Economic Benefits

This project will strengthen the region’s energy supply and benefit the local economy by:

Lowering energy costs in the region and the state

According to a report by Charles River Associates, energy from the project will displace higher priced fossil-fuel generation, and will result in more than $200 million in annual savings to New England electricity consumers when the line is first operational, and more than $325 million in the year 2024—including a cost reduction in New Hampshire of $25 to $30 million a year.
In addition to these overall savings to New Hampshire and the New England region, PSNH is negotiating a Power Purchase Agreement (PPA) with Hydro Renewable Energy Inc. (a U.S. corporation that is owned by Hydro-Québec) to directly purchase a specific portion of the energy at an economic price so that New Hampshire customers can receive more benefits as a result of this project. The details of the PPA will be made public once it is finalized.

Providing economic clean energy—without a government subsidy

This will be one of the few—if not the only—renewable energy projects in the region that does not need a government subsidy to move forward. Hydro-Québec can generate and sell the power to us at prices that will compete with the average market prices that are being set today by fossil fuel power plants.

Generating over $25 million in new property taxes that will benefit the state and many New Hampshire counties and communities that are struggling today to provide basic services

View the estimated tax impact by town.
The tax investments from this project will not require communities to add additional services (e.g., schools, improved roads, water, and sewer services).
Every mile of line from The Northern Pass will result in about $2.5 million added property tax to the base. Based on the preliminary route we have proposed, these investments will be substantial for many communities, increasing the local tax base by up to 60 percent.

Providing economic benefits to the New Hampshire economy that come from a construction project of this size and duration

New Hampshire’s economic output will increase by $259-$316 million during the development and construction phases of the project. View the entire economic impact report.
Many New Hampshire residents, businesses, and workers will benefit from the project’s purchase of construction materials (such as gravel and concrete), the spending power of those employed by the project, and use of local goods and services during the three-year construction period.

Creating more than 1,200 total jobs over a three year construction process, many of them in construction trades and supplier industries

A significant number of new jobs will be created as a result of The Northern Pass construction. This updated economic study breaks down the jobs by region, within New Hampshire.
Northern Pass is committed to hiring local labor first.
Northern Pass Transmission is developing a labor agreement with the NH Building and Trades Association, which will provide employment certainty for workers and will apply to both represented and non-represented employees.

Resulting in no increase to the transmission charge on electric customers’ bills

Northern Pass Transmission will bear the entire cost to build, operate, and maintain The Northern Pass transmission line.
HQ Hydro Renewable will pay Northern Pass Transmission to use the facilities over the 40-year term of the project’s Transmission Service Agreement.
HQ Hydro Renewable will have to recover its costs through competitive sales of power to willing buyers.
This is different from other New England transmission projects that are done to primarily improve the reliability of the electric grid and whose costs are shared by all New England electric consumers.
All of the transmission lines and facilities in New Hampshire will be owned by Northern Pass Transmission LLC—a New Hampshire company that is owned by New England-based Northeast Utilities and NSTAR. These facilities will be operated by ISO-New England, the independent operator of New England’s power grid.