PSNH Energy Rates To Rise, Delivery Rates to Fall
NHPR | June 16, 2014
PSNH asked the New Hampshire Public Utilities Commission to increase its energy service rate (the amount customers pay for the actual electricity) by six tenths of a cent, up to 9.87 cents. That’s 0.11 cents less than their forecast back in May.
At the same time, a charge on the delivery rate – which all customers pay is set to fall.
This is in part from a settlement between a number of nuclear power plants and the federal government. The state has also begun to rebate some of the money earned in auctions of carbon allowances under the Regional Greenhouse Gas Initiative back to consumers.
The RGGI statute was changed in 2012 so that all auction proceeds over $1 per carbon allowance would be returned to customers in lower electricity bills. PSNH estimates that the average customer will receive about 78 cents a month of RGGI proceeds on a bill.
In the latest auction, carbon allowances were selling for more than $5 per ton of CO2.
Previously, all of that money went into the Greenhouse Gas Emissions Reduction Fund, which was used for grants, encouraging the development of renewable energy, and energy efficiency.
Pipeline Constraints in New England
Over the past several winters, the pipelines carrying natural gas into New England have become progressively more constrained as demand for the fuel has greatly increased for both heating and power generation. New England’s dependency of natural gas to power plant generators has translated into higher wholesale electricity prices.
Efforts are underway to bring more natural gas and hydropower to New England as the region’s six governors are urging the construction of more gas pipelines and power lines to meet growing energy demand. A multibillion dollar pipeline has been proposed that would connect Massachusetts to abundant natural gas from Eastern shale fields, entering through a small town on the New York border and stretching across dozens of municipalities into the Boston metropolitan area. Adding a pipeline has the potential to lower – or at least stabilize – what are some of the highest energy costs in the nation by opening up new supplies of cheap, domestic natural gas and expanding a pipeline system that is becoming inadequate to meet the region’s demand.
Strategize for Winter 2015 – Mint Energy’s Power Select Opportunities
New England’s cold days continued through the end of March 2014 which could make for a shorter than expected summer. With Fall vastly approaching, it’s time to begin strategizing for Winter 2015.
Energy consumption is often looked at solely as a utility expense, which becomes a monthly tax on the cost of doing business. A large scale energy users have been managing their energy consumption by maximizing returns and minimizing risk. They look at consumption trends, forward price curves and market volatility to reach their objective.
Mint Energy brings this type of approach to its partners and their clients in a unique customized fashion. Customers wishing to lock in a portion of their energy rates during historically the most expensive periods while also benefiting during the less expensive periods now have a solution.
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