Eversource approved to sell plants

On Friday, the New Hampshire Public Utilities Commission approved a settlement that will see Eversource (formerly Public Service of New Hampshire) sell off nine hydroelectric and three fossil fuel power plants. The plants will be sold at auction, with any that fail to find a purchaser being slated for decommissioning. The deal means Eversource will exit the electricity generating business, moving into line with other utilities in the state, which purchase their energy on the open market.

The agreement is the outcome of drawn-out negotiations over who will shoulder the bill for a mercury scrubber installed in Merrimack Station in Bow, a project initially estimated at $200 million that spiraled to costs of roughly $450 million.  Now, Eversource shareholders will write off $25 million while both business and residential ratepayers pick up the tab for the rest. 

The PUC declared that the deal would ultimately save ratepayers money, to the tune of around $165 million over the first five years. That’s largely due to the difference in financing costs, which in the absence of a deal would default to a guaranteed return for the utility of around 10%, as opposed to the 3% securable through current low interest rates.

“Divestiture and securitization should have overall positive impacts on all customer classes – residential, small commercial and large commercial,” the PUC wrote.

Critics note that the scrubber could very well be obsolete within the next few years, as coal-fired plants such as Merrimack Station look likely to be either decommissioned or converted to natural gas.

“PSNH is walking away after driving these assets into the ground,” said Jim Dannas, a member of Responsible Energy Action, a New Hampshire-based energy policy and conservation advocacy group.

Read more about the scrubber controversy here.