New Hampshire Clean Power Act - Frequently Asked Questions

What is the Clean Power Act agreement?
On November 6, 2001, PSNH, the State of New Hampshire and key statewide environmental organizations announced an historic agreement which sets emission reduction targets for sulfur dioxide (SO2), nitrogen oxides (NOx), carbon dioxide (CO2) and mercury.

Why is this agreement historic?
No other state in the nation has achieved a comprehensive agreement which addresses the reduction of all four of these major pollutants.

How are the pollution emissions targeted?
Under the agreement, emissions of SO2, NOx and CO2 from PSNH fossil-fuel power plants will be capped at specific levels. The emissions of Mercury from PSNH power plants will be accurately determined and then capped based on a forthcoming regulation and standard set by the U.S. EPA.

Will New Hampshire’s air be cleaner as a result of this agreement?
Yes. PSNH has already successfully and significantly reduced its emissions of SO2 and NOx. PSNH will achieve the agreement’s requirements through continued reduction of its own emissions or through the purchase of emission "credits" from utilities which can achieve more economical emission reductions.

How does a "cap and trade" system ensure that New Hampshire’s air is cleaner?
Cap and trade systems are already successfully used around the country, to reduce the emission of SO2 and NOx. Pollution does not respect geographical boundaries. Under a cap and trade system, the overall quantity of emissions is reduced through limited "caps" placed on utilities. A utility may exceeds its cap only if it purchases credits from another utility which has reduced more than required. Incentives in the agreement will encourage PSNH to purchase any needed credits from utilities within New Hampshire’s air region.

What will this agreement cost?
PSNH expects to meet the requirements of the agreement through a combination of emission reductions and the purchase of sulfur emission credits. Based on today’s price for such credits, PSNH estimates a cost of about $5 million per year.