Blog : Guest Blog: PSNH Ratepayers Get Cleaner, Cheaper Power Choices
By Christophe Courchesne
Conservation Law Foundation
Most customers of Public Service Company of New Hampshire get one of the worst electricity deals in New England. Their ratepayer dollars subsidize the operation of PSNH’s outdated, inefficient coal-fired power plants; they live with the public health impacts of air pollution from PSNH plants; they have seen (and will see) their rates rise thanks to PSNH’s abysmal planning; and they won’t see much if any benefit from the billion-dollar transmission project - Northern Pass - that PSNH is spending so much time promoting. Meanwhile, electricity for other New Englanders is getting cleaner and cheaper.
The good news for PSNH customers: they now have choices.
One of the more promising reforms associated with the restructuring of the region’s electric market in the late 1990s – “retail choice” – has been painfully slow to materialize for New Hampshire residents and small businesses. Most have been stuck with PSNH’s default energy service. (With their superior purchasing power, NH’s big businesses have been able to escape PSNH’s above-market rates for some time – either by buying power from the wholesale market themselves or through power buying groups organized by the likes of the Business and Industry Association.)
In the last few months, several companies - including Resident Power and Electricity NH - have started offering electric service to New Hampshire residents, and more companies are planning to do the same. Just last week, the Portsmouth Herald reported the UScore (an affiliate of New Hampshire utility Unitil) is now working with chambers of commerce around the state to serve groups of small businesses. (UPDATE (8/14): Per today’s Union Leader, add Glacial Energy to the list.)
These companies’ rates beat PSNH’s energy service rate, and the savings are likely to increase as PSNH’s rate rises. And because these non-PSNH suppliers buy from cleaner, cheaper power sources, customers who switch do not pay to support PSNH’s dirty, uneconomic power plants. If you’re planning to switch, you should carefully read and understand the terms of your new contract. PSNH will continue to deliver your power and handle all billing.
It’s a win-win, a bit like finding that local, organic produce is priced less than conventionally-grown produce. (If you frequent one of New England’s many vibrant farmer’s markets or stop at a roadside stand this time of year, you often find yourself making exactly this discovery!)
But the competition is not good news for PSNH’s coal-fired business model – or for the many customers who aren’t aware of their choices or are nervous about making the switch, whose rates will rise even faster as PSNH’s customer base shrinks. PSNH recently released its latest report on how many customers are making the switch – known as customer “migration” – and the numbers keep getting worse for PSNH. In June:
• More than 86% of large commercial and industrial customers did not buy power from PSNH (accounting for 95% of the power delivered to such customers). Even though there was little room for them to grow, these numbers have climbed since last fall. 68% of medium-sized businesses also are choosing other suppliers.
• With choices for New Hampshire residents and small businesses growing, PSNH’s numbers show that the percentage of residential customers who have left PSNH doubled (from a very small base) between April and June. This number is poised to increase dramatically. According to Electricity NH, which launched in June, it has already signed up 10,000 New Hampshire customers. We understand that Resident Power also is signing up customers at a fast clip.
• Overall, 42% of power delivered to PSNH customers came from a supplier other than PSNH. This figure was 34% as of last July and has risen by almost a quarter in 12 months. Stated differently, since last July, PSNH has lost about 12% of its energy supply business.
These developments are only the latest signs that the writing is on the wall for PSNH’s coal-fired power plants and the disastrous public policy that keeps them in business. While CLF works to make sure New Hampshire policymakers get the message, PSNH ratepayers are getting the opportunity to send their own message to PSNH: no, thanks, we deserve better.