The recent ruling by Merrimack Superior Court Judge Daniel St. Hilaire has prevented Keene from needing to refund over $2 million in property taxes to Eversource. This decision, made on December 17, addressed a compiled lawsuit where Eversource sought refunds for taxes paid across multiple municipalities in New Hampshire over recent years.

Eversource stands as Keene’s largest property taxpayer, with its assets, including electrical distribution and transmission networks, valued at greater than $100 million. In contrast, the overall assessed value of properties in Keene exceeds $2 billion, as reported by the N.H. Department of Revenue Administration.

At a City Council meeting on December 18, Keene City Manager Elizabeth Ferland explained the implications of the court’s decision. Eversource had aimed for reduced property assessments, which would have required the city to repay substantial taxes along with interest from the past five years, while also impacting future assessments with lowered valuations. The court’s ruling reinforced the city’s existing evaluations related to Eversource’s assets.

The legal challenge, initiated in 2022, revolved around determining the market value of Eversource’s utility infrastructure and land. Estimations of fair market value for such assets are complex and can involve various methodologies. Experts testified during the trial, with both municipal attorneys and Eversource’s legal team presenting their cases for the court’s evaluation.

In an effort to standardize the assessment approach for utility distribution lines—which convey electricity to consumers—New Hampshire lawmakers enacted a bill in 2019. However, transmission lines, which transport high-voltage electricity across expansive distances, have not yet established a uniform assessment method, leading to ongoing disputes like the one faced in this case. Judge St. Hilaire remarked that without legislative action on the valuation of transmission assets, continued and costly litigation is likely.

Eversource, through spokesperson Sarah Paduano, expressed regret over the court’s judgment, stating that it could lead to increased costs for customers, as taxes paid by utilities are typically passed on to ratepayers. Paduano highlighted the company’s commitment to managing expenses responsibly while striving for fair outcomes in its dealings with local governments.

New Hampshire’s Consumer Advocate Donald M. Kreis remarked on the inherent disputes over utility property taxes, noting the significant tax contributions of utilities within communities. He conveyed that while some may view increased taxes on utilities as detrimental to their shareholders, this perspective overlooks the fact that property taxes are an expense passed on to customers rather than profits for shareholders.