Western Massachusetts Electric 8-K Results of Operations and Financial Condition

When we conceived this project, we initially wanted to run it all the way to Newington, hop in the water, and proceed down to Boston. We quickly realized that would make this just another expensive Transmission line looking to be funded by the region, or even the nation. Instead, we realized if  we packaged the ‘asset’ of  HQ’s low cost non-carbon emitting generation with reasonable Transmission costs, we’d have an economically viable project.

To the New England electric system, this line  and terminal will look like a 1200 MW generator. Like any generator, we looked at the expected Transmission build-out, and at that time we believed new 345 lines from Deerfield-Webster-Coolidge and Scobie –Tewksbury were necessary for reliability issues. As the recession has arrived and grown, ISO’s willingness to approve any new reliability projects has shrunk, and  we’ve watched re-study and delay  creep into these  processes. Our current (7/13)  assessment is that we will see Scobie to Tewksbury approved and in the Regional System plan by the end of the year. We think a 345 kV from Deerfield to Webster for reliability is a “40/60” proposition right now.  

We have contingency plans in place, with associated cost estimates, for these situation.  Our current assessment is that the HVDC project should build a dedicated 345 kV line from Webster to Deerfield, adding a little less than $100 M to the cost,  making an $800 M project a $900 M project. The PPA teams are using $900 as a ‘placeholder’ right now, even though our forecast still has $800 M in it.  The Webster to Coolidge economics and siting logistics probably say the HVDC project will not pay for this line.  Analysis is underway by our team and by HQ-US to assess the ‘deliverability’ of 1200 MW with the Webster terminal and an AC extension from Webster to Deerfield, versus other options.      

Pre-siting work is underway, we’ve identified Anne Bartosewicz as our a Project Director, and we’re working with the New Hampshire team to refine our communications, and to coordinate our Northern Loop messages with any HVDC activity.  

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 Marketplace test required for DG up to 5 Mw in NH

The evolving New Hampshire political environment, regarding future opportunities for large-scale renewables (e.g. biomass and wind)

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 Marketplace test required for DG up to 5 Mw in NH

The evolving New Hampshire political environment, regarding future opportunities for large-scale renewables (e.g. biomass and wind)

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