Energy Efficiency Resource Standard

Summary

*Note: Under H.B. 549, the first official three-year period plan filing starts July 1, 2023.

Origin

In August 2016, the New Hampshire Public Utilities Commission (PUC) approved a settlement agreement creating the state's first Energy Efficiency Resource Standard (EERS). In February 2022, H.B. 549 was enacted, which made significant adjustments to the EERS. These adjustments include changes to cost recovery, the subsequent plan filing schedule, and codified energy efficiency program funding. The current 2024-2026 plan is available here.

Electric and Gas Sales Reduction Requirements

Electric utilities are to achieve savings as a percentage of 2022 statewide delivered sales equivalent to 0.95% in 2024, 0.95% in 2025, and 0.94% in 2026. 

Gas utilities are to achieve savings as a percentage of 2022 statewide delivered sales equivalent to 0.67% in 2024, 0.68% in 2025, and 0.69% in 2026.  

Cumulatively, these goals are intended to reach an overall savings of 2.84% of electric sales and 2.04% of gas sales, relative to the 2022 baseline, by the end of 2026.

Subsequent Plan Filings

Joint utilities must petition the Commission to approve any changes to energy efficiency program offerings for a three-year period. Petitions can be filed prior to the next three-year planning period on July 1 of any year in which a three-year plan is not filed. The Commission must then approve or deny updates by the end of the following November. If the Commission fails to issue an order for approval or denial, the updates are automatically approved (expected for performance incentives and cost recovery changes). If updates are denied the most recent three-year plan will be utilized instead. Joint utilities must present a joint energy efficiency plan at least every three years.

Cost-Effectiveness

The PUC's cost-effectiveness determination is based on the latest Avoided Energy Supply Cost Study for New England; the results of any Evaluation, Measurement, and Valuation studies contracted by the state's Department of Energy or joint utilities; any savings impacts associated with free-ridership associated with programs and measures; along with the Grant State Test and Total Resource Cost test as the primary and secondary tests respectively. An electric utility's savings cannot fall below 65% of its overall planned energy savings.

Utility Cost Recovery

Utilities will recover costs through a systems benefit charge for energy efficiency programs at 2020 levels. Gas utilities specifically will recover costs through the local distribution adjustment charge for energy efficiency programs at 2020 levels. Annual increases are then based on the three-year average of the Consumer Price Index and a 0.25% adder. 

Performance Incentives

Utilities have the opportunity to earn performance incentives at a maximum level of 6.875% of spending.

For more information on state energy efficiency programs visit NHSaves.