New Hampshire 2025 Regular Session

New Hampshire Senate Bill SB228 Compare Versions

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11 SB 228-FN - AS AMENDED BY THE SENATE
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55 03/13/2025 0718s
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77 2025 SESSION
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99 25-1047
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1515 SENATE BILL228-FN
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1919 AN ACTrelative to the limitations on community customer generators.
2020
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2323 SPONSORS:Sen. Watters, Dist 4; Sen. Avard, Dist 12; Sen. Sullivan, Dist 18; Sen. Rosenwald, Dist 13; Sen. Fenton, Dist 10; Sen. Altschiller, Dist 24; Rep. McGhee, Hills. 35; Rep. Caplan, Merr. 8; Rep. Cormen, Graf. 15
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2727 COMMITTEE:Energy and Natural Resources
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3535 ANALYSIS
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3939 This bill:
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4343 I. Modifies the scope and capacity limits of the community solar projects, as well as the terminology used to describe the beneficiaries.
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4747 II. Places limits on the size of the solar arrays for low-moderate income community solar projects.
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5151 III. Ensures that group net metering members can sign agreements with multiple group hosts, regardless of on-bill crediting participation, as long as the combined load doesn't exceed their total load.
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5555 IV. Expands the definition of "political subdivision" to include not-for-profits, while removing the previous specification about special purpose entities.
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6363 Explanation:Matter added to current law appears in bold italics.
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6565 Matter removed from current law appears [in brackets and struckthrough.]
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6767 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
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6969 03/13/2025 0718s25-1047
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7171 06/09
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7575 STATE OF NEW HAMPSHIRE
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7979 In the Year of Our Lord Two Thousand Twenty Five
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8383 AN ACTrelative to the limitations on community customer generators.
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8787 Be it Enacted by the Senate and House of Representatives in General Court convened:
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9191 1 Net Energy Metering. Amend RSA 362-A:9, XIV(a) to read as follows:
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9393 XIV.(a) A customer-generator may elect to become a group host for the purpose of reducing or otherwise controlling the energy costs of a group of customers [who are not customer-generators, except that a political subdivision, as defined in RSA 362-A:1-a, II-c, or the owner of a facility described in RSA 362-A:9, XX, that is a customer-generator, may participate as a group member]. A customer-generator may participate as a group member if it has not elected to become a group host. A customer-generator who is also a group member shall be eligible to offset total electric utility bill charges on an annual basis only after its on-site generation. The group of customers shall be located within the service territory of the same electric distribution utility as the host. The host shall provide a list of the group members to the commission and the electric distribution utility and shall certify that all members of the group have executed an agreement with the host regarding the utilization of kilowatt hours produced by the eligible facility and that the total historic annual load of the group members together with the host exceeds the projected annual output of the host's facility. The department shall verify that these group requirements have been met and shall register the group host. The department shall establish the process for registering hosts, including periodic re-registration, and the process by which changes in membership are allowed and administered. Net metering tariffs under this section shall not be made available to a customer-generator group host until such host is registered by the department.
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9595 2 New Subparagraph; Group Net Metering Agreements. Amend RSA 362-A:9, XIV by inserting after subparagraph (j) the following new subparagraph:
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9797 (k) The department shall adopt rules, pursuant to RSA 541-A, to ensure that group net metering members may sign an agreement with more than one group host regardless of whether they participate in on-bill crediting, so long as portions of that member’s load which are allocated to each host, when combined, shall not exceed that member’s total load.
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9999 3 Net Energy Metering. Amend RSA 362-A:9, XIV(c)(2) to read as follows:
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101101 (2) On or before July 1, 2022, the department shall report on the costs and benefits of such an addition and the development of the market for low-moderate income community solar projects, and provide a recommendation on whether the addition shall be increased or decreased. The department shall report on the costs and benefits of low-moderate income community solar projects, as defined in RSA 362-F:2, X-a on or before June 1, 2020. The department shall authorize at least 2 new low-moderate income community solar projects, as defined in RSA 362-F:2, X-a, each year in each utility's service territory beginning January 1, 2020. On an annual basis, for all group host systems except for residential systems with an interconnected capacity under 15 kilowatts, the electric distribution utility shall calculate a payment adjustment if the host's surplus compensation for generation for which it was paid is greater than the group's total electricity [usage] costs during the same time period. Compensation under the net metering tariffs shall not exceed the total costs of the group members. [The adjustment shall be such that the resulting compensation to the host for the amount that exceeded the group's total usage shall be at the utility's avoided cost or its default service rate in accordance with subparagraph V(b) or paragraph VI or alternative tariffs that may be applicable pursuant to paragraph XVI]. The utility shall pay or bill the host accordingly.
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103103 4 Net Metering. Amend RSA 362-A:9, III and IV to read as follows:
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105105 III. Metering shall be done in accordance with normal metering practices. A single net meter that shows the customer's net energy usage by measuring both the inflow and outflow of electricity internally shall be the extent of metering that is required at facilities with a total peak generating capacity of not more than [100] 500 kilowatts. A bi-directional metering system that records the total amount of electricity that flows in each direction from the customer premises, either instantaneously or over intervals of an hour or less, shall be required at facilities with a total peak generating capacity of more than [100] 500 kilowatts. Customer-generators shall not be required to pay for the installation of net meters, but shall pay for the installation of all bi-directional metering systems as outlined in utility interconnection tariffs or rules.
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107107 IV.(a) For facilities with a total peak generating capacity of not more than [100] 500 kilowatts, when billing a customer-generator under a net energy metering tariff that is not time-based, the utility shall apply the customer's net energy usage when calculating all charges that are based on kilowatt hour usage. Customer net energy usage shall equal the kilowatt hours supplied to the customer over the electric distribution system minus the kilowatt hours generated by the customer-generator and fed into the electric distribution system over a billing period.
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109109 (b) For facilities with a total peak generating capacity of more than [100] 500 kilowatts, the customer-generator shall pay all applicable charges on all kilowatt hours supplied to the customer over the electric distribution system, less a credit on default service charges equal to the metered energy generated by the customer-generator and fed into the electric distribution system over a billing period.
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111111 5 Definitions. Amend RSA 362-F:2, X-a to read as follows:
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113113 X-a. "Low-moderate income community solar project" means ground-mounted or rooftop solar arrays with a total peak generating capacity of up to and including 3 megawatts, that directly benefit a group of at least 5 residential end-user customers, where at least a majority of the residential end-user customers are at or below 300 percent of the federal poverty guidelines, or directly benefit the residents of a public housing authority created pursuant to RSA 203, or a housing project as described in RSA 78-B:2, XXIII, where the electric bills are either paid directly by the residents or by the public housing authority or housing project, provided that at least a majority of the residents receiving the direct benefit are at or below 80 percent of the Area Median Income (AMI) calculated by the Department of Housing and Urban Development. No more than 15 percent of the projected load for such project shall be attributable to non-residential end-user customers.
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115115 6 Net Energy Metering. Amend RSA 362-A:9, XIV(e) to read as follows:
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117117 XIV.(e) The department of energy, by rule or order, shall develop a process by which community solar developers can apply for designation as a community solar project for new solar arrays. Such projects designate their production for the benefit of households on the list required in subparagraph (d). Such projects will qualify for the low-moderate income solar addition as established in subparagraph (c) and shall specify the amount of on-bill credit they can offer to low-moderate income households. Annually, the number of projects designated as low-moderate income community solar shall not exceed a total nameplate capacity rating of [6] 18 megawatts in the aggregate. If more than [6] 18 megawatts of projects apply for designation, the department of energy shall select the projects that offer the largest on-bill credit and that demonstrates project readiness.
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119119 7 Definitions. Amend RSA 362-A:1-a, II-c to read as follows:
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121121 II-c. "Municipal 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 one or more customers who are political subdivisions, provided that all customers are located within the same utility franchise service territory. A municipal host may be owned by either a public or private entity. For this definition, "political subdivision" means the state of New Hampshire or any city, town, county, school district, chartered public school, village district, school administrative unit, [or any district or entity created for a special purpose administered or funded by any of the above-named governmental units] nonprofit educational institutions, or any district or entity created for a special purpose administered or funded by any of the above-mentioned governmental units; such districts or entities include public housing authorities.
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123123 8 Effective Date. This act shall take effect 60 days after its passage.
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127127 LBA
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129129 25-1047
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131131 Revised 1/31/25
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135135 SB 228-FN- FISCAL NOTE
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137137 AS INTRODUCED
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141141 AN ACTrelative to the limitations on community customer generators.
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145145 FISCAL IMPACT: This bill does not provide funding, nor does it authorize new positions.
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148148 Estimated State Impact
149149 FY 2025 FY 2026 FY 2027 FY 2028
150150 Revenue $0 $0 $0 $0
151151 Revenue Fund(s) None
152152 Expenditures* $0 Increase in excess of$104,000 Increase in excess of$105,000 Increase in excess of$108,000
153153 Funding Source(s) Utility Assessment, various funds
154154 Appropriations* $0 $0 $0 $0
155155 Funding Source(s) None
156156 *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill
157157 Estimated Political Subdivision Impact
158158 FY 2025 FY 2026 FY 2027 FY 2028
159159 County Revenue $0 $0 $0 $0
160160 County Expenditures $0 Indeterminable Increase
161161 Local Revenue $0 Indeterminable Decrease
162162 Local Expenditures $0 Indeterminable Increase
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168168 Estimated State Impact
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180180 Revenue
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182182 $0
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184184 $0
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186186 $0
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188188 $0
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190190 Revenue Fund(s)
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192192 None
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194194 Expenditures*
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196196 $0
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198198 Increase in excess of
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200200 $104,000
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202202 Increase in excess of
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204204 $105,000
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208208 $108,000
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210210 Funding Source(s)
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212212 Utility Assessment, various funds
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214214 Appropriations*
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218218 $0
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220220 $0
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222222 $0
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226226 None
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228228 *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill
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232232 Estimated Political Subdivision Impact
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244244 County Revenue
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246246 $0
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248248 $0
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250250 $0
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252252 $0
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254254 County Expenditures
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256256 $0
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258258 Indeterminable Increase
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260260 Local Revenue
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264264 Indeterminable Decrease
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266266 Local Expenditures
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268268 $0
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270270 Indeterminable Increase
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274274 METHODOLOGY:
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276276 This bill makes changes to the statutes governing net metering, modifies the scope and capacity limits of community solar projects, as well as the terminology used to describe the beneficiaries. It places limits on the size of the solar arrays for low-moderate income community solar projects. It also ensures that group net metering members can sign agreements with multiple group hosts, regardless of on-bill crediting participation, provided that the combined load does not exceed their total load. Additionally, the bill expands the definition of "political subdivision" to include not-for-profits, while removing the previous specification about special purpose entities.
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280280 The Department of Energy indicates that this bill necessitates the hiring of a full-time Utility Analyst IV position for a cost of $104,000 in FY 2026, $105,000 in FY 2027 and $108,000 in FY 2028, with the expenses being recovered from all electric utility ratepayers via an assessment incorporated into the Department's operating budget. As a result, County and Local expenditures will increase by an indeterminable, yet de minimis amount, for the cost of the position being reflected in rates charged by utilities.
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284284 Additionally, 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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288288 Furthermore, entities that lose eligibility to act as a municipal host are likely to face higher electricity costs, provided they cannot join a traditional group host arrangement under similar or better terms.
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292292 The New Hampshire Municipal Association has indicated that they lack the data necessary to assess whether this bill will have a fiscal impact on municipalities. Consequently, they are unable to provide any information for the fiscal note.
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296296 AGENCIES CONTACTED:
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298298 Department of Energy and New Hampshire Municipal Association