Requires the system benefits charge to be used to fund energy efficiency programs, and allows an increase in the system benefits charge for this purpose without legislative approval of the increase.
Renewable Portfolio Standard
In 2007 New Hampshire passed the Renewable Energy Act, which established the Renewable Portfolio Standard (RPS). Under New Hampshire’s RPS, electricity providers must obtain a certain percentage of electricity from renewable energy sources each year, peaking at 25% in 2025. Eligible renewable sources include:
Compliance with the quotas set out by the RPS is measured by way of renewable energy certificates (RECs). RECs represent one megawatt hour (1,000 kWh) of energy generated by an eligible renewable source, and utilities may acquire them in two ways:
- By generating energy through a utility-owned renewable plant, such as a solar array or biomass power plant.
- By purchasing RECs through a market run by the New England Power Pool Generation Information System.
The New Hampshire Public Utilities Commission (PUC) decides which renewable energy generation facilities can earn and sell RECs. The PUC also decides what rate utilities can charge to consumers to cover the costs of electricity from renewable and traditional energy sources.
If an electricity provider cannot or chooses not to buy a sufficient amount of RECs, the provider must pay alternative compliance payments (ACPs). Those ACPs go to the Renewable Energy Fund, which is spent on grants and rebates for individuals and businesses working on renewable energy projects. The fund is administered by the PUC.
In the last fiscal year for which data is available (ending June 30, 2018), New Hampshire electricity distributors and suppliers paid a total of $5,258,420 in ACPs.
The PUC has distributed grants and rebates to UNH, Monadnock Paper Mills, the Claremont Fire Department, and many more.
PROS & CONS
“NH should maintain the renewable portfolio standard.”
- The program is necessary to encourage the research and development of renewable energy sources, which in turn are necessary to provide cheap, reliable energy in the decades to come.
- The price of fossil fuels will likely continue to rise. By subsidizing renewable energy projects now, the people are therefore investing in less expensive energy down the road.
- Research and development of renewable energy also creates new green jobs, lowers pollution, and decreases the reliance on fossil fuels from foreign nations.
- Fossil fuel power plants are responsible for one-third of emissions that contribute to global warming, while renewable energy sources produce little to no carbon emissions.
- A 2012 Berkley Lab study which analyzed the costs of RECs and ACPs found that on average, RPS only increased the cost of a state’s electricity by roughly 1% on average from 2010 to 2012.
“NH should eliminate the renewable portfolio standard.”
- A study by the Institute for Energy Research which compared average energy prices in states with and without RPS found that states with RPS have 39% higher electricity costs.
- Renewable energy is simply more expensive than traditional energy, so RPS forces utilities and thereby consumers to pay for more expensive electricity.
- The government should not make renewable energy sources artificially competitive by forcing utilities to buy electricity from renewable sources, as this hurts the ability of economic competition to lower energy prices.
- The money from RPS is not always spent on renewable energy projects, but in the past has sometimes been diverted into the general fund.
- Renewable energy sources such as solar and wind are not always a consistent source of power, which means that fossil fuel power plants must be available to step in and meet demand when the electricity from renewable sources flags. This means that even as renewables expand, traditional energy sources must be maintained.
Deletes certain limits on the inclusion of methane gas as a class III renewable energy source in the renewable portfolio standard. This bill also increases the class rate for biomass in the renewable portfolio standard.
Requires the Public Utilities Commission to adjust the rates of payment into the renewable energy fund for Class III-biomass/methane according to the Consumer Price Index instead of a fixed rate.
Establishes a committee to analyze the requirements needed if New Hampshire were to commit to the goal of providing 100% renewable energy for electricity by the year 2040.
Requires providers of electricity to include on customer bills, once a year, the annual cost to each customer of compliance with the electric renewable portfolio standard.
Modifies the procedure for the Public Utilities Commission to estimate and report on the production of customer-sited solar power that is net metered but for which renewable energy certificates are not issued. The Senate amended the bill to remove the requirement that the Public Utilities Commission give utilities renewable energy credit for the production from small customer-sited sources. That means utilities would not be able to use some net metered customer solar panels to meet their Renewable Portfolio Standard requirements. This would increase the demand for renewable energy certificates from other sources, including those net metered customer generators that do have renewable energy certificates.
Requires the Public Utilities Commission to consider changes to its order affecting the Burgess BioPower plant in Berlin, which will may result in the plant's closure. The House and Senate amended the bill to also prohibit the import of liquid fuels with high sulfur content and prohibit the sale of such fuels in 2019. The amended bill also methane gas energy to be included in included in Class I of the Renewable Portfolio Standard.
Reduces the percentage of electricity that must come from class I sources by 2025, under the renewable portfolio standards. Class I sources include wind, geothermal, biomass, tidal, methane, and solar energy.
Allows hydropower to fulfill up to 5% of class I renewable energy required under the renewable portfolio standards. Class I sources include wind, geothermal, biomass, tidal, methane, and solar energy. The House amended the bill to instead allow the Public Utilities Commission to modify renewable energy portfolio standards according to expected annual output of various energy sources.
Broadens the renewable portfolio standards to include all hydroelectric power sources in class IV renewable energy sources.
Repeals the electric renewable portfolio standard. The bill was amended to instead modify the annual reporting requirements for electricity providers related to the electric renewable portfolio standard.
Establishes a committee to study subsidies for energy projects provided by the renewable portfolio standard.
Makes various changes to the Renewable Portfolio Energy Standard and associated Renewable Energy Fund, particularly related to low-moderate income community solar projects. For example, the bill requires at least 15% of funds from the Renewable Energy Fund benefit low-moderate income residential customers. This bill also increases the share of solar and biomass energy required in the Renewable Portfolio Standard.
Requires moneys paid into the Renewable Energy Fund to be rebated to ratepayers, rather than spent on other renewable energy projects.
Adds biodiesel to electric renewable energy classes.
Allows electricity providers to use more hydroelectric power to satisfy requirements of the Renewable Portfolio Standard.
Makes various changes to the Renewable Portfolio Standard.
Deletes renewable energy "classes" from the Renewable Portfolio Standard, instead grouping all renewable energy sources together. This would give utilities more choice in terms of which renewable energy sources they buy electricity from, which in turn would likely increasing the amount of electricity in New Hampshire coming from hydropower, and potentially decrease the amount of electricity utilities buy from other renewable sources.
Repeals the electric Renewable Portfolio Standard, which requires utilities to purchase certain amounts of electricity from renewable sources.
Suspends all renewable energy rebate and grant programs, instead sending those funds to a low-income weatherization program. According to the Public Utilities Commission, "by redirecting renewable energy funds away from renewable energy projects to non-renewable projects, electricity costs will increase by an indeterminable amount for ratepayers, including state, county and local governments."
Should New Hampshire maintain the renewable portfolio standard, which requires public utilities in New Hampshire to obtain a certain percentage of electricity from renewable energy sources (25% by 2025)?
The NH PUC issued its first 10-year report on the performance of the RPS, concluding that the state's renewable energy plan was succeeding in lowering carbon emissions and increasing the production of energy from renewable sources. Read the full report.
For this upcoming session, a bill to study commiting NH to a goal of 50% renewable energy by 2040 has been proposed by Rep. Jacqueline Cali-Pitts.
Rep. Jeanine Notter has proposed a bill that deletes certain limits on the inclusion of methane gas as a class III renewable energy source in the renewable portfolio standard. This bill also increases the class rate for biomass in the renewable portfolio standard.
Rep. Michael Harrington has proposed a bill that requires the Public Utilities Commission to adjust the rates of payment into the renewable energy fund for Class III-biomass/methane according to the Consumer Price Index instead of a fixed rate.
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