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PUC Staff Opposes Sale of PSNH Utility Power Plants

September 23, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Non-Advocate Staff of the New Hampshire PUC have opposed the sale of Public Service Company of New Hampshire's generating assets, stating, "Staff’s analysis demonstrates that such a sale would not be in the 'public interest' as referenced in RSA 369-B:3-4 a, II."

Non-Advocate Staff says that the PUC should continue to consider the sale of the utility generating plants as called for in a settlement agreement, but that any sale should not occur earlier than January 1, 2022

"Rather than the $378.9 million dollars in net savings over the period 2017-2021 that were identified in Mr. Chung’s testimony, Staff believes that commencement of the generation asset sale process in 2016, with all the apparent savings as identified in the Settlement Agreement and further clarified in Eversource testimony, will actually impose a financial burden on ratepayers relative to the retention of generation assets," Non-Advocate Staff said

"Based on the analysis of Staff witness Mr. Cannata, Staff believes that rate payers may be better served by deferring consideration of the sale of Eversource generating assets for five years, when alternative provision of both gas and power may be more clearly available. Staff further believes that delaying the Eversource asset sale by an additional five years may be in the economic interest of ratepayers. Staff therefore recommends that the Commission approve the Settlement Agreement on the condition that the sale of PSNH’s generation assets as provided for in the Settlement Agreement not take place at the present time because Staff’s analysis demonstrates that such a sale would not in the 'public interest' as referenced in RSA 369-B:3-a, II," Non-Advocate Staff said

Based on an analysis, "divestiture of the PSNH generation fleet at this time will actually cost customers $677.6 million more than keeping the plants over the first five-year period, which translates to an increase in rates of 1.72 to 2.56 cents/KWh. I conclude that divestiture of the PSNH generation assets is not in the economic interest of PSNH retail customers at this time," a witness for Non-Advocate Staff said

Non-Advocate Staff also expressed concern with the allocation of stranded costs to various customer classes, noting that residential and small commercial customers have not had the same opportunities to shop and have already paid higher default service costs associated with continued operation of the utility power plants.

If the PUC elects to continue with the sale of the PSNH plants in the interest of completing restructuring, Non-Advocate Staff said that the PUC should take into account changes in stranded cost allocation, and adopt a simultaneous ascending clock auction model as proposed by Non-Advocate Staff

Docket DE 14-238

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