Laidlaw Energy Group, Inc.(fka LLEG)

[spencerforhire]

Dr. Shapiro's testimony is missing something pretty significant, Mike. I'm looking forward to when Shapiro addresses above market contract prices to offset this expert's rejection of the PPA. Also wondering how much influence the advisory board appointed by NH's governing body has... Anyhow, happy holidays.

Q. Do you believe the economic benefits described in Dr. Shapiro’s testimony will occur if the PPA is approved as filed?
A. No, I do not. The reason is not that Dr.Shapiro’s analysis is seriously flawed or that the model is fundamentally flawed, though tests have shown the RIMS II model can overstate results as compared to other models, but rather that Dr. Shapiro makes no provision for the fact that this contract’s prices are above market. These above market costs will result in higher energy service costs, which will be passed on to PSNH’s Energy Service customers, if approved by the Commission.
Based on Mr. McCluskey’s testimony, the above market estimates of energy and Renewable Energy Certificates (RECs) over the life of the project will total approximately $550 million. On a levelized basis, Mr. McCluskey estimates the levelized cost of the Laidlaw project to be $162 per MWh. Every $10 per MWh of over-market costs associated with this project increases electric rates by approximately $4.8 million per year. If the over-market costs attributable to the proposed PPA are on the order of $55 per MWh as claimed by Mr. McCluskey, resulting in an annual above-market cost of about $26 million, then the perceived economic benefits of the project are not benefits at all, but costs borne by PSNH ratepayers taking Energy Service from PSNH as well as indirectly by New Hampshire’s businesses and households based on the inter-dependencies of the economy.
Stated another way, creating a subsidy for this project or any other, for that matter, doesn’t create wealth for the economy as a whole. It simply transfers wealth. Above market payments for electricity leave the total electricity-using group with less income
6for businesses to invest in other projects or for households to save or spend on products and services.