Committee retains controversial PPA bill after debate on market and ratepayer risks

Senate Bill 112, proposed to expand the types of generation that can be procured through long-term purchase power agreements (PPAs) and to add the Department of Energy to the entities that can solicit such agreements, was retained by the Science, Technology and Energy Committee after extensive testimony and debate about market effects and long-term risk to ratepayers.

Proponents described the bill as an enabling tool to reduce price volatility and to provide another procurement option for distribution utilities; critics warned that long-term contracts for existing generators could distort wholesale markets, discourage merchant investment and shift risk to ratepayers.

Senator Kevin Avard, the bill’s prime sponsor, said SB 112 “is designed to expand upon the type of electric generations that can be considered for purchase power agreements under New Hampshire RSA ...” and characterized the measure as “another tool in the toolbox” to address high electric rates. He said the proposal would extend enabling authority for…