| For Immediate Release February 10, 2011 |
Contact: Communications Director Office of the Governor 603-271-2121 |
Governor Lynch Opposes RGGI Repeal
CONCORD - Saying it will cost ratepayers millions in higher electric costs, Governor John Lynch today urged lawmakers to stop legislation that would withdraw the State of New Hampshire from the Regional Greenhouse Gas Initiative.
The House Science, Technology and Energy Committee today heard testimony on House Bill 519, which would withdraw the state from RGGI and result in New Hampshire ratepayers continuing to pay as much as $6 million in additional electricity rates, while forfeiting more than $12 million of funding annually.
"Withdrawing from RGGI would be a blow to our economy and to our state's efforts to become more energy efficient and energy independent," Governor Lynch wrote to the committee.
According to an independent economic assessment of the program conducted by the University of New Hampshire, the cumulative impact of RGGI through the end of 2010 has been a cost of $11.7 million, and a benefit of $28.2 million in allowance revenue. These are funds that have been invested directly in helping New Hampshire families, businesses and governments reduce their electric use and costs - and to create jobs.
"Through this initiative we have invested significantly to help increase the energy efficiency of homes, public buildings, and businesses. In many cases, these funds help to leverage additional private resources to achieve even greater benefits," Governor Lynch wrote.
A copy of the Governor's letter is below.
February 10, 2011
The Honorable James Garrity, Chairman
House Science, Technology and Energy Committee
Room 304
Legislative Office Building
Concord, NH 03301
Dear Chairman Garrity and Members of the Committee:
I write today in opposition to House Bill 519-FN.
I oppose withdrawing from the Regional Greenhouse Gas Initiative because it will result in New Hampshire consumers paying higher electric costs without receiving any benefits. In effect, this legislation would result in New Hampshire ratepayers paying higher electric rates to subsidize efforts to reduce electric bills for customers in other Northeast states.
Withdrawing from RGGI would have real costs for New Hampshire. Because we are part of a regional electricity system, electric rates would not fall to prior levels if New Hampshire unilaterally withdraws from the Initiative. Our ratepayers would continue to pay as much as $6 million in additional electricity rates. However, while we would still be assessed those costs, we would lose more than $12 million of funding annually. According to an independent assessment of the program conducted by the University of New Hampshire, the cumulative impact of RGGI through the end of 2010 has been a cost of $11.7 million, and a benefit of $28.2 million in allowance revenue. These are funds that have been invested directly in helping our families, businesses and governments reduce their electric use and costs - and create jobs.
Through this initiative we have invested significantly to help increase the energy efficiency of homes, public buildings, and businesses. In many cases, these funds help to leverage additional private resources to achieve even greater benefits. This investment has saved homeowners money on their utility bills, saved taxpayers money, and helped to make New Hampshire businesses more competitive. In 2009 alone, our investments are expected to result in an annual energy savings of $4.2 million, which would save our citizens and businesses more than $60 million over the next twenty years.
Withdrawing from RGGI would be a blow to our economy and to our state's efforts to become more energy efficient and energy independent. The green companies and green jobs that are have been created to meet the demand for energy efficiency projects are a vital part of our economy, and I urge you to vote this bill "Inexpedient to Legislate" so that we can continue the progress we have made.
Thank you for your time and consideration.
Sincerely,
John H. Lynch
Governor