Critical Elements: CO2 Regulation in New Hampshire

1
Critical ElementsCO2 Regulation in New Hampshire

• Not create economic disadvantage for NH based
  businesses
• Federal regulation of CO2
• Integration with NH Energy Policy rather than
  additional layer of regulation
• Provide for growth and/or increased energy demand

2
Critical Elements CO2 Regulation in New
Hampshire

• Minimize increases in energy costs
• Protect fuel diversity and system reliability
• Provide incentives to generators
• Similar to incentives provided in NH Clean Power
  Act
• Ensure all allocations are available for use by
  generators

3
Essential ConsiderationsRGGI Implementation in
New Hampshire

• Regional System Constraints
• Need for additional 4300 MW to meet regional
  energy demand beginning as soon as 2009
• 8 new 500 MW plants by 2015
• Assumes the continued operation of all existing
  generation located within ISO region
• Regional transmission constraints currently exist

4
Essential ConsiderationsRGGI Implementation in
New Hampshire

• Regional System Constraints
• New fossil fuel generation will be significantly
  restricted
• Creates additional risks for new generation and
  capital investments
• Future projections for natural gas / renewable
  energy questionable
• High dependence on natural gas in region currently

5
Additional ConsiderationsRGGI Implementation in
New Hampshire

• Integration with NH Energy Policy
• Regulated Generation
• Existing CO2 cap and incentives under NH Clean
  Power Act
• Implications to Existing Requirements
• Hg Reduction Requirements
• Renewable Portfolio Standards
• Renewable Energy Credits