HB 183 - FINAL VERSION
14Mar2019... 0561h
05/23/2019 1981s
2019 SESSION
19-0136
10/05
HOUSE BILL 183
SPONSORS: Rep. P. Schmidt, Straf. 19; Rep. Moffett, Merr. 9
COMMITTEE: Science, Technology and Energy
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AMENDED ANALYSIS
This bill establishes a committee to study the applications of microgrids in New Hampshire and changes in law necessary to allow for microgrids in electricity supply. The bill also requires electric distribution companies to purchase baseload renewable generation credits from eligible biomass facilities.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
14Mar2019... 0561h
05/23/2019 1981s 19-0136
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Committee Established. There is established a committee to study the applications of microgrids in New Hampshire and changes in law necessary to allow for microgrids in electricity supply.
2 Membership and Compensation.
I. The members of the committee shall be as follows:
(a) Four members of the house of representatives, appointed by the speaker of the house of representatives.
(b) One member of the senate, appointed by the president of the senate.
II. Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.
3 Duties. The committee shall study the applications of microgrids in New Hampshire and changes in law necessary to allow for microgrids in electricity supply, with a view to both near-term and long-term applications in the state. For this purpose, the committee shall consult with representatives of utility companies, companies involved with microgrid development, and members of the general public with specific knowledge regarding microgrids and their benefits, as well as obstacles to their deployment.
4 Chairperson; Quorum. The members of the study committee shall elect a chairperson from among the members. The first meeting of the committee shall be called by the first-named house member. The first meeting of the committee shall be held within 45 days of the effective date of this section. Three members of the committee shall constitute a quorum.
5 Report. The committee shall report its findings and any recommendations for proposed legislation to the speaker of the house of representatives, the president of the senate, the house clerk, the senate clerk, the governor, and the state library on or before November 1, 2019.
6 New Paragraph; Preservation and Use of Renewable Generation to Provide Fuel Diversity; Definitions. Amend RSA 362-H:1 by inserting after paragraph VI the following new paragraph:
VII. “Real-time market price” means the average real-time locational marginal price at the pricing node applicable to the eligible facility in the independent system operator of New England (ISO-NE) real-time energy market for the applicable period used in the invoice submitted under RSA 362-H:3, IV.
7 New Sections; Baseload Renewable Generation Credits; Commission Authority. Amend RSA 362-H by inserting after section 2 the following new sections:
362-H:3 Baseload Renewable Generation Credits.
I. In addition to the requirements in RSA 362-F and notwithstanding any other law to the contrary, to promote retention of baseload or non-intermittent renewable generation, all net energy output generated by an eligible facility shall also produce baseload renewable generation credits for the eligible facility at the rate of one credit per net megawatt-hour generated by the eligible facility, provided that credits shall be produced only during the period commencing with the date the first credit is produced for purchase as stated in the invoice submitted under paragraph IV and ending 3 years thereafter. No baseload generation credits will be produced by any megawatt-hours purchased under RSA 362-H:2 or generated prior to the effective date of this section.
II. In this section, an "eligible facility" shall not include any facility combusting municipal solid waste.
III. Each electric distribution company subject to the commission’s approval regarding procurement of default service shall directly purchase all baseload generation credits offered for sale to it from eligible facilities located in its service territory based on the invoice submitted to it by the eligible facility. Each credit shall be purchased at a rate, expressed in dollars, equal to the positive difference between: (a) the adjusted energy rate applicable to the invoice period, and (b) the greater of the average energy rate, expressed in dollars per megawatt-hour, received in the month or applicable invoice period by the eligible facility for the sale of its energy, or the real-time market price. If the adjusted energy rate is no longer calculable due to a change in law or default service procurement, then the adjusted energy rate in (a) shall be the average of the last 2 adjusted energy rates. The purchase of credits shall not convey title to, or be deemed to be a purchase of, any electrical energy or capacity.
IV. The eligible facility shall invoice the purchasing electric distribution company monthly for the purchase of the credits produced in the prior month or other applicable period. Each invoice shall contain the net energy output generated (in megawatt-hours), the number of credits to be sold under the invoice, the average energy rate received by the eligible facility for the sale of energy in that month, or applicable invoice period, and the real-time market price. The invoice shall provide reasonable supporting detail to verify the invoice information. The invoice information and supporting detail shall be confidential information under all applicable laws. The electric distribution company shall calculate the amount due under the invoice, provide the calculation details to the eligible facility monthly, and pay the invoice within 15 days of receipt of the invoice.
V. Notwithstanding any law to the contrary, each electric distribution company shall recover, and the commission shall order the recovery of, the cost of purchasing credits and any reasonable costs incurred by the distribution company under this section through a nonbypassable delivery services charge applicable to all customers in the distribution company’s service territory. The costs to be recovered under the charge shall be allocated among the electric distribution company’s customer classes using the allocation percentages and process applicable to the particular distribution company as stated in RSA 362-H:2, V.
362-H:4 Commission Authority, Tolling, and Severability.
I. Any dispute arising under this chapter may be referred to the commission by the applicable electric distribution company or eligible facility for adjudication, and the commission is authorized to resolve any such dispute. Notwithstanding any law to the contrary, the commission shall order rate recovery under RSA 362-H:2, V.
II. If for any reason, the rights and obligations under any section of this chapter do not commence on the applicable effective date or are otherwise interrupted at any time, then any affected time period stated in the chapter shall be deemed tolled and automatically extended for the tolled period.
III. If any provision of this chapter shall be determined to be invalid or unenforceable by a court of competent jurisdiction, such determination shall not affect the validity or enforceability of any other provision, including, without limitation, the allocation percentages and processes stated in RSA 362-H:2, V and any definitions applicable to the remaining provisions.
8 Effective Date. This act shall take effect upon its passage.
VETOED August 2, 2019
Veto Sustained September 18, 2019
19-0136
Amended 6/7/19
HB 183- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENT #2019-1981s)
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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STATE: | FY 2020 | FY 2021 | FY 2022 | FY 2023 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Funding Source: | [ X ] General [ ] Education [ X ] Highway [ X ] Other - Various Governmental Funds | |||
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COUNTY: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
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LOCAL: |
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Revenue | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
METHODOLOGY:
This bill establishes a new section to RSA 362-H, 362-H:3 creating a Baseload Renewable Generation Credit. One credit is created by the production of one net megawatt-hour from an eligible facility produced in accordance with RSA 362-H:3. The credits would remain in effect for three years from the effective date of the bill. Each electric distribution company that procures default service subject to the review and approval of the Public Utilities Commission (PUC) must purchase all the baseload generation credits offered and produced by the eligible facilities located in its service territory. Since the definition of "eligible facility" in the bill does not include any facility combusting municipal solid waste, Eversource would be the only electric distribution company affected. The Public Utilities Commission provided the following information concerning the fiscal impact of the bill.
The PUC assumes this bill would allow all six wood burning facilities under 25 MW that began operations before January 1, 2006 to create Baseload Renewable Generation Credits. The six biomass facilities will operate during the 3-year period at a 90% capacity factor based upon 101.2 MW of total capacity using the summer seasonal claimed capability of the plants. Based on futures prices, the NH Locational Marginal Price averages $50 per MWh over the 36-month period, the default service rate averages $95 per MWh and avoided Renewable Portfolio Standards (RPS) compliance is $4 per MWh.
(101.2 MW total capacity x 8,760 hours per year x 90% factor x $22.80/MWh = $18.19M)
The above market cost will be recovered through a non-bypassable charge in accordance with the 2015 PSNH Restructuring and Rate Stabilization Agreement (Rate Agreement). The Rate Agreement specifies that stranded costs will be recovered from customer classes in the following proportions: Residential 48.75%; General Service 25%; Primary General Service 20%; Large General Service 5.75%; and Outdoor Lighting 0.50%. The General Service class, which comprises the class most of New Hampshire government is billed, would be allocated approximately $4.55 million or $0.00263 per kWh based on 2018 class sales of 1,730,019,178 kWh. New Hampshire state government consumes approximately 107 million kWh per year, but only a portion of that consumption will be affected by the increase, because Eversource is the only electric utility that will be affected by the bill. A significant portion of state government is not located in Eversource’s service territory and will not be subject to the increased costs. Based on the 2018 data and the projected over-market payments, the bill will increase state government electricity costs by approximately $206,500 per year (78.5 million kWh consumed by state government located in Eversource service territory x $0.00263 per kWh). County and local government facilities located in the service territory of PSNH can expect to pay an additional $0.00263 per kWh over the 36-month period the baseload renewable generation credits are in effect. Actual consumption amounts for county and municipal government located in PSNH's service territory are unknown.
The wood-burning power plants have a capacity value to the region and to New Hampshire. The actual capacity value of their collective 101.2MW, depends on the amount of capacity the woodburning power plants bid into the Forward Capacity Auction, the level and type of resources participating in the auction and the bids of those resources at the margin during each of the four rounds of the ISO-NE annual descending clock auction. All else equal, loss of 100 MW will result in a slightly higher clearing price for capacity in the region for that auction and higher capacity costs allocated to New Hampshire starting three years later when the capacity values take effect. The effect of this bill on Forward Capacity Market values for region and New Hampshire, therefore, is zero since the eligible facilities have already committed their capacity for the three-year period of this bill. Assuming the plants would shut down permanently in the absence of this bill, New Hampshire would lose some indeterminate amount of tax revenues associated with the facilities. Consequently, this amendment may have positive revenue effects for state and local governments.
AGENCIES CONTACTED:
Public Utilities Commission
| Date | Body | Type |
|---|---|---|
| Jan. 30, 2019 | House | Hearing |
| Feb. 19, 2019 | House | Exec Session |
| House | Floor Vote | |
| March 7, 2019 | House | Floor Vote |
| March 14, 2019 | House | Floor Vote |
| April 2, 2019 | Senate | Hearing |
| May 7, 2019 | Senate | Hearing |
| May 23, 2019 | Senate | Floor Vote |
Sept. 18, 2019: Veto Sustained 09/18/2019: RC 251-132 Lacking Necessary Two-Thirds Vote HJ 21 P. 10
Aug. 2, 2019: Vetoed by Governor Sununu 08/02/2019
June 27, 2019: Enrolled 06/27/2019 HJ 20 P. 53
June 27, 2019: Enrolled (In recess 06/27/2019); SJ 21
June 13, 2019: House Concurs with Senate Amendment 1981s (Rep. Backus): MA RC 222-123 06/13/2019 HJ 19 P. 11
May 23, 2019: Ought to Pass with Amendment 2019-1981s, MA, VV; OT3rdg; 05/23/2019; SJ 17
May 23, 2019: Committee Amendment # 2019-1981s, AA, VV; 05/23/2019; SJ 17
May 23, 2019: Special Order to to the present time, Without Objection, MA; 05/23/2019; SJ 17
May 23, 2019: Committee Report: Ought to Pass with Amendment # 2019-1981s, 05/23/2019; SC 23
May 7, 2019: Hearing: 05/07/2019, Room 103, SH, 09:00 am, on proposed amendment # 2019-1737s; SC 21
April 2, 2019: Hearing: 04/02/2019, Room 103, SH, 10:40 am; SC 16
March 21, 2019: Introduced 03/21/2019 and Referred to Energy and Natural Resources; SJ 10
March 14, 2019: Ought to Pass with Amendment 2019-0561h (NT): MA DV 206-132 03/14/2019 HJ 9 P. 32
March 14, 2019: Amendment # 2019-0561h (NT): AA VV 03/14/2019 HJ 9 P. 32
: Special Order to 03/14/2019 Without Objection HJ 8 P. 60
: Minority Committee Report: Inexpedient to Legislate
: Majority Committee Report: Ought to Pass with Amendment # 2019-0561h (NT) (Vote 12-8; RC)
March 7, 2019: Majority Committee Report: Ought to Pass with Amendment # 2019-0561h (NT) for 03/07/2019 (Vote 12-8; RC) HC 14 P. 18
Feb. 19, 2019: Executive Session: 02/19/2019 02:00 pm LOB 304
Jan. 30, 2019: Public Hearing: 01/30/2019 10:15 am LOB 304
Jan. 2, 2019: Introduced 01/02/2019 and referred to Science, Technology and Energy HJ 2 P. 40