DATA: New Hampshire’s energy policy mitigates rising costs for ratepayers

Concord, New Jersey – Data from the Energy Information Administration’s (EIA) Electric Power Monthly reports show that residential electricity rates in Connecticut, Maine, Massachusetts and Rhode Island increased at a much greater rate than in New Hampshire from 2017 to 2024.

The data shows that on a cents per kilowatt hour basis for residential customers:

• Rates in Rhode Island increased 127% more than in New Hampshire
• Connecticut’s rates increased 94% more than New Hampshire’s
• Rates in Massachusetts increased 83% more than in New Hampshire
• Maine’s rates increased 70% more than New Hampshire’s

“While other states have let politics drive policy, New Hampshire has always put taxpayer profits first,” said Gov. Chris Sununu. “We have allowed markets, not government, to drive innovation. We took a technology-neutral approach that doesn’t pick winners and losers, and it has benefited residential customers throughout New Hampshire.”

While other New England states have adopted policies forcing the market to transition to clean energy at the expense of ratepayers, New Hampshire’s results-driven approach is to deliver reliable electricity while allowing the market to select the appropriate basket of resources. Without mandates, carbon dioxide emissions from electricity generation in New Hampshire have continued to decline dramatically. In its recent Priority Climate Action Plan, the New Hampshire Department of Environmental Services stated that between 2005 and 2021, New Hampshire experienced a 73% reduction in greenhouse gas emissions from the electricity generation sector.

New Hampshire’s energy approach has resulted in direct cost savings for consumers. Currently, Eversource residential customers in Boston, Massachusetts pay a kilowatt-hour rate 77% higher than Granite Staters, while Eversource residential customers in Connecticut pay a rate 45% higher than their New Hampshire counterparts.

This means that for the average household using 625 kilowatt hours per month, Massachusetts families now pay almost $90 more per month, while Connecticut families pay $50 more per month than those in New Hampshire.

“New Hampshire’s smart policies protect our consumers, unlike those of our neighboring states in the region,” said Senate President Jeb Bradley.

“Thanks to the sound implementation of energy policy under Republican leadership, New Hampshire ratepayers are better off than our counterparts in New England,” said Speaker Packard. “By preventing and removing unnecessary regulations and minimizing costs that can be passed on to ratepayers, this analysis confirms that Republican energy policy has worked.”

Public policy matters

Public policy is the most significant difference between states.

“The data shows that New Hampshire’s energy policies that focus on reliable energy access and ratepayer savings are paying off,” said Department of Energy Commissioner Jared Chicoine. “If anything is clear, it is that all of New England would benefit from adopting our approach.”

According to the Portland Press Herald in Maine, “Costs associated with net energy billing, which gives generators a credit for the renewable energy they produce and send to the electric grid, increased from $98 million last year and $7.5 million in 2022 r. This is the result of state legislation encouraging the use of renewable energy.”

In April this year in Connecticut, regulators approved a significant increase in the Rate Adjustment Mechanism. According to the CT Examiner: “Starting July 1, Eversource residential customers in Connecticut will pay an average of $48 more in fees related to government mandates…”

The Massachusetts Department of Energy’s annual compliance report shows that numerous state renewable energy requirements (Massachusetts Renewable Energy Portfolio Standard, Massachusetts Alternative Energy Portfolio, Massachusetts Clean Energy Standard, and clean peak in Massachusetts) resulted in a total cost to payers of over $1 billion in 2021. This will continue to grow in the coming years.

The result is an unfortunate reminder that poor energy policy can have drastic and costly consequences for fixed- and low-income families.

Note: Questions about New Hampshire’s energy policy should be directed to New Hampshire Department of Energy Deputy Commissioner Chris Ellms Jr. at [email protected].