Revision: March 27, 2018, 2:58 p.m.
SB 446 - AS AMENDED BY THE SENATE
03/14/2018 0972s
03/14/2018 1021s
2018 SESSION
18-2961
10/06
SENATE BILL 446
AN ACT relative to net energy metering limits for customer-generators.
SPONSORS: Sen. Avard, Dist 12; Sen. Birdsell, Dist 19; Sen. Fuller Clark, Dist 21; Sen. Gannon, Dist 23; Sen. Giuda, Dist 2; Sen. Gray, Dist 6; Sen. Innis, Dist 24; Sen. Kahn, Dist 10; Sen. Reagan, Dist 17; Sen. Sanborn, Dist 9; Sen. Watters, Dist 4; Rep. Vose, Rock. 9; Rep. Backus, Hills. 19; Rep. Barry, Hills. 21; Rep. Seidel, Hills. 28
COMMITTEE: Energy and Natural Resources
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AMENDED ANALYSIS
This bill increases the electric generating capacity of customer generators who may participate in net energy metering, and requires the public utilities commission to determine the rates for crediting the electric generation.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/14/2018 0972s
03/14/2018 1021s 18-2961
10/06
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
AN ACT relative to net energy metering limits for customer-generators.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Net Energy Metering; Definition of Eligible Customer-generator. Amend RSA 362-A:1-a, II-b to read as follows:
II-b. "Eligible customer-generator'' or "customer-generator'' means an electric utility customer who owns, operates, or purchases power from an electrical generating facility either powered by renewable energy or which employs a heat led combined heat and power system, with a total peak generating capacity of up to and including [one megawatt] 5 megawatts, or from a qualifying facility larger than 5 megawatts but less than 25 megawatts if the facility's output allocated for net energy metering participation is limited to not more than 5 megawatts, and that is located behind a retail meter on the customer's premises, is interconnected and operates in parallel with the electric grid, and is used to offset the customer's own electricity requirements. Incremental generation added to an existing generation facility, that does not itself qualify for net metering, shall qualify if such incremental generation meets the qualifications of this paragraph and is metered separately from the nonqualifying facility.
2 Net Energy Metering; Billing. Amend RSA 362-A:9, IV(b) to read as follows:
(b) For facilities with a total peak generating capacity of more than 100 kilowatts and up to one megawatt, the customer-generator shall pay all applicable charges on all kilowatt hours supplied to the customer over the electric distribution system, less a credit on default service charges equal to the metered energy generated by the customer-generator and fed into the electric distribution system over a billing period.
3 Net Energy Metering; Crediting. Amend RSA 362-A:9, V(b) to read as follows:
(b) Except as provided in paragraph VI, the customer-generator with a total peak generating capacity of more than 1 megawatt and not exceeding 5 megawatts may elect to be paid or credited by the electric distribution utility for its excess generation at rates [that are equal to the utility's avoided costs for energy and capacity to provide default service as determined by the commission consistent with the requirements of the Public Utilities Regulatory Policy Act of 1978 (PURPA)] as determined by the public utilities commission. The public utilities commission shall initiate a proceeding to determine an interim rate as expeditiously as possible and issue its order within 6 months of the effective date of this paragraph at which time a customer generator could generate more than 1 megawatt and not exceed 5 megawatts. Projects that receive the interim rate shall be grandfathered for a period of 12 years from the time at which the project becomes operational. The PUC shall determine a final rate within 3 years based upon the results of the alternative net metering tariff proceedings in Docket DE-16-576. In developing such rates the commission shall consider costs and benefits of customer generated facilities, avoidance of unjust and unreasonable cost shifting, rate effects on all customers, timely recovery of lost revenue by the utility using an automatic rate adjustment mechanism and electric distribution utilities administrative processes required to implement such rates. The commission shall determine reasonable conditions for such an election, including the frequency of payment and how often a customer-generator may choose this option versus the option in subparagraph (a).
4 Effective Date. This act shall take effect 60 days after its passage.
18-2961
Amended 3/27/18
SB 446- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENTS #2018-0972s and #2018-1021s)
AN ACT relative to net energy metering limits for customer-generators.
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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STATE: | FY 2019 | FY 2020 | FY 2021 | FY 2022 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Funding Source: | [ X ] General [ ] Education [ X ] Highway [ X ] Other - Various Government Funds | |||
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COUNTY: |
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Revenue | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
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LOCAL: |
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Revenue | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
METHODOLOGY:
The Public Utilities Commission (PUC) indicates this bill modifies the definition of "eligible customer-generator" and "customer-generator" by increasing the total peak generating capacity from one megawatt (MW) to 5 MW, and to 25 MW if the facility's output allocated for net energy metering participation is limited to not more than 5 MW. The bill retains the current net metering billing credit for facilities greater than or equal to 100 kilowatts (kW) and up to 1 MW. Section 3 of the bill directs the PUC to initiate a proceeding to determine an interim rate (tariff) and issue its order within 6 months of the effective date. Upon issuance of the PUC order, facilities greater than 1 MW and less than or equal to 5 MW would be eligible for net metering. Facilities interconnecting under the interim tariff will be grandfathered under the interim tariff for 12 years from the facility's date of interconnection. The PUC shall determine a net metering tariff for facilities greater than 1 MW and less than or equal to 5 MW within 3 years based upon the results and considerations in docket DE 16-576 (Development of New Alternative Net Metering Tariffs and/or Other Regulatory Mechanisms and Tariffs for Customer- Generators).
If this bill were passed, larger customer-generators with capacities up to 25 MW would be eligible for net metering once the commission issues an order for an interim tariff. Existing large renewable energy facilities such as hydro, wind and landfill gas facilities may switch to become customer-generators and employ the net metering tariff for compensation. Development and interconnection of new large customer sited renewable generation facilities such as solar, hydro, wind, and landfill gas may also increase. Increased installations of customer sited sources (customer generators) will increase capacity on the electricity distribution system and may decrease overall load due to the behind the meter usage of customer-generator generation.
To the extent State, county or local governmental units are able to install their own renewable generation facilities, those governmental entities may benefit from lower electricity costs and may also receive revenues in the form of net metered payments for excess power generated.
AGENCIES CONTACTED:
Public Utilities Commission