Merrimack Station in Bow is expected to be sold by next summer.
The Public Utilities Commission has picked J.P. Morgan – out of a dozen bidders – to auction off Eversource Energy’s power plants and hydropower assets.
J.P. Morgan will be compensated from the proceeds, and will earn $3.1 million plus 1.5 percent if a sale exceeds $200 million. The Executive Council approved the contract last week.
Eversource Energy is required to sell its nine hydro facilities and three fossil-fuel plants, including coal-fired Merrimack Station, Newington Station and Schiller Station in Portsmouth, under a settlement agreement reached last year.
PUC Attorney Ann Ross told lawmakers this week the utility’s hydropower assets are well positioned in the market, but the fossil fuel plants will likely be more difficult to sell.
The auction will take place in several rounds. Bidders will be able to make an offer on one plant, or a package of several. Municipalities will be able to bid in the second round.
J.P. Morgan will recommend bids to the Public Utilities Commission, which makes the decision on the sale after holding a hearing.
It’s not clear what price Merrimack Station would fetch at auction. The settlement would provide for three years of property tax stabilization for Bow if the plan sells for less than its assessed value.
Once the assets are sold, Eversource will purchase power on the competitive market, in line with the practices of other utilities in the state.
(Allie Morris can be reached at 369-3307 or amorris@cmonitor.com)