Revision: Feb. 13, 2024, 2:51 p.m.
Energy and Natural Resources
February 13, 2024
2024-0664s
06/02
Amendment to SB 307-FN
Amend the bill by replacing section 1 with the following:
1 New Section; Electric Distribution Utilities; Transmission Service Agreements. Amend RSA 374-F by inserting after section 11 the following new section:
374-F:12 Transmission Service Agreements.
I.(a) One or more New Hampshire electric distribution public utilities, as defined in RSA 362:2, may recover through retail rates the costs incurred under, and in connection with, long-term transmission service agreements, with or without associated long-term agreements for storage services, entered into with the developer of any New England transmission project which has been awarded a grant from, or entered into a transmission capacity contract with, the United States Department of Energy, subject to the following conditions:
(1) Such agreements shall not exceed a total of 120 megawatts of transmission capacity in the aggregate.
(2) Each electric distribution utility shall not contract for more than its pro rata share of the total capacity amount, based upon its kWh sales to retail customers as reported on its most recent FERC Form 1.
(3) No such agreement shall exceed 30 years in length.
(4) Any such agreement shall meet the requirements of RSA 374-F:12, II.
(b) Electric distribution public utilities shall review and respond to proposals for long-term transmission service agreements, with or without associated storage services, from any such transmission project developer, within 3 months of receiving such proposals.
(c) No later than 3 months after entering into such an agreement with a transmission developer pursuant to this section, the electric distribution public utility shall petition the public utilities commission for authorization to recover the related costs through retail rates.
II. Electric distribution public utilities shall recover any prudently incurred costs related to the solicitation, review and negotiation of such agreements through retail rates. Costs associated with the administration of any agreements shall be recovered pursuant to RSA 374-F:12, IV if the public utilities commission finds such agreements to be just and reasonable and in the public interest. The commission shall review and render a decision on any proposed agreement no later than 6 months after submission of the agreement to the commission.
III. In reviewing agreements under this section, the public utilities commission shall consider whether each agreement is, on balance, substantially consistent with the following factors:
(a) Proportionally benefits New Hampshire ratepayers relative to regional benefits.
(b) Provides net benefits throughout the lifetime of the agreement to New Hampshire ratepayers, based on net present value, by comparing the full costs of the agreements to projected wholesale energy market savings.
(c) Fosters price stability and helps reduce exposure to market volatility.
(d) Mitigates future investments in transmission and generation infrastructure.
(e) Improves system reliability during extreme weather events.
(f) Any other factors necessary to determine whether the agreement is just and reasonable and in the public interest.
IV. Upon receiving commission approval of cost recovery for any such long-term transmission service agreement, and any associated storage services, the electric distribution public utility shall minimize costs and maximize benefits to ratepayers throughout the term of the contract. The electric distribution public utility shall:
(a) Calculate the net cost of payments made under the agreement, including all costs incurred by the utility to administer the agreement, against the proceeds obtained from such sales.
(b) Credit or charge all of its distribution ratepayers through a uniform, fully-reconciling annual factor in retail rates the difference between (i) the agreement payments and utility costs to administer the agreement, and (ii) the sale proceeds. Any Federal Energy Regulatory Commission (FERC)-jurisdictional agreements entered into pursuant to paragraph I shall be filed with or reported to FERC, consistent with FERC regulations and Section 205 of the Federal Power Act.