New Hampshire regulators have decided that an Eversource proposal to finance the purchase of gas pipeline capacity through its electric distribution rates would run counter to state law.
Eversource had asked for approval of a long-term capacity contract from Algonquin’s Access Northeast pipeline expansion.
In their Oct. 6 ruling, the New Hampshire Public Utilities Commission concluded:
“The proposal before us would have Eversource purchase long-term gas pipeline capacity to be used by gas-fired electric generators, and include the net costs of its purchases and sales in its electric distribution rates. That proposal, however, goes against the overriding principle of restructuring, which is to harness the power of competitive markets to reduce costs to consumers by separating unregulated generation from fully regulated distribution. It would allow Eversource to reenter the generation market for an extended period, placing the risk of that decision on its customers. We cannot approve such an arrangement under existing laws.”
The Massachusetts Supreme Court came to a similar conclusion in August.
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