Relative to purchased power agreements for electric distribution utilities.
Impact
With the implementation of SB112, New Hampshire aims to secure a more consistent and reliable electricity supply for its residents, thereby helping to stabilize erratic energy costs that have been impacted by various market factors. The legislation enables investor-owned utilities to petition the Public Utilities Commission for approval to enter into multi-year agreements that would encompass both existing sources and new energy developments. The limitation set at 2 million megawatt hours annually underscores a self-regulated approach to ensuring the agreements are just, reasonable, and serve the public interest.
Summary
Senate Bill 112-FN seeks to address the rising cost of electricity in New Hampshire, which is currently above the national average. The bill allows electric distribution utilities, in collaboration with the Department of Energy, to issue requests for proposals (RFPs) that aim to create multi-year agreements for energy supply. By enabling these agreements, the bill seeks to enhance the reliability of energy sources and stabilize costs for consumers and businesses by diversifying energy options over a longer term. The intent is to mitigate the drivers of electric cost, such as insufficient gas capacity and the retirement of traditional energy generation resources.
Contention
Notably, the bill focuses on enabling the state to be proactive in energy procurement, which can raise questions among lawmakers and the public regarding the potential impact on existing energy suppliers and the overall market. Critics may argue that simply increasing the number of long-term agreements may not be enough to lower prices without addressing other underlying systemic issues. Furthermore, the bill's provision allowing the inclusion of existing energy sources could lead to debates about the environmental implications of relying on traditional energy generation methods, such as nuclear power, which is a significant component of the region's energy mix.