SB 550-FN - AS INTRODUCED
2024 SESSION
24-3124
10/08
SENATE BILL 550-FN
AN ACT relative to utility requirements for integrated distribution planning.
SPONSORS: Sen. Watters, Dist 4; Sen. Avard, Dist 12; Sen. Soucy, Dist 18; Sen. Rosenwald, Dist 13; Sen. Perkins Kwoka, Dist 21; Sen. Altschiller, Dist 24; Sen. Chandley, Dist 11; Rep. Cormen, Graf. 15; Rep. McGhee, Hills. 35
COMMITTEE: Energy and Natural Resources
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ANALYSIS
This bill requires public utilities to file an integrated distribution plan with the public utilities commission.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-3124
10/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT relative to utility requirements for integrated distribution planning.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Subdivision Heading; Electric Utility Integrated Distribution Planning. Amend the subdivision heading preceding RSA 378:37 to read as follows:
[Least Cost Energy Planning]
Electric Utility Integrated Distribution Planning
2 Electric Utility Integrated Distribution Planning. RSA 378:38 through 378:40 are repealed and reenacted to read as follows:
378:37 New Hampshire Energy Policy. The general court declares that it shall be the energy policy of this state to meet the energy needs of the citizens and businesses of the state at reasonably affordable rates, while providing for the reliability, resiliency, and diversity of energy sources; to maximize the use of cost effective energy efficiency and other demand side resources; and to protect the safety and health of the citizens, the physical environment of the state, and the future supplies of resources, with consideration of the financial stability of the state's utilities.
378:38 Submission of Plans to the Commission. Each electric utility, as defined by RSA 362:2, shall file an integrated distribution plan, which includes the utility’s planning processes, standards and methodologies, that serve as the foundation to establish all the applicable distribution programs necessary to improve reliability and resilience, grid modernization and grid capacity to enable electrification for its residential, commercial, and industrial customers. Plans must be filed with the commission within 5 years of the previous plan’s approval. Such plans shall include:
I. A comprehensive forecast of 10-year electric demand for the utility's service area.
II. An assessment of demand-side energy management programs, including energy efficiency
programs authorized by RS 374-F:3 VI-a, and other load management programs.
III. An assessment of distribution infrastructure necessary to ensure a reliable and resilient electric system capable of meeting the forecasted customer demand. Such assessments shall include consideration the benefits and costs of grid modernization, as defined by RSA 374-F:2, XI.
IV. An assessment of potential non-wires solutions, consistent with the utility’s non-wires alternative framework on file with the commission.
V. An assessment of the plan's long- and short-term environmental, economic, and energy price impact on the state.
VI. An assessment of plan’s integration and consistency with the state energy strategy authorized under RSA 12-P.
378:39 Integrated Distribution Plans Required; Commission Review.
I. The commission shall conduct an adjudicative proceeding for the purpose of reviewing an integrated distribution plan under this subdivision. For this purpose, the commission shall, within 10 days of receiving such a plan, provide the public notice requires of such proceedings pursuant to RSA 541-A:31, III. The commission shall either approve, reject, or modify the plan in no more than one year after the plan is filed. Should the commission reject a plan it will provide sufficient specificity as to how the plan does not meet the requirements of this statute and give the utility adequate opportunity to remedy the plan. The utility will have 6 months to amend and resubmit the plan for approval, and the commission shall approve, reject, or modify the amended plan within four weeks of resubmission. This process using this timing will repeat until a plan is approved. Until the new plan is approved the previously approved plan will remain in effect.
II. The commission, by order, may waive for good cause any requirement of this subdivision upon written request by a utility.
378:40 Standard for Approval. The commission shall, after notice and hearing, accept and approve an integrated distribution plan upon a finding that the plan satisfies the requirements set forth in RSA 378:38.
3 Effective Date. This act shall take effect upon its passage.
24-3124
Revised 3/18/24
SB 550-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to utility requirements for integrated distribution planning.
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | ||
Revenue Fund(s) | Utility Assessments
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Expenditures | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | ||
Funding Source(s) | General Fund, Education Trust Fund, and Highway Fund Utility Assessments and Various Government Funds. | |||||
Appropriations | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None
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• Does this bill provide sufficient funding to cover estimated expenditures? [X] No • Does this bill authorize new positions to implement this bill? [X] No | ||||||
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Estimated Political Subdivision Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
County Revenue | $0 | $0 | $0 | $0 | ||
County Expenditures | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | ||
Local Revenue | $0 | $0 | $0 | $0 | ||
Local Expenditures | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | ||
METHODOLOGY:
This bill requires public utilities to file an integrated distribution plan with the Public Utilities Commission. The Department of Energy indicates the bill would require electric distribution utilities to file an integrated distribution plan every five years for review and approval with the Public Utilities Commission (PUC). Plans would be required to address the six criteria listed in proposed RSA 378:38 on page one of the bill. The PUC would be required to open an adjudicative proceeding to review the submission, with a decision required within one year of filing. If a plan is rejected, the rejection is required to specify how the plan does not meet the statutory requirements, with utilities allowed six months to resubmit or amend the plan. The PUC is then allowed four weeks to approve, reject, or modify the amended plan.
The Department of Energy indicates it would be a party to these proceedings and staff would work as they do in all other proceedings and help build the record that the PUC reviews in making their decisions. The Department states the impact would be roughly $200,000 per plan filed. The costs would be specially assessed to the utility filing the plan. The bill does not specify when the first plans should be filed, other than that they must be done every five years. The Department is unable to predict when the plans would be filed, therefore it is not possible to predict the impact in a given fiscal year. Only three electric distribution utilities would be subject to the requirements of this bill, meaning an impact of roughly $600,000 over a given five-year period.
The costs incurred by the electric distribution utilities, the PUC, and the Department of Energy to undertake this process would ultimately be paid by the ratepayers of the electric distribution utilities. The State of New Hampshire, as a consumer of electricity, would see an increase in electricity costs. Based on electricity consumption data from the Department of Administrative Services, the cost impact to the State would be less than $10,000 over a five-year period.
The impact on county and local expenditures would also be an indeterminable increase. The costs above would also impact electricity costs for counties and local units of government as consumers of electricity, although such costs would be negligible. The Department of Energy does not have electricity consumption data for the counties and local units of government which is needed to make a cost estimate, although it would be of a similar magnitude as the impact on state expenditures.
The Public Utilities Commission indicates this bill would have no fiscal impact on the Commission, and the Commission states it has no information regarding any potential fiscal impact on a county or local level.
AGENCIES CONTACTED:
Department of Energy and Public Utilities Commission
| Date | Body | Type |
|---|---|---|
| Feb. 20, 2024 | Senate | Hearing |
March 21, 2024: Refer to Interim Study, MA, VV; 03/21/2024; SJ 7
March 13, 2024: Committee Report: Referred to Interim Study, 03/21/2024; Vote 5-0; CC; SC 11
Feb. 13, 2024: Hearing: 02/20/2024, Room 103, SH, 09:30 am; SC 8
Dec. 14, 2023: To Be Introduced 01/03/2024 and Referred to Energy and Natural Resources; SJ 1