8-KOther Events

EVERSOURCE ENERGY 8-K Report, Corporate Update (Nov 18, 2005)

Filed November 18, 2005For Securities:ES

Summary

Eversource Energy (ES), through its subsidiary Public Service Company of New Hampshire (PSNH), has entered into an agreement to support new legislation aimed at significantly reducing mercury emissions from its coal-fired power plants. The proposed legislation, developed in conjunction with New Hampshire state officials and environmental groups, mandates an aggregate reduction of at least 80 percent in mercury emissions from Merrimack Station and Schiller Station by July 1, 2013. This initiative involves the installation of wet scrubber technology at Merrimack Station, with an estimated cost of up to $250 million, with major expenditures anticipated in 2011 and 2012. Investors should note that while this represents a substantial environmental undertaking and capital investment, PSNH believes that these costs will be fully recoverable through customer rates. Furthermore, the project is expected to generate significant sulfur dioxide (SO2) emission reductions, potentially offsetting some of the costs through reduced SO2 emissions credit purchases. Current capital expenditure projections for 2006-2010 remain unchanged.

Key Highlights

  • 1PSNH to support legislation mandating at least 80% mercury emission reduction from Merrimack and Schiller coal-fired power plants by July 1, 2013.
  • 2Installation of wet scrubber technology at Merrimack Station required, with an estimated cost of up to $250 million.
  • 3Major construction expenditures for scrubbers projected for 2011 and 2012.
  • 4PSNH expects to fully recover the costs associated with the mercury reduction project through customer rates, subject to regulatory approval.
  • 5The project is anticipated to yield sulfur dioxide (SO2) emission reductions, which may offset costs through reduced SO2 emissions credit purchases.
  • 6Current capital expenditure projections for 2006-2010 are not affected by this agreement.
  • 7The agreement is a collaborative effort involving PSNH, New Hampshire state legislators, energy and environmental officials, and environmental groups.

Frequently Asked Questions

The primary purpose is to support proposed New Hampshire legislation that requires PSNH to significantly reduce mercury emissions from its Merrimack Station and Schiller Station coal-fired power plants by at least 80 percent by July 1, 2013, through the installation of wet scrubber technology.

The estimated cost for installing the wet scrubber technology at Merrimack Station is up to $250 million. Major construction expenditures are anticipated in 2011 and 2012.

PSNH believes that, if the legislation is enacted and regulatory approvals are obtained, the costs associated with the scrubber project will be fully recoverable through customer rates, including a return on investment.

Yes, the project is expected to result in substantial reductions in sulfur dioxide (SO2) emissions, which could offset the company's need to purchase SO2 emissions credits, thereby mitigating overall customer costs.