HB1775 — relative to utility ownership of natural gas and nuclear power generation facilities.

CHAPTER 334 HB 1775-FN - VERSIONFINAL ADOPTEDVERSION BY BOTH BODIES 19Feb2026...

CHAPTER 334 HB 1775-FN - VERSIONFINAL ADOPTEDVERSION BY BOTH BODIES 19Feb2026...

1334:1 Purpose;

It is therefore in the public interest to stimulate investment in distributed energy resources in New Hampshire in diverse ways, including by encouraging New Hampshire electric public utilities to invest in renewable and clean distributed energy resources at the lowest reasonable cost to taxpayers benefiting the transmission and distribution system under state regulatory oversight.oversight.Reliable, dispatchable, and controllable power generation must also be available to provide all essential electric service when renewable distributed energy resources, including storage, are not sufficient.

Reliable, dispatchable, and controllable power generation must also be available to provide all essential electric service when renewable distributed energy resources, including storage, are not sufficient.

2334:2 New Section;

Notwithstanding any other provision of law to the contrary, a New Hampshire electric utility may invest in or own natural gas or nuclear energy resources as whole generation units, or as part of a generation unit, located on or interconnected to the local electric distribution system.syNo individual generation unit may exceed 5 megawatts in size.

No individual generation unit may exceed 5 megawatts in size.

3334:3 Rate Filing;

HB 1775-FN - VERSION ADOPTED BY BOTH BODIES - Page 2 - I.

A New Hampshire electric public utility may be eligible to seek rate recovery for its portion of investments in [distributed] natural gas and nuclear energy resources, in addition to renewable distributed CHAPTER 334 HB 1775-FN - FINAL VERSION - Page 2 - energy resources, from the commission by making an appropriate rate filing.

4334:4 Rate Filing;

Prior to authorizing a utility's recovery of investments made in [distributed energy resources]naturalresources] natural gas or nuclear distributed energy resources, or other distributed energy resources, the commission shall determine that the utility's investment and its recovery in rates, as proposed, are in the public interest.

Determination of the public interest under this [section]chapter[section] chapter shall include giving a balanced consideration and proportional weight to each of the following factors:

5334:5 Repeal.

6334:6 Effective Date.

LBAApproved: 26-2700 5/12/26 HB 1775-FN- FISCAL NOTE AS AMENDED BY THE SENATE (AMENDMENT # 2026-1705s) AN ACT relative to utility ownership of natural gas and nuclear power generation facilities.

FISCALJuly IMPACT:15, 2026 Effective Date:

ThisSeptember bill13, does2026 not provide funding, nor does it authorize new positions.

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 $250,000 to $250,000 to $250,000 to $500,000 $500,000 $500,000 Expenditures* $0 (Utility (Utility (Utility Assessments) Assessments) Assessments) Indeterminable Indeterminable Indeterminable Increase (State's Increase (State's Increase (State's Utility Costs) Utility Costs) Utility Costs) Funding Source(s) General Fund, Various Agency Funds, and Utility Assessment per RSA 363-A 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 Indeterminable Indeterminable Indeterminable County Expenditures $0 Increase Increase Increase Local Revenue $0 $0 $0 $0 Indeterminable Indeterminable Indeterminable Local Expenditures $0 Increase Increase Increase METHODOLOGY:

This bill expands New Hampshire’s energy policy to explicitly support investment in natural gas, hydrogen, and nuclear technologies, including battery storage, alongside existing distributed energy resources and authorizes electric public utilities to invest in or own natural gas and nuclear energy generation resources located on or interconnected with their distribution systems.

A utility may own or invest in these resources up to an amount equal to 10% of its total distribution peak load.

The bill further allows utilities to seek rate recovery for investments in natural gas, nuclear, or other distributed energy resources by making a filing with the Public Utilities Commission and directs the Commission to evaluate whether any such investment is in the public interest.

The bill repeals certain limitations on utility-funded generation equipment and prior investment restrictions.

Relative to the repeal of RSA 374-G:3, V and RSA 374-G:4, III, the Department states both statutes restrict the types of generation that may be built under RSA 374-G.

Repealing these statutes removes those statutory limitations on utility generation investments and therefore would not have a fiscal impact.

The Department of Energy states this bill would allow electric distribution utilities to own or invest in natural gas, hydrogen, or nuclear generation resources located on or interconnected with their distribution system.

Any utility pursuing such an investment may seek rate recovery with the Public Utilities Commission, and the Department would be required to participate in that proceeding by reviewing the filing and providing recommendations regarding whether the investment is in the public interest.

To administer this bill, the Department would need to retain external consultants with the expertise necessary to review any filings made by an electric distribution utility proposing to invest in natural gas, hydrogen, or nuclear energy resources located on or interconnected with its distribution system and to provide, on behalf of the Department, recommendations to the Public Utilities Commission relative to whether the public interest would be served.

The Department estimates consulting costs between $150,000 and $250,000.

These costs would be paid by the petitioning utility through a special assessment, so there is no direct State expenditure impact on the Department’s budget.

However, this bill may result in increased electricity rates for customers if the Public Utilities Commission determines a proposed investment is in the public interest and authorizes rate recovery.

The State of NH represents approximately 1% of total electric utility sales in New Hampshire.

Because the Department cannot predict if and when utilities may pursue such investments or the size of those investments, the fiscal impact is indeterminable.

A rate increase of $0.01 per kilowatt hour would increase the State’s electricity costs by approximately $1,000,000 annually.

The Department does not have access to electricity usage data for county or local governments and therefore cannot reasonably estimate the impact to those entities.

The Public Utilities Commission states this bill expands the Commission’s responsibilities by allowing electric utilities to own or invest in natural gas and nuclear energy resources and by requiring the Commission to determine whether those investments and any associated rate recovery are in the public interest.

The Commission anticipates the fiscal impact could range between $100,000 and $500,000 annually.

The Commission states its current utility analyst and attorney staffing are already working at or near full utilization and cannot absorb this additional workload.

To meet the bill’s requirements, the Commission anticipates the need for one full-time Utility Analyst (13-1190 Miscellaneous Business Operations Specialist-5) and one full-time Attorney IV (23-1010 Lawyers and Judicial Law Clerks-4) beginning in FY 2027.