Bill Opens Door for Utilities to Pass On Risks to Consumers
Tomorrow (March 30), the New Hampshire Senate is scheduled to vote on SB 128. This legislation would give electric distribution utilities broad authority to get back into the business of power generation. Recently the State completed a 20-year public policy process of restructuring the electric utility industry, separating electric distribution companies from electric generation companies. The question we hope senators will consider before they vote on this bill is: Does New Hampshire want to return to the old days when consumers helped finance new energy facilities, often taking the hit for cost over-runs or questionable investments?
We say the answer to that question is a very loud “no.”
To those who say SB 128 is needed to meet the energy demands of New Hampshire, we would point to testimony presented at the bill’s hearing that noted how in the period immediately following the adoption of restructuring, more than 14,000 MW of new power plant generating capacity was constructed without any guaranteed cost recovery or rates of return. If these facilities can come online without ratepayer financing, then surely the marketplace is capable of supporting the construction of new energy facilities without ratepayers footing the bill through recovery of “stranded costs.” Please encourage your state senator to vote no on SB 128.