A biomass power plant in Berlin has filed for Chapter 11 bankruptcy and terminated its contract to sell power to Eversource, after a years-long controversy over the cost of its electricity.
Eversource, New Hampshire’s largest utility company, is rejecting the company’s termination of their contract, and the company says it will pursue mediation.
Burgess BioPower, which owns the plant, has been selling electricity to Eversource since 2011. The biomass plant generates power by burning low-grade wood. Much of that power has been more expensive than the market rate, and that cost has been borne by ratepayers.
The impact of Burgess’s over-market costs on Granite Staters’ electric bills has been a sticking point for many, including the state’s ratepayer advocate. But the plant has supporters, especially in the North Country. Former Berlin Mayor Paul Grenier said the plant was a “vital” part of the city’s economy –— and the health of Coos County more broadly.
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A report paid for by Burgess BioPower but prepared independently found that Burgess supported 240 jobs, and had an annual economic benefit to New Hampshire of more than $43 million. The 2019 report found if Burgess closed, more than 100 people in the forest and wood products industries would lose jobs. The plant provides a market for low-grade forest products, which are not usually used elsewhere.
But in the years Burgess has been selling power to Eversource, biomass plants have struggled across New England. The impact of burning wood for power has received scrutiny from those concerned about climate change and the health of nearby communities. And economics, for Burgess, remained an issue.
The contract between Burgess and Eversource set a limit of $100 million in over-market costs, or the accumulated extra cost of Burgess’s power if it was above the market rate.
Lawmakers suspended that limit multiple times. But last year, Gov. Chris Sununu vetoed a bill that would have given Burgess BioPower a financial lift by relieving it of the responsibility to pay back the over-market costs it accrued over the $100 million cap, about $71 million.
At the time, Burgess BioPower spokesperson Sarah Boone said the veto created a “serious financial event” for the company, and for the northern New Hampshire economy.
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Now, Burgess says it’s terminating its contract with Eversource because of the utility’s “failure to make required payments” to the company.
That’s a claim Eversource disputes, saying they started “reducing payments” to Burgess to recover the $71 million in over-market costs they’ve paid to Burgess over the past three years. That reduction in payments is part of the requirements of their contract.
“Eversource is not in default of the contract and rejects Burgess’ unilateral termination of the Power Purchase Agreement (PPA), as well as any claims that our adherence to the terms of the contract forced its bankruptcy,” spokesperson William Hinkle said in a statement.
Burgess disputes that Eversource is allowed to reduce particular kinds of payments, like those for Renewable Energy Certificates, in order to collect back over-market costs.
Hinkle said the utility will pursue mediation and alternative dispute resolution processes to collect that $71 million. Eversource does not profit off of their contract with Burgess, he said, and savings from reduced payments go to utility customers through a decrease in a part of their bill called the Stranded Cost Recovery Charge. Burgess’s announcement that it is terminating the contract will not have an impact on electricity service.
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Burgess says it will continue producing power throughout the bankruptcy process. According to company representative Sarah Boone, with court approval, they could sell their power into the region’s wholesale market or to another party.
The company says employees at their Berlin facility won’t be affected by the bankruptcy process, and they intend to reorganize in order to “best position the Company for long-term success.”
CONCORD, NH — Here are the Top 10 most popular stories and posts from around New Hampshire Patch sites last week.
Concord Police Investigating The Death Of A Young Child In The City’s South End Neighborhood: Update: Dakin Street was closed to traffic for several hours during an investigation of a child found dead at a duplex on Friday morning.
Facebook Marketplace Cleaning Services Hire Or Sex Sale Gone Bad Leads To Stabbing In Manchester: Court docs: Frank Miller of Manchester and Kendra Gokey, a homeless woman, were arrested on first-degree assault and other charges Sunday.
Man Shot During Dispute On South State Street In Downtown Concord: Video: Breaking: A man was shot in the leg Saturday during a dispute; cops have South State Street from Thompson to Concord closed to traffic.
Fast Food Chain Closing Locations | Queen City Killing | Meth Distributor Pleads Guilty | More: Nearby News: Also: Best sandwich shop in NH; untimely death; crashes; knife attack indictments; firefighter injured in explosion released from hospital.
After The Snow Sunday And Monday, More Is Coming To New Hampshire, Forecasters Say: After the storm that is expected to bring 8 to 12 inches of snow to the state, more snowstorm fronts are expected to arrive this week.
6 To 15 Inches Of Snow Heading To The Granite State Sunday Night; Wind Gusts Up To 45 mph: Forecasters: Heavy, blinding snow is expected in central and southern New Hampshire, as well as the Seacoast, from Sunday night to Monday morning.
National Fast Food Chain To Close Hundreds Of Restaurants; New Hampshire Locations May Be Impacted: The chain that closed hundreds of locations in 2024 expects to shutter approximately 360 nationwide during the first half of 2026.
Police Arrest Man On Felony Charges After South State Street Shooting In Downtown Concord: Follow-Up: David Anziani faces first-degree and second-degree assault, reckless conduct, and felonious firearm charges after a shooting on Saturday.
Hollis Teen Faces Assault Charge, Accused Of An ‘Unprovoked’ Attack In Downtown Nashua In November: Connor Cook was arrested in late December after being accused of punching another man in the face on Main Street and then fleeing the scene.
How Much Income Is Needed To Be Considered ‘Rich’ In New Hampshire?: A new analysis details the annual household income required to be considered among the top 10 percent of earners in the Granite State.
Here are some other posts readers may have missed:
Child Death Investigation | Queen City Tax Cap Fight | Fun Things To Do This Weekend | More: PM Patch NH
CONCORD, N.H. – New Hampshire lawmakers have moved to reject a Republican-backed proposal to launch an impeachment inquiry into the lone Democrat on the state’s five-member Executive Council.
On Friday, a key committee of lawmakers delivered a unanimous 17-0 vote against an impeachment inquiry into Executive Councilor Karen Liot Hill of Lebanon, N.H.
The vote on House Resolution 41 followed an abbreviated public hearing, after the bill’s sponsor withdrew his support for the proposal and instead asked lawmakers on the committee to recommend killing it.
The push for Liot Hill’s impeachment was led by Representative Joe Sweeney, a Salem Republican and the deputy majority leader in the New Hampshire House.
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At issue were several emails Liot Hill had sent from her official account to help a partisan law firm identify voters impacted by a new state law. The law tightened voter ID requirements for absentee ballots.
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Sweeney had previously called Liot Hill’s correspondence “political lawfare run out of a taxpayer-funded inbox.” In December, a review by the New Hampshire Attorney General’s Office found that Liot Hill’s conduct was not illegal and did not constitute a misuse of office, clearing the complaint against her.
Reached by the Globe on Friday, Sweeney, who was not present at the public hearing, said in a statement he preferred to let voters decide whether Liot Hill should continue to serve in the upcoming November election.
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“After reviewing the matter and hearing the discussion, I believe the appropriate course is to move forward and allow the voters and the political process to do their work,” he said.
“The purpose of filing the resolution was to ensure that the constitutional questions raised were addressed seriously and transparently,” he said, noting that he stands by the process and the decision to recommend killing the resolution.
In an interview, Liot Hill said she was pleased with the unanimous vote from the House Judiciary Committee.
“The committee vote, I think, sends the message that there was no merit to this,” she said.
The proposal now heads to the full House of Representatives, which has the power to approve the committee’s recommendation to reject it.
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Amanda Gokee can be reached at amanda.gokee@globe.com. Follow her @amanda_gokee.
