Get the Facts
Get the Facts
Some of the conclusions of the Analysis Group report concerning the LEI study on Northern Pass include the following:
While claiming to be a “cost/benefit” analysis, the LEI study examines only the purported benefits of Northern Pass, but not the costs;
The public version of the report is atypical in the amount of information that is redacted, severely limiting the public’s ability to objectively analyze its findings;
The report’s conclusions are based on several incorrect assumptions;
The study fails to account for significant negative impacts including potential adverse impacts on tourism, New Hampshire’s second-largest industry; potential for lost jobs and property taxes from the closings of other power plants in New Hampshire; and inhibiting construction of other power plants in New Hampshire which would support local jobs and construction dollars;
NPT is an expensive line to build. The NPT Line would likely cost $55/MWh (or 5.5 cents per kWh) above and beyond the expected cost of power to New England customers, due to the cost of actually constructing the line. While other studies have assumed that this cost is borne by customers outside of New Hampshire, Analysis Group’s report points out that this outcome is unlikely. In addition, the cost could be even larger due to the need for Hydro-Quebec to construct additional hydro resources that would be priced in as well;
Northern Pass is like a monstrous extension cord that crosses New Hampshire to supply electricity to Massachusetts, Rhode Island and Connecticut. Just 10 percent of the energy will come into New Hampshire … and it is energy the state doesn’t even need.
This massive project is designed to fix a problem that doesn’t exist. The state already generates more power than it uses, and electricity demand has been trending downward.
Big utility companies, including Canada’s Hydro-Québec and Eversource Energy, stand to make billions from this project and New Hampshire consumers will eventually pay the price on their energy bills.
Hydro-Québec – a $13 billion company with nearly 20,000 employees in Canada – benefits from exporting power because they can sell electricity to New England consumers for a better price than in Canada.
The real costs of the project are “confidential,” which Northern Pass says is standard practice in an “energy market where customers are free to purchase energy from a supplier of their choice …” (The Northern Pass Blog, July 15, 2016)
The Concord Monitor reported on September 16, 2016 that New Hampshire’s Office of the Consumer Advocate is fighting Eversource Energy’s request to keep secret the price it plans to pay for power off the Northern Pass transmission line. Donald Kreis, the state’s independent Consumer Advocate said consumers have a right to know, and that “Ratepayers will be responsible for the deal whether it proves beneficial or not.”
Eversource continues to claim that the project will cost $1.4 billion, yet Bill Quinlan, Eversource’s president of New Hampshire electric operations said in 2014 (before they decided to bury about 80% of the lines) that, “Burying the lines in a rugged environment like New Hampshire’s mountains would raise the cost to $3 billion or $4 billion from $1.4 billion, an increase that would be passed on to ratepayers in New Hampshire. (“Canadian rivers: Solution to Northeast’s high energy prices?” Associated Press, August 2, 2016)
Eversource can’t seem to get a handle on the real cost of the project. The cost of the project has gone up 40% since it was proposed in 2010 due to changes in the energy market … and not including any price increase due to burying the lines.