The Cost of NED

NHPLAN Logo 2015-11-07All New Hampshire electricity customers may be forced to pay an additional tariff on their electric bills to underwrite this private corporate enterprise which Wall Street has projected will generate enormous profits for Kinder Morgan and the out-of-state gas producers and sellers.

All of New England, not just the NH grid, may be saddled with paying for new natural gas pipelines through a proposed new charge on electric bills. Over the winter of 2014, in closed door meetings [1], the DPU president Ann Berwick, along with her counterparts around the region sitting on the New England States Committee on Electricity (NESCOE), pitched the idea of an electricity tariff to subsidize new pipeline construction and asked ISO-NE’s for help in filing a tariff [2].

Kinder Morgan estimates the entire NED pipeline could cost as much as $6 billion [3]

Natural gas pricing is influenced by production, net imports, underground storage levels, weather (temperatures), economic conditions, and competing petroleum prices.

Electricity pricing is influenced by fuels, power plant construction, maintenance and operation costs, maintaining and distributing electricity using the transmission system, weather conditions and regulation.  In other words, simply flooding New England with excessive amounts of natural gas would not guarantee lower electricity rates for ratepayers.  Furthermore and likely most importantly, none of the gas that would flow through the NED pipeline has been contracted to be used by a New England electricity generating plant.

Based on recent filings with the (N.H.) Public Utilities Commission, the average customer of Liberty Utilities will incur a cost of about $600 per year — for 20 years — should the Kinder Morgan pipeline be approved” [4]

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