Relative to the alternative compliance payments for renewable energy obligations not met through the purchase of renewable energy credits.
Impact
The adjustments proposed by SB 113 are likely to simplify compliance procedures for electric distribution utilities by establishing a clear and consistent fee for unmet renewable energy obligations. This may enhance the overall integrity of the state's renewable energy initiatives, as providers will be less penalized by fluctuating obligations or varying payment amounts governed by previous legislation. Additionally, by setting a fixed payment amount, the bill aims to stabilize the market within the renewable energy sector, which could appeal to both suppliers and consumers looking for predictable energy costs.
Summary
Senate Bill 113 amends existing laws concerning the alternative compliance payments required from electric distribution utilities when renewable energy obligations are not met via the purchase of renewable energy credits. Specifically, it sets the alternative compliance payment at a uniform rate of $55 per megawatt-hour across different classes of renewable energy obligations. The bill indicates a shift towards making compliance more accessible and uniform for electricity providers in New Hampshire, thus encouraging clarity in their renewable energy obligations.
Contention
Notable points of contention surrounding SB 113 may arise from differing opinions on how the fixed payment structure affects the sustainability of renewable energy initiatives. Some stakeholders may argue that a single payment amount does not take into account the varying economic conditions under which different electric utilities operate, potentially leading to negative impacts on smaller providers who may struggle to meet compliance mandates. Others may view it as a necessary simplification that aligns with broader goals of promoting renewable energies without favoring any specific technology over another.
An Act Concerning Certification Of Class I And Class Ii Renewable Energy Sources And Class Iii Sources, Renewable Energy Credits And Alternative Compliance Payments.