New Hampshire 2025 Regular Session

New Hampshire Senate Bill SB106 Compare Versions

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11 SB 106-FN - AS AMENDED BY THE SENATE
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77 2025 SESSION
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1515 SENATE BILL106-FN
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1919 AN ACTrelative to the participation of customer generators in net energy metering.
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2323 SPONSORS:Sen. Lang, Dist 2; Sen. Innis, Dist 7; Sen. McGough, Dist 11; Sen. Pearl, Dist 17; Sen. Watters, Dist 4; Rep. Moffett, Merr. 4
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2727 COMMITTEE:Energy and Natural Resources
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3535 AMENDED ANALYSIS
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3939 This bill requires large customer-generators participating in net energy metering to consume at least 33 percent of their own generation.
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4747 Explanation:Matter added to current law appears in bold italics.
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4949 Matter removed from current law appears [in brackets and struckthrough.]
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5151 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
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5353 02/13/2025 0257s25-0476
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5959 STATE OF NEW HAMPSHIRE
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6363 In the Year of Our Lord Two Thousand Twenty Five
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6767 AN ACTrelative to the participation of customer generators in net energy metering.
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7171 Be it Enacted by the Senate and House of Representatives in General Court convened:
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7575 1 Limited Electrical Energy Producers Act; Definition; Eligible Customer Generator. Amend RSA 362-A:1-a, II-b to read as follows:
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7777 II-b. "Eligible customer-generator" or "customer-generator" means an electric utility customer who owns, operates, or purchases power from an electrical generating facility either powered by renewable energy or which employs a heat led combined heat and power system, with a total peak generating capacity of up to and including one megawatt, except as provided for a municipal host as defined in paragraph II-c[, that is located behind a retail meter on the customer's premises,] and an industrial host as defined under paragraph II-g, that is located behind a retail meter on the customer's premises, is interconnected and operates in parallel with the electric grid, and is used to offset the customer's own electricity requirements. Incremental generation added to an existing generation facility, that does not itself qualify for net metering, shall qualify if such incremental generation meets the qualifications of this paragraph and is metered separately from the [nonqualifying] non-qualifying facility.
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7979 2 New Paragraph; Limited Electrical Energy Producers Act Definitions. Amend RSA 362-A:1-a by inserting after paragraph II-f the following new paragraph:
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8181 II-g. “Industrial host” means a customer generator with a total peak generating capacity of greater than one megawatt and less than 5 megawatts used to offset the electricity requirements of a group consisting exclusively of commercial, industrial, or institutional entities with one or more accounts, provided that all accounts are located within the same utility franchise service territory. In no instance shall the electrical generating facility exceed 100 percent of the industrial group’s average electric consumption over the past 12 months.
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8383 3 New Paragraph; Net Energy Metering. Amend RSA 362-A:9 by inserting after paragraph II the following new paragraph:
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8585 II-a. Alternative tariffs for net energy metering shall be made available to eligible customer-generators by each electric distribution utility in conformance with Order No. 26,029 dated June 23, 2017, and with net metering rules adopted by the commission. Any project that begins receiving compensation under Order No. 26,029 alternative tariffs will be eligible to continue receiving that tariff for either 20 years from the year it first begins receiving compensation or through the initial tariff term ending on December 31, 2040, whichever is longer. If the commission creates new net metering tariffs through an adjudicated proceeding before December 31, 2040, eligible customer-generators receiving Order No. 26,029 alternative tariffs will have the option of transitioning to new tariffs created through that proceeding. If an eligible customer-generator elects to transfer to a new tariff, they may not return to Order No. 26,029 alternative tariffs. Upon the expiration of a customer-generator’s eligibility under Order No. 26,029 alternative tariffs, the eligible customer-generator will have the option of transitioning to the tariff available at that time.
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8787 4 New Paragraph; Net Energy Metering; Consumption. Amend RSA 362-A:9 by inserting after paragraph IV the following new paragraph:
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8989 IV-a.(a) Facilities eligible for the net metering tariff under this section for customer-generators larger than one megawatt and up to 5 megawatt with an in-service date after January 1, 2026 and not acting as a group net metering host, must consume at least 33 percent of the generation, on an annual basis.
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9191 (b) Consumption requirements under this section shall not apply to low and moderate income customers as defined in administrative rules of the public utilities commission in PUC 902.21.
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9393 5 Effective Date. This act shall take effect 60 days after its passage.
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9797 LBA
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101101 Revised 1/31/25
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105105 SB 106-FN- FISCAL NOTE
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107107 AS INTRODUCED
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111111 AN ACTrelative to the participation of customer generators in net energy metering.
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115115 FISCAL IMPACT: This bill does not provide funding, nor does it authorize new positions.
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118118 Estimated State Impact
119119 FY 2025 FY 2026 FY 2027 FY 2028
120120 Revenue $0 $0 $0 $0
121121 Revenue Fund(s) None
122122 Expenditures* $0 IndeterminableIncrease in excess of $1,000,000 IndeterminableIncrease IndeterminableIncrease
123123 Funding Source(s) Various Agency Funds
124124 Appropriations* $0 $0 $0 $0
125125 Funding Source(s) None
126126 *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill
127127 Estimated Political Subdivision Impact
128128 FY 2025 FY 2026 FY 2027 FY 2028
129129 County Revenue $0 $0 $0 $0
130130 County Expenditures $0 IndeterminableIncrease
131131 Local Revenue $0 $0 $0 $0
132132 Local Expenditures $0 IndeterminableIncrease
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138138 Estimated State Impact
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142142 FY 2025
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150150 Revenue
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152152 $0
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154154 $0
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156156 $0
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158158 $0
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160160 Revenue Fund(s)
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162162 None
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164164 Expenditures*
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166166 $0
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168168 Indeterminable
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170170 Increase in excess of $1,000,000
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172172 Indeterminable
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174174 Increase
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176176 Indeterminable
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178178 Increase
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180180 Funding Source(s)
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182182 Various Agency Funds
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184184 Appropriations*
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186186 $0
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188188 $0
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190190 $0
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192192 $0
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194194 Funding Source(s)
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196196 None
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198198 *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill
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202202 Estimated Political Subdivision Impact
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214214 County Revenue
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216216 $0
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220220 $0
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224224 County Expenditures
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226226 $0
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228228 Indeterminable
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230230 Increase
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232232 Local Revenue
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234234 $0
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236236 $0
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238238 $0
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240240 $0
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242242 Local Expenditures
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244244 $0
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246246 Indeterminable
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248248 Increase
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252252 METHODOLOGY:
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254254 This bill creates new net energy metering tariffs to be available, allowing projects to receive compensation for up to 20 years or until December 31, 2040, whichever is longer. Facilities with a generation capacity between 100 kilowatts and 5 megawatts, operational after January 1, 2023, must use at least 20 percent of their generated energy annually, with exemptions for low and moderate-income customers. Additionally, the Department of Energy states that 20 percent meter consumption requirement is already established elsewhere in statute as well as in the PUC 900 administrative rules. The net impact would be that 100 kw and smaller arrays would function solely as generators but would be compensated at the net metering tariff rate.
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258258 The Department indicates that this bill removes the requirement for a customer generator and their electrical generating facility to be in the same utility service territory. To enable this, electric distribution utilities' billing systems would need to communicate with each other to share generation and consumption data across different service territories, which is currently not done. It is assumed that any costs associated with establishing the link between billing systems would be recovered by the utilities from all ratepayers, resulting in an indeterminable increase in county and local expenditures. The Department is unable to provide a true estimate of the cost for these billing system upgrades, but it is likely to be in the millions of dollars and require ongoing staff and maintenance to remain operational.
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262262 Furthermore, according to electricity consumption data from the Department of Administrative Services, the state accounts for approximately 1 percent of all electricity purchases. Consequently, it could potentially experience 1 percent of any overall increase in electricity costs.
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266266 This bill also establishes a new class for net metering for customer generators, which aims to override the Public Utilities Commission (PUC) decision in Order 27,074 in Docket 22-060. With this legacy period applying to a presumably narrow window, there will be administrative costs for the electric distribution utilities to track this cohort, with all costs being passed on through electric rates to all electric ratepayers.
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270270 AGENCIES CONTACTED:
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272272 Department of Energy