Eversource Energy and Hydro-Québec on March 31 reaffirmed their "mutual and strong commitment" to the Northern Pass transmission project, following the rejection by the New Hampshire Public Utilities Commission of a related proposed 20-year power purchase agreement.
Eversource attempted to enter into a contract to resell 100 MW from Hydro-Québec in New England. However, the regulators rejected the proposal March 27 on the basis it will violate the state's laws.
"We are both committed to Northern Pass as part of the solution to New England's energy challenges, and look forward to a successful outcome in the final stages of state and federal permitting in 2017," EverSource President and CEO Jim Judge said in a March 31 news release.
Both companies pledged to look for alternatives to fund the line in the future, noting several states in New England are proposing their own solutions to pay for new transmission projects that can supply energy capable of helping them meet climate-related and energy diversity goals.
Eversource subsidiary Northern Pass Transmission LLC is developing the transmission project to interconnect the New England wholesale market with Hydro-Québec's system and allow the delivery of 1,090 MW of hydropower. The proposal initially aimed to recover the costs of the project through future revenues that Hydro-Québec would receive from the delivery of energy into the New England market.
According to Hydro-Québec, when Massachusetts solicits proposals for large quantities of clean energy this spring, Northern Pass Transmission may have an opportunity to recover costs from distribution companies who purchase its clean energy. If Northern Pass is selected, the transmission services agreement will be amended to reflect the outcomes of Massachusetts solicitation.