#

Already paying some of the highest energy costs in the country, New Hampshire ratepayers will soon be paying a lot more.

According to a filing with the Public Utilities Commission, Liberty Utilities is seeking approval for an increase in the default residential energy rate from 8.393 cents per kilowatt-hours to 22.223 cents per kilowatt-hours.

Donald Kreis, with New Hampshire’s Office of Consumer Advocate, said the net effect of the charge will be that Granite Staters who use Liberty can expect to pay nearly 50 percent more for electricity when the new rate goes into effect in August.

“That means a typical bill for a residential electric customer of Liberty Utilities will go up by nearly 47 percent from its current level,” Kreis said on Twitter.

Granite Staters already pay the seventh-highest residential electricity rates in the nation.

Liberty has about 43,000 electric customers in New Hampshire. Kreis said Eversource, New Hampshire’s main electric supplier, is expected to file for a similar rate increase before the PUC soon.

“To my knowledge, these huge default service prices are unprecedented since NH broke up its vertically integrated electric utilities more than 20 years ago,” he wrote on Twitter.

He said on Twitter the reason for the rate increases is the rising cost of natural gas, which electric supplies use to generate the power needed.

“In New England, we rely on natural gas for the majority of our electricity. Natural gas futures prices for the coming winter have hit $30 per mmBTU. Wholesale electric suppliers have priced those natural gas increases into their bids,” he wrote.

Reached Wednesday, Kreis said New Hampshire doe not have a robust natural gas market for homeowners, the state uses a lot of natural gas to fuel power plants, like the Granite Ridge power facility in Londonderry. 

Unitil, one of the state’s two other electric utilities, has rates currently at around 10.3 cents per kilowatt-hour and is on a different rate schedule than the other two companies. New Hampshire Electric Cooperative, the second-largest utility in the state, expects to adjust its power supply rate later this summer.

“It’s safe to say that we’re seeing the same dynamics playing out in the New England electric wholesale market. Costs for summer supply are up dramatically from last year, driven primarily by huge increases in the price of natural gas, which is used to generate about half of the power in New England,” said NHEC Communications Administrator Seth Wheeler.

The rate increases coming from Liberty and Eversource far outpace predictions from the U.S. Energy Information Administration. The winter electricity forecast saw a price rise in New England closer to 16 percent, not 47 percent.

“We expect the summer increases in retail residential electricity prices will range from an increase of 2.4 percent in the West South-Central region to a 16.1 percent increase in New England,” the EIA forecast states.

Kreis said utilities buy power from suppliers in six-month increments, and the rate increases reflect the increased prices they are paying for power under the new six-month contracts, which will start in August. There won’t be another chance to change the rates until next year, meaning prices will remain high until 2023.

New Hampshire’s elected officials have taken note.

On Wednesday, Gov. Chris Sununu and Department of Energy Commissioner Jared Chicoine announced that, for the first time ever, the state plans to use  Low Income Home Energy Assistance Program (LIHEAP) funding to help struggling households pay for summer electricity costs. The funding will be routed through the New Hampshire Fuel Assistance Program for pre-qualified, low-income households.

“We are allocating $7.5 million in funds to provide low-income families with assistance to help cool their homes this summer,” said Governor Chris Sununu. “As a result of unprecedented Washington spending that has unleashed record inflation, uncertainty in the energy market following President Biden’s anti-domestic energy policies, and the ongoing conflict in Ukraine, energy prices are skyrocketing across the country. While there is not much that states can do to rebuff federal inaction, we are doing what we can at the state level to ease the burden on low-income families.”

Details of the plan, including the exact amount of funding available per family, are still being developed.

“The Department of Energy is working diligently with stakeholders to provide summer electric bill assistance to currently-eligible LIHEAP customers,” said Department of Energy Commissioner Jared Chicoine. “We are hopeful that this assistance will help provide some relief to consumers in these challenging times.”

Kreis said in the short term consumers should shop around for competitive electric suppliers and lobby their municipalities to enter into power aggregation deals to lower the costs. They can also apply for the state’s energy efficiency programs.

New Hampshire energy consumers are looking at a tough winter ahead, too. Home heating oil is selling for close to $6 a gallon, up from about $4.50 a gallon average this past winter, and $3 a gallon from the prior season. Relief is a long way off, as the EIA expects the 2023 winter season to see heating oil back down to under $4 a gallon.

Craig Stevens, a spokesman with the energy and business coalition, Grow America’s Infrastructure Now, said Democratic environmental and energy policies, like restricting domestic energy production, have pushed prices higher.

“The rise in electricity prices is, unfortunately, much too predictable considering the energy policies of the past two Democratic administrations promised – and have since delivered – Americans. Between Presidents Obama and Biden, they have forced the shuttering of power plants across the country, made the siting and construction of transmission lines virtually impossible, stopped pipeline expansion, and closed off domestic energy production,” Stevens said.

“We need more than vapid rhetoric, empty promises, and finger-pointing; we need a comprehensive – all of the above – energy policy that recognizes our current energy needs and the growing energy needs of our increasingly electrified economy.”

With prices likely to remain high through to next year, Kreis said New Hampshire ultimately needs to diversify how it generates power in order to avoid another year like 2022. 

New England’s power grid won’t be able to sustain itself through a prolonged cold snap this winter, as fuel for generating electricity and heating homes becomes more expensive and more scarce, the grid’s operators warned Monday. The result could be “controlled power outages” leaving some Granite Staters in the cold and dark.

During a press briefing on the upcoming winter’s outlook, ISO New England president and CEO Gordon van Welie said when temperatures fall to the extreme, the region’s electric generation system relies on liquid natural gas (LNG) and fuel oil to power the grid. 

“In recent years, oil and LNG have filled the gaps when extended periods of very cold weather have constrained natural gas pipeline supplies,” van Welie said. “Higher prices globally for these fuels, as well as pandemic-related supply chain challenges, could limit their availability in New England if needed to produce electricity this winter. The region would be in a precarious position if an extended cold snap were to develop and these fuels were not available.”

So precarious, in fact, they could result in rolling blackouts.

One reason is the limited supply of natural gas via pipelines, which are the safest and most reliable way to move fuel. Policies in the blue states of New York and Massachusetts have all but blocked New England’s access to more of the abundant natural gas available from Pennsylvania, which produces more than a fifth of the nation’s supply.

Another issue is the global energy market, van Welie said, as Europe and Japan become more reliant on LNG. With prices for LNG in Asia and Europe nearly double what it is in New England, it makes sense that most LNG producers are shipping their supplies overseas.

“These limitations are in addition to typical logistical challenges, such as inclement weather, that can affect fuel deliveries into the region,” van Welie added. “A national shortage of truck drivers may also affect the speed at which some generators can replenish their fuel supplies, as the trucking system is shared by multiple industries, including commercial and residential heating and electric generation.”

Efforts to address this challenge by either building more power plants or natural gas pipelines have been blocked.

The net result is New Englanders pay some of the highest energy prices in the nation for power from a grid that’s under ever more stress. Five of the top 10 states for highest electricity rates in the continental U.S. are in New England. (Maine is number 11.)

Across the nation, home heating oil prices have risen from an average of $2.55/gal to $3.55/gal today. Propane prices have jumped from $1.88/gal to $2.71/gal in the past year.

New England is expected to see a mild winter during the 2021-22 season. However, according to van Welie, weather is uncertain and extreme cold snaps are not out of the question given climate change. And, he noted, the region came within days of running out of fuel in the winter of 2017-18, he said.

Peter Brandien, ISO New England’s vice president of system operations and market administration, said the COVID-19 pandemic is also playing a role. More people working from home means more power consumption, as more individuals turn a spare bedroom into an office rather than sharing a common space with many other people. And now more businesses have reopened and are using power, too.

“It’s a double whammy,” he said. “We’re trying to get everyone to understand the issues.”

Brendien said ISO New England will be issuing 21-day forecasts for utilities and governments to be able to make better choices about power needs in advance. One emphasis will be urging conservation during extreme weather. Brabdien said people could be encouraged to turn down their thermostats and limit using appliances like washing machines and electric stoves during cold spells. 

If not, controlled power outages are not out of the question.

“We operate in winter very close to the edge here in New England,” van Welie said. “The 15 million people in New England need to understand the precarious position we are in when we have an extended period of extreme cold weather.”

Van Welie acknowledged alternatives to fossil fuels are necessary, but there needs to be a plan in place. Hydroelectric power from Quebec could be part of the solution, but it’s not the complete answer, he said. The region needs to consider investing in a system that allows for up to two weeks of power generation using a source that doesn’t need to be imported. 

A modular nuclear reactor could take care of the problem, he said, but in the current political climate is unlikely to get approved. Green fuels, like green hydrogen, are prohibitively expensive. That means power generators need LNG and oil to bridge the gap, and those power plants need to have a reliable reserve.

“Lots of actions have been attempted over the years. Unfortunately, we still haven’t solved this problem,” van Welie said. “The region needs a more robust solution than what we have.”