RECs
The sale of Renewable Energy Certificates, or RECs, is at the heart of the business strategy for Northern Wood Power at Schiller Station. The system for buying and selling RECs was established to encourage growth of renewable energy in our region. Several states, including Massachusetts and Connecticut, have mandated that energy suppliers purchase a certain amount of their power from renewable sources, commonly known as "green power."

Electric suppliers without sufficient renewable energy sources can meet renewable energy requirements by purchasing RECs. Electricity from Northern Wood Power not only serves the needs of New Hampshire customers, but it also helps electric suppliers in other states meet their regulatory obligations.

RECs are already in high demand, and this emerging market is expected to grow significantly in the future. PSNH estimates that Northern Wood Power generates between 300,000 and 400,000 RECs annually. Proceeds from the sale of RECs have offset the cost of Northern Wood Power's development for PSNH customers.

Supporting New Hampshire's Economy
Through its support of New Hampshire timber companies and New Hampshire-based suppliers, Northern Wood Power adds approximately $20 million to the regional economy each year.

Supporting the Forestry Industry
PSNH purchases approximately 400,000 tons of whole-tree wood chips and other clean, low-grade wood materials each year for Northern Wood Power.

The wood chip market represents more than 35 percent of New Hampshire's forestry industry. In recent years, the market for wood chips and other clean biomass materials has slowed with the closing of smaller, independently owned wood-fired power plants.

But Northern Wood Power opens up a new market for New Hampshire's forest industry. The annual purchase of wood chips alone represents approximately 20 percent of the industry's biomass market-a huge boost for the viability of this important segment of the state's economy.

Diversified Fuel Supply
Staying Competitive
As we all know, the global energy market can be volatile. PSNH is aware of the consequences that political and market instability can have on a region's economy. This is precisely why PSNH has sought to maintain a diversified portfolio of energy sources. Diversifying makes PSNH-and our state-less dependent on any single fuel source for generating electricity.

In recent years, diversification has allowed PSNH to maintain stable, sustainable electric rates. This has not only helped fuel New Hampshire's extraordinary economic growth, it has also helped maintain our state's economy as the strongest in New England.

Adding environmentally sound and highly efficient technologies such as Northern Wood Power helps PSNH provide New Hampshire with a continuing supply of reliable, affordable electric power.