $2,000 
• Registered Telecommunications Carriers: $1,000 

What is the minimum assessment? 
Telephone utilities that are excepted local exchange carriers, or ELECs, and VoIP providers subject to Department of Energy assessment authority, including providers of cable telephony, will pay not less than a minimum assessment of $1,000. 

All other utilities and assessed entities with minimal revenue will be assessed a minimum amount determined by the Department to be fair and equitable. More information on past assessment amounts is available in the assessment booklets.

What companies will be assessed on the basis of total annual revenue? 
All public utilities, including gas, electric, water, sewer, and certain telephone utilities, will pay assessments based on their total gross utility revenue for the preceding calendar year. 

Are any companies assessed on only a percentage of their annual revenue? 
Telephone utilities that are ELECs and VoIP providers subject to Department of Energy assessment authority, such as cable telephony providers, pay an assessment based on 33 percent of their gross revenue for the preceding calendar year. 

In addition, the New Hampshire Electric Cooperative will continue to pay an assessment based on 33 percent of its gross revenue for the preceding calendar year. 

Do any exemptions apply? 
Pursuant to RSA 363-A:5, certain companies may be eligible for an exemption from assessment. If any utility or other assessed entity earned less than $10,000 in gross revenue during the prior calendar year, no assessment will apply. This exemption does not apply to ELECs or cable VoIP providers, which are subject to a $1,000 minimum annual assessment. The applicable calendar year begins on January 1 and ends on December 31 of the prior year. 

How are assessments billed to companies? 
Assessments are billed on a quarterly basis each year within 10 business days of September 15, November 15, February 15, and April 15. An assessed entity can choose to pay its assessment in whole or in quarterly installments as shown on the assessment invoice. Assessments are not prorated if a utility or other assessed entity does not remain registered with the Department for the entire fiscal year. 

What are the reporting requirements?  
Pursuant to RSA 363-A:2, II, VoIP providers subject to Department of Energy assessment authority are required to submit reports of retail telephone service revenue to the Department each year. Under the same provision, competitive gas suppliers are required to file annual reports of sales volume and revenue, by customer class, separately for each distribution company territory. 

All other utilities and assessed entities are required to file sales information in accordance with applicable Department rules. 

How will the Department use the sales and revenue information submitted by CEPS and CNGS? 
Reported sales and revenue information from CEPS and CNGS will be used by the Department to determine assessment amounts to be collected by local distribution utilities from all natural gas and electric customers, respectively. These amounts are referred to as “imputed revenue,” and they are allocated to electric and gas utilities for collection. 

How are Office of the Consumer Advocate (OCA) expenses covered? 
OCA expenses are covered by the assessments collected by the Department. The assessment amount allocated to each utility or other assessed entity to cover OCA expenses, like the amount allocated to cover Department and Commission expenses, is directly proportional to the utility’s or entity’s revenue calculated by the Department under RSA 363-A:2 as compared to the total of all such revenue calculations as a whole. 

ELECs and cable VoIP providers are excluded from sharing in the allocation of OCA expenses, so these companies will not be assessed any amount intended to collect OCA expenses. 

Is there a summary of the assessments applicable to the various public utilities and other assessed entities?
A summary of assessments by category is provided below.

Electric utilities (except NHEC) 

• 100% gross revenue plus 100% retail CEPS revenue in service territory.  See 363-A:2, I (a) and (e), 363-A:2, IV and V, 363-A:6, I 

NHEC 

• 33% gross revenue plus 33% retail CEPS revenue in service territory.  See 363-A:2, I (b) and (e), 363-A:2, IV and V, 363-A:6, I 

Gas utilities 

• 100% gross revenue plus 100% retail CNGS revenue in service territory.  See 363-A:2, I (a) and (e), 363-A:2, IV and V, 363-A:6, II 

Water utilities 

• 100% gross revenue.  See 363-A:2, I (a). 

Telephone utilities (ELECs) 

• 33% gross revenue or $1,000 minimum, excluding OCA expenses.  See 363-A:2, I(c), 363-A:2, VI, 363-A:2, V 

Cable VoIP providers 

• 33% gross revenue or $1,000 minimum, excluding OCA expenses.  See 363-A:2, I(d), 363-A:2, VI, 363-A:2, V 

Registered telecommunications carriers 

• $1,000 annual direct assessment*. See 363-A:2, III. 

Competitive electric power suppliers (CEPS) 

• $10,000 annual direct assessment*.  See 363-A:2, III

Competitive natural gas suppliers (CNGS)

• $10,000 annual direct assessment*. See 363-A:2, III

Aggregators (gas or electric) 

• $2,000 annual direct assessment*.  See 363-A:2, III

*Direct assessment amounts are subtracted from expenses prior to allocation based on relevant assessment base.