There has recently been inaccurate information initiated by opponents of the project regarding the agreement between Northern Pass Transmission and Hydro‑Québec. The information below is intended to set the record straight. As we have stated previously, New Hampshire consumers will not pay for any costs associated with the project.
The Federal Energy Regulatory Commission (FERC) has denied the NH PUC’s request for a rehearing on the Transmission Service Agreement (TSA) between Northern Pass and Hydro Quebec.
The TSA spells out how costs associated with the project are dealt with and was approved by FERC back in February of this year.
The New Hampshire Union Leader today reports on an analysis by the Town of Deerfield of the potential impact of The Northern Pass on property values and tax revenue.
“An analysis on the local impact of the proposed Northern Pass project says it will cause fewer negative effects than feared…”
Union Leader July 6, 2011
Under the project as proposed, Deerfield would be the spot at which the hydro electric energy transmitted on The Northern Pass would enter the regional power pool, or grid.
New Hampshire, and all other New England states, draw energy from the regional power pool.
Energy costs for New Hampshire, as well as other New England states, will be lowered, as a result of the more economic hydro electric energy displacing more expensive energy that is produced from fossil fuels such as gas, oil, or coal.
A study by Charles River Associates estimates a reduction of wholesale energy costs in New England of $206 – $327 million annually as a result of The Northern Pass. In New Hampshire, the annual reduction in wholesale energy costs is expected to range from $23 – $36 million.
(To view the CRA study, access the project Transmission Service Agreement filing and navigate to page 651 of the .pdf.)
The agreement, spelling out how costs associated with the project are dealt with, was recently approved by the Federal Energy Regulatory Commission.
Read the Order here.
The acronyms stand for Transmission Service Agreement and Federal Energy Regulatory Commission. The filing is a key step for the project.
The TSA was filed December 15 and basically sets out the rules of the road for the use of the transmission line once it is in service. The FERC must approve the agreement in order for the project to move forward.
There’s a lot of material available, including a press release, here, and the full (703 pages!) filing, here. One item of interest within the large filing is a report by Charles River Associates that focuses on the impact Northern Pass will have on regional energy prices in New England. An excerpt:
“…the additional capacity that will be provided by NPT will reduce congestion by allowing more power to be delivered during the hours when prices are highest and to the market where the power is valued most. The result of the congestion relief will be lower ISO-NE prices, lower fossil-fueled generation in New England, reduced production costs, and lower costs of wholesale power purchased through the New England market…”
(page 672 of the .pdf; page 18 of the CRA report. Page 651 of the full .pdf marks the beginning of the CRA report.)