NH SEC denies Northern Pass certificate

The New Hampshire Site Evaluation Committee has unanimously voted to deny an application to develop a major new electric transmission line across that state, according to an article in the Union Leader. According to that article, the Committee felt the Northern Pass Transmission developer had not satisfied its burden under state law to show that the line's development would not “unduly interfere with the orderly development of the region.”

Northern Pass Transmission, LLC has proposed a 192-mile transmission line project capable of bringing 1,090 megawatts of power into New England. The project includes a new direct current (DC) transmission line from the Canadian border to a new converter terminal to be built in Franklin, New Hampshire, as well as a new AC transmission line connecting to the existing grid at a substation in Deerfield.

To develop the project, the developer needs approval from the New Hampshire Site Evaluation Committee in the form of a Certificate of Site and Facility. Northern Pass applied to the SEC for a certificate in 2015; the case before the Committee has been ongoing since then, with extensive testimony and hearings held last month.

Successful project development involves not just securing all required permits, but also finding or creating suitable commercial arrangements. While the project's siting application was pending, the project won some commercial success last week, when a group of Massachusetts utilities seeking to jointly procure clean electricity selected a Northern Pass-affiliated proposal to supply about 9,450,000 megawatt-hours per year from Canada. After reviewing over 40 bids, the bid committee selected the "Northern Pass Transmission, Hydro" option for negotiation of a final long-term power sales agreement under the state's Section 83D clean energy contracting program.

Today's decision by the New Hampshire Site Evaluation Committee relates directly to siting, not to commercial matters. The developer may be able to challenge the Committee's permitting decision. In the meantime, could the SEC decision affect the Northern Pass project's commercial fate? According to the Massachusetts 83D website, "If the bid selected to advance to contract negotiation at this stage does not successfully negotiate contracts, it may result in other bid(s) being selected to advance to contract negotiations." If the lack of SEC approval (for now) means Northern Pass does not successfully negotiate contracts with the Massachusetts utilities, it could open the door for other 83D bidders to move forward.

Northern Pass Transmission public utility status

New Hampshire utility regulators have issued an order conditionally authorizing Northern Pass Transmission LLC to operate as a public utility, with respect to its proposed 192-mile, high-voltage electric transmission line from Canada into New Hampshire.  The New Hampshire Public Utilities Commission's Order No. 25,953 approves a settlement agreement between the transmission line developer and Commission staff.  Among its conditions are requirements that NPT obtain all necessary permits, contribute $20 million over 10 years to support energy efficiency and clean energy initiatives, and hold New Hampshire electric ratepayers harmless from costs associated with the possible regional allocation of costs for a portion of the Northern Pass transmission line.

Proposed by two companies affiliated under the Eversource family -- Northern Pass Transmission LLC and Public Service Company of New Hampshire d/b/a Eversource Energy -- the Northern Pass line would include new direct current transmission lines and an AC-DC converter station.  A variety of federal and state approvals are required for the line's development, including certification of site and facility by the state Site Evaluation Commission, plus several approvals from the Public Utilities Commission.

NPT secured one of those approvals this month, in the form of Public Utilities Commission Order No. 25,953, which conditionally authorizes NPT to operate as a public utilities in municipalities along its route.  In the Order, the Commission found "that NPT has the necessary technical, managerial, and financial expertise to operate as a public utility."

The Commission next found that the terms and conditions of a settlement agreement between Commission staff and NPT "ensure that granting NPT authority to commence business as a public utility is for the public good."

• First, the Commission noted public benefit, in the form of transparency, from the fact that the settlement recites a list of applicable statutes and rules.
• Second, the settlement called for a $20 million public interest payment, to be paid in installments of $2 million per year over the first 10 years of the operation of the Northern Pass Project; the Commission noted that this payment "will benefit customers by allowing the Commission to direct the use of this payment to energy efficiency programs and clean energy projects under its supervision."
• Third, the Commission noted that its grant of public utility status is conditioned on NPT procuring all necessary approvals for the Northern Pass Project, including obtaining a certificate of site and facility from the SEC.
• Finally, the Commission noted a provision in the settlement that "NPT must hold New Hampshire electric ratepayers harmless from costs associated with the possible regional allocation of costs for a portion of the Northern Pass transmission line."  The Commission expressed a belief "that the rate treatment provision applicable to the DC portion of the line could constitute a significant benefit to ratepayers in the event the ISO-NE designates this portion as eligible for regional cost recovery.

On this basis, the Commission approved the settlement agreement in its entirety, adopted its conditions, and found that commencement of business as public utility subject to those terms and conditions will be for the public good.

Meanwhile, NPT continues to pursue other approvals, such as PUC approval for crossings of public waters, and the SEC certificate of site and facility itself.

Northern Pass files with NH SEC

The developer of the Northern Pass Transmission Project, a proposed high-voltage transmission line from Canada into New Hampshire, filed a formal application to New Hampshire regulators this week.

First proposed in 2009, the Northern Pass project would include about 190 miles of new direct current transmission lines and an AC-DC converter station.  Collectively, the project would be capable of importing over 1,000 megawatts of power from Canada into the New England electric grid.  Its formal sponsors are two companies affiliated under the Eversource family: Northern Pass Transmission LLC and Public Service Company of New Hampshire d/b/a Eversource Energy.

Early versions of proposal drew criticism and controversy over issues including siting, visual impacts, the potential use of eminent domain, and impacts to domestic renewable energy production.  After a series of public information meetings and other dialogue, Eversource released a revised route and plan in August 2015.

On October 19, Eversource announced that it had filed a formal application to the New Hampshire Site Evaluation Committee.  The Northern Pass Transmission application to the SEC is available on the project's website.  It describes a project cost estimate of $1.6 billion, and a capacity of 1,090 megawatts. 

The SEC was established by the state legislature for the review, approval, monitoring and enforcement of compliance in the planning, siting, construction and operation of energy facilities.  It includes members from the Public Utilities Commission, cabinet level commissioners, and two members of the public.  The SEC has jurisdiction to review applications for siting and construction of large-scale energy facilities and to issue a Certificate of Site and Facility enabling a project's development.  The process before the SEC is likely to play out through 2016.