New Hampshire

Summary New Hampshire's regulated electric distribution utilities jointly develop and offer their customers energy efficiency programs under a statewide umbrella program, nhsaves. These programs are funded via a systems benefits charge applied on customer rates. The New Hampshire Public Utilities Commission reviews and approves program plans and budgets annually submitted by the utilities, which can earn performance incentives based on successful implementation of their programs and meeting established performance goals. New Hampshire natural gas utilities administer the energy efficiency programs that are approved by the New Hampshire Public Utilities Commission.  Natural gas efficiency programs are not part of nhsaves. According to the Energy Information Administration, New Hampshire utilities spent $18.7 million on electric energy efficiency in 2007, saving 78,537 MWh.

New Hampshire restructured its electric utility markets and has maintained support for its utility energy efficiency programs. In Order No. 23.574, issued November 2000, the Commission emphasized its commitment to energy efficiency programs that complement the new energy markets and do not hinder their development. The Commission requested that the utilities work together to design a set of "core" programs that are consistent in program offering and design and that meet the legislature's directive to target cost-effective opportunities that may otherwise be lost due to market barriers.

On May 31, 2002, the New Hampshire Public Utilities Commission entered Order No. 23.982 in Docket No. DE 01-057, approving the implementation of proposed core energy efficiency programs to be provided by the state’s electric utilities through the end of 2003. This Order established the basis for the nhsaves statewide energy efficiency program, which is the present statewide umbrella program.

The PUC reviews and authorizes the utilities’ joint program plans and budgets annually. The utilities collaborate to offer joint, statewide programs in order to gain the benefits from uniform planning, delivery, and evaluation. Within the umbrella of a statewide program, however, another goal is that each individual utility would incorporate flexibility into its implementation strategies and also the manner in which it delivers program services. From the customer’s perspective, programs look virtually the same in all service territories. nhsaves uses common marketing and information materials (such as its Web site).

According to the Energy Information Administration, New Hampshire utilities saved 78,537 MWh on electric energy efficiency in 2007, 0.78% of total retail sales.

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Funding for nhsaves is provided by a systems benefits charge applied on customer rates—3.3 mills/kWh total (1.5 mills/kWh for energy assistance and 1.8 mills/kWh for energy efficiency programs). Energy efficiency system benefits charges for 2007 were $20.6 million.  Of that amount, according to the Energy Information Administration, New Hampshire utilities spent $18.7 million on energy efficiency in 2007, 1.34% of total spending.

Natural gas efficiency programs are funded through an energy efficiency surcharge mechanism. 2007 spending was $1.9 million. In 2008, spending was $2.0 million. SB 451 passed in 2008 allows electric utilities to recover cost for distributed generation from renewable energy sources.

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None in place or proposed.  

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The New Hampshire PUC issued an order in January 2009 allowing electric and natural gas utilities to propose rate mechanisms to promote energy efficiency in future rate case filings. The Commission stated that there appear to be three primary rate mechanism options: (1) performance incentives, (2) rate design, and (3) reconciling rate adjustment mechanisms (either partial or full). Performance incentives are currently in place for New Hampshire’s electric and natural gas utilities and, although the Commission chose not to adjust the incentive formula, a utility may propose such a change. Implementation of any rate mechanism will be on a company-by-company basis in the context of an examination of company-specific costs and revenues (NH PUC Docket DE 07-064, Order 24,953).

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Utilities can earn performance incentives for 8–12% of total program budgets for meeting established cost-effectiveness and energy savings goals.  In Order 23.574 (November 2000), the Commission accepted the recommendation of the Working Group to provide shareholder incentives to utilities. The shareholder incentive approach is based on the performance of the programs measured in terms of their actual cost-effectiveness and energy savings relative to the projected cost-effectiveness and energy savings, respectively.

Separate target incentives are set for residential and commercial/industrial sectors—each set at 8% of the total program and evaluations budgets for each sector. Superior performance could be rewarded by up to 12% of the planned sector budgets. Issues with lost revenues are to be dealt with on a utility-specific basis by the Commission.

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Planning and decision-making by utility suppliers are market decisions as the generation market is competitive and not subject to Commission authority. The utility companies providing energy efficiency programs supported by the systems benefits charge are regulated distribution companies that purchases electricity supplies from the market.

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• nhsaves

• New Hampshire Core Electric Energy Efficiency Programs

• New Hampshire Public Utilities Commission

• New Hampshire State Incentives for Renewables and Efficiency

• SB 451

Last Updated 08/31/2009

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