HB 1741-FN - AS INTRODUCED
2026 SESSION
26-2724
06/08
HOUSE BILL 1741-FN
SPONSORS: Rep. Caplan, Merr. 8; Rep. Cormen, Graf. 15; Rep. McGhee, Hills. 35; Rep. Cloutier, Sull. 6; Rep. Parshall, Ches. 8; Rep. W. Thomas, Hills. 12; Sen. Fenton, Dist 10
COMMITTEE: Science, Technology and Energy
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ANALYSIS
This bill establishes a distributed power plant program requiring electric utilities to coordinate distributed energy resources for grid services, with commission oversight, incentive payments, cost recovery mechanisms, and performance targets.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
26-2724
06/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty-Six
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Purpose. The general court finds:
I. It is in the public interest to advance customer choice and leverage private sector innovation to implement cost-effective clean energy solutions.
II. Aggregated distributed energy resources (DERs) can provide grid resilience, reduce ratepayer costs, and support public policy goals.
III. Distributed power plants (DPPs), aggregations of behind-the-meter DERs, can reduce peak demand, shift load, provide ancillary services, and improve system reliability.
IV. DPPs optimize renewable energy use and reduce reliance on fossil-fuel peaker plants.
V. DPPs promote equity by expanding DER access and reducing emissions.
VI. The Department of Energy estimates that 80–160 GW of DPPs could be deployed by 2030, yielding significant ratepayer savings.
VII. Statutory and regulatory support is needed to overcome barriers to DPP deployment and integration.
2 New Subdivision; Distributed Power Plants. Amend RSA 362-A by inserting after section 9 the following new subdivision:
Distributed Power Plants
362-A:10 Definitions. In this subdivision:
I. “Aggregator” means a third-party entity that enrolls customers in a distributed power plant (DPP) program and coordinates distributed energy resources (DER) operations.
II. “Battery” means distributed storage as defined in RSA 374-F:2, IX.
III. “Commission” means the public utilities commission.
IV. “Customer” means an active electric service account holder of a regulated distribution utility.
V. “Direct participant” means a customer enrolled directly with the utility.
VI. “Distributed energy resource” or “DER” means a resource connected to the distribution grid as defined in RSA 374-F:2, VII or RSA 374-G:2, I(b), including solar PV, batteries, smart thermostats, and electric vehicles.
VII. “Distributed power plant” or “DPP” means an aggregation of DERs operated in coordination to provide grid services.
VIII. “Enrollment program” means a utility-approved program for enrolling DERs, either directly or through aggregators.
IX. “Grid event” means a condition for which the utility dispatches enrolled devices.
X. “Grid service” means a capacity, energy, or ancillary service that supports grid operations.
XI. “Participant” means an aggregator or direct participant.
XII. “Performance payment” means compensation for grid services during a grid event.
XIII. “Performance payment rate” means the rate paid for grid services.
XIV. “Upfront incentive payment” means a one-time enrollment payment.
362-A:11 Distributed Power Plant Program.
I. Each electric utility shall file a DPP program proposal with the commission.
II. The commission shall conduct an adjudicated proceeding with stakeholder input and approve or modify each proposal within 100 days.
III. Each DPP program shall include:
(a) Upfront incentive payments for DERs providing peak load reduction and grid services;
(b) Enrollment programs for batteries, electric vehicles, and combined technologies; and
(c) Aggregator programs compensating for avoided costs and grid services.
IV. Utilities may integrate existing demand management programs into DPP enrollment programs.
V. Grid services may include:
(a) Systemwide and local peak reduction;
(b) Transmission and distribution deferral;
(c) Voltage support and ancillary services; or
(d) Emergency services.
VI. The program shall define operational parameters, including minimum and maximum grid events and notification requirements.
VII. Aggregators shall receive dispatch signals, submit performance data, and receive payments directly.
VIII. Direct participants shall receive dispatch signals and payments, with equipment requirements limited to those necessary for participation.
IX. Battery performance shall be measured at the device level without requiring additional meters.
X. No penalties shall be assessed for nonperformance, but the commission may authorize disenrollment mechanisms.
XI. Higher upfront payments may be offered to low- and moderate-income customers.
XII. Participants may lock in performance payment rates for 5 years, with re-enrollment options.
XIII. Participation in other grid service programs and incentives shall be permitted unless otherwise restricted.
XIV. Utilities shall not require collateral from participants.
362-A:12 Cost Recovery. Utilities may recover prudent costs associated with DPP program implementation and performance payments and related costs shall be recovered through commission-approved mechanisms, including reasonable interest on working capital.
362-A:13 Performance Targets and Incentives.
I. The commission shall establish capacity procurement targets and performance incentives.
II. The commission shall set annual targets for system peak reduction over a 5-year period, with financial rewards and potential penalties.
III. Additional targets for other grid services shall be established.
IV. Utilities shall file annual reports to the commission by January 31 of each year detailing enrollment, performance, and recommendations.
3 Effective Date. This act shall take effect January 1, 2027.
26-2724
12/15/25
HB 1741-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: This bill does not provide funding, nor does it authorize new positions.
Estimated State Impact | ||||||
| FY 2026 | FY 2027 | FY 2028 | FY 2029 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None | |||||
Expenditures* | $0 | Indeterminable Increase $200,000 to $500,000 (Utility Assessments) | Indeterminable Increase $350,000 to $800,000 (Utility Assessments) | Indeterminable Increase $350,000 to $800,000 (Utility Assessments) | ||
Indeterminable Increase (State's Utility Costs) | Indeterminable Increase (State's Utility Costs) | Indeterminable Increase (State's Utility Costs) | ||||
Funding Source(s) | Utility Assessments, General Fund, Highway Fund, and Various Agency Funds | |||||
Appropriations* | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
| ||||||
Estimated Political Subdivision Impact | ||||||
| FY 2026 | FY 2027 | FY 2028 | FY 2029 | ||
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 establishes a distributed power plant program that allows electric utilities to enroll and coordinate aggregated distributed energy resources to provide grid services. The bill requires each electric utility to file a distributed power plant program proposal with the Public Utilities Commission, authorizes upfront incentive and performance payments for participating resources, permits cost recovery for program costs, and directs the Commission to establish performance targets and oversight requirements.
The Department of Energy states this bill creates a new classification of distributed energy resources known as distributed power plants, defined as aggregations of distributed resources operated in coordination to provide grid services such as peak demand reduction, load shifting, and system reliability benefits. The bill allows third party aggregators to enroll customers and coordinate operations with electric utilities and requires utilities to submit program proposals for Commission approval. The Department assumes it would be an active participant in the Commission’s adjudicative proceedings reviewing distributed power plant proposals and would need to hire consultants with specialized expertise to evaluate utility filings, including incentive structures and performance payments. The Department estimates consulting costs would range from $150,000 to $250,000 and would be paid by the petitioning utility through a special assessment. In addition to consultant costs, the Department anticipates increased administrative responsibilities associated with stakeholder participation, regulatory proceedings, and review of annual performance reports. The Department indicates there may be a need for additional staffing or resources, likely equivalent to one full time position and anticipates the total impact to expenditures to be between $100,000 to $500,000.
The Public Utilities Commission states this bill would require the Commission to conduct adjudicative proceedings to review and approve distributed power plant program proposals submitted by electric utilities, establish performance targets and incentives, and review annual utility reports on program enrollment and performance. The Commission states its current utility analyst and attorney staffing is already working at or near full utilization and cannot absorb this additional workload. To meet the bill’s requirements, the Commission anticipates the need for one full-time Utility Analyst (13-1190 Miscellaneous Business Operations Specialist-5) and one full-time Attorney IV (23-1010 Lawyers and Judicial Law Clerks-4) beginning January 1, 2027. The estimated cost for these two positions would be $127,000 total in FY 2027 reflecting a half year of costs, $266,000 in FY 2028 and $280,000 in FY 2029, funded through the utility assessment under RSA 363 A.
AGENCIES CONTACTED:
Department of Energy and Public Utilities Commission
Dec. 17, 2025: Introduced 01/07/2026 and referred to Science, Technology and Energy HJ 1