Should Eversource continue to pay higher rates for energy from the Berlin biomass plant?

In 2011, the state’s Public Utilities Commission approved a contract allowing Eversource to purchase electricity from the Burgess BioPower plant in Berlin at a higher rate than it would pay for power on the open market.

The biomass power plant went live in 2014 on the site of a former paper mill in Berlin. Owned by private investors - Cate Street Capital in Portsmouth - it burns wood chips and produces up to 75 megawatts of electricity at any one time, enough to power 75,000 homes.

The cost of that more expensive biomass energy falls on Eversource ratepayers, but the amount they can be made to pay is capped at a total of $100 million. If the total costs of the biomass power exceeds that cap, the power plant has to eat the difference.That has the potential to erode the plant’s current profitability and long-term viability.

The contract could be amended or canceled, either by act of the PUC or by act of the state Legislature.

Proponents of the contract say continued Eversource support of the biomass plant is important because it supports renewable energy and it provides a much-needed boost to the economy of the North Country.The power plant itself created 40 full-time jobs, and there were further job opportunities for foresters, loggers and haulers.

Opponents say the contract is a bad deal for consumers. Eversource customers will end up paying higher electric bills in order to subsidize the plant’s operation and the logging industry.

Is the Eversource deal with a private biomass plant good one for consumers, yes or no? Let us know your thoughts in the comments section below.