Decades of Discovery
PSNH's modern history

In 1972, PSNH announced plans for a two-unit 2,300-MW nuclear plant at Seabrook, New Hampshire, to be jointly owned by nine New England utilities, with the lead owner, PSNH, acting as managing agent. But oil embargoes of the 1970s and the subsequent emphasis on energy conservation temporarily reduced electricity sales. In addition, regulatory design changes, inflation, several labor strikes, opposition to nuclear power and subsequent litigation added significantly to the plant's cost. In 1979, the New Hampshire Legislature passed a law prohibiting PSNH from charging its customers for the costs associated with building Seabrook until the plant was providing electricity to customers.

The Seabrook Station nuclear power plant was probably New Hampshire's most controversial building project ever. Eighteen years passed between the date the project was announced and the plant's initial full-power operation.

In April 1984, PSNH temporarily failed to meet its monthly financial obligations to the Seabrook project, forcing a halt to construction for several months. As the fiscal impact deepened, PSNH and other joint owners formed an autonomous division within PSNH (New Hampshire Yankee or NHY) to manage the completion of construction and to operate the plant. In late 1984, the joint owners decided to concentrate their resources on the completion of the 1,150-MW Unit 1; Unit 2 was canceled. PSNH sold some of its Seabrook shares, reducing its ownership to about 36 percent. When Seabrook 1 was finally completed in 1986, it cost $6.6 billion, far more than its original estimated price. PSNH's share was $2.9 billion.

Licensing, safety demonstrations, and startup operations would take another three years to complete. Fuel loading and testing for the plant was started in 1989 and Seabrook didn't begin regular full-power operation until August 1990. Unfortunately, the financial and political difficulties led PSNH to a liquidity crisis in 1984. Various restructuring remedies were tried, but they were insufficient. On January 28, 1988, PSNH filed a voluntary petition for reorganization under Chapter 11.

In March 1988, Northeast Utilities announced its interest in acquiring PSNH. After extensive negotiations, NU reached agreement near the end of 1989. On June 5, 1990 PSNH became a wholly-owned operating subsidiary of NU. Its share of Seabrook Station was transferred to North Atlantic Energy Corporation, a new NU subsidiary.

As the first investor-owned utility company to undergo bankruptcy since the Great Depression, PSNH started the 1990's on its knees, with major debt, increasing rates and a tarnished public image. To counteract this trend PSNH turned to its employees, recognizing that rebuilding public trust would require a dramatic turnaround. Community involvement became central to PSNH's corporate culture and employee volunteers responded to needs throughout the state.

In 1993, PSNH created a new division devoted to meeting the business and economic needs of communities across New Hampshire. PSNH also became a leader in environmental issues. In 1995, PSNH became the first power company in the nation to reduce coal power plant emissions with Selective Catalytic Reduction pollution control equipment. The system, installed at Merrimack station, proved so successful, it helped New Hampshire forgo automobile emissions testing and control required in many states.

Working with the New Hampshire Fish and Game Department, PSNH also constructed a fish ladder called the Amoskeag Fishways to help restore anadromous fish such as Atlantic Salmon and American Shad to the Merrimack River.

In 1998, PSNH became an environmental leader by using sheep to reduce vegetation under power lines. During the five years of the “Grazing Power Project,” the sheep grazed within PSNH transmission rights-of-way, reducing some of the highest growing vegetation under the lines.

With more than 475,000 customers, PSNH is the largest power company in New Hampshire. PSNH's financial health has also returned, and its headquarters was recently moved to PSNH Energy Park, located in the renovated Manchester Steam Plant along the Merrimack River.