Bill Text: NH SB54 | 2023 | Regular Session | Introduced
Bill Title: Relative to purchased power agreements for electric distribution utilities.
Spectrum: Bipartisan Bill
Status: (Passed) 2023-08-09 - Signed by the Governor on 08/04/2023; Chapter 0204; Effective 10/03/2023 [SB54 Detail]
Download: New_Hampshire-2023-SB54-Introduced.html
SB 54-FN - AS INTRODUCED
2023 SESSION
23-0881
10/08
SENATE BILL 54-FN
AN ACT relative to purchased power agreements for electric distribution utilities.
SPONSORS: Sen. Avard, Dist 12; Sen. Watters, Dist 4
COMMITTEE: Energy and Natural Resources
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ANALYSIS
This bill requires electric distribution utilities to issue requests for proposals to provide more diverse and longer term options for providing default energy service to customers in purchased power agreements as directed by the public utilities commission.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
23-0881
10/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
AN ACT relative to purchased power agreements for electric distribution utilities.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Legislative Findings. The general court finds that in order to ensure that New Hampshire ratepayers and businesses can benefit from cost effective local energy sources in a time of unprecedented price volatility, it is appropriate to require the electric distribution utilities to issue requests for proposals to provide more diverse and longer term options for providing default energy service to customers.
2 Electric Renewable Portfolio Standard; Purchased Power Agreements. Amend RSA 362-F:9 to read as follows:
362-F:9 Purchased Power Agreements.
I. Upon the request of one or more electric distribution companies and after notice and hearing, the [department of energy] public utilities commission may authorize such company or companies to enter into multi-year purchase agreements with renewable energy sources for certificates, in conjunction with or independent of purchased power agreements from such sources, to meet reasonably projected renewable portfolio requirements and default service needs to the extent of such requirements, if it finds such agreements or such an approach, as may be conditioned by the [department of energy] public utilities commission, to be just and reasonable and in the public interest.
II. In [determining the public interest, the department of energy shall find that] reviewing proposals under this section, the public utilities commission shall consider whether the proposal is, on balance, substantially consistent with the following factors:
(a) The efficient and cost-effective realization of the purposes and goals of this chapter;
(b) The restructuring policy principles of RSA 374-F:3;
(c) The extent to which such multi-year procurements are likely to create a reasonable mix of resources, in combination with the company's overall energy and capacity portfolio, in light of the energy policy set forth in RSA 378:37 and either the distribution company's integrated least cost resource plan pursuant to RSA 378:37-41, if applicable, or a portfolio management strategy for default service procurement that balances potential benefits and risks to default service customers;
(d) The extent to which such procurement is conducted in a manner that is administratively efficient and promotes market-driven competitive innovations and solutions; [and]
(e) Economic development and environmental benefits for New Hampshire[.];
(f) Rate impacts and benefits to ratepayers including costs reductions related to renewable portfolio standard compliance, peak demand costs, or other costs of providing default service;
(g) Length of the contract, weighing the benefits to ratepayers in current market conditions against the risk of fundamental market shifts over the term of the proposed contract; and
(h) Any other factors necessary to determine whether the proposal is just and reasonable and in the public interest.
III. [The department of energy may authorize] One or more distribution companies [to] may coordinate or delegate procurement processes under this section.
IV. Rural electric cooperatives for which a certificate of deregulation is on file with the department of energy shall not be required to seek [department of energy] authorization for multi-year purchased power agreements or certificate purchase agreements under this section.
3 Purchase Power Agreements; Requests For Proposals; Report.
I. The electric distribution companies shall issue requests for proposals for multi-year purchase agreements for power from resources that qualify for Class I, Class II, Class III or Class IV renewable energy certificates, together with or independent from the purchase of renewable certificates, to meet a portion of their default service requirements, no later than 90 days after the effective date of this act. Each electric distribution utility may propose more than one contract, contracts with varying lengths and terms, alone or in conjunction with another utility, resulting from these requests for proposals. The public utilities commission shall review such proposals pursuant to RSA 362-F:9, as amended by this act, as expeditiously as possible.
II. Any costs related to complying with this section may be recovered in the administrative costs of procuring default service pursuant to RSA 374-F:3, V.
III. On or before 60 days after the close of the fiscal year ending June 30, 2024, the department of energy shall report to the fiscal committee of the general court and governor and executive council the status of proposals made under this act.
4 Effective Date. This act shall take effect 60 days after its passage.
23-0881
1/10/23
SB 54-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to purchased power agreements for electric distribution utilities.
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:
Public Utilities Commission
