Bill Text - HB1148 (2016)

Relative to pipeline capacity contracts.

Revision: Dec. 14, 2015, midnight

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AN ACT\trelative to pipeline capacity contracts.


SPONSORS:\tRep. McConnell, Ches. 12; Rep. Coffey, Hills. 25; Rep. Emerson, Ches. 11; Rep. L. Ober, Hills. 37; Rep. Byron, Hills. 20; Rep. B. Tilton, Ches. 12; Sen. Avard, Dist 12


COMMITTEE:\tScience, Technology and Energy






\tThis bill requires the public utility commission to determine whether any pipeline capacity contract with a term of more than one year is in the public interest.


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Explanation:\tMatter added to current law appears in bold italics.

\t\tMatter removed from current law appears [in brackets and struckthrough.]

\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.






In the Year of Our Lord Two Thousand Sixteen


AN ACT\trelative to pipeline capacity contracts.


Be it Enacted by the Senate and House of Representatives in General Court convened:


\t1  New Section; Public Utilities; General Regulations; Pipeline Capacity Contracts; Determination of Public Interest by Commission.  Amend RSA 374 by inserting after section 7-a the following new section:

\t374:7-b  Pipeline Capacity Contracts; Public Interest Determination by Commission.

\t\tI.  As part of any investigation under RSA 374:7 of any pipeline capacity contract with a term of more than one year, the commission shall determine whether such contract is in the public interest.  In evaluating the public interest, the commission shall consider:

\t\t\t(a)  Whether such capacity contract is necessary and cost effective for New Hampshire ratepayers;

\t\t\t(b)  Whether such capacity contract compares favorably to other reasonably available options in terms of its impact on the economy, environment, and  climate;

\t\t\t(c)  Whether the applicant has exercised due diligence in exploring alternatives that would reduce the need for private land takings including, but not limited to, fuller and more long-term utilization of existing infrastructure, contracts for gas storage along unconstrained pipeline corridors, enhancement of peak shaving measures, and co-location of energy infrastructure with major roadways; and

\t\t\t(d) Whether, for contracts exceeding a term of 3 years, the applicant has properly evaluated the potential for technological improvements in energy efficiency and storage to reduce or eliminate the need for new infrastructure.

\t\tII. The commission shall instruct applicants to consider alternative solutions that have a substantially lower overall impact on private property, including distribution system repairs or additions of laterals, provided that those alternatives would enable the delivery of comparable volumes of natural gas at prices which do not exceed historical norms.

\t2  Effective Date.  This act shall take effect 60 days after its passage.