Community Power
Giving Hanover Citizens Choice on Their Power Source
What is Community Power?
Community Power is a way to purchase electric power that is more renewable and/or less expensive than that offered by regulated utilities, while also providing the community with control.
Status Quo. Until May 2023, most of us in Hanover bought our electricity from Liberty Utilities at its set rate.* The law allowed us to buy from another electricity supplier, with delivery by Liberty. However, few consumers did because the marketplace is constantly changing and, therefore, confusing. The majority of us went along with the power that Liberty offered, regardless of price and renewable energy content.
Community Power. Signed into law in 2019, NH RSA 53-E allows communities to aggregate, or bundle, the local demand for electricity and buy supply to meet that demand. The statute allows any town or group of towns and cities to replace the utility company as the “default supplier.” This is called community power.
Community Power Coalition of New Hampshire. Soon after this aggregation law passed, Hanover joined with other NH towns and played a critical role in creating a nonprofit called the Community Power Coalition of New Hampshire (CPCNH). Incorporated in October 2021, CPCNH was created to assist member municipalities in launching community power programs. It helps members by contracting for power, developing projects and programs, educating and engaging the public, and advocating at the NH Legislature and Public Utilities Commission. As of January 1, 2024, the Coalition is made up of fifty municipalities and two county members.
*This information also applies to the very few in Hanover who buy electricity through Eversource at its set rate (approximately 20 households). It is relevant, but less so, for customers buying electricity through the NH Electric COOP (approximately 80 households). The big difference is that NH Electric COOP customers are NOT automatically enrolled into HCP as explained below. They have to opt-in in order to participate.
Hanover Community Power
Hanover was in the first wave of CPCNH towns that launched their community power programs in late April 2023.
With the support of CPCNH, Town staff and the Hanover Electrical Aggregation Committee prepared a plan for Hanover Community Power (HCP). This plan was approved first by the Selectboard and then by residents at the 2021 Town meeting.
Customers now have the option of choosing their SUPPLY of electricity from a menu offering different levels of renewable energy content at different prices. Their current utility continues to DELIVER electricity as well as take care of transmission and any power outages that may arise. This utility also continues to send monthly bills which include HCP charges.
Hanover Community Power Rates
When the utilities change their electric rates, as they currently do at six month intervals, Hanover Community Power (HCP) may also adjust its offerings. Here are the rates for the period from February 1 - July 31, 2024 in comparison to those since launch:
Households consume on average 600 kWh of electricity per month. Those on HCP Granite Plus (the HCP Default) have seen their average monthly costs for energy supply drop from $97 to $68 and now to $50. Falling rates provide a great opportunity for Hanover customers to raise their level of renewable energy content.
Our HCP DEFAULT option—Granite Plus—continues to be lower than what customers pay for electricity with a renewable energy content of only 24.3% supplied by Liberty.
Customers of Liberty or Eversource who get their SUPPLY of electricity through a competitive supplier and customers of NH Electric Cooperative will continue to remain on these supply services unless they choose to join HCP on an opt-in basis.
Those who are on net metering or time of use plans will still not be enrolled at this time. Up-to-date information for net metered customers can be found in our Frequently Asked Questions (FAQs).
All customers might find helpful answers to these Frequently Asked Questions (FAQs) and/or listening to the recording from the informational forum that was held on April 6, 2023. (Note that the audio starts during the introduction, at the 7:14 mark; the slide view drops out at the 26:06 mark.)
Why Community Power?
Many of us in Hanover want to lower our carbon footprint. In fact, a record number of residents turned out at our 2017 Town meeting and voted unanimously to adopt the town-wide goals of using 100% renewable electricity by 2030 followed by 100% renewable heat, cooling, and transportation by 2050. The Town is using the United States Environmental Protection Agency’s (EPA) definition of renewables to guide its efforts.
Since 2017, Hanover town government has installed enough solar panels to generate power nearly equal to the amount it consumes. In addition, over 300 Hanover homes are getting electricity generated by locally-installed solar. Still, until May of 2023 most electricity users relied on Liberty’s single option regardless of price and renewable energy content.
As defined by NH RSA 362-F, investor-owned utilities, including Liberty and Eversource, must offer electricity that includes a minimum amount of power generated from renewable energy sources. The Renewable Portfolio Standard is now 24.3%.
Participants in Hanover Community Power (HCP) are now able to purchase power at higher levels of renewable power (from 24.3% to 33.4%, 50%, or even 100%) as defined by the State’s Renewable Portfolio Standards or better. At present, renewable content is provided through Renewable Energy Certificates (RECs). (To learn more about RECs, check out this short video from the EPA.) Over time, HCP intends to purchase directly from and invest in sources of renewable energy that prioritize local projects and meet criteria endorsed by the EPA.
HCP will be transformative in helping the entire Town reach its 2030 goal of purchasing or generating enough renewable electricity to offset 100% of the power it consumes. This depends on each of us choosing the highest level of renewables that fits our pocketbook, while the Community Power Coalition of New Hampshire (CPCNH) works to secure the best possible rates.
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Renewable Energy
Hanover Community Power (HCP) will be transformative in helping the entire Town reach its 2030 goal of purchasing or generating enough renewable electricity to offset 100% of the power it consumes. Doing so will depend on each of us choosing the highest level of renewables that fits our pocketbook.
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Local Control, Community Governance
Hanover has a voice in how CPCNH is governed and wrote its own aggregation plan. It will also be able to set its own priorities regarding its energy future.
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Consumer Choice
Community power is entirely voluntary and increases choice. With direction from CPCNH, HCP offers a menu of options with varying prices and levels of renewable energy content. Consumers have the power to select the option that best fits their pocketbook and values. Furthermore, consumers can “opt out” of HCP to take their utility’s supply.
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Rate Stability
CPCNH buys energy in a portfolio of short and long-term contracts, thereby protecting consumers from extreme price fluctuations. It closely monitors ever-changing energy markets to hedge against volatile prices and take advantage of opportunities to save. In contrast, investor-owned utilities such as Liberty must by law go to market in fixed, six-month cycles. That regulated clock lined up with a doubling of Liberty’s supply rate in 2022!
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Lower Costs
Through CPCNH, HCP is in a position to purchase in bulk to get more competitive prices. In collaboration with CPCNH’s Risk Management Committee which works with specialists in load management and energy markets, HCP uses market strategies unavailable to regulated utilities and energy brokers to procure electricity at the best possible cost.
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Energy Innovation
Either in collaboration with CPCNH or independently, HCP will be able to create innovative programs for its customers. These could include expanded energy efficiency offerings, time-of-use rates, and battery storage incentives. HCP will also be in a position to invest in community scale renewable energy and storage projects.
Ready? Here's What to Do.
For those of you who have been waiting to access more renewable electricity, this is your chance!
We hope that you select the highest level of renewables you can afford to lower your carbon footprint and help our community meet its renewable energy goals.
Opt Up!
As HCP rates change over time, customers will remain in the HCP option that they previously selected. For 2024, most Hanover customers are enrolled in HCP’s DEFAULT plan, i.e. Granite Plus.
HCP rates have continued to drop since launch. We urge Granite Plus customers to OPT UP to a higher level of renewable energy content. CLEAN 50 (9.4¢) and CLEAN 100 (12.4¢) now cost less than Granite Plus cost at launch (16.2¢).
To opt up to higher levels of renewable electricity, go to the CPCNH/HCP website. Scroll down to the section labeled ELECTRICITY SUPPLY CHOICES, provide the information requested, and choose Clean 50 or Clean 100.
If you have questions, email Sustainable Hanover.
Did it? Celebrate!
CONGRATULATIONS ON CHOOSING COMMUNITY POWER!!!
Along with many others, you are actively participating in Hanover Community Power, a vehicle through which Hanover can set its own priorities regarding its energy future. This will be transformational in helping Hanover meet its 100% renewable energy goals. Congratulations!