We’ve written about the high cost of NH Biomass energy and the redistribution math that costs ratepayers millions. Well, the Governor has a new bill on his desk that would sweeten the deal, but if this is about jobs, it would cost ratepayers less to pay the workers to do nothing.
Drew Cline, writing at Josiah Bartlett, has an update on the Biomess, the redistribution scheme, and the new bill. He makes excellent points, as he usually does, on topics like this and shares how we got here and why it makes no sense. HB142, that new bill, would make that bad deal worse.
To save 30+ jobs at the plant and some 200+ timber jobs that could probably find other destinations for waste wood. It’s got a big price tag, and the Governor, who advertises how tax-friendly he is, should veto HB142 because it is a massive tax on taxpayers and ratepayers all over New Hampshire.
Signing it will add to our already record high electric rates, which is bad for more reasons than I’ll get to here because it occurred to me there was another way to make a case for a veto.
I don’t know what Burgess Biomass employees make or the five-score timber folks, but can we agree it’s probably less than 100,000 per year?
If we gave the Biomass folks each 60K to do nothing(which is the national income average), it would cost 1.8 million. Add the 200 timber workers, and that’s another 12 million. Paying them not to increase our electric rates would save New Hampshire ratepayers over 135 million dollars on top of the reduced cost of electricity from not having to pay higher rates.
We’d continue to save more, even if we had to extend the severance for several years, than if Sununu signed HB142.
Cline calls it a subsidy, which it is, but it’s more than that. It’s an insane subsidy when it makes more sense and saves a small fortune to shutter the business being bailed out and pay the employees to do nothing.
IN-SANE! We shouldn’t even be able to do that math. Why is this even on his desk?
The millions saved by the rest of the businesses and residents can go into savings or productive investments in local businesses that will employ more people in jobs that don’t cost taxpayers or ratepayers more money.
After the plant shuts down, Jeb F-ing Timber-Tool Bradley can encourage someone to retool the Burgess plant to make wood pellets that pellet stove owners would buy. It would create more jobs, keep his Timber cronies happy, and generate revenue for Berlin and the state.
I bet you could raze the Burgess plant and build a new pellet-making facility for less than this subsidy will cost long term.
HB142 is not just a bad idea and bad for New Hampshire; it is “makes no damn sense” bad.
Note: Yes, the math is simplified for this example, but there is no version of this where it makes sense to bail out so few jobs with that sort of money and tack on the expected electric rate increases.
