N THE ROAD WIL
BE BACK OPEN.
FRED: WELCOME TO NEW HAMPSHIRE'S
BUSINESS.
I'M FRED COKER.
MOST TAKE Z FO BUSINESS, THAT
FOR GRANTED, THE LIGHTS ON,
AND WHILE MOST ARE NOT KNOW WHAT
IS GOING ON BEHIND THE SCENES
WITH WHAT THEY CALL
RESTRUCTURING.
WE WILL GET INTO THAT WITH MY
GUEST, BUT LET ME GIVE YOU
BACKGROUND ON THIS, FIRST OF
ALL.
JULY 1 OF THIS YEAR, THE SALE OF
EVSOURCE ALSO FUEL AND
HYDR PLANT.
THEY EXPECT A LONG-TERM CUSTOMER
SERVICE AND RATES OF STABILITY
AS PART OF THE RESTRUCTURING.
NO THE RESTRUCTURING OF THE
U.S. ELECTRIC MARKET IS A SEA
CHANGE IN DELIVERY OF
ELECTRICITY.
THE FEDERAL ENGINEERING
REGULATORY COMMITTEE, FER HAS
ORDERED UTILITY LINES OPEN 20
YEARS AGO IN 1996.
RESTRUCTURING OF N HAMPSHIRE'S
ELECTRICITY MARKET, NEW
HAMPSHIRE LEGISLATURE
APPROVED I, AGAIN, 20 YEARS AGO
IN 1996.
THEY MUST IMPLEMEN RETAIL
CHOICE FOR ALL CUSTOMERS BY
1998, BUT IT WAS SLOWE BY
LITIGATION.
THE STRUCTURING OF THE NEW
HAMPSHIRE ELECTRICIT MARKE
INCLUDES 4 -- PSNH, GRANITE
STATE ELECTRIC COMPANY, AND
UNITIL
THEY CAN MAINTAIN DISTRIBUTIO,
INFRASTRUCTURE, AND CUSTOMER
SERVICE.
THEN THERE HAS BEEN A CREATION
OF THIS REGIONAL TRANSMISSION
GROUP TO MANAGE THE GRID AND
ADMINISTER THE REGION'S
WHOLESALE MARKET.
THAT IS CALLED ISO NEW ENGLAND.
WITH ME TO TALK ABOUT THIS AND
MAKE SENSE FOR US CONSUME IS
DONALD CREASE, NEW HAMPSHIRE'S
CONSUMER ADVOCATE AND THE FORMER
LEGAL COUNSEL TO THE NEW
HAMPSHIRE UTILITIES COMMISSION.
WELCOME.
NICE TO HAVE YOU HERE.
REAL QUICK, YOUR ROLE IS TO
REPRESEN THE CONSUMER BEFORE
THE PUBLIC UTILITIES COMMISSION
AND DELIBERATIONS.
DONALD: CORRECT.
I REPRESENT RESIDENTIAL UTILITY
CUSTOMERS.
FRED 20 YEARS AGO,
RESTRUCTURING STARTED.
PROMISE, COMPETITION, CHOICE,
AND STABLE RATES AND EVEN LOWER
RATES.
WHAT HAS HAPPENED?
DONALD: IT HAS TAKEN US 20 YEARS
TO GET THERE BECAUSE UTILITIES
DID NOT LIKE THE IDEA OF BEING
VERTICALLY ON INTEGRATE, THEN
THERE WAS A BIG HIT -- PICKUP IN
CALIFORNIA IN 2000 AND 2001 THAT
CAUSED THE LEGISLATURE TO TELL
EVERSOURCE TO PUT TH BRAKES,
JUST SO YOUR INTEREST I
SEABROOK, KEEP THE REST OF YOUR
ASSETS.
THERE WAS A BIG CONTROVERSY
REALITY MERCURY SCRUBBER AT THE
COAL PLANTS, THEN WE RESOLVED
ALL OF THAT, THE SETTLEMENT
AGREEMENT HAS BEEN APPROVED.
FRED WHAT HAPPENED TO RIGHTS IN
THE MEANTIME?
DOALD: THEY HAVE COME UP,
THEY HAVE GO DOWN, AND THE
IMPORTANT THING IS NOW THAT A
SIGNIFICANT PERCENTAGE OF NEW
HAMPSHIRE ELECTRIC CUSTOMERS ARE
USING COMPETITIVE ELECTRIC
SUPPLIERS FOR THEIR ENERGY, AND
A WATER SAVING MONEY DOING THAT.
FRED: WHICH WAS ONE OF THE
GOALS?
DONALD: THE PRIME GOAL.
FRED GOING FORWARD, WHAT ARE
THE HURDLES AHEAD FOR
RESTRUCTURING?
WHAT IS LEFT?
DONALD: AT THE RISK OF ANNOYING
MY FRIENDS AT EVERSOURCE, I
THINK THEY ARE A LITTLE
RESISTANCE TO THIS
, SO THEY ARE ALWAYS LOOKING FOR
NEW - THIS PARADIGM, SO THEY
ARE ALWAYS LOOKING FOR NEW WAYS
TO KEEP IT IN THIS GENERATION.
CHANGES IN THE ELECTRIC GRID,
THE CHALLENGE IS TO EMBRACE
THOSE CHANGES IN A WAY THAT
EMPOWERS CONSUMERS AND SAVES
THEM MONEY AND IS NOT GET FREE
MONEY TO THE UTILITIES.
FRED TALKING BEFORE THE
INTERVIEW, YOU ARE OPTIMISTIC
ABOUT THE ELECTRICIT MARKET?
DONALD: YES, AM.
WE ARE ON THE CUSP OF AN ERA
WHERE CONSUMERS HAVE THE
TECHNOLOGY AND THE LEGAL ABILITY
TO BE VERY ACTIVE USERS OF THE
ELECTRIC GRID BOTH BY MAKING
SOME ELECTRICITY THEMSELVES AND
BY MANAGING THEIR USE OF
ELECTRICITY.
FRED: IN THE BACKGROUND, THESE
MASSIV INCREASING TRANSMISSION
COSTS BILLION OF DOLLARS TO
UPGRADE THE TRANSMISSION LINES
THROUGHOUT THE NORTHEAST AND NEW
ENGLAND.
WHAT IS THAT GOING TO DO?
DONALD: THIS IS A SERIOUS
PROBLEM.
IT TURNS OUT THAT HERE IN NEW
ENGLAND, WE HAVE THE LARGEST
TRANSMISSION CHARGES A A
PERCENTAGE OF OUR ELECTRIC BILLS
OF ANYBODY IN THE COUNTRY, SO
THERE IS A LITTLE TALK ABOUT HOW
HIGH THE COST OF ELECTRICITY AND
NEW ENGLA -- IS IN NEW
ENGLAND.
THEY ARE FEDERAL REGULATED, SO
IT IS HARD FOR US TO GET A
HANDLE ON HERE AT HOME IN NEW
HAMPSHIRE.
FRED IT WILL AFFECT THE RATES.
DONALD: ABSOLUTELY.
FRED: OK.
DONALD KRIES, N HAMPSHIRE'S