HB 1539 — authorizing electric utilities to issue AAA-rated bonds for the purpose of storm cost recovery and infrastructure resilience.

CHAPTER 25 HB 1539-FN - VERSIONFINAL ADOPTEDVERSION BY BOTH BODIES 19Feb2026...

CHAPTER 25 HB 1539-FN - VERSIONFINAL ADOPTEDVERSION BY BOTH BODIES 19Feb2026...

125:1 DeclarationNew ofParagraph; Purpose and Findings.

New Paragraph;

225:2 New Subparagraph;

325:3 New Paragraph;

“Storm costs” means (i) any costs that the commission determines after a hearing to have been prudently incurred by an electric utility for preparation, restoration, and response to storm damage disrupting the normal operation of the electric system and (ii) in each case, all fees, expensesexpenses, and transaction costs incurred in connection with the issuance, servicing, retirementretirement, or refinancing of rate reduction bonds whose proceeds are used to pay off the costs described in clause (i) of this definition.

425:4 Authority to Issue Finance Orders to Finance RRB Costs.

The commission is authorized, upon the petition of an electric utility and after a hearing, to issue one or more finance orders pursuant to which rate reduction bonds shall be issued, if the commission finds that the issuance of such finance order or finance orders is in the public interest as set forth in RSA 369-B:1, IX or RSA 369-B:1, XVI, or RSA 369-B:1, XVIIXVII, as applicable.

525:5 New Subparagraph;

The net benefits of accumulated deferred income taxes relating to amounts that will be HB 1539-FN - VERSION ADOPTED BY BOTH BODIES - Page 2 - recovered through any such issuance of rate reduction bonds shall be credited to retail customers by reducing the amount of such rate reduction bonds that would otherwise be issued by the net present value of the CHAPTER 25 HB 1539-FN - FINAL VERSION - Page 2 - related tax cash flows, using a discount rate equal to the expected interest rate on such rate reduction bonds.

This authorization is in addition to any amount authorized in subparagraph (a), (b)(b), or (c).

625:6 New Section;

725:7 Establishment of RRB Charge to Recover RRB Costs.

369-B:4 Establishment of RRB Charge to Recover RRB Costs.

The commission shall approve such adjustments within 60 days of the filing of such adjustment, or HB 1539-FN - VERSION ADOPTED BY BOTH BODIES - Page 3 - within such shorter period as the finance order may designate.

825:8 Effective Date.

LBACHAPTER 26-260525 12/2/25 HB 1539-FN-1539-FN FISCAL- NOTEFINAL ASVERSION INTRODUCED- ANPage ACT3 authorizing- electricApproved: utilities to issue AAA-rated bonds for the purpose of storm cost recovery and infrastructure resilience.

FISCALApril IMPACT:15, 2026 Effective Date:

ThisApril bill15, does2026 not provide funding.

Estimated State Impact FY 2026 FY 2027 FY 2028 FY 2029 Revenue $0 $0 $0 $0 Revenue Fund(s) None Indeterminable Indeterminable Indeterminable Increase Increase Increase $500,000 to $500,000 to $500,000 to $900,00 $1,000,000 $1,000,000 Expenditures* $0 (Utility (Utility (Utility Assessments) Assessments) Assessments) Indeterminable Indeterminable Indeterminable (General Fund) (General Fund) (General Fund) Funding Source(s) Utility Assessments (RSA 363-Aand General Fund Appropriations* $0 $0 $0 $0 Funding Source(s) None *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill Estimated Political Subdivision Impact FY 2026 FY 2027 FY 2028 FY 2029 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 authorizes electric distribution utilities to petition the Public Utilities Commission (PUC) for approval to securitize “storm costs” through the issuance of rate reduction bonds.

The bill requires the Commission to conduct hearings, issue financing orders within 60 days of petition filing, and approve periodic adjustments to storm-recovery charges at least annually and possibly monthly.

The bill also assigns responsibilities to the Department of Energy related to reviewing filings, providing analysis in proceedings, and ongoing monitoring.

The Department of Energy states this bill will have an indeterminable impact on state expenditures.

The Department explains that the recovery of prudently incurred storm-related costs flows through to customers under current law.

Allowing a utility to issue rate reduction bonds to securitize major storm costs may reduce carrying charges paid by customers and allow recovery of those costs over a longer period.

The Department cannot determine whether securitization would result in long-term savings to customers or to the State because the interest rate of any bonds and the recovery period would not be known until a utility files a petition with the PUC.

As the State represents approximately one percent of total electricity usage, securitization would lower the immediate bill impact to the State, but any long-term savings remain unknown.

County and local expenditures will also have an indeterminable impact based on their electricity usage.

The Department further states it may need to obtain consultant services to review any utility filing requesting approval to issue rate reduction bonds and to review the bond issuance itself.

Consultant services would be procured through competitive solicitation.

While actual costs are unknown, the Department estimates consultant costs to range between $250,000 and $650,000, which would be specially assessed to the petitioning utility.

The Public Utilities Commission states that it must review each securitization petition, conduct hearings, and issue a financing order within 60 days, which is a significantly accelerated timeline compared to typical rate cases.

In addition, the Commission must approve periodic adjustments to storm-recovery charges at least annually and potentially monthly for each utility that issues bonds, resulting in ongoing recurring workload.

To meet these statutory deadlines, the Commission anticipates the need for one full-time Utility Analyst position (13-1190 MISC BUS OPS SPECS-5 SOC11-06) at a cost of $127,000 in FY 2027, $133,000 in FY 2028, and $140,000 in FY 2029 and one full-time Attorney position (23-1010 LAWYERS-3 SOC23-08) at a cost of $118,000 in FY 2027, $124,000 in FY 2028, and $130,000 in FY 2029.

The total cost of both positions would be $245,000 in FY 2027, $257,000 in FY 2028 and $270,000 in FY 2029.

These expenditures would be paid from the Utility Assessment Fund under RSA 363-A:1.

AGENCIES CONTACTED:

Department of Energy and Public Utilities Commission