New Hampshire Gov. Chris Sununu's administration is targeting five other New England states, blaming their investments in renewable energy for rising electricity costs across the region.
As in previous years, the New Hampshire Department of Energy's new 10-year energy strategy puts cost-effective energy first and calls for the free market to select energy sources regardless of fuel source. The latest version also repeatedly states that New Hampshire taxpayers will suffer as other states aggressively purchase offshore wind, solar and other renewable energy sources.
"Neighboring state renewable energy requirements put upward pressure on electricity prices for high-cost renewables by increasing their share of the regional fuel mix," the plan says. "So even if New Hampshire's policies are not driving these costs, there is a significant risk that these increased costs will be passed on to New Hampshire taxpayers.
Clean energy experts say the message misses the mark. Moreover, they say, it distracts from the main reason for the state's relatively high electricity prices: an overreliance on fossil fuels.
"Procurement strategies and programs like the Renewable Portfolio Standard do prioritize zero-carbon electricity resources, but they are paid for by the states that implement them," said Greg Ohadoma, policy associate at the Northeast Clean Energy Council in Somerville, Mass. "Ultimately, New Hampshire taxpayers will benefit from economies of scale and downward pressure on renewable pricing stimulated by other states.
The truth is that renewable energy costs - especially offshore wind - "are lower than they've ever been," says John Carlson, national policy manager at Ceres, a nonprofit sustainability advocacy group based in Boston. "Recent high prices in New Hampshire have really been driven by natural gas prices, not by more stable renewable energy production and related investments in neighboring states.
New Hampshire is part of a regional energy network operated by ISO-New England. Natural gas accounts for the largest share of grid generation, at 53 percent.
After deregulation, "we have a 15 - to 20-year surplus of gas-fired power plants in addition to the fracking boom," says Sam Evans-Brown, executive director of Clean Energy NH. "Now that we have a global energy shock, this decision is coming home to roost.
Like the rest of New England, New Hampshire has some of the highest electricity rates in the country. The average resident spent $4,078 on energy in 2019, nearly 10% more than the national average, the report said.
Gas prices are now doubling for many consumers in the state, with utilities pointing to higher gas prices linked to the war in Ukraine.
To diversify regional energy supplies and reduce greenhouse gas emissions, other New England states have commandeered more than 8,000 megawatts of electricity supply through large-scale clean energy purchases since 2015, according to ISO-New England.
New Hampshire is unique in the region in not passing a legal mandate to reduce carbon emissions. The remaining states are legally committed to reducing emissions by 80 percent by 2050. Earlier this year, Rhode Island became the first state in the country to pass a law requiring its electricity use to be completely offset by renewable energy by 2033.
New Hampshire's renewable portfolio standard, which requires electricity providers to provide a certain percentage of their energy from renewable sources, is lackluster compared with the rest of the region. Its projected growth in solar adoption is the weakest in the region, according to ISO. While more than two-fifths of New Hampshire households heat their homes with fuel oil, the state has "paid almost no attention to trying to transition to other fuel sources," said Nick Krakoff, a staff attorney with the New Hampshire Defense Foundation.
The Sununu government's latest energy strategy, designed to guide national policymakers, does not suggest a different path. Nor, Krakow notes, does it express any sense of urgency about climate change.
"There are a few references here and there, but there is a real lack of focus," he said.
A recurring theme of the plan is opposition to any type of government incentives to "promote the so-called 'clean energy transition'" and support policies that "prioritize the most cost-effective energy production and delivery."
"Some states may choose to accept significant above-market costs to achieve a particular mix of resources," the plan says. "Since New Hampshire has some of the highest energy costs in the country, it should be particularly sensitive to the costs that policy imposes on taxpayers.
Krakoff said that given the focus on cost-cutting, one might expect that the plan would put a higher priority on energy efficiency measures as a cheap way to cut consumer bills. Instead, it merely acknowledges the existence -- if only barely -- of national plans. Last year, the legislature restored some funding for the program after the state Utilities Commission rejected a more ambitious funding plan.
"All the other states in New England have pretty strong energy efficiency programs," Krakow said. "This will continue to reduce energy use in these states, and New Hampshire's share of regional grid costs will go up.
At least 18 Granite State communities are aiming to reduce energy costs by seeking power purchase agreements under the state's community power law. The state Public Utilities Commission recently approved final rules for the program, authorizing municipalities to use the collective purchasing power of all their residents and businesses to obtain electricity at competitive rates.