Behind the big deal – new hampshire business review – july 22 2016

Whatever company buys Ever­source’s New Hampshire power plants, as a result of the utility’s recently struck agree­ment to get out of the generation business, will be acquiring a lot of unknowns if it plans to keep producing electricity. Electricity in indian villages And those un­knowns could amount to hundreds of mil­lions of dollars in added costs.

At the center of the unknowns are Ever­source’s two coal-burning plants – Merri­mack Station in Bow and Schiller Station in Portsmouth. Gasco abu dhabi location The new owner of those plans would inherit environmental permitting and cleanup issues that could surpass $200 mil­lion to address.

Then again, those costs could be recov­ered in a few years, for just being available to generate power. Gas quality And they will be available until at least May 2020, though the future of coal plants is dubious these days. Gas tax oregon Plans at three coal plants in Massachusetts call for switching to solar, gas and perhaps wind.

The sale of New Hampshire’s last coal plants and other generating assets was ap­proved by the NH Utilities Commission in late June. Frictional electricity examples It was part of a grand bargain that brought together the utility, state agencies, lawmakers from both parties, environmen­talists, a key union and Eversource’s com­petitors.

The New England Power Generators As­sociation and the Retail Energy Supply As­sociation complained that, at the same time Eversource was divesting from all of its tangible generation assets (power plants in Bow, Newington and Portsmouth, plus nine hydroelectric dams), it was investing in two major projects to bring energy into the state: Northern Pass, which would transmit elec­tricity generated by Hydro-Quebec, and Ac­cess Northeast, which would bring natural gas extracted by fracking to New England, earmarked for power generation.

“Unfortunately, the prospect of additional rate-base entitlements borne by ratepayers runs counter to the very essence of what we sought to achieve through divestiture pursu­ant to the Settlement Agreement,” said the groups in an October 2015 filing.

The filing was specifically referring to get­ting more information about the then on­going negotiations over a power purchase agreement between Eversource and Hydro-Quebec.

The two reached a deal this past June. Electricity will not generally cause The 20-year agreement provides Eversource with 100 megawatts of energy, about 10 percent of the capacity of the 1,090 MW transmission line. Gas efficient cars under 5000 The power was purchased for an undisclosed price. Electricity storage handbook That led Don Kreis, the PUC’s consumer advocate, to criticize the deal for the same reason – lack of information to allow consumers to weigh in on the risk they would be taking.

“There is nothing wrong with investing in transmission,” said Kreis. Electricity deregulation choices and challenges “But what Ever­source doesn’t need is putting their finger back in the world of energy supply, messing around with fuel and putting that in strand­ed costs.”

Kreis was particularly concerned that rate­payers might be on the hook for a long-term contract to buy natural gas through the Ac­cess Northeast pipeline. Electricity use estimator Dan Dolan, presi­dent of NEPGA, chimed in with that same criticism, saying that the utility would essen­tially be picking winners and losers by pick­ing one source of electricity over another.

Eversource spokesperson Martin Murray defended both deals. Arkansas gas and oil commission Northern Pass alone, he said, would result in $1 billion of savings to customers over the course of a decade, most of it by lowering electric costs gener­ally. Electricity projects for grade 6 The power purchase agreement is par­ticularly beneficial, not so much for the price negotiated, but the renewable energy cred­its generated for large Northeastern states. V lab electricity (Most of these states have not recognized foreign hydropower as renewable, but Mur­ray insists that they will.)

“It’s awful exciting that we are finally going to get to see what restructuring looks like,” Kreis said. Us electricity hertz “My fondest wish is that Ever­source truly focus on a dynamic distribution platform for their customers, and not be a vertically integrated utility.”

It seems hard to criticize the deal itself. Gas in chest There was concern voiced that New Hamp­shire ratepayers would be paying for all but $25 million of the cost of the $415 million mercury scrubber installed at Merrimack Station, but most parties agreed that settling this question was cheaper than litigating it, especially with the hope of ratepayers not being on the hook for something like that again. Electricity word search printable Environmentalists got $5 million for a new clean energy fund to promote renew­ables and energy efficiencies. Electricity merit badge worksheet answers Workers got job protection. Electricity billy elliot chords Ratepayers got a two-year moratorium on rate increases. Electricity towers in japan Local taxpay­ers were to be paid the difference of the tax due based on the assessment and what the properties are actually sold for.

One of the their consultants – Michael D. Gas in back and stomach Cannata Jr., who works for Innovative Alter­natives Inc., a Deerfield firm – said that the saving predictions were way off. Electricity prices per kwh 2013 Instead of the deal resulting in savings of $379 million, as predicted, it would cost ratepayers $678 million, he said.

Cannata justified this billion-dollar swing by criticizing a variety of assumptions and calculations, ranging from the price of gas and securitization bond prices to the es­timated sale price of the assets and the amount of forward capacity payments.

But Eric Chung, Eversource’s director of revenue requirements, countered that it was Cannata who is wrong. Electricity games For one, he did not account for the fixed costs of operating the plant, which are about $300 million more over the three-year period than the revenue generated.

Chung also criticized Cannata for dis­missing the concern that holding onto those fixed assets could result in the utility’s “death spiral.” Fixed costs push up rates, causing customers to migrate to other providers, he said, leaving an un­sustainable burden for those left behind.

Cannata had claimed that migration was leveling off, echoing what Eversource had said in the pass. Grade 9 electricity unit test answers But in Chung’s argument, Eversource was echoing the con­cerns of its former critics.

“I remind the commission that a policy decision has been made by the legislature that New Hampshire is to expedite the completion of restructuring with the sale of PSNH’s generating facilities,” he said.

In the end, the commission didn’t alter the agree­ment, though it settled on a more projected modest savings of $165 million over five years. Gaston yla agrupacion santa fe Still, the com­missioners noted, “We cannot predict the future, and we cannot guarantee that the projected savings and economic development promised by divestiture and securitization will actually occur.” But by backing such a diverse group of interested parties, “we implement the legislature’s long-standing policy goal of restruc­turing the state’s electric industry to one of full and fair competition.”

Under the settlement, Eversource will sell its genera­tion assets in an auction overseen by the PUC. Tgas advisors company profile It has already retained the law firm of Sheehan Phinney Bass + Green to oversee the process of hiring a firm that will run the auction. Electricity icons free With that company’s input, some key decisions will be made. Power outage houston today Perhaps the most impor­tant will be whether to sell off all the assets as one or piecemeal.

However, the 439-megawatt coal plant at Merrimack Station and the two coal/oil and one wood-burning plant at Schiller Station (150 megawatts) present problems. Electricity voltage in germany Theoretically, the generation assets are worth about $225 million – a far cry from the $1.74 billion listed in Eversource’s last quarterly financial statement. Electricity worksheets ks1 Need­less to say, some assets would be more attractive than others. Electricity and circuits The nine hydro plants, which account for near­ly 70 megawatts, are expected to sell easily, though there is the complication that Trans Canada is trying to sell off its New Hampshire hydro plants as well. Electricity vs magnetism venn diagram The 400-megawatt gas-fired plant in Newington is desir­able as well.