New Hampshire Clean Power Act

When PSNH signed an agreement with New Hampshire and key environmental organizations in November, 2001, New Hampshire became the only state in the union to set emission reduction targets for the four major pollutants created by fossil-fueled power plants: sulfur dioxide (SO2), oxides of nitrogen (NOx), carbon dioxide (CO2) and mercury.

Under the agreement, NOx, SO2 and CO2 from PSNH fossil-fuel power plants will be capped. In the future, mercury emissions will be accurately determined and then capped based on forthcoming regulation and a standard set by the U.S. EPA.

Clearing The Air

Because pollution doesn't respect geographical boundaries it makes sense, that to be most effective, emission reductions must occur over a wide area. It also makes sense to reduce emissions with the most effective and least costly method for utility customers.
To accomplish this, the New Hampshire Clean Power Act employs a method called "Cap & Trade."

Under a cap and trade system, placing "caps" on utilities reduces the overall quantity of emissions in the U.S. A utility may exceed its cap only if it purchases credits from another utility that has reduced more than required.

PSNH expects to meet the requirements of the agreement by continuing to reduce emissions and through the purchase of sulfur emission credits. Based on today's price for such credits, PSNH estimates a cost of about $5 million per year, if enacted today. To help ensure that sulfur emissions will be reduced in New Hampshire, Incentives in the agreement will encourage PSNH to purchase any needed credits from utilities within New Hampshire's air region.

Click for News Release " NH Clean Air Agreement Achieved "

Clean Power Act FAQ