Bill Text - SB91 (2021)

(New Title) adopting omnibus legislation on renewable energy and utilities.


Revision: Jan. 26, 2021, 1:07 p.m.

SB 91  - AS INTRODUCED

 

 

2021 SESSION

21-0945

10/06

 

SENATE BILL 91

 

AN ACT adopting omnibus legislation on renewable energy, utilities, and net metering.

 

SPONSORS: Sen. Watters, Dist 4

 

COMMITTEE: Energy and Natural Resources

 

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ANALYSIS

 

This bill adopts legislation relative to:

 

I.  Requiring the public utilities commission to adopt rules clarifying policy for the installation, interconnection, and use of energy storage systems by utility customers.

 

II.  Hydroelectric generators that share equipment for purposes of interconnection to the electric grid.

 

III.  Billing in an aggregation of electric utility customers.

 

IV.  Group host credits for net energy metering.

 

V.  The purchase of output of limited electrical energy producers in intrastate commerce and including qualifying storage system.

 

VI.  The aggregation of electric customers.

 

VII.  Net energy metering limits for customer generators.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

21-0945

10/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty One

 

AN ACT adopting omnibus legislation on renewable energy, utilities, and net metering.

 

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

 

1  Sponsorship. This act consists of the following proposed legislation:

Part I:  LSR 21-0945, relative to the installation, interconnection, and use of energy storage systems by customers of utilities, sponsored by Sen. Watters, Prime/Dist 4; Sen. Perkins Kwoka, Dist 21; Sen. Rosenwald, Dist 13; Sen. Kahn, Dist 10; Sen. Sherman, Dist 24; Sen. D'Allesandro, Dist 20; Sen. Whitley, Dist 15; Rep. Oxenham, Sull. 1.

Part II:  LSR 21-0881, relative to hydroelectric generators that share equipment for purposes of interconnection to the electric grid, sponsored by Sen. Bradley, Prime/Dist 3; Sen. Watters, Dist 4; Sen. Avard, Dist 12.

Part III:  LSR 21-0975, relative to aggregation of electric utility customers, sponsored by Sen. French, Prime/Dist 7; Sen. Carson, Dist 14; Sen. Reagan, Dist 17; Sen. Sherman, Dist 24; Sen. Rosenwald, Dist 13; Sen. Gannon, Dist 23; Sen. Avard, Dist 12; Sen. Prentiss, Dist 5; Sen. Watters, Dist 4; Sen. Bradley, Dist 3.

Part IV:  LSR 21-0988, relative to group host credits for net energy metering, sponsored by Sen. Perkins Kwoka, Prime/Dist  21; Sen. Watters, Dist 4; Sen. Sherman, Dist 24; Sen. Whitley, Dist 15; Rep. McWilliams, Merr. 27; Rep. Gourgue, Straf. 25.

Part V:  LSR 21-0991, relative to the purchase of output of limited electrical energy producers in intrastate commerce and including qualifying storage system, sponsored by Sen. Bradley, Prime/Dist 3; Sen. Watters, Dist 4; Sen. Avard, Dist 12; Sen. Giuda, Dist 2.

Part VI:  LSR 21-1007, relative to the aggregation of electric customers, sponsored by Sen. Avard, Prime/Dist 12; Sen. D'Allesandro, Dist 20; Rep. Lang, Belk. 4.

Part VII:  LSR 21-1036, relative to net energy metering limits for customer generators, sponsored by Sen. Prentiss, Prime/Dist 5; Sen. Watters, Dist 4; Rep. McWilliams, Merr. 27; Rep. McGhee, Hills. 27; Rep. Oxenham, Sull. 1.

2  Legislation Enacted.  The general court hereby enacts the following legislation:

PART I

Relative to the installation, interconnection, and use of energy storage systems by customers of utilities.

1  Customer Energy Storage.  RSA 374-H is repealed and reenacted to read as follows:

CHAPTER 374-H

CUSTOMER ENERGY STORAGE

374-H:1  Definitions.  In this chapter:

I.  "Commission" means the public utilities commission.

II.  "Bring your own device" means a program for encouraging non-utility owned, and especially retail-customer owned, behind-the-meter energy storage to provide the greatest value possible to the electricity system, particularly in terms of peak reduction and avoided transmission and distribution costs.  Such a program shall compensate participating behind-the-meter energy storage for a fair share, as determined by the commission, of the value it provides to the electricity system.

III.  "Energy storage" means batteries, flywheels, compressed air energy systems, sensible heat storage or any other technology, system, or device capable of taking electricity and storing it as some form of energy the technology, system, or device can either convert back into electricity or use to displace an electrical load at a later time.  Such term shall include standalone technologies, systems, and devices, as well as those co-located with or incorporated into a renewable energy source.

IV.  "Front-of-meter storage" means any energy storage that is not behind-the-meter storage and may include energy storage constructed, owned, and/or operated by utilities subject to the same use restrictions in RSA 374-G:3, I.

V.  "ISO-New England" means the Independent System Operator New England or any successor entity.

VI.  "Local network service" means the term as defined in ISO-New England's transmission, markets, and services tariff, section II.

VII.  "Non-utility" means any entity that is not a utility that develops, builds, owns, operates, or assists in the operation of one or more energy storage projects, including retail customers that buy behind-the-meter storage installed on their property.

VIII.  "Regional network service" means the term as defined in ISO-New England's transmission, markets, and services tariff, section II.

IX.  "Renewable energy source" means a Class I, Class II, or Class IV renewable energy source as defined in RSA 362-F:4.

X.  "Utility" and "utilities" mean public utilities as defined in RSA 362:2.

XI.  "Wholesale electricity markets" means any energy, capacity, or ancillary service market that ISO-New England operates.

374-H:2  Customer Energy Storage Systems.

I.  The commission shall adopt rules clarifying policy for the installation, interconnection, and use of energy storage systems by customers of utilities, and shall incorporate the following principles into the rules:

(a)  It is in the public interest to limit barriers to the installation, interconnection, and use of customer-sited, behind-the-meter energy storage systems in New Hampshire.

(b)  New Hampshire's consumers of electricity have a right to install, interconnect, and use energy storage systems on their property, subject to appropriate size and safety requirements established by the commission, without the burden of unnecessary restrictions or regulations and without unduly discriminatory rates or fees.

(c)  Utility approval processes and any required interconnection reviews of energy storage systems shall be simple, streamlined, and affordable for customers.

(d)  Utilities shall not require the installation of customer-sited meters in addition to a single net energy meter for the purposes of monitoring energy storage systems; except that the commission may authorize the requirement of metering for certain large energy storage systems, as determined by the commission.

(e)  The commission may approve mechanisms for a utility to compensate a non-utility for a fair share, as determined by the commission, of the value of any transmission or distribution costs actually avoided because of a non-utility energy storage project, to the extent practicable, based on determinable cost components.

(f)  For behind-the-meter storage, the rules or orders shall allow for a bring-your-own-device peak reduction program.  The commission may approve mechanisms for utilities to compensate such projects for a fair share, as determined by the commission, of their peak reduction value, as well as any transmission or distribution costs actually avoided because of the non-utility energy storage project, to the extent practicable based on determinable cost components.

(g)  Utilities shall not own behind-the-meter battery storage, with the exception of the energy storage pilot approved by the commission in order number 26,209, including phase 2 of the pilot, unless the commission finds, after the pilot has been fully implemented, that additional utility ownership of behind-the-meter battery storage would be in the public interest and would not unreasonably encumber the deployment of non-utility behind-the-meter battery storage.

II.  Nothing in this section alters or supersedes either:

(a)  The principles of net energy metering under RSA 362-A:9; or

(b)  Any existing electrical permit requirements or any licensing or certification requirements for installers, manufacturers, or equipment.

374-H:3  Commission Investigation of Energy Storage.  

I.  The commission shall investigate ways to enable energy storage projects to receive compensation for avoided transmission and distribution costs, including but not limited to avoided regional and local network service charges, while also participating in wholesale energy markets.  The commission shall investigate how this might be done for both utility-owned and non-utility-owned energy storage projects, as well as for both behind-the-meter storage and front-of-the-meter storage.

II.  The commission's investigative proceeding shall specifically consider the following:

(a)  How public policy can best help establish accurate and efficient price signals for energy storage projects that value their ability to avoid transmission and distribution costs while simultaneously reducing wholesale electricity market prices.

(b)  How to compensate energy storage projects that participate in wholesale electricity markets for avoided transmission and distribution costs in a manner that provides net savings to consumers.

(c)  How best to encourage both utility and non-utility investments in energy storage projects.

(d)  The costs and benefits of a potential bring your own device program; how such a program might be implemented; any statutory or regulatory changes that might be needed to create, facilitate, and implement such a program; and whether such a program should include all distributed energy resources or be limited to distributed energy storage projects.

(e)  Any statutory changes the general court should implement, including but not limited to changes to or exceptions from RSA 374-F or RSA 374-G, to enable energy storage projects to receive appropriate compensation for avoided transmission and distribution costs while also participating in wholesale energy markets.

(f)  Any other topic the commission reasonably believes it should consider in order to diligently conduct the proceeding.

III.  The commission shall report its findings and recommendations to the standing committees of the house of representatives and senate with jurisdiction over energy and utility matters no later than 2 years after initiating the proceeding.  The report shall identify ways any recommended statutory changes can minimize any potential conflict with the restructuring policy principles of RSA 374-F.

2  Electric Generation Equipment Funded by Public Utility; Distributed Energy Resources.  Amend RSA 374-G:3, I to read as follows:

I.  The energy produced by electric generation equipment owned by the public utility shall be used to benefit low-income customers as an offset to distribution system losses or the public utility company's own use;

3  Electric Utility Investment 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 percent of the utility's total distribution peak load in megawatts.  This limitation shall not apply to front-of-meter energy storage, the energy storage pilot approved by commission order number 26,209, or demand response.

4  Effective Date.  Part I of this act shall take effect 60 days after its passage.

PART II

Relative to hydroelectric generators that share equipment for purposes of interconnection to the electric grid.

1  New Paragraph; Limited Electrical Energy Producers Act; Net Energy Metering.  Amend RSA 362-A:9 by inserting after paragraph XIX the following new paragraph:

XX.  A hydroelectric generator with a total peak generating capacity that is at or below the capacity eligibility requirements set forth in RSA 362-A:1-a, II-b and that first became operational before July 1, 2021 and that shares equipment or facilities with other generators or electric utility customers for interconnection to the electric grid, shall be eligible to participate in net energy metering as a customer-generator even if the aggregate capacity of the generators sharing equipment or facilities for interconnection to the electric grid exceeds the capacity eligibility requirements set forth in RSA 362-A:1-a, II-b.  Such a hydroelectric generator shall be eligible to participate in net energy metering as a customer-generator based on its individual total peak generating capacity.

2  Effective Date.  Part II of this act shall take effect 60 days after its passage.

PART III

Relative to aggregation of electric utility customers.

1  New Paragraph; Aggregation of Electric Customers; Regulation.  Amend RSA 53-E:4 by inserting after paragraph VI the following new paragraph:

VII.  For the purposes of billing aggregated retail electricity customers under this chapter and through the consolidated billing function of a distribution utility, when a customer makes a payment for less than the full amount billed, such payment shall be applied as follows:

(a)  First to any outstanding customer loans or deposit obligations with the utility;

(b)  Next to any utility current payment arrangement obligations;

(c)  Next to any utility budget billing arrangement obligations;

(d)  Next to the aged accounts receivable of any utility and aggregator or competitive electricity supplier serving an aggregation, in proportion to the balance due on such aged accounts receivable;

(e)  Next to the current charges of any utility and aggregator or competitive electricity supplier serving an aggregation, in proportion to the balance due on such current charges; and

(f)  Finally, to any other charges due on the utility bill as may be provided by utility tariffs.  

2  Effective Date.  Part III of this act shall take effect 60 days after its passage.

PART IV

Relative to group host credits for net energy metering.

1  Net Metering; Group Host; Low -Moderate Income Community Solar Projects.  Amend RSA 362-A:9, XIV(c) to read as follows:

(c)(1)  Notwithstanding paragraph V, a group host shall be paid for its surplus generation at the end of each billing cycle at rates consistent with the credit the group host receives relative to its own net metering under either subparagraph IV(a) or (b) or alternative tariffs that may be applicable pursuant to paragraph XVI.  Alternatively, a group host may elect to receive credits on the customer electric bill for each member and the host, with the utility being allowed the most cost-effective method of doing so according to an amount or percentage specified for each member on PUC form 909.09 (Application to Register or Re-register as a Host), along with a 3 cent per kwh addition from July 1, 2019 through July 1, 2021 and a 2.5 cent per kwh addition thereafter for low-moderate income community solar projects, as defined in RSA 362-F:2, X-a.  The adder value shall be based on the date that the project qualifies for group host net metering and shall be applied to the group host and group members of that project for the term of the group net metering tariff for the project or a successor to that tariff.

(2)  On or before July 1, 2022, the commission shall report on the costs and benefits of such an addition and the development of the market for low-moderate income community solar projects, and provide a recommendation on whether the addition shall be increased or decreased.  The commission shall report on the costs and benefits of low-moderate income community solar projects, as defined in RSA 362-F:2, X-a on or before June 1, 2020.  The commission shall authorize at least 2 new low-moderate income community solar projects, as defined in RSA 362-F:2, X-a, each year in each utility's service territory beginning January 1, 2020.  On an annual basis, for all group host systems except for residential systems with an interconnected capacity under 15 kilowatts, the electric distribution utility shall calculate a payment adjustment if the host's surplus generation for which it was paid is greater than the group's total electricity usage during the same time period.  The adjustment shall be such that the resulting compensation to the host for the amount that exceeded the group's total usage shall be at the utility's avoided cost or its default service rate in accordance with subparagraph V(b) or paragraph VI or alternative tariffs that may be applicable pursuant to paragraph XVI.  The utility shall pay or bill the host accordingly.

2  Effective Date.  Part IV of this act shall take effect 60 days after its passage.

PART V

Relative to the purchase of output of limited electrical energy producers in intrastate commerce and including qualifying storage system

1  Definition; Limited Electrical Energy Producers; Limited Producer.  Amend RSA 362-A:1-a, III to read as follows:

III.  "Limited producer" or "limited electrical energy producer" means a qualifying small power producer, a qualifying storage system, or a qualifying cogenerator, with a [total] maximum rated generating or discharge capacity of [not more] less than 5 megawatts, that does not participate in net energy metering,  that is not registered as a generator, asset, or network resource with ISO New England, and does not otherwise participate in any FERC jurisdictional wholesale electricity markets. Such non-participation in FERC jurisdictional intrastate wholesale markets may be achieved by retirement from such markets.

2  New Paragraph; Definition; Qualifying Storage System.  Amend RSA 362-A:1-a by inserting after paragraph IX the following new paragraph:

IX-a.  "Qualifying storage system” means an electric energy storage system as defined in RSA 72:84.

3  Limited Electrical Energy Producers Act; Purchase of Output in Intrastate Commerce.  RSA 362-A:2-a is repealed and reenacted to read as follows:

362-A:2-a   Purchase of Output of Limited Producers in Intrastate Commerce.

I. A limited producer of electrical energy may sell its produced electrical energy to one or more purchasers other than the franchise electric utility.  Such purchasers may be any retail electricity customers located within the same New Hampshire electric distribution utility franchise area as where the limited producer is located or any electricity suppliers serving retail load within such area.   

II. Intrastate sales of electricity across the distribution grid shall be facilitated and accounted for by competitive electricity suppliers registered with the commission under RSA 374-F:7 or by municipal or county aggregations under RSA 53-E that are load-serving entities.  

III. To participate in such intrastate sales of electricity over the distribution grid a limited producer must be equipped with a revenue grade interval meter that can accurately measure hourly exports to the distribution grid and report such meter data for daily load settlement purposes.

IV.  The commission shall establish procedures to enable limited producers to sell electricity at wholesale within intrastate commerce and at retail, either directly or indirectly through electricity suppliers.  The commission may establish such requirements and conditions concerning intrastate sales of electricity pursuant to this section that it deems necessary to avoid substantial risk or uncompensated costs to the electric utility in whose franchise area the sales takes place.

V.  The limited producer, or the purchasers of their output, as determined by the commission,  shall receive credit for actual avoided transmission charges if the intrastate wholesale or retail sale of such electricity reduces the retail load measured at the wholesale meter point between the distribution system under state jurisdiction and transmission facilities under federal jurisdiction such that transmission charges allocated to the distribution utility are reduced from what they otherwise would be absent the electricity exported to the distribution grid by the limited producer during hours of coincident peak on which transmission costs are allocated.   Such credit shall be based on measurement of exports to the distribution grid at the retail meter point without additional credit for avoided line and transformation losses between the wholesale and retail meter points to provide some sharing of the benefit of reduced transmission charges with other ratepayers who do not participate in such intrastate electricity sales by limited producers.  

VI.  Purchasers of power from limited producers shall pay for the delivery of such power through tariffs, charges, and rates that are generally applicable to the customer’s rate class, except for default energy service charges if not applicable and transmission charges as they may be adjusted pursuant to paragraph V.  

4  New Section; Electric Renewable Portfolio Standard; Exclusion to Amount of Electricity Supplied.  Amend RSA 362-F by inserting after section 3 the following new section:

362-F:3-a  Exclusions to the Amount of Electricity Supplied.  If a provider of electricity has revenue grade meter data on the quantity of exports to the grid from a qualifying storage system as defined in RSA 362-A:1-a to the extent that it is charged from the grid, such amounts may be deducted from the calculation of electricity supplied by the provider to its end-use customers for the applicable year for purposes of compliance with RSA 362-F:3 as determined and provided for by the commission.

5   Utility Property Tax; Exclusion From Definition of Utility Property. Amend RSA 83-F:1, V(d) to read as follows:

(d)  The electrical generation, production, storage, and supply equipment of an "eligible customer-generator" as defined in RSA 362-A:1-a, II-b, and of a “limited producer” as defined in RSA 362-A:1-a, III if selling under RSA 362-A:2-a, for facilities with a rated electricity production capacity of up to and including one megawatt;

6  Effective Date.  Part V of this act shall take effect 60 days after its passage.

PART VI

Relative to the aggregation of electric customers.

1  Aggregation of Electric Customers by Municipalities and Counties; Aggregation Program.  Amend RSA 53-E:7, IV to read as follows:

IV.  Services proposed to be offered by or through the aggregation shall be on an opt-in basis unless the approved aggregation plan explicitly creates an opt-out alternative default energy service program where the rate or price is known at least 30 days in advance of its application and, for a period of not less than 30 days from the date notification is mailed, the customer has the opportunity to opt out of being enrolled in such program, by return postcard, website, or such additional means as may be provided.  Customers who are on default service provided by an electric distribution utility shall be automatically enrolled in an aggregation provided alternative default service if they do not elect to opt out.  Customers opting out will instead remain on utility-provided default service.  Customers taking energy service from a competitive electricity supplier shall not be automatically enrolled in any aggregation program, but may voluntarily opt in.  [New customers to the electric distribution utility after the notification mailing required by paragraph II shall be given a choice of enrolling in utility provided default service or aggregation provided default service, where such exists.  New customers shall be informed of pricing for each when they apply for service.  Such new customers may also enroll with a competitive electricity supplier.  New customers who do not make such a choice shall be enrolled in the default service of any geographically appropriate approved aggregation, or, if none exists, the utility provided default service.]  The utility shall periodically make available to each operating municipal aggregation, or county aggregation where there is no municipal aggregation, the names, account numbers, and mailing addresses of customers that are new to the electric distribution utility after they have provided the customer list for the initial customer mailing required by paragraph II and that are located within the aggregation.  The aggregation shall periodically mail a written notification to such customers and shall enroll them in the aggregation consistent with the opt-in or opt-out requirements of this paragraph and paragraph II. Municipal aggregations shall take priority or precedence over any county aggregations.  Customers automatically enrolled in a municipal or county provided default service shall be free to elect to return to utility provided default service or to transfer to a competitive electricity supplier with adequate notice in advance of the next regular meter reading by the distribution utility, in the same manner as if they were on utility provided default service or as approved by the commission.

2  Effective Date.  Part VI of this act shall take effect 60 days after its passage.

PART VII

Relative to net energy metering limits for customer generators.

1  Findings.  The general court finds that:  

I.  New Hampshire’s electricity consumers, including municipalities, manufacturers, commercial businesses, and other large users, strongly support more competitive retail options to lower their energy costs.

II.  These same consumers deserve the freedom to invest their own capital to become more self-sufficient and energy independent and less reliant on out-of-state electricity companies that control our high electricity rates.

III.  ISO-New England, Inc., the independent, nonprofit regional transmission organization that oversees the operation of New England's bulk electric power system and transmission lines, has stated that infrastructure constraints could pose a challenge to the reliable operation of the regional power grid, create price increases and volatility, and contribute to increased air emissions, all of which would adversely impact New Hampshire's citizens, businesses, and economy.

IV.  The current size limit of one megawatt on customer-generators that may participate in net energy metering is an unnecessary barrier that denies larger electricity users the same rights that smaller users already have to produce and use local renewable power that reduces their energy costs, increases supply, and insulates all New Hampshire ratepayers from electric price volatility and higher transmission costs.

V.  The current size limit is also a barrier to significant investment in existing and new small renewable energy projects, which would help keep our energy dollars in-state, drive economic activity, support good-paying jobs, and increase state and local business and property tax revenues.

VI.  The federal Public Utility Regulatory Policies Act (PURPA) as amended by the Energy Policy Act of 2005 calls upon states to consider the adoption and implementation of net metering policies.  PURPA as amended states that electricity generated by an eligible on-site generating facility may be used to offset electric energy provided by the electric utility and allows states to define an eligible facility.  Furthermore, under ISO New England’s rules, a generating facility of less than 5 megawatts that is connected to the distribution grid is not required to register with ISO New England as a generator or participate in the wholesale energy markets; rather, if the generating facility elects not to register as a wholesale market participant or retires from such status, the customer generator is to be treated by ISO New England as a retail load reducer.

VII.  It is therefore also in the best interests of all citizens of New Hampshire that the size limit on customer-generators that may participate in net energy metering and serve as retail load reducers be increased from one megawatt to up to but not including 5 megawatts to increase customer supply choice, foster a more robust retail market for local renewable energy, help mitigate the cost of electric service in the state, reduce the price volatility of that service, and reduce the potential for disruptions in electricity supply due to inadequate wholesale generating capacity in the New England marketplace.

2  Definition; 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] nameplate or maximum rated capacity of [up to and including one megawatt,] less 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 in the first instance.  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.

3  Net Energy Metering; Net Effects.  Amend RSA 362-A:9, VII to read as follows:

VII.(a) A distribution utility may perform an annual calculation to determine the net effect this section had on its default service and distribution revenues and expenses in the prior calendar year.  The method of performing the calculation and applying the results, as well as a reconciliation mechanism to collect or credit any such net effects with appropriate carrying charges and credits applied, shall be determined by the commission.

(b)  For the purposes of accounting for any exports to the distribution grid by customer-generators, such exports shall be treated as reductions to the customer-generator’s electricity supplier’s wholesale load obligation for energy supply as a load serving entity, net of any applicable line loss adjustments as approved by the commission.

(c)  A generator that first becomes operational on or after July 1, 2021 shall only be eligible to participate in net metering as a customer-generator if it does not register as a generator with ISO New England, is not considered a “Network Resource” or “Asset” by ISO New England, and does not participate in any other sale of electricity in interstate commerce.

(d)  A generator that first became operational before July 1, 2021 and that has outstanding capacity commitments in the forward capacity market administered by ISO New England, is registered as a generator with ISO New England, or is considered a “Network Resource” or “Asset” by ISO New England, may elect to become a customer-generator and participate in net metering upon retirement from all wholesale electric markets administered by ISO New England.  A generator in the process of retiring from FERC regulated electric markets may prospectively register as a group host pursuant to paragraph XIV provided that net metering tariffs under this section shall not be effective until such retirement is effective.

(e)  Any provisions of settlement agreements or orders that have been approved or issued by the commission that relate to a distribution utility’s treatment of the output from qualifying facilities or independent power producers shall not apply to the output from an eligible customer-generator participating in net metering.

4  Net Energy Metering; Transition of Tariffs.  Amend RSA 362-A:9, XV to read as follows:

XV.  Standard tariffs that are available to eligible customer-generators under this section shall terminate on December 31, 2040 and such customer-generators shall transition to tariffs that are in effect at that time.  Alternative tariffs shall be applicable and have such grandfathering provisions as may be approved or adopted by the commission under this section.  Customer-generators with a nameplate or maximum rated capacity of more than one megawatt and less than 5 megawatts that are eligible for net metering before the commission adopts tariffs specifically for customer-generators with a generating capacity of more than one megawatt shall:

(a)  Be eligible to receive the export credit rate approved by the commission in Order No. 26,029 (DE 16-576) for one megawatt sized customer-generators on default service, namely, the applicable default energy service rate, minus any rate component for:  

(1)  Compliance with the electric renewable portfolio standard, RSA 362-F, net of prior period reconciliations for such; and

(2)  Administrative costs of the electric distribution utility allocated to default energy service, net of prior period reconciliations for such, both as determined by the commission.

(b)  Be eligible to receive, on a prospective basis after the commission has approved tariffs for such, credit for actual avoided wholesale transmission charges attributable to exports to the distribution grid during time periods when transmission charges are incurred by the distribution utility that reduce load at the meter point between the distribution and transmission grid and the resulting calculation of load used for apportioning such wholesale transmission charges.  Such credit shall be based on measurement of exports at the retail meter point without additional credit for avoided line losses between the wholesale and retail meter points to provide a sharing of the benefit of reduced transmission charges from net metering with other ratepayers who do not participate in net metering.

(c)  Be grandfathered by the terms of currently applicable tariff for customer-generators with a total peak generating capacity of one megawatt if the customer-generator’s electrical generating facility or qualified storage system first becomes operational on or after July 1, 2021.

(d)  Transition to such new tariffs specifically approved by the commission for customer-generators with a nameplate or maximum rated capacity of more than one megawatt if the customer-generator’s electrical generating facility or qualified storage system first became operational before July 1, 2021.

5  Utility Property Tax; Eligible Customer-Generator; Exclusion Clarified.  Amend RSA 83-F:1, V(d) to read as follows:

(d)  The electrical generation, production, storage, and supply equipment of an "eligible customer-generator" as defined in RSA 362-A:1-a, II-b, up to and including one megawatt;

6  Effective Date.  Part VII of this act shall take effect 60 days after its passage.

SB 91  - AS INTRODUCED

 

 

2021 SESSION

21-0945

10/06

 

SENATE BILL 91

 

AN ACT adopting omnibus legislation on renewable energy, utilities, and net metering.

 

SPONSORS: Sen. Watters, Dist 4

 

COMMITTEE: Energy and Natural Resources

 

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ANALYSIS

 

This bill adopts legislation relative to:

 

I.  Requiring the public utilities commission to adopt rules clarifying policy for the installation, interconnection, and use of energy storage systems by utility customers.

 

II.  Hydroelectric generators that share equipment for purposes of interconnection to the electric grid.

 

III.  Billing in an aggregation of electric utility customers.

 

IV.  Group host credits for net energy metering.

 

V.  The purchase of output of limited electrical energy producers in intrastate commerce and including qualifying storage system.

 

VI.  The aggregation of electric customers.

 

VII.  Net energy metering limits for customer generators.

 

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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.

21-0945

10/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty One

 

AN ACT adopting omnibus legislation on renewable energy, utilities, and net metering.

 

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

 

1  Sponsorship. This act consists of the following proposed legislation:

Part I:  LSR 21-0945, relative to the installation, interconnection, and use of energy storage systems by customers of utilities, sponsored by Sen. Watters, Prime/Dist 4; Sen. Perkins Kwoka, Dist 21; Sen. Rosenwald, Dist 13; Sen. Kahn, Dist 10; Sen. Sherman, Dist 24; Sen. D'Allesandro, Dist 20; Sen. Whitley, Dist 15; Rep. Oxenham, Sull. 1.

Part II:  LSR 21-0881, relative to hydroelectric generators that share equipment for purposes of interconnection to the electric grid, sponsored by Sen. Bradley, Prime/Dist 3; Sen. Watters, Dist 4; Sen. Avard, Dist 12.

Part III:  LSR 21-0975, relative to aggregation of electric utility customers, sponsored by Sen. French, Prime/Dist 7; Sen. Carson, Dist 14; Sen. Reagan, Dist 17; Sen. Sherman, Dist 24; Sen. Rosenwald, Dist 13; Sen. Gannon, Dist 23; Sen. Avard, Dist 12; Sen. Prentiss, Dist 5; Sen. Watters, Dist 4; Sen. Bradley, Dist 3.

Part IV:  LSR 21-0988, relative to group host credits for net energy metering, sponsored by Sen. Perkins Kwoka, Prime/Dist  21; Sen. Watters, Dist 4; Sen. Sherman, Dist 24; Sen. Whitley, Dist 15; Rep. McWilliams, Merr. 27; Rep. Gourgue, Straf. 25.

Part V:  LSR 21-0991, relative to the purchase of output of limited electrical energy producers in intrastate commerce and including qualifying storage system, sponsored by Sen. Bradley, Prime/Dist 3; Sen. Watters, Dist 4; Sen. Avard, Dist 12; Sen. Giuda, Dist 2.

Part VI:  LSR 21-1007, relative to the aggregation of electric customers, sponsored by Sen. Avard, Prime/Dist 12; Sen. D'Allesandro, Dist 20; Rep. Lang, Belk. 4.

Part VII:  LSR 21-1036, relative to net energy metering limits for customer generators, sponsored by Sen. Prentiss, Prime/Dist 5; Sen. Watters, Dist 4; Rep. McWilliams, Merr. 27; Rep. McGhee, Hills. 27; Rep. Oxenham, Sull. 1.

2  Legislation Enacted.  The general court hereby enacts the following legislation:

PART I

Relative to the installation, interconnection, and use of energy storage systems by customers of utilities.

1  Customer Energy Storage.  RSA 374-H is repealed and reenacted to read as follows:

CHAPTER 374-H

CUSTOMER ENERGY STORAGE

374-H:1  Definitions.  In this chapter:

I.  "Commission" means the public utilities commission.

II.  "Bring your own device" means a program for encouraging non-utility owned, and especially retail-customer owned, behind-the-meter energy storage to provide the greatest value possible to the electricity system, particularly in terms of peak reduction and avoided transmission and distribution costs.  Such a program shall compensate participating behind-the-meter energy storage for a fair share, as determined by the commission, of the value it provides to the electricity system.

III.  "Energy storage" means batteries, flywheels, compressed air energy systems, sensible heat storage or any other technology, system, or device capable of taking electricity and storing it as some form of energy the technology, system, or device can either convert back into electricity or use to displace an electrical load at a later time.  Such term shall include standalone technologies, systems, and devices, as well as those co-located with or incorporated into a renewable energy source.

IV.  "Front-of-meter storage" means any energy storage that is not behind-the-meter storage and may include energy storage constructed, owned, and/or operated by utilities subject to the same use restrictions in RSA 374-G:3, I.

V.  "ISO-New England" means the Independent System Operator New England or any successor entity.

VI.  "Local network service" means the term as defined in ISO-New England's transmission, markets, and services tariff, section II.

VII.  "Non-utility" means any entity that is not a utility that develops, builds, owns, operates, or assists in the operation of one or more energy storage projects, including retail customers that buy behind-the-meter storage installed on their property.

VIII.  "Regional network service" means the term as defined in ISO-New England's transmission, markets, and services tariff, section II.

IX.  "Renewable energy source" means a Class I, Class II, or Class IV renewable energy source as defined in RSA 362-F:4.

X.  "Utility" and "utilities" mean public utilities as defined in RSA 362:2.

XI.  "Wholesale electricity markets" means any energy, capacity, or ancillary service market that ISO-New England operates.

374-H:2  Customer Energy Storage Systems.

I.  The commission shall adopt rules clarifying policy for the installation, interconnection, and use of energy storage systems by customers of utilities, and shall incorporate the following principles into the rules:

(a)  It is in the public interest to limit barriers to the installation, interconnection, and use of customer-sited, behind-the-meter energy storage systems in New Hampshire.

(b)  New Hampshire's consumers of electricity have a right to install, interconnect, and use energy storage systems on their property, subject to appropriate size and safety requirements established by the commission, without the burden of unnecessary restrictions or regulations and without unduly discriminatory rates or fees.

(c)  Utility approval processes and any required interconnection reviews of energy storage systems shall be simple, streamlined, and affordable for customers.

(d)  Utilities shall not require the installation of customer-sited meters in addition to a single net energy meter for the purposes of monitoring energy storage systems; except that the commission may authorize the requirement of metering for certain large energy storage systems, as determined by the commission.

(e)  The commission may approve mechanisms for a utility to compensate a non-utility for a fair share, as determined by the commission, of the value of any transmission or distribution costs actually avoided because of a non-utility energy storage project, to the extent practicable, based on determinable cost components.

(f)  For behind-the-meter storage, the rules or orders shall allow for a bring-your-own-device peak reduction program.  The commission may approve mechanisms for utilities to compensate such projects for a fair share, as determined by the commission, of their peak reduction value, as well as any transmission or distribution costs actually avoided because of the non-utility energy storage project, to the extent practicable based on determinable cost components.

(g)  Utilities shall not own behind-the-meter battery storage, with the exception of the energy storage pilot approved by the commission in order number 26,209, including phase 2 of the pilot, unless the commission finds, after the pilot has been fully implemented, that additional utility ownership of behind-the-meter battery storage would be in the public interest and would not unreasonably encumber the deployment of non-utility behind-the-meter battery storage.

II.  Nothing in this section alters or supersedes either:

(a)  The principles of net energy metering under RSA 362-A:9; or

(b)  Any existing electrical permit requirements or any licensing or certification requirements for installers, manufacturers, or equipment.

374-H:3  Commission Investigation of Energy Storage.  

I.  The commission shall investigate ways to enable energy storage projects to receive compensation for avoided transmission and distribution costs, including but not limited to avoided regional and local network service charges, while also participating in wholesale energy markets.  The commission shall investigate how this might be done for both utility-owned and non-utility-owned energy storage projects, as well as for both behind-the-meter storage and front-of-the-meter storage.

II.  The commission's investigative proceeding shall specifically consider the following:

(a)  How public policy can best help establish accurate and efficient price signals for energy storage projects that value their ability to avoid transmission and distribution costs while simultaneously reducing wholesale electricity market prices.

(b)  How to compensate energy storage projects that participate in wholesale electricity markets for avoided transmission and distribution costs in a manner that provides net savings to consumers.

(c)  How best to encourage both utility and non-utility investments in energy storage projects.

(d)  The costs and benefits of a potential bring your own device program; how such a program might be implemented; any statutory or regulatory changes that might be needed to create, facilitate, and implement such a program; and whether such a program should include all distributed energy resources or be limited to distributed energy storage projects.

(e)  Any statutory changes the general court should implement, including but not limited to changes to or exceptions from RSA 374-F or RSA 374-G, to enable energy storage projects to receive appropriate compensation for avoided transmission and distribution costs while also participating in wholesale energy markets.

(f)  Any other topic the commission reasonably believes it should consider in order to diligently conduct the proceeding.

III.  The commission shall report its findings and recommendations to the standing committees of the house of representatives and senate with jurisdiction over energy and utility matters no later than 2 years after initiating the proceeding.  The report shall identify ways any recommended statutory changes can minimize any potential conflict with the restructuring policy principles of RSA 374-F.

2  Electric Generation Equipment Funded by Public Utility; Distributed Energy Resources.  Amend RSA 374-G:3, I to read as follows:

I.  The energy produced by electric generation equipment owned by the public utility shall be used to benefit low-income customers as an offset to distribution system losses or the public utility company's own use;

3  Electric Utility Investment 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 percent of the utility's total distribution peak load in megawatts.  This limitation shall not apply to front-of-meter energy storage, the energy storage pilot approved by commission order number 26,209, or demand response.

4  Effective Date.  Part I of this act shall take effect 60 days after its passage.

PART II

Relative to hydroelectric generators that share equipment for purposes of interconnection to the electric grid.

1  New Paragraph; Limited Electrical Energy Producers Act; Net Energy Metering.  Amend RSA 362-A:9 by inserting after paragraph XIX the following new paragraph:

XX.  A hydroelectric generator with a total peak generating capacity that is at or below the capacity eligibility requirements set forth in RSA 362-A:1-a, II-b and that first became operational before July 1, 2021 and that shares equipment or facilities with other generators or electric utility customers for interconnection to the electric grid, shall be eligible to participate in net energy metering as a customer-generator even if the aggregate capacity of the generators sharing equipment or facilities for interconnection to the electric grid exceeds the capacity eligibility requirements set forth in RSA 362-A:1-a, II-b.  Such a hydroelectric generator shall be eligible to participate in net energy metering as a customer-generator based on its individual total peak generating capacity.

2  Effective Date.  Part II of this act shall take effect 60 days after its passage.

PART III

Relative to aggregation of electric utility customers.

1  New Paragraph; Aggregation of Electric Customers; Regulation.  Amend RSA 53-E:4 by inserting after paragraph VI the following new paragraph:

VII.  For the purposes of billing aggregated retail electricity customers under this chapter and through the consolidated billing function of a distribution utility, when a customer makes a payment for less than the full amount billed, such payment shall be applied as follows:

(a)  First to any outstanding customer loans or deposit obligations with the utility;

(b)  Next to any utility current payment arrangement obligations;

(c)  Next to any utility budget billing arrangement obligations;

(d)  Next to the aged accounts receivable of any utility and aggregator or competitive electricity supplier serving an aggregation, in proportion to the balance due on such aged accounts receivable;

(e)  Next to the current charges of any utility and aggregator or competitive electricity supplier serving an aggregation, in proportion to the balance due on such current charges; and

(f)  Finally, to any other charges due on the utility bill as may be provided by utility tariffs.  

2  Effective Date.  Part III of this act shall take effect 60 days after its passage.

PART IV

Relative to group host credits for net energy metering.

1  Net Metering; Group Host; Low -Moderate Income Community Solar Projects.  Amend RSA 362-A:9, XIV(c) to read as follows:

(c)(1)  Notwithstanding paragraph V, a group host shall be paid for its surplus generation at the end of each billing cycle at rates consistent with the credit the group host receives relative to its own net metering under either subparagraph IV(a) or (b) or alternative tariffs that may be applicable pursuant to paragraph XVI.  Alternatively, a group host may elect to receive credits on the customer electric bill for each member and the host, with the utility being allowed the most cost-effective method of doing so according to an amount or percentage specified for each member on PUC form 909.09 (Application to Register or Re-register as a Host), along with a 3 cent per kwh addition from July 1, 2019 through July 1, 2021 and a 2.5 cent per kwh addition thereafter for low-moderate income community solar projects, as defined in RSA 362-F:2, X-a.  The adder value shall be based on the date that the project qualifies for group host net metering and shall be applied to the group host and group members of that project for the term of the group net metering tariff for the project or a successor to that tariff.

(2)  On or before July 1, 2022, the commission shall report on the costs and benefits of such an addition and the development of the market for low-moderate income community solar projects, and provide a recommendation on whether the addition shall be increased or decreased.  The commission shall report on the costs and benefits of low-moderate income community solar projects, as defined in RSA 362-F:2, X-a on or before June 1, 2020.  The commission shall authorize at least 2 new low-moderate income community solar projects, as defined in RSA 362-F:2, X-a, each year in each utility's service territory beginning January 1, 2020.  On an annual basis, for all group host systems except for residential systems with an interconnected capacity under 15 kilowatts, the electric distribution utility shall calculate a payment adjustment if the host's surplus generation for which it was paid is greater than the group's total electricity usage during the same time period.  The adjustment shall be such that the resulting compensation to the host for the amount that exceeded the group's total usage shall be at the utility's avoided cost or its default service rate in accordance with subparagraph V(b) or paragraph VI or alternative tariffs that may be applicable pursuant to paragraph XVI.  The utility shall pay or bill the host accordingly.

2  Effective Date.  Part IV of this act shall take effect 60 days after its passage.

PART V

Relative to the purchase of output of limited electrical energy producers in intrastate commerce and including qualifying storage system

1  Definition; Limited Electrical Energy Producers; Limited Producer.  Amend RSA 362-A:1-a, III to read as follows:

III.  "Limited producer" or "limited electrical energy producer" means a qualifying small power producer, a qualifying storage system, or a qualifying cogenerator, with a [total] maximum rated generating or discharge capacity of [not more] less than 5 megawatts, that does not participate in net energy metering,  that is not registered as a generator, asset, or network resource with ISO New England, and does not otherwise participate in any FERC jurisdictional wholesale electricity markets. Such non-participation in FERC jurisdictional intrastate wholesale markets may be achieved by retirement from such markets.

2  New Paragraph; Definition; Qualifying Storage System.  Amend RSA 362-A:1-a by inserting after paragraph IX the following new paragraph:

IX-a.  "Qualifying storage system” means an electric energy storage system as defined in RSA 72:84.

3  Limited Electrical Energy Producers Act; Purchase of Output in Intrastate Commerce.  RSA 362-A:2-a is repealed and reenacted to read as follows:

362-A:2-a   Purchase of Output of Limited Producers in Intrastate Commerce.

I. A limited producer of electrical energy may sell its produced electrical energy to one or more purchasers other than the franchise electric utility.  Such purchasers may be any retail electricity customers located within the same New Hampshire electric distribution utility franchise area as where the limited producer is located or any electricity suppliers serving retail load within such area.   

II. Intrastate sales of electricity across the distribution grid shall be facilitated and accounted for by competitive electricity suppliers registered with the commission under RSA 374-F:7 or by municipal or county aggregations under RSA 53-E that are load-serving entities.  

III. To participate in such intrastate sales of electricity over the distribution grid a limited producer must be equipped with a revenue grade interval meter that can accurately measure hourly exports to the distribution grid and report such meter data for daily load settlement purposes.

IV.  The commission shall establish procedures to enable limited producers to sell electricity at wholesale within intrastate commerce and at retail, either directly or indirectly through electricity suppliers.  The commission may establish such requirements and conditions concerning intrastate sales of electricity pursuant to this section that it deems necessary to avoid substantial risk or uncompensated costs to the electric utility in whose franchise area the sales takes place.

V.  The limited producer, or the purchasers of their output, as determined by the commission,  shall receive credit for actual avoided transmission charges if the intrastate wholesale or retail sale of such electricity reduces the retail load measured at the wholesale meter point between the distribution system under state jurisdiction and transmission facilities under federal jurisdiction such that transmission charges allocated to the distribution utility are reduced from what they otherwise would be absent the electricity exported to the distribution grid by the limited producer during hours of coincident peak on which transmission costs are allocated.   Such credit shall be based on measurement of exports to the distribution grid at the retail meter point without additional credit for avoided line and transformation losses between the wholesale and retail meter points to provide some sharing of the benefit of reduced transmission charges with other ratepayers who do not participate in such intrastate electricity sales by limited producers.  

VI.  Purchasers of power from limited producers shall pay for the delivery of such power through tariffs, charges, and rates that are generally applicable to the customer’s rate class, except for default energy service charges if not applicable and transmission charges as they may be adjusted pursuant to paragraph V.  

4  New Section; Electric Renewable Portfolio Standard; Exclusion to Amount of Electricity Supplied.  Amend RSA 362-F by inserting after section 3 the following new section:

362-F:3-a  Exclusions to the Amount of Electricity Supplied.  If a provider of electricity has revenue grade meter data on the quantity of exports to the grid from a qualifying storage system as defined in RSA 362-A:1-a to the extent that it is charged from the grid, such amounts may be deducted from the calculation of electricity supplied by the provider to its end-use customers for the applicable year for purposes of compliance with RSA 362-F:3 as determined and provided for by the commission.

5   Utility Property Tax; Exclusion From Definition of Utility Property. Amend RSA 83-F:1, V(d) to read as follows:

(d)  The electrical generation, production, storage, and supply equipment of an "eligible customer-generator" as defined in RSA 362-A:1-a, II-b, and of a “limited producer” as defined in RSA 362-A:1-a, III if selling under RSA 362-A:2-a, for facilities with a rated electricity production capacity of up to and including one megawatt;

6  Effective Date.  Part V of this act shall take effect 60 days after its passage.

PART VI

Relative to the aggregation of electric customers.

1  Aggregation of Electric Customers by Municipalities and Counties; Aggregation Program.  Amend RSA 53-E:7, IV to read as follows:

IV.  Services proposed to be offered by or through the aggregation shall be on an opt-in basis unless the approved aggregation plan explicitly creates an opt-out alternative default energy service program where the rate or price is known at least 30 days in advance of its application and, for a period of not less than 30 days from the date notification is mailed, the customer has the opportunity to opt out of being enrolled in such program, by return postcard, website, or such additional means as may be provided.  Customers who are on default service provided by an electric distribution utility shall be automatically enrolled in an aggregation provided alternative default service if they do not elect to opt out.  Customers opting out will instead remain on utility-provided default service.  Customers taking energy service from a competitive electricity supplier shall not be automatically enrolled in any aggregation program, but may voluntarily opt in.  [New customers to the electric distribution utility after the notification mailing required by paragraph II shall be given a choice of enrolling in utility provided default service or aggregation provided default service, where such exists.  New customers shall be informed of pricing for each when they apply for service.  Such new customers may also enroll with a competitive electricity supplier.  New customers who do not make such a choice shall be enrolled in the default service of any geographically appropriate approved aggregation, or, if none exists, the utility provided default service.]  The utility shall periodically make available to each operating municipal aggregation, or county aggregation where there is no municipal aggregation, the names, account numbers, and mailing addresses of customers that are new to the electric distribution utility after they have provided the customer list for the initial customer mailing required by paragraph II and that are located within the aggregation.  The aggregation shall periodically mail a written notification to such customers and shall enroll them in the aggregation consistent with the opt-in or opt-out requirements of this paragraph and paragraph II. Municipal aggregations shall take priority or precedence over any county aggregations.  Customers automatically enrolled in a municipal or county provided default service shall be free to elect to return to utility provided default service or to transfer to a competitive electricity supplier with adequate notice in advance of the next regular meter reading by the distribution utility, in the same manner as if they were on utility provided default service or as approved by the commission.

2  Effective Date.  Part VI of this act shall take effect 60 days after its passage.

PART VII

Relative to net energy metering limits for customer generators.

1  Findings.  The general court finds that:  

I.  New Hampshire’s electricity consumers, including municipalities, manufacturers, commercial businesses, and other large users, strongly support more competitive retail options to lower their energy costs.

II.  These same consumers deserve the freedom to invest their own capital to become more self-sufficient and energy independent and less reliant on out-of-state electricity companies that control our high electricity rates.

III.  ISO-New England, Inc., the independent, nonprofit regional transmission organization that oversees the operation of New England's bulk electric power system and transmission lines, has stated that infrastructure constraints could pose a challenge to the reliable operation of the regional power grid, create price increases and volatility, and contribute to increased air emissions, all of which would adversely impact New Hampshire's citizens, businesses, and economy.

IV.  The current size limit of one megawatt on customer-generators that may participate in net energy metering is an unnecessary barrier that denies larger electricity users the same rights that smaller users already have to produce and use local renewable power that reduces their energy costs, increases supply, and insulates all New Hampshire ratepayers from electric price volatility and higher transmission costs.

V.  The current size limit is also a barrier to significant investment in existing and new small renewable energy projects, which would help keep our energy dollars in-state, drive economic activity, support good-paying jobs, and increase state and local business and property tax revenues.

VI.  The federal Public Utility Regulatory Policies Act (PURPA) as amended by the Energy Policy Act of 2005 calls upon states to consider the adoption and implementation of net metering policies.  PURPA as amended states that electricity generated by an eligible on-site generating facility may be used to offset electric energy provided by the electric utility and allows states to define an eligible facility.  Furthermore, under ISO New England’s rules, a generating facility of less than 5 megawatts that is connected to the distribution grid is not required to register with ISO New England as a generator or participate in the wholesale energy markets; rather, if the generating facility elects not to register as a wholesale market participant or retires from such status, the customer generator is to be treated by ISO New England as a retail load reducer.

VII.  It is therefore also in the best interests of all citizens of New Hampshire that the size limit on customer-generators that may participate in net energy metering and serve as retail load reducers be increased from one megawatt to up to but not including 5 megawatts to increase customer supply choice, foster a more robust retail market for local renewable energy, help mitigate the cost of electric service in the state, reduce the price volatility of that service, and reduce the potential for disruptions in electricity supply due to inadequate wholesale generating capacity in the New England marketplace.

2  Definition; 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] nameplate or maximum rated capacity of [up to and including one megawatt,] less 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 in the first instance.  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.

3  Net Energy Metering; Net Effects.  Amend RSA 362-A:9, VII to read as follows:

VII.(a) A distribution utility may perform an annual calculation to determine the net effect this section had on its default service and distribution revenues and expenses in the prior calendar year.  The method of performing the calculation and applying the results, as well as a reconciliation mechanism to collect or credit any such net effects with appropriate carrying charges and credits applied, shall be determined by the commission.

(b)  For the purposes of accounting for any exports to the distribution grid by customer-generators, such exports shall be treated as reductions to the customer-generator’s electricity supplier’s wholesale load obligation for energy supply as a load serving entity, net of any applicable line loss adjustments as approved by the commission.

(c)  A generator that first becomes operational on or after July 1, 2021 shall only be eligible to participate in net metering as a customer-generator if it does not register as a generator with ISO New England, is not considered a “Network Resource” or “Asset” by ISO New England, and does not participate in any other sale of electricity in interstate commerce.

(d)  A generator that first became operational before July 1, 2021 and that has outstanding capacity commitments in the forward capacity market administered by ISO New England, is registered as a generator with ISO New England, or is considered a “Network Resource” or “Asset” by ISO New England, may elect to become a customer-generator and participate in net metering upon retirement from all wholesale electric markets administered by ISO New England.  A generator in the process of retiring from FERC regulated electric markets may prospectively register as a group host pursuant to paragraph XIV provided that net metering tariffs under this section shall not be effective until such retirement is effective.

(e)  Any provisions of settlement agreements or orders that have been approved or issued by the commission that relate to a distribution utility’s treatment of the output from qualifying facilities or independent power producers shall not apply to the output from an eligible customer-generator participating in net metering.

4  Net Energy Metering; Transition of Tariffs.  Amend RSA 362-A:9, XV to read as follows:

XV.  Standard tariffs that are available to eligible customer-generators under this section shall terminate on December 31, 2040 and such customer-generators shall transition to tariffs that are in effect at that time.  Alternative tariffs shall be applicable and have such grandfathering provisions as may be approved or adopted by the commission under this section.  Customer-generators with a nameplate or maximum rated capacity of more than one megawatt and less than 5 megawatts that are eligible for net metering before the commission adopts tariffs specifically for customer-generators with a generating capacity of more than one megawatt shall:

(a)  Be eligible to receive the export credit rate approved by the commission in Order No. 26,029 (DE 16-576) for one megawatt sized customer-generators on default service, namely, the applicable default energy service rate, minus any rate component for:  

(1)  Compliance with the electric renewable portfolio standard, RSA 362-F, net of prior period reconciliations for such; and

(2)  Administrative costs of the electric distribution utility allocated to default energy service, net of prior period reconciliations for such, both as determined by the commission.

(b)  Be eligible to receive, on a prospective basis after the commission has approved tariffs for such, credit for actual avoided wholesale transmission charges attributable to exports to the distribution grid during time periods when transmission charges are incurred by the distribution utility that reduce load at the meter point between the distribution and transmission grid and the resulting calculation of load used for apportioning such wholesale transmission charges.  Such credit shall be based on measurement of exports at the retail meter point without additional credit for avoided line losses between the wholesale and retail meter points to provide a sharing of the benefit of reduced transmission charges from net metering with other ratepayers who do not participate in net metering.

(c)  Be grandfathered by the terms of currently applicable tariff for customer-generators with a total peak generating capacity of one megawatt if the customer-generator’s electrical generating facility or qualified storage system first becomes operational on or after July 1, 2021.

(d)  Transition to such new tariffs specifically approved by the commission for customer-generators with a nameplate or maximum rated capacity of more than one megawatt if the customer-generator’s electrical generating facility or qualified storage system first became operational before July 1, 2021.

5  Utility Property Tax; Eligible Customer-Generator; Exclusion Clarified.  Amend RSA 83-F:1, V(d) to read as follows:

(d)  The electrical generation, production, storage, and supply equipment of an "eligible customer-generator" as defined in RSA 362-A:1-a, II-b, up to and including one megawatt;

6  Effective Date.  Part VII of this act shall take effect 60 days after its passage.