The Board of Selectmen’s first March meeting saw the issue of community power come up following a report putting the Eversource rates lower than the expected Community Power Coalition of NH (CPCNH) rates over the next few months. The CPCNH also required the Selectmen to name a new Principal Executive Officer (PEO) for Hudson.
“It’s been a while since I’ve done an update, there’s a lot going on,” reported Hudson Sustainability Committee member and CPCNH Director Craig Putnam. “The PEO is the person named by the town’s legislative body, by you folks, who is empowered to make certain decisions regarding Hudson Community Power. Specifically, they determine the choice of the rate for the default plan.”
Currently, Hudson defaults to the cheapest Granite Basic plan for community power users, the plan used almost by almost every participating resident. PEOs can also apply for Discretionary Reserve adders, optional fees to build funds used to invest in the development of new energy projects or customer programs. Hudson has not set up such a Discretionary Reserve. Former Town Administrator Steve Malizia was the old PEO.
Without much debate, newly appointed Town Administrator Roy Sorenson was appointed PEO.
The recent rate increase was seen as the more pressing issue.
“The utility companies and CPCNH have rate periods that run from Feb. 1 to the end of July and Aug. 1 through the end of January, so we’re just in the beginnings of the winter-spring-early summer rate period,” explained Putnam. “CPCNH had set a rate of 8.9 cents per kilowatt hour for this rate period. It has become necessary for CPCNH to adjust that rate; they’re required to cover its costs.”
The new listed rate is 9.7 cents per kilowatt hour for the remainder of the rate period, putting it higher than the Eversource rate of 8.929 cents per kilowatt hour, making it lower than the CPCNH rate for the first time since Hudson joined Community Power. Looking at the rate history since Community Power came into effect, Putnam noted a general downward trend in supply rates due to “increased competition. He claimed that Hudson residents using Community Power saved a combined total of $475,000 compared to residents using Eversource, though that number was expected to erode with the new rates.
“What are the chances the rates are going to go down again after July?” asked Selectman Kara Roy.
Putnam could not definitively say, arguing there “were many factors” impacting rates, including weather.
“What are we going to do to inform all of the customers?” asked School Board Liaison Gary Gasdia, who was told the rates are available on the town website. “What happened in the past is irrelevant, the whole idea of this was ‘we’re going to give you the lowest rate.’”
He was critical of the sudden rate increase and wanted a more effective way to keep residents up-to-date, and Selectman David Morin worried there was a lack of transparency regarding CPCNH financials and wondered whether the statewide Community Power organization had a deficit. Putnam denied there was a deficit, but stated that he was unable to disclose all requested information to the Board of Selectmen related to costs versus income. Morin pledged to make a Right-to-Know request to get more accurate numbers from CPCNH.
“If we can get it as a Right-to-Know, why can’t we get it today?” asked Selectman Heidi Jakoby. “Whenever somebody says you can get it in a Right-to-Know, that means it’s public information, period.”
Putnam claimed the CPCNH preferred to have their staff respond to financial questions rather than Directors.
“The way this is being presented tonight, it’s almost like it’s not entirely 100% factual. You’re not lying, but you’re trying to put a good spin on this,” said Selectman Chair Bob Guessferd. “People care about what they’re paying now and what they’re going to be paying for the next five months.”
The Chair worried that people could drop their Community Power plans, both in Hudson and in other municipalities, if rates remain higher than Eversource.
“The bottom line is this is a reflection not just on CPCNH, but a reflection on us. What we told our citizens is that you were going to save money,” said Guessferd. “That is the way it was presented and now it’s a little different. I get it, and hopefully it’s only for a short period of time.”
