Bankruptcy Specter Looms in New Hampshire (Again)

Fortnightly Magazine - March 1 1997
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Testifying before the New Hampshire Public

Utilities Commission, the CFO of Northeast Utilities, John H. Forsgren, warned that a proposed electric deregulation plan could push subsidiaries Public Service Co. of New Hampshire, and North Atlantic Energy Corp. into bankruptcy.

Report - Grid Investment for Medium & Heavy Duty EVs

Consulting company LaCapra Associates gave its deregulation report and recommendations on Jan. 3 to the PUC. The Jan. 20 hearing was aimed at examining stranded costs, and what portion of its $800 million stranded costs PSNH would be allowed to recover. PSNH, which already has gone through one bankruptcy, buys high-priced power produced at the Seabrook nuclear plant from NAE.

According to Fitch Investors Service, PSNH should be able to recover a portion of the $800 million, and failure to allow recovery would set New Hampshire apart from every other state that has addressed stranded costs. Previously, Fitch had estimated an industry average for stranded-cost recovery between 70 percent and 90 percent, but believes that New Hampshire may fall at the low end. (em LB


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