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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.
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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.