It is possible to lower the cost of electricity while increasing the amount of renewable energy sources. Community power initiatives in the Monadnock region and elsewhere in New Hampshire have proven this. They have consistently been able to purchase electricity with a higher percentage of renewable energy at lower rates than the utilities.

That doesn't mean your electric bill will always be lower, however. Buying electricity in bulk is only half the equation. Delivery of that electricity is the other half, and community power initiatives have no influence over that cost. Depending on the rate period, supply rates can be less than half of those for delivery.

Delivery expenses are likely to rise over the next few years. To understand why, you need to know how electricity costs are passed on to consumers. My Eversource bill breaks down the fees by supplier and delivery. The supplier side is the charge for the electricity from its source. For most Peterborough residents and many others in the region, that will be Community Power Coalition of New Hampshire (CPCNH). For me, it's Eversource because I have solar panels with a net-metering plan, which I cannot keep by moving to CPCNH at this time because Eversource is contesting it.

CPCNH, Eversource or a third-party provider acts as a broker and purchases electricity directly from a variety of sources. Only Eversource, though, has the infrastructure to transmit that electricity to homes, businesses and municipal buildings. This includes power stations, transformers and the power lines, and together they make up the delivery side of your bill.

Eversource makes most of its revenue and profit from the delivery of electricity and not as an energy broker. According to the company's 2023 annual report, its net income from electric transmission was $634.4 million. The total operating revenue Eversource received from electric transmission last year was roughly $1.9 billion.

Operating expenses related to transmission (not counting depreciation or amortization) were nearly $1 billion, by far Eversource's biggest single expense item. Equipment and line maintenance, storm preparation and the IT systems that manage the infrastructure are some of the more-significant operating expense items.

Here's why delivery costs are likely to rise soon. The New Hampshire Public Utilities Commission (NHPUC) regulates what Eversource can charge on the delivery side. The company recently submitted a request to raise its annual distribution rate by $182 million. Eversource is also requesting a performance-based ratemaking plan that would "accomplish several objectives in the public interest, including providing critical support for capital investment made to maintain the reliability and resiliency of the distribution system and stabilizing rates for customers over an extended term rather than experiencing larger rate changes at a single point in time."

Those old enough might remember the Construction Work in Progress fee associated with the construction of the Seabrook nuclear power plant in the 1970s. This PBR is similar, and Eversource says it plans to use the funds to provide customer benefits such as improved grid reliability and eventually lowering the cost to deliver electricity.

If the NHPUC approves the proposal, it would be implemented in stages starting on Aug. 1, with the second phase starting Aug. 1, 2025. Eversource estimates that its proposal would increase the electric bill of a residential customer using 600KWh per month by $9, or 7%, for the first phase and $13 (10%) for the second phase.

New Hampshire's consumer advocate Donald E. Kreis pointed out in an InDepthNH.org column on June 13 that the distribution rate increase request would raise distribution charges by 42%, but noted that this is the first increase Eversource has requested in five years.

Kreis was more positive but still skeptical about the PBR request. Under the PBR, the NHPUC would set new higher or lower distribution rates depending on how well Eversource meets customer service benchmarks such as grid reliability, customer satisfaction, interconnection of solar panels for net metering and programs that reward customers for using less electricity at peak times. How much the PBR benefits Eversource customers depends on how well it's implemented.

Eversource has also made a request to the NHPUC to allow them to move $6.5 million in supply costs associated with large commercial customers to stranded costs. This essentially means that Eversource has under-collected that amount from its larger customers and is seeking to pass that loss along to all its customers – both residential and commercial.

The NHPUC has not yet approved either of Eversource's requests, but it's safest to assume that an increase in electricity delivery fees is coming. When you do see your electric bill jump, take a moment to compare the line items to your previous bill to see exactly where that increase was made.

Michael Nadeau is a member of the Community Power Committee.