TITLE XXXIV
PUBLIC UTILITIES
Chapter 374-H
CUSTOMER ENERGY STORAGE
Section 374-H:1
374-H:1 Definitions. –
In this chapter:
I. "Commission" means the public utilities commission.
II. "Bring your own device" means a program for encouraging non-utility owned, and especially retail-customer owned, behind-the-meter energy storage to provide value to the electricity system, particularly in terms of peak reduction and avoided transmission and distribution costs. Such a program shall provide just and reasonable compensation, as determined by the commission, including actual avoided transmission and distribution costs, to a participating behind-the-meter energy storage system for the value it provides to the electricity system.
III. "Energy storage" means batteries, flywheels, compressed air energy systems, sensible heat storage or any other technology, system, or device capable of taking electricity and storing it as some form of energy the technology, system, or device can either convert back into electricity or use to displace an electrical load at a later time. Such term shall include standalone technologies, systems, and devices, as well as those co-located with or incorporated into a renewable energy source.
IV. "Front-of-meter storage" means any energy storage that is not behind-the-meter storage and may include energy storage constructed, owned, and/or operated by utilities subject to the same use restrictions in RSA 374-G:4, I.
V. "ISO-New England" means the Independent System Operator New England or any successor entity.
VI. "Local network service" means the term as defined in ISO-New England's transmission, markets, and services tariff, section II.
VII. "Non-utility" means any entity that is not a utility that develops, builds, owns, operates, or assists in the operation of one or more energy storage projects, including retail customers that buy behind-the-meter storage installed on their property.
VIII. "Regional network service" means the term as defined in ISO-New England's transmission, markets, and services tariff, section II.
IX. "Renewable energy source" means a Class I, Class II, or Class IV renewable energy source as defined in RSA 362-F:4.
X. "Utility" and "utilities" mean public utilities as defined in RSA 362:2.
XI. "Wholesale electricity markets" means any energy, capacity, or ancillary service market that ISO-New England operates or may operate pursuant to RSA 362-A:2-a.
Source. 2021, 228:2, Pt. I, Sec. 1, eff. Oct. 25, 2021.
Section 374-H:2
374-H:2 Customer Energy Storage Systems. –
I. The commission shall adopt rules or approve tariffs clarifying policy for the installation, interconnection, and use of energy storage systems by customers of utilities, and shall incorporate the following principles into the rules or approved tariffs:
(a) It is in the public interest to limit barriers to the installation, interconnection, and use of customer-sited, behind-the-meter energy storage systems in New Hampshire.
(b) New Hampshire's consumers of electricity have a right to install, interconnect, and use energy storage systems on their property, subject to appropriate size and safety requirements established by the commission, without the burden of unnecessary restrictions or regulations and without unduly discriminatory rates or fees, provided that such storage systems conform to local zoning ordinances and building codes.
(c) Utility approval processes and any required interconnection reviews of energy storage systems shall be simple, streamlined, and just and reasonable for all parties.
(d) The commission may approve mechanisms for a utility to compensate a non-utility for just and reasonable costs, as determined by the commission, of any transmission or distribution charges actually avoided because of a non-utility energy storage project, to the extent practicable, based on determinable cost components.
(e) For behind-the-meter storage, the rules or orders shall allow for a bring-your-own-device peak reduction program. The commission may approve mechanisms for a utility to compensate such projects for the value they actually provide including any transmission or distribution costs actually avoided because of the non-utility energy storage project, to the extent practicable based on determinable cost components.
II. Nothing in this section alters or supersedes either:
(a) The principles of net energy metering under RSA 362-A:9; or
(b) Any existing electrical permit requirements or any licensing or certification requirements for installers, manufacturers, or equipment.
Source. 2021, 228:2, Pt. I, Sec. 1, eff. Oct. 25, 2021. 2023, 243:8, eff. Oct. 7, 2023.
Section 374-H:3
374-H:3 Department of Energy Investigation of Energy Storage. –
I. The department of energy shall investigate ways to enable energy storage projects to receive compensation for avoided transmission and distribution costs, including avoided regional and local network service charges, while also participating in wholesale energy markets. The department shall investigate how this might be done for both utility-owned and non-utility-owned energy storage projects, as well as for both behind-the-meter storage and front-of-the-meter storage.
II. The department's investigative proceeding shall specifically consider the following:
(a) How public policy can best establish accurate and efficient price signals for energy storage projects that avoid actual transmission and distribution costs or reduce wholesale electricity market prices.
(b) How to compensate energy storage projects that participate in wholesale electricity markets for actual avoided transmission and distribution costs in a manner that provides net savings to consumers.
(c) How best to encourage both utility and non-utility investments in energy storage projects.
(d) The costs and benefits of a potential bring your own device program; how such a program might be implemented; any statutory or regulatory changes that might be needed to create, facilitate, and implement such a program; and whether such a program should include all distributed energy resources or be limited to distributed energy storage projects.
(e) Any statutory changes the general court should implement, including but not limited to changes to or exceptions from RSA 374-F or RSA 374-G, to enable energy storage projects to receive appropriate compensation for actual avoided transmission and distribution costs while also participating in wholesale energy markets.
(f) Any other topic the department reasonably believes it should consider in order to diligently conduct the proceeding.
III. The department shall report its findings and recommendations to the standing committees of the house of representatives and senate with jurisdiction over energy and utility matters no later than 2 years after initiating the proceeding. The report shall identify ways any recommended statutory changes can minimize any potential conflict with the restructuring policy principles of RSA 374-F.
Source. 2021, 228:2, Pt. I, Sec. 1, eff. Oct. 25, 2021. 2022, 245:31, eff. Aug. 20, 2022.