UPDATE
 
Dear Members:      
    On Thursday the house Science, Technology and Energy Committee voted 15 to 4 to recommend the full house kill HB 496. The Bill would have set $250million as the cost PSNH could spend for construction. A second bill SB 152 pending in the senate has yet to be voted on, we are expecting the full senate to vote within the next couple of weeks. We are very pleased with the committee recommendation on HB 496. Thanks to all of you who helped by showing up and contacting your representatives, your actions definitely made the difference.
Below is the Committee report as it appears in the House Calendar.

HB 496, establishing a limit on the amount of cost recovery for the emissions reduction equipment installed at the Merrimack Station.  MAJORITY:  INEXPEDIENT TO LEGISLATE.  MINORITY:  OUGHT TO PASS.Rep. Nickolas J Levasseur for the Majority of Science, Technology and Energy:   While this bill is well intentioned, the committee received many hours of testimony outlining the negative and unintended consequences associated with passing the bill. The committee heard lengthy testimony from both sides and the majority decided that since the legislature mandated in 2006 for PSNH to install the scrubber without placing a limit on the costs, to choose to place a limit on the cost nearly three years later would pose significant problems. While the committee recognizes that the increase in projected cost for the scrubber is significant, there is no evidence that PSNH has acted improperly in their costing or contracting process. The majority believed that placing a cap on cost recovery for a legislatively mandated project was not only arbitrary but could constitute a taking and be unconstitutional. The majority was also concerned that the passage of this bill would lead to a pause in or cancellation of the project. This would not only have significant environmental ramifications but also would lead to the loss of several hundred short term and long term jobs related to the construction and operation of the scrubber. The committee also decided that an unofficial late amendment was too far reaching, requiring more time to debate and receive public input. As a result, the potential amendment was not considered by the committee and discussion was focused on the bill as introduced.  Vote 15-4.      Rep. Robin P Read for the Minority of Science, Technology and Energy:  Public Service of New Hampshire's (PSNH) estimated cost of installing a mercury scrubber at its coal-fired power plant in Bow has gone from $250 million in 2006 to $457 million today, an increase of 83% in less than three years.  There has been no review of the increase in costs by the PUC.  The total cost of operating the plant could increase even more in the coming years when new expected federal environmental regulations and laws, including laws regarding carbon emissions, are implemented.  Under current law, New Hampshire commercial and residential ratepayers will have to pay for the project through higher electric bills no matter what the costs, while the project will result in significantly increased profit for PSNH shareholders.  The minority of the committee believes that it is in the best interest of New Hampshire ratepayers for the cost of the project to be paid for by ratepayers to be capped at PSNH's original estimate of $250,000,000 and that PSNH shareholders should finance any costs over $250 million.