Opinion: Energy costs in New Hampshire

By NICK KRAKOFF

Published: 05-26-2023 6:00 AM

Nick Krakoff is senior attorney at Conservation Law Foundation New Hampshire.

A bill that recently passed New Hampshire’s Senate has the potential to raise our energy prices and set us back even further on climate change by altering the way state officials manage electric and gas utilities.

The state’s Public Utilities Commission (PUC) is currently required by law to assess plans from utilities to ensure that New Hampshire’s energy needs will be met. This planning process has a real impact on the sources of our energy and the price we pay for electricity and gas.

This is the only law that requires the PUC to take a comprehensive look at whether utility planning is in our best interest, from cost, energy diversity, reliability, environmental, and public health perspectives.

Incredibly, the legislation (HB 281) currently being considered would do away with those requirements and put our household finances, environment, and health in the hands of utilities who are more interested in profits over people.

The law that HB 281 would eliminate requires the PUC to ensure that utility plans cost less than other alternatives, that utilities have explored lower cost energy efficiency alternatives to new wires and pipelines, and that plans provide energy diversification benefits to keep our bills as low as possible.

These goals are especially relevant given the high electric and gas prices New Hampshire families and businesses are currently experiencing, which are largely the result of the state’s overdependence on methane gas for power generation and heating.

If HB 281 passes, the PUC will no longer be required to assess whether utilities’ plans provide energy diversity benefits, which could lead to increased dependence on polluting gas and even higher energy costs.

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For example, it was this oversight that spared New Hampshire energy customers the unnecessary costs from the $450 million Granite Bridge gas pipeline, which was replaced by a much cheaper project instead. Clearly, the planning law is proven to protect New Hampshire residents from paying for expensive and unneeded energy projects.

The law is also the only instance where the PUC must consider the environmental and public health impacts, including the climate-related impacts, resulting from utilities’ increased use of fossil fuels. New Hampshire is already experiencing the effects of climate change caused by fossil fuels, including increased coastal flooding, severe heat waves, and mild winters. Increased use of fossil fuels also exacerbates asthma and other respiratory problems. Ignoring the environmental and public health impacts of utility planning, a guarantee if this law is passed, would be a major step backward.

Governor Sununu and the New Hampshire Department of Energy have already come out in support of this harmful bill. During his tenure, the governor has repeatedly failed to address the climate risks that are already affecting New Hampshire’s communities. He has also claimed he wants to lower energy prices, but this bill would do the exact opposite.

HB 281 was recently amended to include some clean energy measures. However, the reality is that any minor climate wins from these amendments pale in comparison to the significant climate and economic damage of eliminating the PUC’s oversight over utility planning processes.

It’s time for Governor Sununu to do the right thing and veto this irresponsible piece of legislation. It’s bad for our health, our climate, and New Hampshire’s families and businesses.

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