Business Dispute Between PSNH and Two Companies Involves Renewable Power

By David Darman on Tuesday, September 1, 2009.

Two New Hampshire companies have asked state regulators to investigate why Public Service of New Hampshire won’t consider buying electricity from them.

Clean Power Development and Concord Steam are charging that PSNH is violating state energy policy by not buying power created by renewable sources.

But PSNH says they have no obligation to buy power from other companies.

NHPR’s David Darman has more.

Both Clean Power Development LLC and Concord Steam Corporation plan to construct new wood fired heat and power plants.

Each would qualify for Renewable energy certificates that utilities could use to meet state and regional environmental goals.

But officials of both companies say they can’t build their plants if a utility like PSNH doesn’t enter a long term agreements to buy their power.

Clean Power Development is looking to construct a 29 megawatt facility in Berlin.

President Mel Liston says his offers to provide power to PSNH haven’t gotten very far.

Well, we’ve talked to Public Service Company in the distant past. We’ve tried to sit down and have a conversation with them but that’s basically the issue in that they to date have refused to sit down and talk about us supplying power to them.

PSNH officials see the situation differently.

Spokesman Martin Murray says his company will entertain any serious offers the companies make.

But Murray says the PUC can’t compel PSNH to buy from anyone.

The legislature here in our state deregulated our industry way back in 1998 and when it did it eliminated the mandate that we must buy the output of independent generators.

Both Clean Power and Concord Steam are looking to build their new plants soon, to take advantage of federal stimulus money.

Peter Bloomfield heads Concord Steam and is vice president of Clean Power Development.

He says the stimulus money won’t be around much longer.

A lot of credits, cash payments and loan guarantees that are available now and are available for the next year or so but unless we start fairly soon those extra goodies those extra bonuses that we have to help keep the cost of our power down are going to expire.

Both men say if they qualify for stimulus funds, their power would sell at a reasonable price.

And both companies are promising new jobs, in construction, and in the new plants.

But the men also say they think PSNH has refused to hear their sales pitches because the utility is angling to construct its own wood energy plant in the North Country.

Again…Concord Steam’s Peter Bloomfield.

They’ve certainly asked the legislature for approval to build their own plants for the past 3 or 4 years they’ve gone before the legislature and asked for approval to build their own renewable energy plants, oft times with the explanation that there’s nobody else that’s able to do it. No one else is interested in doing it and that their not able to contract with anybody for power.

PSNH officials say they have no plans this year to ask lawmakers for permission to build a North Country plant.

And the company has made agreements with other renewable energy suppliers for electricity, such as the owner of the Lempster Wind Farm.

PSNH’s Martin Murray says he doesn’t understand why Concord Steam and Clean Power are pushing so hard for PSNH to buy their power.

Psnh is not the only game in town. If they have a product that is offered at a sale that is competitive and attractive they should have no problem at all selling it. It doesn’t have to be PSNH that’s buying it.

According to documents filed at the PUC, Concord Steam does have an agreement with the Electric Coop to buy 40% of Concord Steams output.

Officials of both companies say they’re looking around the region to try and find a business partner to sign a contract to buy the rest of it.

In the meantime, the complaints they’ve lodged are on file with the PUC.

The regulators have not yet indicated if they will conduct an investigation.

Post a comment
Email
Print
Public Insight
Share: