CONCORD — Gov. Chris Sununu and legislative leaders announced plans to devote $100 million in state surplus and federal grants to help families cover soaring electricity costs this summer.
The cornerstone of the proposal calls for spending $60 million in surplus funds to give nearly all ratepayers in the state a one-time $100 credit on their power bills between September and December.
The credit, which will apply to 600,000 ratepayers, requires legislative approval.
Sununu said the Legislature could meet to approve this use of state surplus money when lawmakers return to take up bills the governor vetoed.
“We want people to know and plan ahead to deal with this,” Sununu said.
The announcement came Wednesday as President Joe Biden called on Congress to approve a three-month suspension of the federal gasoline tax. For several months, U.S. Sen. Maggie Hassan, D-N.H., has been promoting her legislation to do that.
House Speaker Sherman Packard, R-Londonderry, and Senate President Chuck Morse, R-Salem, endorsed the governor’s plan.
“We were trying to think of ways to get the Legislature to come back and help citizens deal with and survive the energy crunch coming at them,” said Morse, a Republican candidate for U.S. Senate.
“I think lawmakers are going to show the public that the New Hampshire government is sending them back tax dollars to help them get through this.”
Packard said the state has a record budget surplus and can afford to make this investment.
“We will make damn sure we take care of our citizens, and hopefully we send people to Washington that will stand up to this madness,” Packard said.
More help proposed
Two of the state’s largest utilities, Eversource and Liberty Utilities, have already requested a doubling of the monthly energy cost charge that they pass on to consumers.
The request will translate to a nearly 50% increase in an average residential customer’s bill, officials said.
Sununu said he has spoken with chief executives of the state’s four main electric power companies, who have pledged to cooperate in building this proposed $100 credit into the monthly bills of ratepayers.
Other features of Sununu’s energy plan are:
• Summer energy assistance: For the first time, the state is using $7.5 million in leftover federal Low Income Heating Assistance Program (LIHEAP) dollars to give grants to eligible families dealing with higher electricity costs during the summer.
• Energy Assistance Program: Sununu is seeking approval to use $7 million of state surplus to add to this $28 million program, which discounts energy costs for those getting LIHEAP assistance. Sununu said without this infusion of extra money, the program would run out of money because of higher costs.
• Doubling of winter LIHEAP: The state used federal American Rescue Plan Act grant money to give LIHEAP assistance last winter. This means that next winter the LIHEAP program will have twice as much money as it typically does..
Sununu said the state also will begin the LIHEAP program in November, a month earlier than usual, to help families prepare for higher costs to heat their homes.
The governor said eligibility for LIHEAP assistance can’t be expanded. New Hampshire already goes to the federal limit, making it available for those who earn up to 60% of the median household income — roughly $75,000 a year for a family of four.
Sununu’s Democratic opponent, Sen. Tom Sherman, D-Rye, and other critics said energy prices here would be lower if Sununu hadn’t vetoed several bills over the past few years to expand the use of renewable power.
“This is Republican Governing 101. Veto/Oppose every bit of legislation over the last six years that could have avoided this or lowered rates, then after the problem explodes, just do a one-time Band-Aid that doesn’t even come close to covering the difference or solving the problem,” said state Rep. Timothy Smith, D-Manchester, after Sununu’s news conference.
Sununu said those Democratic bills would have raised the state’s energy costs, especially in the short term.
“That is insanity. That is absolutely crazy talk. We saved hundreds of millions of dollars for ratepayers by vetoing that legislation,” Sununu said. “It was the right thing to do, not for Chris Sununu, but for the ratepayers of New Hampshire.”
A Democratic Party spokesperson said GOP leaders are trying to take credit for using surplus the state only has due to record amounts of federal relief.
“Chris Sununu and Chuck Morse are once again trying to take credit for the federal funds our delegation delivered while at the same time pushing the agenda of their big oil and gas allies,” said Democratic spokesperson Gates MacPherson.
The delegation put out a statement, urging Sununu to come up with other plans to help consumers.
“We are encouraged that the resources we’ve secured have helped the state have funds on hand to respond to rising energy costs and that the state is moving forward with direct relief. The state needs to continue to explore additional ways to leverage remaining federal relief funds to support Granite Staters,” the statement said.
Sununu said he wished community opposition had not sunk the proposed Northern Pass project to bring hydroelectric power from Canada through New Hampshire.
“We could really use that now,” Sununu said.
Over time, the country needs to “transition” off fossil fuels, but the Biden administration caused this hyperinflation of energy prices by trying to do it all at once, Sununu said.
