New Hampshire PUC staff recommends Eversource wait to sell generation

Dive Brief:

Staff at the New Hampsure Public Utilities Commission oppose the sale of Eversource's generation assets, saying if the deal moves ahead now, it could wind up costing ratepayers millions.
While the utility has estimated customer savings at almost $400 million, staff said waiting five years to divest the assets would make the deal profitable for customers.
Over the summer, New Hampshire Gov. Maggie Hassan (D) signed legislation that would allow Eversource to move ahead with the sale of 12 total power plants, including three large fossil fuel stations.

Dive Insight:

Eversource was hoping to get its generation fleet on the market early next year, but staff of the PUC say waiting five years would be a much better deal for consumers.

Rather than the $379 million in net savings from 2017-2021 that Eversource claims, staff said in filed testimony that if the sale process begins next year "with all the apparent savings as identified in the settlement agreement and further clarified in Eversource testimony, [it] will actually impose a financial burden on ratepayers relative to the retention of generation assets."

The company, formerly Public Service Co. of New Hampshire, is looking to sell three fossil fuel facilities: Merrimack Station with 439 MW of coal capacity; Newington Station, 400 MW, which burns natural gas or oil; and Schiller Station, 150 MW, which utilizes coal or oil in one unit and biomass in another.

In addition, Eversource wants to sell nine hydroelectric facilities with a combined capacity of 69 MW.

But staff said it "believes that rate payers may be better served by deferring consideration of the sale of Eversource generating assets for five years, when alternative provision of both gas and power may be more clearly available. Staff further believes that delaying the Eversource asset sale by an additional five years may be in the economic interest of ratepayers."

Regardless of when the sale moves ahead, staff also recommended that the commission should reject Eversource's proposed allocation of recovery of stranded costs from different ratepayer groups because it "does not pass the test of fair and equitable rate making."