This bill proposes amendments to the assessment of the cost-effectiveness of the systems benefit charge, which is a component of the energy policy in a given jurisdiction. The bill specifies that the commission's review of cost-effectiveness should be based on the latest Avoided Energy Supply Cost Study for New England, the results of any Evaluation, Measurement, and Valuation studies, and should incorporate savings impacts associated with free-ridership where it significantly affects savings figures. The bill removes the previous requirement to use the Total Resource Cost test and instead introduces the Granite State Test as the primary test for assessing cost-effectiveness through 2026, with the Total Resource Cost test as a secondary consideration.

Additionally, the bill allows for the commission to consider modifications to the Granite State Test and to develop different or additional tests through an adjudicative process. Any new tests or modifications would need to be approved by order at least 12 months before the beginning of any triennium period starting with program year 2027. The commission is instructed to use benefit per unit cost as only one factor in determining whether utilities have appropriately prioritized program offerings among and within customer classes, and it mandates that an electric utility's planned electric system savings should not fall below 65 percent of its overall planned annual energy savings. The act is set to take effect 60 days after its passage.

Statutes affected:
Introduced: 374-F:3
As Amended by the House: 374-F:3