Electricity prices are about to go up in NH. Here’s why.

Key Points:

• Starting August 1, most New Hampshire residents will face electricity bill increases between $6 and $18 due to newly approved rate hikes by investor-owned utilities and the Community Power Coalition of New Hampshire (CPCNH).
• The rise in supply rates, influenced by global factors such as the Iran conflict and harsh winter weather, reflects higher natural gas prices and a new state-mandated method for utilities to purchase electricity partly on the volatile daily spot market.
• The shift to buying half of electricity on the spot market has led to utilities underestimating costs during extreme conditions, resulting in significant financial shortfalls that are now being passed on to consumers through increased rates.
• Critics argue the spot market approach exposes customers to unpredictable price spikes and accumulates charges that are billed in lump sums, unlike the previous fixed six-month pricing model that spread costs more evenly.
• The CPCNH, despite offering some clean energy options, has struggled to provide cheaper rates than traditional utilities, especially in Unitil and Eversource territories, leading to criticism and member losses.