PUC Staff Now Agrees "Prompt" Divestiture of PSNH Power Plants in Public Interest

A newly filed settlement among several parties, including Non-Advocate Staff of the New Hampshire PUC, concludes that a "prompt" divestiture of Public Service Company of New Hampshire's generation assets is in the public interest

"The Settling Parties and Staff agree that the prompt divestiture of PSNH’s generation assets will eliminate customer risks arising from potential future capital costs and future regulatory and environmental compliance costs, and will effectuate the Legislature’s intent to 'harness the power of competitive markets' set forth in the 'Electric Utility Restructuring' enactment in 1996 at RSA 374-F:1, I," the settlement states

Non-Advocate Staff had previously recommended that divestiture not occur earlier than January 1, 2022

However, Non-Advocate Staff joins the settlement in concluding that, based on a new Brattle analysis, full sale of divestiture assets effective on January 2017 would produce customer savings of approximately $165 million over the initial 5 years.

The Settling Parties and Staff agree that divestiture of PSNH’s generation assets and securitization of any resulting stranded costs will mitigate the risk of increased migration of retail customers, which would result in increasing default service rates to cover PSNH’s cost of owning and operating generation assets.

Settling Parties include the state's Office of Energy and Planning, Designated PUC Advocate Staff, the Office of Consumer Advocate, New Hampshire District 3 Senator Jeb Bradley, and TransCanada Power Marketing Ltd., among others.

Docket DE 14-238