New Hampshire’s Power Grid “Independence” Study Isn’t a Stunt — It’s a Direct Ratepayer Risk

Independent New Hampshire Journalism · Northfield, NH

Opinion · By Dexter Dow

New Hampshire’s decision to fund a study examining separation from, or fundamental restructuring of, its participation in ISO–New England is being casually dismissed in some corners as political theater. That framing is wrong, lazy, and dangerous. This is not a messaging exercise. It is a material governance decision that could expose ratepayers, municipalities, and employers to long-term cost and reliability consequences if handled poorly.

The Executive Council’s Jan. 28, 2026 approval of a $230,056 contract with London Economics International for this study, which House Bill 690 of 2025 requires, is the key inflection point. (New Hampshire Bulletin) Money plus institutional authorization equals momentum. Once a study exists, its assumptions tend to harden into policy justifications, especially when elected officials are looking for “expert-backed” cover. That is why the most important fight is not whether New Hampshire should leave or partially disengage from ISO–NE, but who defines the study’s inputs, constraints, and success criteria.

What’s undercovered — and largely misunderstood — is how costs actually move through New Hampshire’s energy system. If the study contemplates alternative grid arrangements, local generation mandates, or bespoke capacity mechanisms, utilities may incur planning, compliance, or infrastructure costs long before any formal withdrawal decision is made. Under New Hampshire’s regulatory framework, those costs can be presented to the Public Utilities Commission for recovery. The study itself works this way: its cost is assessed to New Hampshire’s utilities, which can petition the PUC to recover it through rates. (New Hampshire Bulletin) Translation: even a “study phase” can begin the process of shifting financial risk onto ratepayers if the PUC deems expenses “prudently incurred.”

ISO–New England is not just a power pool. It is a regional capacity market that determines how much generation is available years in advance, particularly for winter peak conditions. New Hampshire already struggles with winter reliability due to constrained natural gas infrastructure and heavy reliance on imported energy. Any move that weakens regional capacity coordination risks higher capacity prices, emergency procurement costs, or demand-side mandates that ultimately hit residential and commercial customers. This is especially relevant for manufacturers and data-intensive employers who price electricity reliability into location decisions.

Supporters of the study argue it is merely exploratory, but that argument ignores how energy policy actually evolves. Studies narrow options. They rarely expand them. If the consultant is instructed to assume certain policy goals — such as “energy independence,” accelerated in-state generation, or reduced reliance on regional markets — the outputs will inevitably favor those outcomes. Once published, those outputs become talking points, bill language, and regulatory marching orders. The time to shape a study is before the report is delivered, not after.

Who benefits in the short term are political actors who want to signal defiance of regional or federal energy structures without yet owning the consequences. Certain in-state generation interests could also benefit if the study tilts toward capacity carve-outs or preferential treatment for local assets. Who bears the downside risk are ratepayers, municipalities managing fixed budgets, and employers exposed to volatility or reliability degradation.

What comes next is predictable. There will be fights over modeling assumptions, baseline cost comparisons, and whether ISO–NE scenarios are presented neutrally or as strawmen. Expect future Executive Council and PUC hearings to reference this study as if it were an objective map rather than a constructed narrative. If New Hampshire ultimately moves toward partial separation, expect early “soft costs” to show up well before any theoretical savings are realized — if they ever are.

What the study found. London Economics International issued its report on July 15, 2026. The firm concluded that leaving ISO-New England “would be complicated and likely increase electricity supply and transmission costs for New Hampshire customers,” and its managing director said the state “could see lower wholesale energy costs under the modeled exit scenario, but those savings are outweighed by higher transmission, operating reserve and capacity costs.” (London Economics International) State Consumer Advocate Donald M. Kreis, who backed the bill that required the study, put the higher transmission and energy supply costs at “about $148 million a year,” before legal fees, any exit fees and the cost of replacing ISO-New England’s systems. (Concord Monitor)

The bottom line is blunt: this is foundational infrastructure policy being treated like a culture-war headline. Anyone serious about power bills, economic competitiveness, and winter reliability should be watching this study like a hawk — because once the assumptions are locked in, the outcome is largely preordained.

Related: New Hampshire Electric Rates Jump August 1. Here Is Every New Price, and the $50 Million Mistake Behind It.

Corrections: Granite State Report corrects verified errors promptly and appends a dated note identifying what changed and when. The corrections policy and the corrections register are public, and correction notes are never removed.