Restoring energy sanity: New Hampshire must break free from utility-driven costs
New Hampshire residents and businesses are feeling the pressure of what can only be described as an energy squeeze. Rising electricity and fuel costs are hitting household budgets and cutting into already thin business margins. For many, energy has become one of the most unpredictable and burdensome expenses they face. These rising costs aren’t happening […]
New Hampshire residents and businesses are feeling the pressure of what can only be described as an energy squeeze. Rising electricity and fuel costs are hitting household budgets and cutting into already thin business margins. For many, energy has become one of the most unpredictable and burdensome expenses they face.
These rising costs aren’t happening in a vacuum either. Global instability continues to affect fuel supply and pricing, while New England’s rigid energy structure limits how effectively we can respond to that volatility. As a result, we end up with a system that leaves ratepayers exposed to this volatility with little ability to adapt. If we truly want to ease this pressure, we need to rethink how our energy is procured and managed. That starts with moving away from a passive, utility-dependent model toward a more flexible, locally driven approach.
The failure of traditional utility models
Traditional utility procurement models are a main component of the overall problem. Most utilities purchase energy in short, six-month segments, and while this may simplify regulatory oversight, it limits the ability to take advantage of favorable market conditions. When prices spike, there ends up being little to no protection for consumers. This structure also reinforces dependence on external energy sources and global markets that are beyond our control.
At the same time, the region’s energy mix presents even more challenges. Renewable energy, particularly solar, plays an important role in reducing emissions and diversifying supply. However, in parts of New England, solar development has outpaced investments in storage and grid infrastructure, and without sufficient storage to capture and distribute that energy when it is needed most, costs associated with delivery and system balancing can rise. Ratepayers ultimately absorb those costs.
The municipal solution: Lessons from CCA programs
Believe it or not, there is a better way forward, and some New Hampshire communities are already leading the way. Community Choice Aggregation, or CCA for short, allows municipalities to take a more active role in purchasing energy on behalf of their residents and businesses. As opposed to relying solely on utility procurement, communities can pursue strategies that reflect local priorities and market opportunities. Several municipalities, including Laconia, Londonderry, Merrimack, Salem, and Windham, have already embraced this approach, with their experiences demonstrating how local control can translate into real savings and greater stability.
Salem offers a clear example. By taking a strategic approach to timing and contract structure, the town was able to shield its residents from some of the worst effects of recent market volatility. Instead of locking into short-term agreements, Salem pursued a longer-term, flexible strategy that allowed it to respond to these changing conditions. As of right now, Salem has projected savings of more than $825,000 in just the first few months of the program.
This kind of outcome isn’t a one-off situation. Instead of treating energy procurement as a routine administrative function, it becomes an active, market-aware process.
The third path: An all-of-the-above strategy
Looking more broadly, New Hampshire needs to move beyond the idea that energy policy must be an either-or debate. Too often, discussions are framed as a choice between traditional fuels and renewables, or between cost and sustainability, when in reality, the most effective path forward is one that blends multiple approaches.
An all-of-the-above strategy, or “third path,” recognizes that reliability, affordability, and environmental responsibility must work together. Renewable energy should continue to expand, but it must be supported by investments in storage and grid modernization. At the same time, access to reliable domestic energy sources, including natural gas, remains essential to maintaining stability, particularly during peak demand and in winter months.
Policy tools such as net metering need to evolve as well. While it has played an important role in encouraging renewable adoption, future policies should better reflect the needs of the grid as a whole, as a more balanced approach can ensure that incentives align with system reliability and long-term cost control.
A call for energy independence
Ultimately, the choices we make about energy are economic choices. These decisions affect competitiveness, household stability, and the overall health of our communities. Continuing with the status quo means accepting ongoing volatility and rising costs driven by factors outside our control.
What New Hampshire needs to know is that they have another option. By empowering municipalities, embracing flexible procurement strategies, and pursuing a balanced energy portfolio, the state can build a more resilient system, one that protects residents and businesses from future price shocks while supporting long-term sustainability.
The energy squeeze is real, but it is not inevitable. With the right approach, New Hampshire can take back control and restore a measure of sanity to its energy future.