HB1647 (2018) Detail

Relative to inclusion of energy storage in distributed energy resources for electricity transmission and distribution.


HB 1647 - AS INTRODUCED

 

 

2018 SESSION

18-2614

10/06

 

HOUSE BILL 1647

 

AN ACT relative to inclusion of energy storage in distributed energy resources for electricity transmission and distribution.

 

SPONSORS: Rep. Oxenham, Sull. 1; Rep. Shepardson, Ches. 10; Rep. Higgins, Graf. 12; Rep. S. Harvey, Hills. 29; Sen. Fuller Clark, Dist 21

 

COMMITTEE: Science, Technology and Energy

 

-----------------------------------------------------------------

 

ANALYSIS

 

This bill modifies provisions for the inclusion of energy systems in distributed energy resources and the recovery of investment costs for energy storage.

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2614

10/06

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to inclusion of energy storage in distributed energy resources for electricity transmission and distribution.

 

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

 

1  New Hampshire Energy Policy; Energy Storage.  Amend RSA 378:37 to read as follows:

378:37  New Hampshire Energy Policy.  The general court declares that it shall be the energy policy of this state to meet the energy needs of the citizens and businesses of the state at the lowest reasonable cost while providing for the reliability and diversity of energy sources; to maximize the use of cost effective energy storage as well as  cost effective energy efficiency and other demand side resources; and to protect the safety and health of the citizens, the physical environment of the state, and the future supplies of resources, with consideration of the financial stability of the state's utilities.

2  Electric Utility Restructuring; Principles.  Amend RSA 374-F:3, III to read as follows:

III.  Regulation and Unbundling of Services and Rates.  When customer choice is introduced, services and rates should be unbundled to provide customers clear price information on the cost components of generation, transmission, distribution, and any other ancillary charges.  Generation services should be subject to market competition and minimal economic regulation and at least functionally separated from transmission and distribution services which should remain regulated for the foreseeable future.  However, distribution service companies should not be absolutely precluded from owning small scale distributed generation resources or energy storage as part of a strategy for minimizing transmission and distribution costs.  Performance based or incentive regulation should be considered for transmission and distribution services.  Upward revaluation of transmission and distribution assets is not a preferred mechanism as part of restructuring.  Retail electricity suppliers who do not own transmission and distribution facilities, should, at a minimum, be registered with the commission.

3  Distributed Energy Resources.  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 at the lowest reasonable cost to taxpayers benefiting the transmission and distribution system under state regulatory oversight.  Consequently, distributed energy resources, such as energy storage, that provide value to the transmission and/or distribution system should not be precluded from also earning revenue in ISO New England wholesale electricity markets, provided that any such revenue is used solely to reduce the net cost of such investments to ratepayers.

4  Distributed Energy Resources; Definitions.  Amend RSA 374-G:2 to read as follows:

374-G:2  Definitions; Exclusions.

I.  The following definitions shall apply in this chapter except as otherwise provided:

(a)  "Commission'' means the public utilities commission.

(b)  "Distributed energy resources'' means electric generation equipment, including clean and renewable generation, energy storage, energy efficiency, demand response, load reduction or control programs, and technologies or devices located on or interconnected to the local electric distribution system for purposes including but not limited to reducing line losses, supporting voltage regulation, or peak load shaving, as part of a strategy for minimizing transmission and distribution costs as provided in RSA 374-F:3, III.

(c)  “ISO New England” means ISO New England, Inc. or any other entity that subsequently assumes the role of administering wholesale electricity markets in New England.

(d)  “Wholesale electricity markets” means any electricity market administered by ISO New England, including but not necessarily limited to markets for energy, capacity, and ancillary services.

II.  "Distributed energy resources'' in this chapter shall exclude electric generation equipment interconnected with the local electric distribution system at a single point or through a customer's own electrical wiring that is in excess of 5 megawatts, except for energy storage located on or interconnected to the local electric distribution system.

5  Distributed Energy Resources; Electric Generation Equipment; Storage Excepted.  Amend RSA 374-G:3, I to read as follows:

I.  The energy produced by electric generation equipment owned by the public utility, except for energy storage located on or interconnected to the local electric distribution system, shall be used as an offset to distribution system losses or the public utility company's own use;

6  Investments in Distributed Energy Resources.  Amend RSA 374-G:4, II and III to read as follows:

II.  Distributed electric generation, except for energy storage located on or interconnected to the local electric distribution system, owned by or receiving investments from an electric utility under this section shall be limited to a cumulative maximum in megawatts of 6 percent of the utility's total distribution peak load in megawatts.

III.  In addition, once the cumulative generation authorized under this chapter for a given public utility reaches 3 percent of the utility's total distribution peak load in megawatts, then that utility shall [not] only be allowed to add [any] additional [non-renewable] energy storage and renewable generation under this chapter, until the cumulative renewable generation installed pursuant to this chapter, as a percentage of total generation installed pursuant to this chapter, shall equal or exceed twice the sum of the then-applicable percentage requirements for class I and class II under RSA 362-F:3.

7  Distributed Energy Resources; Rate Filing.  Amend RSA 374-G:5, III to read as follows:

III.  Authorized and prudently incurred investments, except for energy storage located on or interconnected to the local electric distribution system 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.

III-a.  Only the value of transmission and distribution system benefits and avoided costs of authorized and prudently incurred energy storage 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 transmission and distribution functions of the investment.  The utility shall retain whatever portion of the revenue the energy storage investment earns from participation in wholesale electricity markets that the commission finds is necessary to make such an investment financially viable.  Any additional revenue beyond that level shall be used to offset the utility’s revenue requirement.  The utility may recover all reasonable costs associated with the filing, whether or not the application is approved by the commission.

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

Links

HB1647 at GenCourtMobile

Action Dates

Date Body Type
Jan. 16, 2018 House Hearing
Feb. 14, 2018 House Exec Session
House Floor Vote
March 6, 2018 House Floor Vote
March 15, 2018 House Floor Vote

Bill Text Revisions

HB1647 Revision: 2266 Date: Nov. 13, 2017, 12:38 p.m.

Docket

Date Status
Jan. 3, 2018 Introduced 01/03/2018 and referred to Science, Technology and Energy HJ 1 P. 18
Jan. 16, 2018 Public Hearing: 01/16/2018 01:45 PM LOB 304
Feb. 14, 2018 Full Committee Work Session: 02/14/2018 10:00 AM LOB 304
Feb. 14, 2018 Executive Session: 02/14/2018 LOB 304
Majority Committee Report: Inexpedient to Legislate (Vote 12-9; RC)
March 6, 2018 Majority Committee Report: Inexpedient to Legislate for 03/06/2018 (Vote 12-9; RC) HC 9 P. 76
Minority Committee Report: Ought to Pass with Amendment # 2018-0614h (NT)
March 6, 2018 Suspend House Rule 65 (Reps. Hinch, Shurtleff): MA VV by necessary two-thirds vote 03/06/2018 HJ 6 P. 125
Special Order to 3/15/2018 Without Objection HJ 7 P. 49
March 15, 2018 Suspend House Rule 65; extending deadline for action to 3/22/2018 (Reps. Hinch, Shurtleff): MA VV by necessary two-thirds vote 03/15/2018 HJ 8 P. 69
March 21, 2018 Inexpedient to Legislate: MA DV 174-150 03/21/2018 HJ 9 P. 46