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SEC Joint Agency Hearing Belknap County

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Mill Falls at the Lake, Church Landing 281 Daniel Webster Highway

Meredith, NH March 1, 2016

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ENERGY COSTS FORWARD NH FUND

NH TAX BENEFITS

NH JOBS & ECONOMIC BENEFITS

~ THE NORTHERN PAss·

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8 CLEAN ENERGY &

NATURAL RESOURCES

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Energy Challenge

Non Gas-Fired Plants Closing

4,200 MW have retired or will retire in less than 5 years

¥ Closed or retiring

T At risk of retiring

Vermont f-'nbe ~ 604MW ' 1i

Mt. Tom ~-149MW T

Wnt Sprlncfteld'

Mlddletown f i +me ~ . I B

Norwallci ~ T' I New Haw- 1l53

Salem Harbor 749MW

forwa~plan Heavy Reliance on Natural Gas

100%

80%

60%

40%

20%

0% 2000 2015

• Oil Coal

• Natural Gas • Nuclear

•Hydro and Other Renewables • Pumped Storage

342 MW1 1;9 --. ~Bridgeport 400MW Source: ISO-New England 3

Diminishing Supply = Higher Prices forwa~plan

12 Incentive Payouts to Generators

10 $48

~ 8 -$38 - -- --- , ___ --$-38--

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' Total capacity market cost: $1 B ........ ~ 4

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0 2012 2013 2014 2015 2016 2017 2018 2019

Value of Incentive Payouts 4

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Matching Energy Supply to Demand

Energy Market

Cost

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Generation _,,. Cost ....._.

Internal Combustion Units StD~e

llablrat Gas

Large Scale Hydro

Nuclear

Renewables (including Small Hydro)

Energy Supply

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Customers' Energy Demand

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Clean Energy RFP (3 State) forwa~plan

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• CT, MA & RI seeking projects to increase supply of clean energy

• Northern Pass project bid identical to SEC project application

• Bid well-positioned to help lower prices and meet clean energy goals

- HQ commits to firm delivery of clean energy when customers need it at market prices

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Project Relationship

• NPT constructs, finances and owns transmission line

• NPT provides transmission service to HQ

Transmission Service

Agreement

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• HQ compensates NPT for costs and return on investment

• HQ recovers its costs through sales to New England market

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New Hampshire Economic and Environmental Benefits forwa~plan

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LOWER ENERGY COST

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8 NH JOBS &

ECONOMIC BENEFITS

e CLEAN ENERGY &

NATURAL RESOURCES

- $80 million a year - lower energy costs

- $200 million - economic development, tourism, community betterment, and clean energy initiatives

- $30 million annually in property taxes

- 2,600 construction jobs

- North Country Job Creation Fund

- $2.2 billion increase in NH GDP

- Carbon emissions reduced by about 3 million tons a year

- Partners for NH Fish and Wildlife program

- Mixed use of 5,000 acres in North Country

- Grid upgrades to improve North Country electric system and unlock up to 100 MW of existing small scale renewable energy

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