Today, the New Hampshire Department of Environmental Services provided an annual report to the New Hampshire legislature detailing the results of the Regional Greenhouse Gas Initiative (RGGI) Carbon Dioxide Emissions Budget Trading Program.  The report notes that the program has supported approximately $20 million in job creating energy efficiency investment in New Hampshire and that each dollar of invested RGGI revenue resulted in $3.42 in direct energy savings (See this study by the University of New Hampshire). The report concludes that the effect of the RGGI program on rates has been negligible, amounting to .06 cents per kWh, or approximately 30 cents per month per household.

At the same time, electricity bills for customers of New Hampshire electric utilities have decreased dramatically since RGGI went into effect, with the exception of PSNH customers.  According to the report, the average PSNH residential customer is currently paying approximately $27 per month more than a New Hampshire customer in National Grid’s service territory for the same amount of power ($89 per month for PSNH versus $62 per month for National Grid).

Given the magnitude of the excessive energy costs paid by PSNH residential customers (comprising the overwhelming majority of New Hampshire homes), one might assume that the legislature would use the report as a basis for reviewing and revising the state’s policy that forces New Hampshire residents to subsidize PSNH’s above market costs to the tune of $324  per ratepayer per year.

Instead, House Speaker William O’Brien and Majority Leader D.J. Bettencourt issued a statement today criticizing RGGI for laying an extra “$5.50 per year on the backs of our ratepayers.”  They appear to have missed the forest for the trees (and bungled their math).  New Hampshire ratepayers pay among the highest rates in the country because PSNH imposes on them the above-market cost of its dirty and expensive power.  In fact, the report shows that National Grid ratepayers in New Hampshire, having been spared the legislative mandates that inflict exorbitant costs on PSNH ratepayers, pay the lowest electric rates in New England. National Grid and other New Hampshire utilities purchase power from newer, more efficient power plants selling into the wholesale market.

Improving New Hampshire’s economic future requires a thoughtful review of the statutory policies that extend the lives of PSNH’s uneconomic power plants and foist the exorbitant costs of these plants, and the pollution they emit, on New Hampshire residents. Portraying a successful and economically beneficial program such as RGGI as a burden to ratepayers lays blame in the wrong place and amounts to a game of political charades—a disservice to New Hampshire voters and job creators.

The unfortunate news that Beacon Power, an innovative technology company based in Massachusetts,  declared bankruptcy has inspired a bit of a media feeding frenzy centered around analogies to the failed California solar company Solyndra,  because Beacon (like Solyndra) received  a federal loan guarantee.

This analogy simply doesn’t hold up for the following reasons:

• Beacon Power has a fully operational facility in Stephentown New York that is an operating model of their flywheel technology, a innovative technology that provides an essential service to the electricity grid, providing stability to the power system at a very low cost.  This stability will allow smoother operation of the power grid and allow for integration of many more renewable resources like wind and solar smoothly at a reasonable price.
• The Federal loan guarantee is structured in a way that protects the financial interests of the taxpayers – giving them the right to be repaid out of the assets of Beacon before other companies and people that are owed money.
• Unlike Solyndra, which was effectively losing a price competition with Chinese and other US manufacturers, Beacon makes a unique product that is being developed here in the United States.
• The Federal Energy Regulatory Commission, a mere 11 days ago, issued a detailed rule that requires utilities to compensate companies like Beacon that provide power system stability in a competitive manner.  This sets a clear trajectory for Beacon, and the handful of other companies providing similar services, to be economically successful.

Given the assaults on the environment and climate and continuing economic and social disruptions there is enough bad news out in the world without alarmist voices generating scary stories because of events like the Beacon bankruptcy.   While it is an unfortunate event for some private investors and employees of Beacon it is not a crisis for taxpayers and can and will not stop the development of innovative and important technologies that will be the backbone of a new clean energy economy.

Much of CLF‘s work these days is focused on the challenge of global warming and in particular reducing immediately, structurally and effectively the release into the atmosphere of carbon dioxide and the other “greenhouse gases” causing the problem.

This is, of course, not all that we do.  But much of our work on this over-arching problem overlaps with other important work like reducing air pollution that directly harms the health and lives of people or providing good transit access to urban communities, thus providing access to jobs for residents of those communities while reducing automobile trips and emissions. Still other CLF work, like protecting and nurturing our fisheries and forests, ensures that management of those resources is mindful of the changing climate while preserving unique ecosystems both for their own benefit and to ensure that future generations will be able to use and enjoy special places and resources.

When we step up and assert the benefit to the climate of, for example, wind farms in Maine or in Nantucket Sound or energy efficient light bulbs or the need to consider the climate in considering a transmission line across New Hampshire or in a merger proposed between utilities the question comes back to us: is it worth the cost?  Often it is a cost measured in dollars but sometimes it is a “cost” in terms of a view from a house or a beach or a mountain changing.

Responding to this question presents us with two challenges: first we need to show that the result we are advocating in favor of will actually reduce emissions and then we need to show that the need for those emissions reductions outweighs the cost of taking the action we are advocating.

One good example of how we show that an action will actually reduce emissions comes from the world of wind farms.  In those cases we can present expert testimony about how deploying wind resources will reduce emissions of carbon dioxide.  And that analysis isn’t just created by our experts, it draws upon reports done by the planners and operators of New England’s wholesale electricity system – work that is sometimes summed up in official summaries and nice presentations that include informative charts like this one showing how when the system gets 9% of its power from wind that emissions drop by 9% but when it gets 20% of its power from wind the emissions drop by 24% for reasons explained in the report:

And then we turn to the question of showing that this all matters and the cost of taking action outweighs the price of that action.  In our cases, again using the wind farm example, we use expert testimony.

But the bottom line is that we as a society are getting to the point where the cost of global warming is no longer a horrible possibility- it is an immediate reality, all around the world from Russia to Texas and points in between like New England.  And what we are experiencing is only a preview of what is to come and a strong reminder of the need to take action.

Are you concerned about the Northern Pass transmission project? Do you want to learn more about what it could mean for New Hampshire and New England’s energy future, for our climate, for energy rates, and for the communities and natural environment of New England and Québec? Do you want to keep up with the latest developments as the project progresses through the permitting process?

If you answered yes to any of these questions, you’ll want to sign up for CLF’s new email newsletter – Northern Pass Wire.  In a concise format, Northern Pass Wire will provide the latest news and analysis regarding the Northern Pass project direct from CLF advocates, with links to additional resources from CLF’s Northern Pass Information Center, our latest Northern Pass posts here on CLF Scoop, and CLF’s recent legal filings. Northern Pass Wire will also keep you informed about ways you can get involved and make your voice heard as the permitting process for the Northern Pass project continues. We expect to publish Northern Pass Wire about once a month, and perhaps more frequently when events warrant. The first edition can be previewed here, and you can sign up to get Northern Pass Wire here.

Please sign up and encourage your family, friends, and colleagues to do the same!

Click on the image to preview the first edition of CLF's Northern Pass Wire

photo credit: Hope Abrams/flickr

Here in New Hampshire, the leaves have turned.  What hasn’t changed is that the environmental review of the Northern Pass proposal remains stalled while the project developers – Northeast Utilities (and its subsidiary Public Service Company of New Hampshire) and NSTAR – seek a new route for the northernmost 40 miles of the project.  It’s a disgrace that the U.S. Department of Energy (DOE) has so far refused to use the developers’ significant delay to assess the nature and extent of New England’s need for Canadian hydropower and to develop an appropriate plan to bring that power into the region, as CLF and others have been requesting since April.

While DOE is in a holding pattern, CLF is continuing to fight for a fair and comprehensive environmental review of the Northern Pass project.  Earlier this month, CLF filed new comments with DOE, supplementing the detailed comments we filed in April.  Our new comments address:

• Why CLF has renewed concerns about DOE’s control over its new environmental review contractors.  Based on our review of the Memorandum of Understanding between Northern Pass, DOE, and its new contractors, posted here (PDF), we explain that Northern Pass could still have an unfair and inappropriate influence on the content of the environmental impact statement and the schedule for completing it.
• What the Northeast Energy Link proposal means for the Northern Pass environmental review.  The recently announced Northeast Energy Link proposal, along with the Champlain Hudson Power Express project, makes it clearer than ever that we need a regional assessment of our energy needs.  These other two transmission projects also show that burying transmission lines in transportation rights-of-way is an abundantly reasonable alternative to overhead lines.
• How Northern Pass hasn’t clearly disclosed the source of power for the project.  We bring to DOE’s attention important information, obtained by CLF through its cross-examination of an executive of Northeast Utilities before Massachusetts regulators, that the source of Northern Pass’s power is likely to be new hydroelectric projects that Hydro-Québec is now in the process of designing and building.  CLF is especially troubled by the new information because the impacts of the project are much more significant if it causes the construction of new dams and the associated negative environmental impacts, including well-documented spikes in early greenhouse gas emissions from flooded land.  Northern Pass and its parent companies have consistently failed to acknowledge that these emissions undermine their claims about the reductions in emissions the project will supposedly provide.

A copy of our new comments is available here.  We also filed a Freedom of Information Act request with DOE, seeking to obtain a copy of the “Consulting Services Agreement” between Northern Pass and the environmental review contractor team.  The Memorandum of Understanding suggests that this separate contract includes important information on the budget and schedule for the environmental review, and the public deserves to know these details.

With the permitting process due to continue when Northern Pass announces a new northernmost route, CLF will be launching new ways to keep you informed about the latest Northern Pass news and the best ways for you to get involved and make your voice heard. Please stay tuned!

For more information about Northern Pass, visit CLF’s Northern Pass Information Center (http://www.clf.org/northernpass) and take a look at our prior Northern Pass posts on CLF Scoop.

photo credit: l . e . o/flickr

With each passing day, the dire reality of PSNH’s coal-fired business model is becoming clearer in New Hampshire.  The cost of operating PSNH’s obsolete power plants continues to grow, accelerating the Company’s death spiral where fewer captive ratepayers are saddled with unsustainable above-market rates as more PSNH customers choose to buy power from better managed competitive suppliers.  We are also learning that Northern Pass will make the situation worse for ratepayers, not better, and that PSNH and its Northern Pass partners are poised to pull in huge profits.  In just the last few days:

• PSNH revealed that, as it has begun bringing online its $450 million scrubber project at PSNH’s 50 year old coal-fired Merrimack Station, the bill is now coming due. If state regulators at the New Hampshire Public Utilities Commission (PUC) approve passing the cost on to ratepayers, the energy rates for PSNH customers – already the highest in New Hampshire by a wide margin – will go up by at least 1.2 cents per kilowatt hour, or almost 15%.  CLF is seeking to intervene in the PUC proceeding on the rate increase.  PSNH, unsurprisingly, wants to keep CLF out, in addition to any other party seeking to intervene on behalf of ratepayers.  There is no better illustration of the folly – for ratepayers and the environment alike – of major new investments in coal-fired power plants than PSNH’s flawed effort to extend the life of Merrimack Station.  These investments are a disaster for ratepayers, and don’t even ensure compliance with the plant’s environmental requirements – a case CLF is making right now in federal court with regard to other modifications to Merrimack Station.
• Large commercial and industrial customers with the buying power to avoid the high rates for PSNH’s fossil power continue to do so in dramatic numbers.  PSNH announced that, in September, about 82% of these customers were buying power elsewhere in the market (accounting for 93% of the power delivered to these customers) – a phemonenon known as “migration.”  Meanwhile, more than 99% of New Hampshire residents in PSNH territory were left behind to pay PSNH’s already exorbitant rates.  The scrubber rate increase is going to make this situation even worse for residents – additional businesses will find other suppliers and PSNH will need to jack up its rates even more.  More cost-effective competitive suppliers are cleaning PSNH’s clock among large customers.  Given the company’s excessive and increasing rates, residential ratepayers are starting to vote with their pocketbooks for more sustainable energy supplies.
• It is becoming increasingly clear that the current Northern Pass proposal is designed around PSNH’s bottom line, not the interests of New Hampshire ratepayers.  As we’ve mentioned before, the large customer “migration” problem and its upward pressure on homeowners’ electric bills are likely to get worse with Northern Pass, which would further depress regional wholesale electric rates and encourage more customers to leave PSNH.   Adding in the cost of the scrubber will only widen the divide between the businesses that can choose other suppliers and potentially benefit from Northern Pass, and the residential customers who are currently  stuck with PSNH. A new wrinkle emerged last week – testimony from PUC staff showing that PSNH’s consultants estimated a year ago that Northern Pass will cannibalize PSNH’s already meager revenues from Newington Station, PSNH’s little-used power plant in Newington, New Hampshire, that can operate with either oil or natural gas.  Northern Pass would mean it would almost never run and that the investments ratepayers have made over the years to keep Newington Station operating will essentially be lost.  This same dynamic will apply to the rest of PSNH’s power plants:  Northern Pass will diminish their market value further exposing New Hampshire businesses and residents to the risk of excessive costs.  Once again, a series of poor decisions and self-interested advocacy by PSNH (at the expense of ratepayers) is forcing the legislature to intervene.

The costs of PSNH’s coal-fired power plants are becoming untenable, and a radically redesigned Northern Pass proposal and other alternatives could help PSNH meet its customers’ power needs more cheaply and with less damage to public health and the environment.  Instead of planning for a cleaner energy future, PSNH is working only to preserve its regulator-approved profits.  CLF will be using every tool at our disposal to force a rethinking of PSNH’s approach.

Credit: A Armstrong

Are you tired of waiting (and waiting and waiting) for the Green Line Extension to be built? Join CLF, the mayor of Somerville,  Joseph A. Curtatone, and other supporters of the Green Line Extension for a mock groundbreaking on Thursday, October 20, 2011 at 6pm in front of Somerville High School.

We are gathering to let the Patrick Administration know that we want them to stop the repeated delays and deliver on their legal commitment to construct the Green Line extension.  The Legislature has already authorized bonds to construct the Green Line Extension from Cambridge to Somerville and Medford and the Somerville Community Path.  The project will serve a community that has been dissected by a major highway (I-93), suffers from disproportionate air pollution, and lacks adequate public transportation. However, this summer, the State announced that it will again delay the construction of the Green Line Extension, by another four to six years, without providing any clear explanation why.

Public transportation projects in Massachusetts are chronically underfunded, despite the evidence that investment in a good transportation system creates jobs, boosts economic growth, reduces greenhouse gas emissions, increases energy independence, and improves quality of life for transit users and drivers alike. Still, funding for public transportation, bike paths, and sidewalks has never been strong enough, and continues to diminish rapidly.  Come stand with your fellow citizens and let our political leadership know that we want a modern, safe, accessible transportation system that works for Massachusetts.

Immediately following the rally, we will take our numbers inside to attend the public hearing regarding the delays on the Green Line Extension to be held at Somerville High School beginning at 6:30pm.

Bring your friends and show your support for the Green Line Extension and for better public transportation in Massachusetts!

For more information about the rally, click here.

The Land Use Regulatory Commission has begun deliberations on the Bowers Mountain Wind project, which CLF supported as an intervener.  Sean Mahoney presented a closing statement in support of the project  (Sean Mahoney Closing Statement 10-5-11) which built upon the testimony of Abigail Krich (Abigail Krich Direct Testimony 6-10-11 and Dr. Cameron Wake (Dr. Cameron Wake Direct Testimony 6-10-11).  As with many wind power projects in Maine today, the biggest issue for LURC to resolve is the project’s impact on scenic resources in the area.  The testimony of Roger Milliken (Roger Milliken Direct Testimony 6-10-11) spoke to the push and pull of that issue eloquently.  A decision from LURC on the project is expected sometime in early November.

After taking the bar exam, I decided the best thing to do was head north for a multi-day wilderness trip on the West Magpie River. The Magpie flows through Québec’s Côte-Nord region a couple drainages away from the Romaine and Petit Mecatina rivers. For the majority of the trip, we remained many (sometimes hundreds) of miles from any semblance of civilization. The only way to get there is by floatplane.

After five days, countless rapids, and many miles of flatwater, I had a new appreciation for the Côte-Nord region and one of the last truly wild places left in the East. The Magpie, Romaine, and Petit Mecatina are all either being dammed or have the potential to be dammed. Some of our friends had run the Romaine a few weeks earlier and described it as “not a wilderness trip.” Hydro-Québec’s Romaine Complex of dams has essentially devastated the river. There is already one dam at the very end of the Magpie, and the river is listed on Hydro-Québec’s 2009-2013 strategic plan as a potential dam site. The Petit Mecatina is listed as well.

The situation in Québec, in general, presents an important set of choices. Hydropower is generally considered “renewable” and a lower-carbon source of electricity than fossil fuels, especially at existing dams that have been in place for many years. There is a reasonable argument for transmitting more hydropower from the far North to southern Québec and New England, instead of getting our energy from sources like coal fired power plants or Vermont Yankee—our aging and polluting nuclear power facility. But there is also a compelling case that Québec should preserve some of the last, best wilderness areas in the world by curtailing its aggressive dam-building campaign, which could limit the power available for export to New England. We also need to decide how to bring the power south and whether there are better options than traditional overhead high-voltage lines through beautiful, now-unfragmented rural areas.

What is essential is that, if we partner with Québec to meet our energy needs, we need to do so responsibly, with as little environmental damage as possible. A good place to start is by taking a close look at the carbon emissions that could result from Québec’s ambitious plans, including how the proposed Northern Pass project through New Hampshire may contribute to those emissions. CLF has also partnered with Canadian environmental groups to look into the impacts of hydropower development within Québec’s new northern boreal forest management plan and advocated for improvements in Vermont’s contract with Hydro-Québec.

If we do it right and limit our reliance on fossil fuels and focus on not building new dams, Québec and Vermont could find a way to move toward a cleaner energy future.  If not, there is a lot to lose.