MANCHESTER, N.H., April 11, 2012—State regulators have approved a temporary rate increase to Public Service of New Hampshire’s energy charge to begin recovering costs associated with PSNH’s Clean Air Project.  The increase of about four-tenths of a cent per kilowatt hour will begin April 16 and will result in a monthly bill increase of about 2.5 percent for a PSNH Residential customer.

The rate adjustment is temporary, while regulators consider how to implement cost recovery of the $422 million Clean Air Project, or “scrubber.”  The construction of the scrubber was mandated in 2006 by the Legislature in order to reduce emissions of mercury and sulfur dioxide at PSNH’s Merrimack Station power plant in Bow, NH.  A decision on a permanent rate adjustment will likely be made later this year.

A recent progress report noted that the scrubber is exceeding the legislative requirement. Tests conducted earlier this year indicate a 97 – 98 percent reduction of mercury emissions. Continuous monitoring of sulfur dioxide emissions shows a 96 – 98 percent reduction of SO2.

As a result of the temporary rate adjustment, PSNH’s Energy Charge will increase to 8.75 cents per kilowatt hour from the current 8.31 cents/kWh.  A monthly bill of a PSNH Residential customer consuming 500 kWh/month will increase $2.20 to $89.06.