Environmental Initiatives by Public Service of New Hampshire

New Hampshire Clean Power Act - PSNH Questions and Answers

New Hampshire Clean Air Agreement Achieved

Legislative Package Sets Long-term Reduction Targets

Public Service of New Hampshire (PSNH) today announced its support of an historic agreement which sets emission reduction targets for multiple air pollution emissions from power plants. The agreement with the State of New Hampshire and statewide environmental organizations addresses PSNH emissions of sulfur dioxide (SO2), nitrogen oxides (NOx), carbon dioxide (CO2) and mercury. The agreement will soon be submitted to the New Hampshire Legislature for consideration.

"This agreement is a clear demonstration of the continued leadership on clean air policy by the State of New Hampshire, PSNH, and key environmental organizations," noted Gary A. Long, PSNH president and chief operating officer. "It is a ‘first-in-the-nation’ accomplishment. No other state in the nation has achieved such a comprehensive agreement - one which addresses the reduction of these four major pollutants."

The inclusion of CO2 in the agreement is a key accomplishment. For the first time carbon dioxide will be part of a comprehensive four-pollutant emission reduction strategy, addressing greenhouse gases. The federal government is presently considering whether or not to regulate carbon dioxide from power plants.

PSNH Air Emissions Capped
PSNH is a key partner in the emission reduction agreement. The company owns and operates three fossil-fuel generation stations which together produce enough power to serve the equivalent of about 500,000 homes.

"This is a tough and effective emission reduction agreement," said Long. "This will require PSNH’s older plants to meet emission requirements that new power plants do not have."

Under the agreement, emissions of SO2, NOx and CO2 from PSNH fossil-fuel power plants will be capped at specific levels. A cap on mercury emissions will be established following a forthcoming regulation and standard set by the U.S. Environmental Protection Agency. In the meantime, PSNH will, within 12 months of the bill’s passage, initiate a fuel analysis and stack testing program to precisely calculate the actual emissions of mercury from its coal-fired power plants.

"The challenge has been achieving the delicate balance between protecting our environment and providing power at an economic cost. This agreement accomplishes that," noted Long. "Long-term, we expect continued air quality improvements and the ability to reliably meet regional energy requirements - and, importantly, the agreement preserves the economic value to the New Hampshire communities in which our power plants reside."

The multiple pollution reduction agreement was announced jointly today by New Hampshire Governor Jeanne Shaheen, the NH Department of Environmental Services, the House Science & Technology Committee leadership, PSNH, and representatives of key environmental organizations including the Audubon Society of New Hampshire, the Society for the Protection of New Hampshire Forests, New Hampshire Lakes Association, New Hampshire Global Warming Campaign, and Environmental Voters of New Hampshire. The agreement will now be submitted as legislation to a House committee for public hearings. If approved by the Legislature in the upcoming session, the agreement will be implemented in 2007.

Flexibility - Key to Cleaner Air
The agreement allows PSNH the flexibility to meet its cap requirements either through emission reductions at its plants or through the purchase of emission "credits" from other utilities which have already achieved emission reductions. This "cap and trade" system has been utilized successfully over the last decade, both regionally and nationally, to cost-effectively reduce emissions and improve air quality.

Importantly, the agreement includes incentives for PSNH to obtain credits from other utilities within the geographic region having the greatest impact on New Hampshire’s air quality - increasing the likelihood that New Hampshire will enjoy the benefit of actual air quality improvement through pollution reductions achieved within the region.

"Pollution does not respect geographical boundaries," said Long. "We will utilize the trading system, when appropriate, because it makes sense, from both an environmental and economical perspective."