SB 111-FN - AS INTRODUCED
2025 SESSION
25-1112
06/08
SENATE BILL 111-FN
AN ACT authorizing a reliability indexing credit pilot program.
SPONSORS: Sen. Watters, Dist 4; Sen. Fenton, Dist 10; Sen. Rosenwald, Dist 13; Sen. Perkins Kwoka, Dist 21; Rep. McGhee, Hills. 35; Rep. Caplan, Merr. 8; Rep. Cormen, Graf. 15
COMMITTEE: Energy and Natural Resources
─────────────────────────────────────────────────────────────────
ANALYSIS
This bill establishes a reliability indexing credit pilot program for the procurement of reliability indexing credits from qualified energy storage resources, defines related terms, and authorizes the public utilities commission to approve multi-year agreements and cost recovery mechanisms.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25-1112
06/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
AN ACT authorizing a reliability indexing credit pilot program.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Chapter; Reliability Indexing Credit Pilot Program. Amend RSA by inserting after chapter 374-H the following new chapter:
CHAPTER 374-I
RELIABILITY INDEXING CREDIT PILOT PROGRAM
374-I:1 Definitions. In this chapter:
I. “Energy storage” means energy storage as defined in RSA 374-H:1.
II. “Qualified energy storage resource” means an energy storage resource located in New Hampshire, which is expected to provide reliability value to the system by participating in the wholesale market.
III. “Reliability indexing credit” means the record that identifies and represents each megawatt-hour of capacity available from a qualified energy storage resource each day.
IV. “Reliability indexing credit reference price” means an approximation of the wholesale market revenues available for each megawatt-hour of capacity from an energy storage resource each day.
V. “Strike price” means the contract price for reliability indexing credits from a contracted qualified energy storage resource.
VI. “Reliability indexing credit pilot program” means a program for the procurement of reliability indexing credits in which payment for reliability indexing credits produced by qualified energy storage resources would be the difference between the competitively bid strike price and the reliability indexing credit reference price, calculated each day. On days for which the strike price exceeds the reliability indexing credit reference price, the contract would result in payment to the energy storage resource. On days for which the reliability indexing credit reference price exceeds the strike price, the contract would result in a charge to the energy storage resource.
2 New Section; Reliability Indexing Credit Pilot Program. Amend RSA 374-I:2 by inserting after section 15 the following new section:
362-F:16 Reliability Indexing Credit Pilot Program.
I. The public utilities commission shall authorize the state electric distribution utilities to enter into multi-year agreements with qualified energy storage resources to undertake a reliability indexing credit pilot program for up to 200 megawatts of energy storage and shall authorize the utilities to recover the costs associated with those agreements through an appropriate rate mechanism if it finds such agreements to be just and reasonable and in the public interest..
II. The department of energy shall develop recommended terms and conditions of the reliability indexing credit pilot program through an investigation which shall be completed by December 1, 2025. Upon the completion of the investigation, but no later than February 1, 2026, the state electric distribution utilities shall petition the public utilities commission to undertake the reliability indexing credit pilot program with the recommended terms and conditions specified by the department of energy and to seek rate recovery for the costs associated with those agreements.
3 Effective Date. This act shall take effect 60 days after its passage.
25-1112
Revised 2/4/25
SB 111-FN- FISCAL NOTE
AS INTRODUCED
AN ACT authorizing a reliability indexing credit pilot program.
FISCAL IMPACT:
|
| |||||
Estimated State Impact | ||||||
| FY 2025 | FY 2026 | FY 2027 | FY 2028 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None | |||||
Expenditures* | $0 | $100,000+ | $0 | $0 | ||
Funding Source(s) | Utility Special Assessment | |||||
Appropriations* | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
METHODOLOGY:
This bill would establish a Reliability Indexing Credit Pilot program to compensate energy storage resources for their participation in wholesale electric markets. The Department of Energy would review the program's terms and conditions of the pilot program through an investigation, while the Public Utilities Commission would approve any multi-year agreements resulting from the program.
The Department of Energy anticipates that the costs associated with this investigation would be assessed to electric distribution utilities under RSA 365:37. While the exact cost may vary, based on recent experience, the Department estimates that the cost could exceed $100,000.
The Public Utilities Commission is uncertain about the number of filings it may receive from the provisions of this bill. However, it anticipates that its current staffing levels will be sufficient to handle any additional caseload resulting from the bill.
AGENCIES CONTACTED:
Department of Energy and Public Utilities Commission
| Date | Body | Type |
|---|---|---|
| Feb. 11, 2025 | Senate | Hearing |
March 6, 2025: Rereferred to Committee, MA, VV; 03/06/2025; SJ 6
Feb. 25, 2025: Committee Report: Rereferred to Committee, 03/06/2025; Vote 5-0; CC; SC 11
Feb. 5, 2025: Hearing: 02/11/2025, Room 103, SH, 09:00 am; SC 9
Jan. 22, 2025: Introduced 01/09/2025 and Referred to Energy and Natural Resources; SJ 3