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Committee hears bill to expand utilities’ power‑purchase authority to existing generators, including nuclear
Summary
Sen. Kevin Avard’s SB 112 would broaden RSA 374:11 to allow purchase power agreements with a wider set of generation resources, including existing plants such as Seabrook Station; supporters said long‑term contracts can reduce volatility while the Department of Energy and utilities warned of potential long‑term costs and market distortions.
Sen. Kevin Avard (District 12) told the Senate Energy and Natural Resources Committee that Senate Bill 112 would expand the state’s authority under RSA 374:11 to allow distribution utilities and the Department of Energy to enter purchasing arrangements with a broader set of generation sources, including existing facilities.
Michelle Gardner, executive director for NextEra Energy Resources in the Northeast, said New Hampshire is home to Seabrook Station and should be able to participate in multistate solicitations or procurements. "This bill…would provide policymakers the ability to enter into a solicitation potentially with other states," Gardner said, urging the state not to be left out of regional procurements that might include nuclear resources.
Bruce Birkin of Ginfin(?) Capital Group, speaking for Exeter Energy Resources, said he expects to propose technical amendments to align dates, add the Department of Energy to the RFP development process, and revisit a 2,000,000 megawatt‑hour cap in the statute to provide flexibility.
Department of Energy witnesses Chris Elms and Dan Phelan said the department is neutral on SB 112 but warned of risks. Phelan cited Hughes v. Talen and the Federal Power Act as background legal risk where state subsidy schemes were found to intrude on wholesale market rate setting. The department also flagged the long‑term nature of power‑purchase agreements (PPAs), the potential for large costs borne by ratepayers if market conditions change, and the effect of out‑of‑market contracts on price signals and market investment.
Mike McConnell (Eversource Energy) testified that PPAs are typically used either to preserve at‑risk generators or to advance policy goals (for example, decarbonization). He warned that removing the existing caps and expanding authority could expose utilities and ratepayers to large balance‑sheet and credit risks if contracts are not structured carefully.
Supporters, including representatives of Seabrook’s owner, said longer‑term contracts can provide price stability and protect consumers from fuel‑price volatility. Gardner told the committee a strong multistate procurement including nuclear could help New Hampshire retain low‑cost, non‑fuel‑price‑exposed generation.
No committee vote on SB 112 occurred at the hearing; the committee took public testimony and requested follow‑up on proposed statutory amendments.
