Bill Text: NH SB307 | 2024 | Regular Session | Introduced
Bill Title: Relative to electric transmission service agreements.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Introduced) 2024-04-05 - Pending Motion OT3rdg; 04/05/2024; Senate Journal 8 [SB307 Detail]
Download: New_Hampshire-2024-SB307-Introduced.html
SB 307-FN - AS INTRODUCED
2024 SESSION
24-2983
10/05
SENATE BILL 307-FN
AN ACT relative to electric transmission service agreements.
SPONSORS: Sen. Avard, Dist 12; Sen. Watters, Dist 4; Sen. Pearl, Dist 17; Rep. Vose, Rock. 5
COMMITTEE: Energy and Natural Resources
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ANALYSIS
This bill allows for electric transmission service agreements by New Hampshire electric distribution utilities with the developer of any New England transmission project which has been awarded a grant from, or entered into a transmission capacity contract with, the United States Department of Energy.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2983
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT relative to electric transmission service agreements.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Electric Distribution Utilities; Transmission Service Agreements. Amend RSA 374-F by inserting after section 11 the following new section:
374-F:12 Transmission Service Agreements.
I.(a) One or more New Hampshire electric distribution public utilities, as defined in RSA 362:2, may recover through retail rates the costs incurred under, and in connection with, long-term transmission service agreements, with or without associated long-term agreements for energy purchases or storage services, entered into with the developer of any New England transmission project which has been awarded a grant from, or entered into a transmission capacity contract with, the United States Department of Energy, subject to the following conditions:
(1) Such agreements shall not exceed a total of 240 megawatts of transmission capacity in the aggregate.
(2) Each electric distribution utility shall not contract for more than its pro rata share of the total capacity amount, based upon its kWh sales to retail customers as reported on FERC Form 1.
(3) No such agreement shall exceed 40 years in length.
(4) Any such agreement shall meet the requirements of RSA 374-F:12, II.
(b) Electric distribution public utilities shall review and respond to proposals for long-term transmission service agreements, with or without associated long-term agreements for energy purchases or storage services, from any such transmission project developer, within 3 months of receiving such proposals.
(c) No later than 3 months after entering into such an agreement with a transmission developer pursuant to this section, the electric distribution public utility shall petition the public utilities commission for authorization to recover the related costs through retail rates.
II. Electric distribution public utilities shall recover any prudently incurred costs related to the solicitation, review and negotiation of such agreements through retail rates. Costs associated with the administration of any agreements shall be recovered pursuant to RSA 374-F:12, III if the public utilities commission finds such agreements to be just and reasonable and in the public interest. The commission shall review and render a decision on any proposed agreement no later than 6 months after submission of the agreement to the commission.
III. Upon receiving commission approval of cost recovery for any such long-term transmission service agreement, and any associated long-term agreement for energy purchases or storage services, the electric distribution public utility shall sell such services and associated energy to third parties in a manner to minimize costs and maximize benefits to ratepayers. Upon sale of the transmission service and any associated energy or storage services purchased, the electric distribution public utility shall:
(a) Calculate the net cost of payments made under the agreement, including all costs incurred by the utility to administer the agreement, against the proceeds obtained from such sales.
(b) Credit or charge all of its distribution ratepayers through a uniform, fully-reconciling annual factor in retail rates the difference between (i) the agreement payments and utility costs to administer the agreement, and (ii) the sale proceeds. Any Federal Energy Regulatory Commission (FERC)-jurisdictional agreements entered into pursuant to paragraph I shall be filed with or reported to FERC, consistent with FERC regulations and Section 205 of the Federal Power Act.
2 Effective Date. This act shall take effect upon its passage.
24-2983
12/4/23
SB 307-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to electric transmission service agreements.
FISCAL IMPACT:
Due to time constraints, the Office of Legislative Budget Assistant is unable to provide a fiscal note for this bill, as introduced, at this time. When completed, the fiscal note will be forwarded to the Senate Clerk's Office.
AGENCIES CONTACTED:
Department of Energy, Public Utilities Commission, and Consumer Advocate
