HB 674-FN - AS INTRODUCED 2025 SESSION 25-0389 06/08 HOUSE BILL674-FN AN ACTrelative to non-wire alternatives, time-of-use tariffs, and multi-year rate settings. SPONSORS:Rep. Caplan, Merr. 8; Rep. Bixby, Straf. 13; Rep. Cormen, Graf. 15; Rep. McGhee, Hills. 35; Rep. Parshall, Ches. 8; Rep. Schmidt, Straf. 14; Rep. W. Thomas, Hills. 12; Sen. Altschiller, Dist 24; Sen. Watters, Dist 4 COMMITTEE:Science, Technology and Energy ----------------------------------------------------------------- ANALYSIS This bill: I. Defines non-wire alternatives, time-of-use pricing, and time-of-use tariffs. II. Requires the department of energy and public utilities commission to regulate non-wire alternatives, time-of-use pricing, time-of-use tariffs, and multi-year rate cases. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 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 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type. 25-0389 06/08 STATE OF NEW HAMPSHIRE In the Year of Our Lord Two Thousand Twenty Five AN ACTrelative to non-wire alternatives, time-of-use tariffs, and multi-year rate settings. Be it Enacted by the Senate and House of Representatives in General Court convened: 1 New Section; Non-Wire Alternatives; Time-of-Use Pricing; Rulemaking. Amend RSA 378 by inserting after section 42-a the following new section: 378:42-b Non-Wire Alternatives; Time-of-Use Pricing; Rulemaking. I. In this section: (a) “Non-wires alternative” or "NWA" means any electrical grid investment including grid enhancements that are intended to defer or remove the need to construct or upgrade components of a distribution and transmission system and may also include distributed energy resources as authorized under RSA 374:G. (b) “Time-of-Use pricing” means an electric rate schedule that adjusts the price of electricity based on load demand. (c) "Time-of-Use tariffs" means sending price signals that reflect system conditions. II. Regulated state electric default service provider utilities undergoing integrated distribution planning in accordance with RSA 378:38 shall include procurement of cost effective non-wires alternatives, including interconnection of distributed energy resources as authorized under RSA 374:G, to the maximum extent that NWAs provide system resilience, reliability, and defer or remove the need to construct or upgrade components of the electrical distribution or transmission system. III. The department of energy and public utilities commission, in accordance with RSA 541-A, shall: (a) Set rules for procurement processes to include competitive and transparent procurement by utilities of NWAs, based on an analysis of capital costs and demand savings associated with each NWA project. (b) Require default service provider utilities to establish fair and reasonable time-of-use tariffs for seasonal and daily peak and off-peak usage for all classes of commercial and residential customers. This shall include programs for load curtailment, electric vehicle charging, and energy storage system services. As part of any time-of-use pricing system, default service utilities shall provide customers with AMI smart meters upon request. Such smart meters shall be capable of providing customers with real-time, on-demand data. Utilities shall calculate all applicable capital costs and demand savings associated with smart metering programs in their rate cases, as specified in RSA 374:62, III. (c) Set rate cases in accordance with RSA 378:7, ensuring that rates for state electric default service customers are established every 5 years. Such rates shall be based on a combination of historic cost of operations, realized NWA procurements, and load servicing and infrastructure investment projections. Five-year rate cases may be supplemented by interim rate setting in response to unanticipated changes, such as variations in the rate of inflation, generation procurement and distribution costs, or other emergency relief sought by the default service utilities. (d) Determine a formula and a process as part of a multi-year rate case to settle any cost savings above and beyond projections of costs made as part of a previous rate case. Such a formula and process will be set in order to share the savings equitably between utilities and ratepayers and incentivize cost savings by the utilities. 2 Effective Date. This act shall take effect January 1, 2026. LBA 25-0389 1/9/25 HB 674-FN- FISCAL NOTE AS INTRODUCED AN ACTrelative to non-wire alternatives, time-of-use tariffs, and multi-year rate settings. FISCAL IMPACT: The Office of Legislative Budget Assistant is unable to complete a fiscal note for this bill as it is awaiting information from the Department of Energy and Public Utilities Commission. The Department and Commission were contacted on 1/3/25 for a fiscal note worksheet. When completed, the fiscal note will be forwarded to the House Clerk's Office. AGENCIES CONTACTED: Department of Energy and Public Utilities Commission