The proposal for the natural gas pipeline installation of Liberty Utilities

The proposal for the natural pipeline installation of Liberty Utilities finds a 30% increase in cost to adapt to environmental concerns

LONDONDERRY - Liberty Utilities presented a new economic analysis of its Granite Bridge project on Friday, but it is the lowest cost option to expand natural gas in the region.

The Public Utilities Commission had delayed its review of the 27-mile underground project along Route 101 so that the company could complete this update in its estimate of construction costs and economic forecasts.

The plan calls for the construction of a new gas pipeline that carries liquefied natural gas (LNG) from Stratham to Manchester with a plant to store gas in Epping.

Company officials on Friday underscored their claim that buying gas in the summer and storing it at Epping would lead to significant savings for Liberty customers who buy gas during the winter months, when it tends to be more expensive.

"After more than a year of extensive development work, Granite Bridge remains the most economical and least disruptive way to meet the natural gas needs of New Hampshire customers," said Susan Fleck, president of Liberty Utilities.

"With all the market volatility we have seen in recent years, LNG would provide a considerable benefit to our customers. We looked at our actual purchases of natural gas over the past five years and calculated that if the Granite Bridge LNG facilities had been in service during that time, our customers would have enjoyed more than $ 120 million in savings in their natural gas costs. "

During their review, the executives of the utilities have made changes in the design of the pipeline, moving part of their route to avoid environmentally sensitive areas.

This latest report argues that the changes increased the cost of construction by 30 percent, officials said.

Savings in energy purchases should allow Liberty Utilities to maintain its previous forecast that construction of the pipeline would increase the average customer's bill by approximately $ 2 per month.

The so-called Customer Benefits Guarantee requires efficiencies and these savings would be used to reduce the initial capital cost for Liberty customers.

"Granite Bridge is a long-term solution to New Hampshire's energy needs." We are committed to helping residents and businesses in the area take advantage of clean, low-cost natural gas through the efficient management of our resources. " Fleck said, "The Customer Benefit Guarantee is simply another proof of Liberty Utilities' commitment to providing supply stability and cost to our customers."

The project has attracted strong support from business groups and organized workers, but many environmentalists argue that Liberty Utilities has aggressively made moves in the energy market to create more demand in the natural gas state.

The consumer advocate of the PUC had asked for more transparency in the company's finances and warned that this project could lead to a significant increase in the rate base that is passed on to customers.

Last week, the city of Epping overwhelmingly approved a non-binding resolution at its municipal meeting to compel the utility to seek local approval of the storage facility site.

Currently, the project only requires state approval of the PUC for its finances and then the review of the State Site Assessment Committee.

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