SB 91 - AS INTRODUCED
2021 SESSION
21-0945
10/06
SENATE BILL 91
AN ACT adopting omnibus legislation on renewable energy, utilities, and net metering.
SPONSORS: Sen. Watters, Dist 4
COMMITTEE: Energy and Natural Resources
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ANALYSIS
This bill adopts legislation relative to:
I. Requiring the public utilities commission to adopt rules clarifying policy for the installation,
interconnection, and use of energy storage systems by utility customers.
II. Hydroelectric generators that share equipment for purposes of interconnection to the electric
grid.
III. Billing in an aggregation of electric utility customers.
IV. Group host credits for net energy metering.
V. The purchase of output of limited electrical energy producers in intrastate commerce and
including qualifying storage system.
VI. The aggregation of electric customers.
VII. Net energy metering limits for customer generators.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
 SB 91 - AS INTRODUCED
21-0945
10/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty One
AN ACT adopting omnibus legislation on renewable energy, utilities, and net metering.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 1 Sponsorship. This act consists of the following proposed legislation:
2 Part I: LSR 21-0945, relative to the installation, interconnection, and use of energy storage
3 systems by customers of utilities, sponsored by Sen. Watters, Prime/Dist 4; Sen. Perkins Kwoka,
4 Dist 21; Sen. Rosenwald, Dist 13; Sen. Kahn, Dist 10; Sen. Sherman, Dist 24; Sen. D'Allesandro, Dist
5 20; Sen. Whitley, Dist 15; Rep. Oxenham, Sull. 1.
6 Part II: LSR 21-0881, relative to hydroelectric generators that share equipment for purposes of
7 interconnection to the electric grid, sponsored by Sen. Bradley, Prime/Dist 3; Sen. Watters, Dist 4;
8 Sen. Avard, Dist 12.
9 Part III: LSR 21-0975, relative to aggregation of electric utility customers, sponsored by Sen.
10 French, Prime/Dist 7; Sen. Carson, Dist 14; Sen. Reagan, Dist 17; Sen. Sherman, Dist 24; Sen.
11 Rosenwald, Dist 13; Sen. Gannon, Dist 23; Sen. Avard, Dist 12; Sen. Prentiss, Dist 5; Sen. Watters,
12 Dist 4; Sen. Bradley, Dist 3.
13 Part IV: LSR 21-0988, relative to group host credits for net energy metering, sponsored by Sen.
14 Perkins Kwoka, Prime/Dist 21; Sen. Watters, Dist 4; Sen. Sherman, Dist 24; Sen. Whitley, Dist 15;
15 Rep. McWilliams, Merr. 27; Rep. Gourgue, Straf. 25.
16 Part V: LSR 21-0991, relative to the purchase of output of limited electrical energy producers in
17 intrastate commerce and including qualifying storage system, sponsored by Sen. Bradley, Prime/Dist
18 3; Sen. Watters, Dist 4; Sen. Avard, Dist 12; Sen. Giuda, Dist 2.
19 Part VI: LSR 21-1007, relative to the aggregation of electric customers, sponsored by Sen.
20 Avard, Prime/Dist 12; Sen. D'Allesandro, Dist 20; Rep. Lang, Belk. 4.
21 Part VII: LSR 21-1036, relative to net energy metering limits for customer generators,
22 sponsored by Sen. Prentiss, Prime/Dist 5; Sen. Watters, Dist 4; Rep. McWilliams, Merr. 27; Rep.
23 McGhee, Hills. 27; Rep. Oxenham, Sull. 1.
24 2 Legislation Enacted. The general court hereby enacts the following legislation:
25 PART I
26 Relative to the installation, interconnection, and use of energy storage systems by customers of
27 utilities.
28 1 Customer Energy Storage. RSA 374-H is repealed and reenacted to read as follows:
29 CHAPTER 374-H
30 CUSTOMER ENERGY STORAGE
31 374-H:1 Definitions. In this chapter:
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1 I. "Commission" means the public utilities commission.
2 II. "Bring your own device" means a program for encouraging non-utility owned, and
3 especially retail-customer owned, behind-the-meter energy storage to provide the greatest value
4 possible to the electricity system, particularly in terms of peak reduction and avoided transmission
5 and distribution costs. Such a program shall compensate participating behind-the-meter energy
6 storage for a fair share, as determined by the commission, of the value it provides to the electricity
7 system.
8 III. "Energy storage" means batteries, flywheels, compressed air energy systems, sensible
9 heat storage or any other technology, system, or device capable of taking electricity and storing it as
10 some form of energy the technology, system, or device can either convert back into electricity or use
11 to displace an electrical load at a later time. Such term shall include standalone technologies,
12 systems, and devices, as well as those co-located with or incorporated into a renewable energy
13 source.
14 IV. "Front-of-meter storage" means any energy storage that is not behind-the-meter storage
15 and may include energy storage constructed, owned, and/or operated by utilities subject to the same
16 use restrictions in RSA 374-G:3, I.
17 V. "ISO-New England" means the Independent System Operator New England or any
18 successor entity.
19 VI. "Local network service" means the term as defined in ISO-New England's transmission,
20 markets, and services tariff, section II.
21 VII. "Non-utility" means any entity that is not a utility that develops, builds, owns, operates,
22 or assists in the operation of one or more energy storage projects, including retail customers that buy
23 behind-the-meter storage installed on their property.
24 VIII. "Regional network service" means the term as defined in ISO-New England's
25 transmission, markets, and services tariff, section II.
26 IX. "Renewable energy source" means a Class I, Class II, or Class IV renewable energy
27 source as defined in RSA 362-F:4.
28 X. "Utility" and "utilities" mean public utilities as defined in RSA 362:2.
29 XI. "Wholesale electricity markets" means any energy, capacity, or ancillary service market
30 that ISO-New England operates.
31 374-H:2 Customer Energy Storage Systems.
32 I. The commission shall adopt rules clarifying policy for the installation, interconnection,
33 and use of energy storage systems by customers of utilities, and shall incorporate the following
34 principles into the rules:
35 (a) It is in the public interest to limit barriers to the installation, interconnection, and
36 use of customer-sited, behind-the-meter energy storage systems in New Hampshire.
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1 (b) New Hampshire's consumers of electricity have a right to install, interconnect, and
2 use energy storage systems on their property, subject to appropriate size and safety requirements
3 established by the commission, without the burden of unnecessary restrictions or regulations and
4 without unduly discriminatory rates or fees.
5 (c) Utility approval processes and any required interconnection reviews of energy
6 storage systems shall be simple, streamlined, and affordable for customers.
7 (d) Utilities shall not require the installation of customer-sited meters in addition to a
8 single net energy meter for the purposes of monitoring energy storage systems; except that the
9 commission may authorize the requirement of metering for certain large energy storage systems, as
10 determined by the commission.
11 (e) The commission may approve mechanisms for a utility to compensate a non-utility
12 for a fair share, as determined by the commission, of the value of any transmission or distribution
13 costs actually avoided because of a non-utility energy storage project, to the extent practicable, based
14 on determinable cost components.
15 (f) For behind-the-meter storage, the rules or orders shall allow for a bring-your-own-
16 device peak reduction program. The commission may approve mechanisms for utilities to
17 compensate such projects for a fair share, as determined by the commission, of their peak reduction
18 value, as well as any transmission or distribution costs actually avoided because of the non-utility
19 energy storage project, to the extent practicable based on determinable cost components.
20 (g) Utilities shall not own behind-the-meter battery storage, with the exception of the
21 energy storage pilot approved by the commission in order number 26,209, including phase 2 of the
22 pilot, unless the commission finds, after the pilot has been fully implemented, that additional utility
23 ownership of behind-the-meter battery storage would be in the public interest and would not
24 unreasonably encumber the deployment of non-utility behind-the-meter battery storage.
25 II. Nothing in this section alters or supersedes either:
26 (a) The principles of net energy metering under RSA 362-A:9; or
27 (b) Any existing electrical permit requirements or any licensing or certification
28 requirements for installers, manufacturers, or equipment.
29 374-H:3 Commission Investigation of Energy Storage.
30 I. The commission shall investigate ways to enable energy storage projects to receive
31 compensation for avoided transmission and distribution costs, including but not limited to avoided
32 regional and local network service charges, while also participating in wholesale energy markets.
33 The commission shall investigate how this might be done for both utility-owned and non-utility-
34 owned energy storage projects, as well as for both behind-the-meter storage and front-of-the-meter
35 storage.
36 II. The commission's investigative proceeding shall specifically consider the following:
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1 (a) How public policy can best help establish accurate and efficient price signals for
2 energy storage projects that value their ability to avoid transmission and distribution costs while
3 simultaneously reducing wholesale electricity market prices.
4 (b) How to compensate energy storage projects that participate in wholesale electricity
5 markets for avoided transmission and distribution costs in a manner that provides net savings to
6 consumers.
7 (c) How best to encourage both utility and non-utility investments in energy storage
8 projects.
9 (d) The costs and benefits of a potential bring your own device program; how such a
10 program might be implemented; any statutory or regulatory changes that might be needed to create,
11 facilitate, and implement such a program; and whether such a program should include all
12 distributed energy resources or be limited to distributed energy storage projects.
13 (e) Any statutory changes the general court should implement, including but not limited
14 to changes to or exceptions from RSA 374-F or RSA 374-G, to enable energy storage projects to
15 receive appropriate compensation for avoided transmission and distribution costs while also
16 participating in wholesale energy markets.
17 (f) Any other topic the commission reasonably believes it should consider in order to
18 diligently conduct the proceeding.
19 III. The commission shall report its findings and recommendations to the standing
20 committees of the house of representatives and senate with jurisdiction over energy and utility
21 matters no later than 2 years after initiating the proceeding. The report shall identify ways any
22 recommended statutory changes can minimize any potential conflict with the restructuring policy
23 principles of RSA 374-F.
24 2 Electric Generation Equipment Funded by Public Utility; Distributed Energy Resources.
25 Amend RSA 374-G:3, I to read as follows:
26 I. The energy produced by electric generation equipment owned by the public utility shall be
27 used to benefit low-income customers as an offset to distribution system losses or the public
28 utility company's own use;
29 3 Electric Utility Investment in Distributed Energy Resources. Amend RSA 374-G:4, II to read
30 as follows:
31 II. Distributed electric generation owned by or receiving investments from an electric utility
32 under this section shall be limited to a cumulative maximum in megawatts of 6 percent of the
33 utility's total distribution peak load in megawatts. This limitation shall not apply to front-of-
34 meter energy storage, the energy storage pilot approved by commission order number
35 26,209, or demand response.
36 4 Effective Date. Part I of this act shall take effect 60 days after its passage.
37 PART II
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1 Relative to hydroelectric generators that share equipment for purposes of interconnection to the
2 electric grid.
3 1 New Paragraph; Limited Electrical Energy Producers Act; Net Energy Metering. Amend RSA
4 362-A:9 by inserting after paragraph XIX the following new paragraph:
5 XX. A hydroelectric generator with a total peak generating capacity that is at or below the
6 capacity eligibility requirements set forth in RSA 362-A:1-a, II-b and that first became operational
7 before July 1, 2021 and that shares equipment or facilities with other generators or electric utility
8 customers for interconnection to the electric grid, shall be eligible to participate in net energy
9 metering as a customer-generator even if the aggregate capacity of the generators sharing
10 equipment or facilities for interconnection to the electric grid exceeds the capacity eligibility
11 requirements set forth in RSA 362-A:1-a, II-b. Such a hydroelectric generator shall be eligible to
12 participate in net energy metering as a customer-generator based on its individual total peak
13 generating capacity.
14 2 Effective Date. Part II of this act shall take effect 60 days after its passage.
15 PART III
16 Relative to aggregation of electric utility customers.
17 1 New Paragraph; Aggregation of Electric Customers; Regulation. Amend RSA 53-E:4 by
18 inserting after paragraph VI the following new paragraph:
19 VII. For the purposes of billing aggregated retail electricity customers under this chapter
20 and through the consolidated billing function of a distribution utility, when a customer makes a
21 payment for less than the full amount billed, such payment shall be applied as follows:
22 (a) First to any outstanding customer loans or deposit obligations with the utility;
23 (b) Next to any utility current payment arrangement obligations;
24 (c) Next to any utility budget billing arrangement obligations;
25 (d) Next to the aged accounts receivable of any utility and aggregator or competitive
26 electricity supplier serving an aggregation, in proportion to the balance due on such aged accounts
27 receivable;
28 (e) Next to the current charges of any utility and aggregator or competitive electricity
29 supplier serving an aggregation, in proportion to the balance due on such current charges; and
30 (f) Finally, to any other charges due on the utility bill as may be provided by utility
31 tariffs.
32 2 Effective Date. Part III of this act shall take effect 60 days after its passage.
33 PART IV
34 Relative to group host credits for net energy metering.
35 1 Net Metering; Group Host; Low -Moderate Income Community Solar Projects. Amend RSA
36 362-A:9, XIV(c) to read as follows:
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1 (c)(1) Notwithstanding paragraph V, a group host shall be paid for its surplus
2 generation at the end of each billing cycle at rates consistent with the credit the group host receives
3 relative to its own net metering under either subparagraph IV(a) or (b) or alternative tariffs that
4 may be applicable pursuant to paragraph XVI. Alternatively, a group host may elect to receive
5 credits on the customer electric bill for each member and the host, with the utility being allowed the
6 most cost-effective method of doing so according to an amount or percentage specified for ea