Dive Brief:
- Eversource Energy, formerly Public Service of New Hampshire (PSNH), has agreed to sell all of its power plants in the state in a deal the company predicts will save consumers at least $300 million.
- The sale of the plants means that customers will no longer be responsible for paying for the continued operation of the plants, and will avoid paying for potentially costly investments to meet environmental standards.
- The deal resolves three ongoing dockets at the New Hampshire Public Utilities Commission, including the recovery of scrubber costs at the utility's Merrimack Station facility.
Dive Insight:
In a deal with consumer advocates, PUC staff and two state senators, Eversource Energy agreed to sell its power plants and to buy power from the competitive market. The deal, resulting from months of negotiations, is still subject to approval by state regulators.
"I believe this settlement, while challenging to achieve, will protect customers and enhance the reliability of our electricity generating system,” said Senate Majority Leader Jeb Bradley, who led the negotiations with the company.
Through the agreement, Eversource agrees to sell its PSNH hydro facilities and fossil fuel plants, including: Merrimack Station in Bow, which has been in operation for 55 years; Newington Station in Newington, which has been in service since 1974; and Schiller Station in Portsmouth, which has been in operation since 1952.
Customers will no longer pay the existing regulated rate of return on the plants. Instead, upon the sale of the plants, Eversource will purchase energy for its New Hampshire customers in the competitive market, consistent with all other utilities in the state and across the region.
According to the agreement, Eversource shareholders will also provide $5 million to capitalize a clean energy fund that will target investments in energy efficiency and distributed generation projects.
