Revision: Jan. 17, 2013, midnight
HB 374 – AS INTRODUCED
2013 SESSION
09/01
HOUSE BILL 374
AN ACT relative to electric utility investment in distributed energy resources.
SPONSORS: Rep. Raymond, Belk 4; Rep. Suzanne Smith, Graf 8; Rep. DiMartino, Belk 2; Rep. Devine, Rock 4; Sen. Hosmer, Dist 7
COMMITTEE: Science, Technology and Energy
This bill makes certain changes in requirements and rate recovery for electric utility investment in distributed energy resources.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
13-0793
09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Thirteen
AN ACT relative to electric utility investment in distributed energy resources.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Purpose. Amend RSA 374-G:1 to read as follows:
374-G:1 Purpose. Distributed energy resources can increase overall energy efficiency and provide energy security and diversity by eliminating, displacing, or better managing traditional fossil fuel energy deliveries from the centralized bulk power grid, in keeping with the objectives of RSA 362-F:1. It is therefore in the public interest to stimulate investment in distributed energy resources in New Hampshire in diverse ways, including by encouraging New Hampshire electric public utilities to invest in renewable and clean distributed energy resources [including clean and renewable generation] benefiting the transmission and distribution system under state regulatory oversight.
2 Investments in Distributed Energy Resources. Amend RSA 374-G:4, II to read as follows:
II. Distributed electric generation owned by or receiving investments from an electric utility under this section shall be limited to a cumulative maximum in megawatts of [6] 20 percent of the utility’s total distribution peak load in megawatts.
3 Rate Filing; Authorization. Amend RSA 374-G:5, I-III to read as follows:
I. A New Hampshire electric public utility may seek rate recovery for its investments in distributed energy resources from the commission by making an appropriate rate filing. At a minimum, such filing shall include the following:
(a) A detailed description and economic and environmental evaluation of the proposed investment.
(b) A discussion of the costs, benefits, and risks of the proposal with specific reference to the factors listed in paragraph II, including an analysis of the costs, benefits, and rate implications to the participating customers, to the company’s default service customers, and to the utility’s distribution customers.
(c) A description of any equipment or installation specifications, solicitations, and procurements it has or intends to implement.
(d) A showing that it has made reasonable efforts to involve local businesses in its program.
(e) Evidence of compliance with any applicable emission limitations.
(f) A copy of any customer contracts or agreements to be executed as part of the program.
II. Prior to authorizing a utility’s recovery of investments made in distributed energy resources, the commission shall determine that the utility’s investment and its recovery in rates, as proposed, are in the public interest. Determination of the public interest under this section shall include [but not be limited to consideration and balancing] giving equal consideration and proportional weight to each of the following factors:
(a) Whether the expected value of the economic benefits of the investment to the utility’s ratepayers over the life of the investment outweigh the economic costs to the utility’s ratepayers.
(b) The efficient and cost-effective realization of the purposes of the renewable portfolio standards of RSA 362-F and the restructuring policy principles of RSA 374-F:3.
(c) The costs and benefits to any participating customer or customers.
(d) The costs and benefits to the company’s default service customers.
(e) The energy security benefits of the investment to the state of New Hampshire.
(f) The environmental benefits of the investment to the state of New Hampshire.
(g) The economic development benefits and liabilities of the investment to the state of New Hampshire.
(h) The effect on the reliability, safety, and efficiency of electric service.
(i) The effect on competition within the region’s electricity markets and the state’s energy services market.
III. Authorized and prudently incurred investments shall be recovered under this section in a utility’s base distribution rates as a component of rate base, and cost recovery shall include the recovery of depreciation, a return on investment, taxes, and other operating and maintenance expenses directly associated with the investment, net of any offsetting revenues received by the utility directly attributable to the investment. The utility may recover all reasonable costs associated with the filing, whether or not the application is approved by the commission.
4 Effective Date. This act shall take effect 60 days after its passage.