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State Energy Efficiency Policy Database

New Hampshire

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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 system benefits charge included in customer rates. Each year, the New Hampshire Public Utilities Commission reviews and approves program plans and budgets submitted by the utilities. Utilities can earn performance incentives based on successful implementation of their programs and meeting performance goals. Recently additional funding for New Hampshire’s “core” customer energy efficiency programs is provided via the “Regional Greenhouse Gas Initiative” (RGGI). The legislation governing RGGI requires that the first dollar from the sale of greenhouse gas allowances is to go to fund electric energy efficiency programs.

Natural gas efficiency programs are not part of NHSaves. New Hampshire natural gas utilities administer energy efficiency programs that are approved by the New Hampshire PUC.  

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables on the left.

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November 8, 2013


Customer Energy Efficiency Programs

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 new energy markets and do not hinder their development. The Commission requested that utilities work together to design a set of "core" programs that are consistent in their design and 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 issued Order No. 23,982 in Docket No. DE 01-057, approving the implementation of “core” energy efficiency programs by the state’s electric utilities. This order established the basis for the NHSaves statewide energy efficiency program.

The PUC reviews and authorizes the utilities’ joint program plans and budgets annually. The utilities offer joint, statewide programs to gain the benefits of uniform planning, delivery, and evaluation. Within the umbrella of a statewide program, however, each individual utility incorporates flexibility in its implementation strategies and program delivery. The statewide program, NHsaves, uses shared marketing and information materials. NHSaves is funded by a systems benefits charge included in customer rates, of which 1.8 mills/kWh is for energy efficiency.

Recently additional funding for New Hampshire’s “core” customer energy efficiency programs is provided via the “Regional Greenhouse Gas Initiative” (RGGI). The legislation governing RGGI requires that the first dollar from the sale of greenhouse gas allowances is to go to fund electric energy efficiency programs

Some of New Hampshire’s publicly owned utilities (coops and municipal utilities) also offer customer energy efficiency programs, such as financing options for energy-efficient products. 

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables on the left.

Links:

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November 8, 2013


Energy Efficiency Resource Standards

There is currently no EERS in place.

For more information on Energy Efficiency Resource Standards, click here.


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August 9, 2013


Alternative Business Models

The New Hampshire PUC issued an order in January 2009 allowing electric and natural gas utilities to propose rate design mechanisms to promote energy efficiency in future rate cases on a case-by-case basis. The Commission listed three primary options: (1) performance incentives, (2) rate design (decoupling), and (3) reconciling rate adjustment mechanisms (either partial or full).

This order could lead to decoupling and/or lost revenue recovery proposals in the future, but no approach has been approved for utilities (See NH PUC Docket DE 07-064, Order 24,934).


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August 16, 2013


Reward Structures for Successful Energy Efficiency Programs

Performance incentives currently exist for New Hampshire’s electric and natural gas utilities. Utilities can earn performance incentives of 8–12% of their total program budgets for meeting cost-effectiveness and energy savings goals (Order 23.574, November 2000). Separate target incentives are set for residential and commercial/industrial sectors — 8% of the total program and evaluations budgets for each sector. Superior performance can be rewarded by an incentive of up to 12% of the planned sector budgets. 


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August 9, 2013


Energy Efficiency as a Resource
There is currently no policy in place that treats energy efficiency as a resource, although legislation and related regulatory orders show consistent, strong support for energy efficiency.

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August 11, 2013


Evaluation, Measurement & Verification
  • Cost-effectiveness test(s) used: TRC
  • Uses a deemed savings database: no

The evaluation of ratepayer-funded energy efficiency programs in New Hampshire relies on legislative mandates (SB 323). Evaluations are mainly administered by the New Hampshire Public Utilities Commission. New Hampshire has formal requirements for evaluation articulated in Docket DE 05-157, Order 24,599. Statewide evaluations are conducted. In terms of a benefit-cost test, the Total Resource Cost (TRC) is used in New Hampshire and is considered to be the primary test for decision making. The benefit-cost tests are required for total program and individual measure level screening. The rules for benefit-cost tests are stated in Order 23,574. Some exceptions exist for low-income programs, pilots, and new technologies.


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August 21, 2013