Amendment vs bill Amendment #2024-0664s vs latest version

Struck = removed from the bill · added = the amendment's new text.

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SB 307-FN - AS AMENDED BY THE SENATE 02/21/2024 0664s SESSION 24-2983 10/05 SENATE BILL 307-FN AN ACT relative to electric transmission service agreements.
Energy and Natural Resources February 13, 2024 2024-0664s 06/02 Amendment to SB 307-FN Amend the bill by replacing section 1 with the following:
SPONSORS:
3 1 New Section;
Sen.
Avard, Dist 12;
Sen.
Watters, Dist 4;
Sen.
Pearl, Dist 17;
Rep.
Vose, Rock.
5 COMMITTEE:
Energy and Natural Resources ───────────────────────────────────────────────────────────────── ANALYSIS This bill allows for electric transmission service agreements by New Hampshire electric distribution utilities with the developer of any New England transmission project which has been awarded a grant from, or entered into a transmission capacity contract with, the United States Department of Energy.
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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 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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 307-FN - AS AMENDED BY THE SENATE 02/21/2024 0664s 24-2983 10/05 STATE OF NEW HAMPSHIRE In the Year of Our Lord Two Thousand Twenty Four AN ACT relative to electric transmission service agreements.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section;
(a) Proportionally benefits New Hampshire ratepayers relative to regional benefits.
Amendment to SB 307-FN - Page 2 - (a) Proportionally benefits New Hampshire ratepayers relative to regional benefits.
SB 307-FN - AS AMENDED BY THE SENATE - Page 2 - (b) Provides net benefits throughout the lifetime of the agreement to New Hampshire ratepayers, based on net present value, by comparing the full costs of the agreements to projected wholesale energy market savings.
(b) Provides net benefits throughout the lifetime of the agreement to New Hampshire ratepayers, based on net present value, by comparing the full costs of the agreements to projected wholesale energy market savings.
2 Effective Date.
This act shall take effect upon its passage.
LBA 24-2983 Amended 3/5/24 SB 307-FN- FISCAL NOTE AS AMENDED BY THE SENATE (AMENDMENT #2024-0664s) AN ACT relative to electric transmission service agreements.
FISCAL IMPACT:
[ X ] State [ X ] County [ X ] Local [ ] None Estimated State Impact - Increase / (Decrease) FY 2024 FY 2025 FY 2026 FY 2027 Revenue $0 Indeterminable Indeterminable Indeterminable Increase Increase Increase Revenue Fund(s) Utility Assessment Expenditures $0 Indeterminable Indeterminable Indeterminable Funding Source(s) Utility Assessment Appropriations $0 $0 $0 $0 Funding Source(s) None • Does this bill provide sufficient funding to cover estimated expend[X] N/A • Does this bill authorize new positions to implement this bill? [X] No Estimated Political Subdivision Impact - Increase / (Decrease) FY 2024 FY 2025 FY 2026 FY 2027 County Revenue $0 $0 $0 $0 County Expenditures $0 Indeterminable Indeterminable Indeterminable Local Revenue $0 $0 $0 $0 Local Expenditures $0 Indeterminable Indeterminable Indeterminable METHODOLOGY:
This bill allows for electric transmission service agreements by New Hampshire electric distribution utilities with the developer of any New England transmission project which has been awarded a grant from, or entered into a transmission capacity contract with, the United States Department of Energy.
The New Hampshire Public Utilities Commission (PUC) indicates there are currently three regulated electric distribution utilities to which this legislation would apply:
Public Service Company of New Hampshire d/b/a Eversource Energy;
Liberty Utilities (Granite State Electric) Corp.
d/b/a Liberty;
and Unitil Energy Systems, Inc.
The Commission would be required to open the following new types of dockets under this bill:
1.
A docket to review each proposed long-term transmission service agreement filed by an electric distribution utility, with a decision required within a 6-month period.
2.
Dockets to develop a uniform reconciling factor for each electric distribution utility and subsequent annual dockets for each electric distribution utility to adjust rates based on this reconciling factor.
The PUC states additional staff would be required to implement this legislation, which would obligate the PUC to review and approve long-term transmission service agreements and related costs.
The additional staff include one additional Attorney, one Senior Advisor, and 2.5 Utility Analysts.
The PUC estimates the annual cost of these positions would be $605,000 beginning in FY 2025.
The source of funding for the positions would be utility assessment revenue.
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The PUC indicates the effect of this bill, if any, on utility rates and on state, county and local government expenditures for electricity is indeterminable.
The Department of Energy indicates at this time, there is one proposed transmission project that would meet the qualifications.
National Grid’s Twin States Clean Energy Link is a proposed transmission line that would connect New England and Quebec’s electrical grids.
It would cross the Canadian border and run underground through Vermont before upgrading existing overhead transmission lines through New Hampshire, ending in Londonderry.
It would have a capacity of 1,200 megawatts (MW).
The total investment cost is estimated to be roughly $2 billion.
The proposed in-service date is 2031.
The Department of Energy assumes there would be no fiscal impact to the Department in fiscal years 2024 through 2027.
A transmission service agreement entered under this bill would not require payments until the commercial operation of the line, expected to be in 2031.
The Department would review any proposed agreement and would participate in regulatory proceedings to determine its prudency.
This would require resources to be committed and may result in an inability of existing staff to complete other work.
Since the bill does not mandate that an agreement be entered into by a certain date, the Department is unable to estimate when the additional resources would be needed.
The Department states the long-term fiscal impact of the bill is indeterminable.
120 MW would be 10% of the Twin State line’s 1,200 MW capacity.
Thus, the cost to New Hampshire’s ratepayers could be up to 10% of the $2 billion, or $200 million.
The actual contracted quantity, if less than 120 MW, would determine the final cost.
The Department notes the annual cost would be subject to a variety of factors including the length of the agreement;
a shorter agreement may result in higher annual costs, while a longer agreement may result in higher overall costs.
The discount rate applied to the agreement would significantly contribute to outcomes.
The Department states benefits associated with a transmission services agreement are similarly complex.
The additional energy provided over the transmission line may reduce electricity prices within New England.
Savings would be calculated by the difference between energy prices with and without the line.
That calculation would be subject to, among other factors:
retirements of existing electric generators, deployment of new resources, transmission system upgrades, energy prices in Quebec, weather variability, load growth, energy efficiency, technology developments, wholesale market rule changes, and federal policy requirements.
Office of the Consumer Advocate assumes that the cost of the Office's participation in such proceedings could be absorbed into it's caseload without requiring additional resources.
It is assumed that any fiscal impact would occur after FY 2024.
AGENCIES CONTACTED:
Department of Energy, Public Utilities Commission and Office of the Consumer Advocate