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.

Recharge the Economy with Renewable Energy Tax Credits

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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