Bill Text: NH SB167 | 2019 | Regular Session | Amended


Bill Title: Establishing a clean energy resource procurement commission.

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Vetoed) 2019-09-19 - Notwithstanding the Governor's Veto, Shall SB 167 Become Law: Regular Calendar 14Y-10N, Veto Sustained, lacking the necessary two-thirds vote; 09/19/2019; Senate Journal 22 [SB167 Detail]

Download: New_Hampshire-2019-SB167-Amended.html

SB 167-FN - AS AMENDED BY THE HOUSE

 

03/07/2019   0737s

8May2019... 1700h

8May2019... 1851h

2019 SESSION

19-1081

06/01

 

SENATE BILL 167-FN

 

AN ACT establishing a clean energy resource procurement commission.

 

SPONSORS: Sen. Feltes, Dist 15; Sen. Fuller Clark, Dist 21; Sen. Watters, Dist 4; Rep. Cali-Pitts, Rock. 30; Rep. Mann, Ches. 2; Rep. Oxenham, Sull. 1; Rep. Merner, Coos 7

 

COMMITTEE: Energy and Natural Resources

 

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AMENDED ANALYSIS

 

This bill:

 

I.  Establishes a commission to investigate the cost-effective procurement of renewable energy generation resources.

 

II.  Authorizes the public utilities commission to fund expenses of the commission.

 

III.  Authorizes the public utilities commission to directly assess gas and electric distribution utilities costs incurred.

 

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/07/2019   0737s

8May2019... 1700h

8May2019... 1851h 19-1081

06/01

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT establishing a clean energy resource procurement commission.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Purpose Statement.  In order to promote more diverse, reliable, and resilient electricity across New Hampshire, it is in the interest of all New Hampshire ratepayers to determine a cost-effective pathway toward creating new long-term contracts for renewable energy generation, in accordance with RSA 374-F.

2  New Section; Procurement of Renewable Energy Generation Resources; Commission Established.  Amend RSA 374-F by inserting after section 8 the following new section:

374-F:9  Procurement of Renewable Energy Generation Resources; Commission Established.

I.  There is established a commission to investigate cost-effective methods to increase renewable energy generation resources for New Hampshire ratepayers through competitive energy procurement or long-term contracting, or both.

II.  The members of the commission shall be as follows:

(a)  One member of the senate, appointed by the president of the senate.

(b)  Two members of the house of representatives at least one of whom shall be a member of the science, technology & energy committee, at appointed by the speaker of the house of representatives.

(c)  The director of the office of strategic initiatives, or designee.

(d)  The chairperson of the public utilities commission, or designee.

(e)  The consumer advocate, or designee.

(f)  A representative of Clean Energy NH, appointed by the association.

(g)  A representative of the New England Power Generators Association, appointed by the association.

(h)  A representative of Eversource, appointed by its president.

(i)  A representative of Unitil, appointed by its president.

(j)  A representative of Liberty Utilities, appointed by its president.

(k)  A representative of the renewable energy development industry, appointed by the governor.

(l)  A representative of the Conservation Law Foundation, appointed by the foundation.

(m)  A representative of Granite State Hydropower Association, appointed by the association.  

III.  The commission shall consider and make specific recommendations on the following topics:

(a)  Eligible renewable energy generation resources allowed to participate in a competitive New Hampshire procurement.

(b)  The appropriate amount of renewable energy generation resources to procure for New Hampshire ratepayers, and the time frame in which to do so.

(c)  The short and long-term rate impacts of renewable energy resource procurement on default energy supply.

(d)  The economic and environmental costs and benefits of in-state resources and out-of-state renewable energy resources.

(g)  Potential impacts upon the state and regional electricity markets and state restructuring laws.

(h)  Appropriate state agency or designee to adopt rules for a competitive solicitation and/or to conduct the competitive process, review the proposals, and make final selections.

(i)  Appropriate time frame needed to develop, launch, review, and set long term power purchase contracts for clean energy generation resources.

(j)  Appropriate criteria by which to value renewable energy resources.

(k)  The pros and cons of the current default energy service procurement process in soliciting firm and intermittent resources.

(l)  Appropriate siting criteria for eligible renewable energy generation resources that avoid, minimize, and mitigate impacts to natural and community resources.

IV.  The first meeting of the commission shall be called by the senate member and shall be held within 30 days of the effective date of this section.  The members of the commission shall elect a chairperson from among the members at the first meeting.  Seven members of the commission shall constitute a quorum.

V.  The commission shall make a final report, on or before October 1, 2020, to the speaker of the house of representatives, the president of the senate, the governor, and the chairperson of the public utilities commission.  The reports shall describe the activities and findings of the commission and any recommendations for either 1) proposed legislation, or 2) direction to the public utilities commission to initiate a proceeding with the utilities and stakeholders to determine a competitive process and time line to secure clean energy generation resources for New Hampshire ratepayers.

VI.  The commission shall have a budget of $100,000 in order to hire technical and consulting support.  The public utilities commission is authorized to contract for such services on behalf of the commission and to undertake an assessment for the same.

3  Repeal.  RSA 374-F:9, relative to the commission to investigate the cost-effective procurement of renewable energy generation resources, is repealed.

4  Assessment of Costs.  Amend RSA 374-F:8 to read as follows:

374-F:8  Participation in Regional Activities.  The commission shall advocate for New Hampshire interests before the Federal Energy Regulatory Commission and other regional and federal bodies.  The commission shall participate in the activities of the New England Conference of Public Utility Commissioners, the National Association of Regulatory Utility Commissioners, and the New England States Committee on Electricity, or other similar organizations, and work with the New England Independent System Operator and NEPOOL to advance the interests of New Hampshire with respect to wholesale electric issues, including policy goals relating to fuel diversity, renewable energy, and energy efficiency, and to assure nondiscriminatory open access to a safe, adequate, and reliable transmission system at just and reasonable prices.  The commission shall advocate against proposed regional or federal rules or policies that are inconsistent with the policies, rules, or laws of New Hampshire.  In its participation in regional activities, the commission shall consider how other states' policies will impact New Hampshire rates and work to prevent or minimize any rate impact the commission determines to be unjust or unreasonable. The commission shall directly assess gas and electric distribution utilities the costs and expenses of fulfilling its duties under this paragraph, including the costs and expenses of assistants hired by the commission, based on the annual revenues of the utilities in the same manner as issued in assessing the annual operating expenses of the commission, or as appropriate and equitable on a case by case basis.  Such costs and expenses shall not include any part of the salaries of the commissioners or of employees of the commission, or the commission’s membership fees for the New England Conference of Public Utility Commissioners and the National Association of Regulatory Utility Commissioners.  The commission may make and the utilities shall pay such assessments monthly, quarterly, or annually at the commission’s election.

5  Effective Date.  

I.  Section 3 of this act shall take effect October 1, 2020.

II.  The remainder of this act shall take effect upon its passage.

 

LBAO

19-1081

Amended 3/12/19

 

SB 167-FN- FISCAL NOTE

AS AMENDED BY THE SENATE (AMENDMENT #2019-0737s)

 

AN ACT establishing a clean energy resource procurement commission.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

$100,000

$0

$0

$0

Funding Source:

  [    ] General            [    ] Education            [    ] Highway           [ X ] Other - Assessment Revenue

 

 

 

 

 

METHODOLOGY:

This bill establishes a commission to investigate the cost-effectiveness of procurement of renewable energy generation resources.  As amended, the bill authorizes the Public Utilities Commission (PUC) to make an assessment of up to $100,000 to hire technical and consulting support for the commission.  The PUC would be to required to directly assess gas and electric distribution utilities for the costs and expenses of fulfilling its duties under proposed RSA 374-F:8.  Certain costs, such as salaries of the PUC commissioners or employees, overtime and mileage are excluded from the direct assessment under this section.  These costs would instead be assessed against utilities under existing RSA 363-A.   Because the location and frequency of the meetings is unknown, the employees who would be involved in meetings and their wage rates are not known, the additional costs are indeterminable, but will likely be insignificant.  The costs of these regional activities would be allocated to the electric and gas utilities to whom the regional activities relate, excluding telecommunication and relatively small water utilities that are not affected by the PUC activities under the proposed RSA 374-F:8

 

AGENCIES CONTACTED:

Public Utilities Commission

 

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