In the early years of the Great Depression, the United States Congress passed the Federal Power Act. Congress, almost 100 years ago, knowing that electricity was a vital commodity for the well-being of the United States citizenry, premised the Act on the idea that the generation, transmission and distribution of electricity should be delivered to homes, farms and businesses at just and reasonable rates.
House Bill 1775, now heading to the governor’s desk, will not bring just and reasonable electricity rates.
Many will remember the Public Service Company of New Hampshire Seabrook nuclear power plant that cost nearly $7 billion that saddled New Hampshire ratepayers with huge rate increases, resulting in the highest utility rates in the country. Legal battles did not stop Public Service Company from loading huge stranded costs onto ratepayers, leading to 20 years of extra fees on their utility bills.
HB 1775 authorizes public utilities to own nuclear generation. Gov. Kelly Ayotte directed the New Hampshire Department of Energy to prepare a “nuclear roadmap” for the state. Has the governor examined the cost of nuclear power and if it will bring just and reasonable rates? Has the governor examined the cost to connect nuclear power to the grid? What new infrastructure will be required? For transmission? For distribution?
Has the governor forgotten that the Legislature, a decade ago, decided that monopoly utilities should not own generation plants, reasoning that a utility should not own the power plants and all of the power lines? The legislature reasoned that it would be better that generation plants have separate owners to more fairly compete for a place in the wholesale energy market.
If HB 1775 passes, and the utilities own nuclear generation, New Hampshire ratepayers will bear the unknown cost of the nuclear power plants because utilities recover their costs plus a generous rate of return from ratepayers. The risks fall on the ratepayers.
A final point needs to be made about electric generation investment decisions.
Solar, wind and batteries are the lowest-cost solutions for New Hampshire ratepayers that will bring just and reasonable rates. The energy world knows that investment in solar and wind power is significantly lower than other energy sources including fossil fuels and nuclear power. The energy world also knows the investment return on solar generation arrives much more quickly than on fossil and nuclear power.
A recent ISO-NE report states that the New England “region’s wholesale electricity marketplace is securing reliable electricity at competitive prices and helping usher in a cleaner, greener grid.” The free market is working for cleaner, cheaper and faster energy. We call on Ayotte to veto HB 1775.
Lena Nirk is the chair of the Sierra Club NH Chapter Energy Committee. She lives in Gilford.