Manchester, N.H. - June 30, 2009 - Representatives of Public Service of New Hampshire (PSNH) today provided a New Hampshire legislative oversight committee an update on the construction of the Clean Air Project at Merrimack Station, in Bow. The project-which includes the installation of wet flue gas desulfurization "scrubber" technology to significantly reduce mercury and sulfur dioxide emissions at the company's coal-burning plant-continues to be ahead of the schedule mandated by the New Hampshire Legislature, and previous cost estimates remain firm. PSNH is required to update the legislative oversight committee annually as part of the 2006 state law that directs PSNH to install and begin operation of the scrubber by July 1, 2013. When the scrubber is operational, at least 80 percent of the mercury in the coal will be captured, and sulfur dioxide emissions are expected to be reduced by more than 90 percent.
"We're pleased to report that the construction process is fully underway and is progressing on an accelerated schedule and on budget," said Lynn Tillotson, PSNH's technical business manager. "Our primary focus right now is the construction of a new stack or chimney. We have over 150 skilled trade workers on site working on the 445-foot chimney, with concrete and mechanical systems provided by Redimix Companies, Inc. and Scanada International, respectively, two businesses located in Bow."
Achievement of the accelerated schedule will allow PSNH to reduce mercury and SO2 emissions sooner, and will also provide significant cost savings to PSNH's customers. Not only will financing costs be lower with the targeted completion date, but customers will also benefit from an incentive provision the Legislature included in the scrubber law which will award emissions credits for beating the statutory deadline.
In addition, Tillotson confirmed with the Committee that the project cost estimate of $457 million announced last summer remains accurate, and that the company is working hard to meet or beat that projection. She said that a majority of the project's work is covered by firm contracts already in place. There is the potential for costs savings from a limited number of contracts still to be awarded, based upon lower commodity prices than originally projected.
Installation of a mercury scrubber at Merrimack Station, PSNH's largest power plant, was mandated by the Legislature as part of the State's Multiple Pollutant Reduction Program. The plant will continue to utilize existing Selective Catalytic Reduction technology and electro-static precipitators that effectively reduce emissions of NOx and particulates, respectively. Required CO2 mitigation is achieved through the company's participation in the Regional Greenhouse Gas Initiative. Additional information about PSNH's Clean Air Project is posted at psnhnews.com.