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Community Power launch for Canaan postponed after coalition flags market risk
Summary
The Community Power Coalition of New Hampshire told Canaan—s Select Board it will delay launching local aggregation this fall because market analysis shows a better-than-50% chance the program would be financially "underwater" by the end of the upcoming rate period; the coalition plans to revisit rates in December and keep the town informed.
Andrew Hatch, a community energy adviser for the Community Power Coalition of New Hampshire, told the Canaan Select Board that the coalition will not launch the town—s community power aggregation this fall because current market conditions make the program financially risky. "Long story short, the analysis showed that to launch the Canaan community power program in October [there was] a more than 50% chance of leaving Canaan ... underwater by the end of the rate period," Hatch said, and he apologized to the board on the coalition—s behalf.
Hatch said the coalition—s analysts reviewed volatility linked to international uncertainty and projected electricity rates; Canaan was the only one of 12 communities considered that could have contemplated a launch given the advantage over upcoming Liberty rates, he said. Because the coalition could not find a way to price the program without undue financial risk, it elected to delay. "It's really important for us to make sure that we don't underprice ourselves and cause ourselves financial instability," Hatch said.
The coalition plans to revisit rate-setting in December. Hatch said he expects another opportunity to launch in the new year and that the coalition will keep the Select Board and the town—s administrator informed as it continues discussions with its risk-management committee and the coalition—s board.
