2015 New Hampshire Energy Summit 5 October 2015 Robert Scott, Commissioner, New Hampshire Public Utilities Commission

Key Factors Impacting Winter Prices Electric Generating Unit Fuel Costs – Natural Gas Pipeline Capacity Natural Gas Price – LNG Imports and Price – Fuel Oil Availability and Price Import of Electricity Into Region Weather and Demand for Natural Gas Demand for Electricity

Winter Period Electric Utility Rate Filings are Lower Than Last Winter o Energy Service (rate to cover electricity only) filings that cover the upcoming winter period Liberty cents per kWh for residential customers  ~40% less than last winter’s rate of cents per kWh  Effective November 2015 – July 2016 PSNH - estimate is 9.65 cents per kWh (with temporary 0.98 cent scrubber recovery rate)  8.6% lower than last winter’s rate  Annual rate effective January 1, 2016 Unitil – cents per kWh for residential customers  ~40% lower than last winter’s rate of cents per kWh  Proposed rate effective December 2015 – May 2016 NHEC cents per kWh  18% lower than last winter’s rate of 11.6 cents per kWh  Effective November 1, 2015 – April 30, 2016

4 The Region has Experienced Volatile Gas and Electric Prices in the Past Few Winters 4 Hurricanes hit the Gulf Before the Recession and Marcellus Shale gas boom Winter 2012/2013 Winter 2013/2014 Electric Energy $/MWh Fuel $/MMBtu Monthly Average Natural Gas and Wholesale Electricity Prices in New England Record low natural gas and wholesale electricity prices Winter 2014/2015 Slide courtesy ISO-NE

55 Source: ISO New England, New York ISO, PJM Interconnection In Winter , ISO-NE prices were: 88% higher than NYISO, 37% higher than PJM East, and 65% higher than PJM West

6 Source: ISO New England Dramatically reduced coal/oil operations New England has Seen Dramatic Changes in Energy Mix

Source: ISO-NE

$- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $ $1.9 B $4.9 B $2 B $1.6 B baseline year $3.5 B $6.5 B $3.6 B Billions New England Winter Wholesale Electricity Costs compared to baseline* December through March Additional cost compared to Winter 2011/12 baselineWinter Wholesale Electricity Costs Cost data sourced from ISO-NE's Wholesale Load Cost Reports. Wholesale costs for 2014/2015 includeestimate for March *Winter 2011/12 was warmer than normal and natural gas-fired generators had relatively ready access to pipeline capacity withoutproducing significant constraints.

New England’s Expected Retirements 9 Source: ISO New England

Robert Scott Commissioner New Hampshire Public Utilities Commission