N.H. Admin. Code § Puc 903.02

Current through Register No. 50, December 12, 2024

Section Puc 903.02 - Statutory and Other Requirements

(a) Electric distribution utilities shall make net energy metering available to customer-generators, pursuant to RSA 362-A:9 and Puc 900.

(b) Eligibility for net energy metering shall be available on a first-come, first-served basis within each distribution utility service area under the jurisdiction of the commission, provided that the standard net metering tariff provisions are available only until the total rated generating capacity owned and operated by customer-generators within the respective utility service area exceeds the following amounts:

(1) Liberty Utilities (Granite State Electric) Corp. d/b/a Liberty Utilities, 8.74 MW;

(2) New Hampshire Electric Cooperative, Inc., 3.16 MW;

(3) Public Service Company of New Hampshire d/b/a Eversource Energy, 75.38 MW; and

(4) Unitil Energy Systems, Inc., 12.72 MW.

(c) No more than 4 MW of such total rated generating capacity eligible for the standard net metering tariff throughout New Hampshire shall be from combined heat and power systems.

(d) A large customer-generator subject to the alternative net metering tariff shall be eligible for net energy metering only if at least 20 percent of the actual or estimated annual electricity generation from its facility is consumed behind-the-meter, unless it has registered as a group host under RSA 362-A:9, XIV and Puc 909.

(e) Customer-generators subject to the standard net metering tariff may switch to the alternative net metering tariff upon written notice to the distribution utility, but any such customer-generators shall not return to the standard net metering tariff terms once they have switched. Any such customer-generators that switch to the alternative net metering tariff shall be grandfathered pursuant to RSA 362-A:9, XVI and commission order 26,029.

(f) Metering shall be done in accordance with normal metering practices as follows:

(1) Except as provided for in (3) and (5) below, small customer-generators subject to the standard net metering tariff shall have a single net meter that internally measures the inflow and outflow of electricity such that the net electricity usage or production can be periodically read, and the small customer-generators shall not be required to pay for the installation of that meter;

(2) Large customer-generators shall have a bi-directional metering system that records the total amount of electricity that the customer receives from the distribution utility and the total amount of electricity exported. Such meter shall record measurements instantaneously or over intervals of an hour or less. Large customer-generators shall pay for the installation of the bidirectional metering system;

(3) A distribution utility may install an additional meter or meters to monitor the flow of electricity in each direction for a small customer-generator subject to the standard net metering tariff, provided that it is not at the expense of the small customer-generator, unless the additional metering is requested by the small customer-generator;

(4) A distribution utility may install a net meter that measures energy usage or production at intervals of an hour or less, provided that it is not at the expense of the small customer-generator unless the interval meter is requested by the small customer-generator;

(5) If the output of the customer-generator's facility will be measured for the purposes of recording renewable energy output under RSA 362-F, a second meter measuring the production of electricity from the facility may be installed at the customer-generator's expense, except as otherwise provided in (8) below;

(6) If an additional meter or meters are installed, as described in (3) or (5) above, or (8) below, the net energy metering calculation shall yield the same result as when a single meter is used, pursuant to RSA 362-A:9;

(7) Small customer-generators subject to the alternative net metering tariff shall have bi-directional meters installed to record in separate channels the quantities of electricity imports from the distribution utility system and electricity exports to the distribution utility system over a billing cycle; and

(8) If, at the time of interconnection, a small customer-generator subject to the alternative net metering tariff requests that the distribution utility install a second utility-owned meter measuring the production of electricity from the facility, the utility shall install such a production meter at no cost to the customer-generator. The small customer-generator shall provide and install a meter socket in a physical location acceptable to the utility.

(g) A customer-generator shall be billed for electricity under the same rate schedule that such customer-generator would be billed if it had no generation.

(h) Competitive electricity suppliers registered under RSA 374-F:7 and Puc 2000 may voluntarily determine the terms, conditions, and prices under which they shall agree to provide electric energy supply to, and purchase net electric energy output from, customer-generators.

(i) Pursuant to RSA 362-A:9, the following shall apply to net energy metering for small customer-generators subject to the standard net metering tariff and billed on a rate schedule that is not time-based:

(1) The net electricity received or exported over a billing period shall be measured in accordance with normal metering practices;

(2) Charges that are not based on kilowatt-hours, including the customer charge and demand-based charges, shall be billed in accordance with the applicable rate schedule;

(3) If the electricity received by the customer-generator from the distribution system exceeds the electricity exported to the distribution system by the customer-generator during the billing period, the customer-generator shall be billed based on the net energy received in accordance with the applicable rate schedule, net of any credits pursuant to (5) a. below;

(4) If the electricity exported to the distribution system by the customer-generator exceeds the electricity received from the distribution system over the billing period:

a. The surplus electricity exported to the distribution system shall be calculated by subtracting the kilowatt-hours received from the distribution system from the kilowatt-hours exported to the distribution system over the billing period; and

b. The distribution utility shall use zero kilowatt-hours when calculating all charges that are based on kilowatt-hour usage;

(5) If the electricity exported to the distribution system by the customer-generator exceeds the electricity received from the distribution system over any billing period, the customer-generator shall be:

a. Credited over subsequent billing periods for the surplus electricity exported to the distribution system and all associated kilowatt-hour-based charges; or

b. For default service customers, if the surplus electricity production exceeds 600 kilowatt-hours, the customer-generator may elect, on an annual basis, to receive a payment from the distribution utility equal in amount to the economic value of accumulated surplus as calculated pursuant to (n) below; and

(6) Customer-generators subject to the standard net metering tariff shall be grandfathered pursuant to RSA 362-A:9, XV and commission order 26,029.

(j) The following shall apply to small customer-generators subject to the alternative net metering tariff:

(1) The net electricity received or exported over a billing period shall be measured in accordance with normal metering practices;

(2) Charges that are not based on kilowatt-hours, including the customer charge and demand-based charges, shall be billed in accordance with the applicable rate schedule;

(3) Non-bypassable charges shall be assessed based on the full amount of electricity received from the distribution system without any netting of electricity exports over the billing period;

(4) If the electricity exported to the distribution system by the customer-generator exceeds the electricity received from the distribution system over the billing period:

b. The distribution utility shall use zero kilowatt-hours when calculating all charges, except non-bypassable charges, that are based on kilowatt-hour usage;

a. Receive a monetary bill credit for net electricity exports over the billing period calculated at 25 percent of any distribution charges assessed on a per-kilowatt-hour basis, any transmission charges assessed on a per kilowatt-hour basis, and, for default service customers, the default service rate assessed on a per kilowatt-hour basis;

b. Carry forward the monetary credits to subsequent billing periods until used; and

c. Elect to receive a payment from the distribution utility, on an annual basis, equal to the amount of the accrued monetary bill credit balance which exceeds $100 as of the end of the March billing period; and

(6) Customer-generators subject to the alternative net metering tariff shall be grandfathered pursuant to RSA 362-A:9, XVI and commission order 26,029.

(k) Pursuant to RSA 362-A:9, the following shall apply to net energy measurements for large customer-generators subject to the standard net metering tariff:

(1) The net electricity received or exported over a billing period shall be measured in accordance with normal metering practices;

(2) All charges that are not based on kilowatt-hours, including the customer charge and demand-based charges, shall be billed in accordance with the applicable rate schedule;

(3) If the electricity received by the customer-generator from the distribution system exceeds the electricity exported to the distribution system by the customer-generator over the billing period, the customer-generator shall be billed all applicable charges on all kilowatt hours received by the customer from the distribution system, less a credit on default service charges, for those customer-generators on utility default service, equal to the metered electricity exported to the distribution system over the billing period;

(4) If electricity exported to the distribution system by the customer-generator exceeds the electricity received from the distribution system over the billing period:

b. The distribution utility shall use zero kilowatt-hours when calculating all default service charges. The customer-generator shall be billed for all other applicable charges on all kilowatt-hours received by the customer from the electric distribution system;

(5) If the electricity exported to the distribution system by the customer-generator exceeds the electricity received by the customer-generator from the distribution system over any billing period, the customer-generator shall be:

a. Credited for surplus electricity exported to the distribution system over subsequent billing periods for default service charges only, for those customer-generators on utility default service; or

b. For default service customers, the customer-generator may elect on an annual basis to receive a payment from the distribution utility equal in amount to the economic value of the accumulated surplus as calculated pursuant to (n) below; and

(6) Large customer-generators subject to the standard net metering tariff shall be grandfathered pursuant to RSA 362-A:9, XV.

(l) The following shall apply to net energy measurements for large customer-generators subject to the alternative net metering tariff:

(1) The net electricity exported or received over a billing period shall be measured in accordance with normal metering practices;

(2) All charges that are not based on kilowatt-hours, including the customer charge and demand-based charges, shall be billed in accordance with the applicable rate schedule;

(3) If the electricity received by the customer-generator from the distribution system exceeds the electricity exported to the distribution system by the customer-generator over the billing period, the customer-generator shall be billed for all applicable charges on all kilowatt-hours received by the customer from the distribution system, less a credit on default service charges, for those customer-generators on utility default service, equal to the metered electricity exported to the distribution system over the billing period;

(4) If the electricity exported to the distribution system by a customer-generator on utility default service exceeds the electricity received from the distribution system over the billing period:

b. The distribution utility shall use zero kilowatt-hours when calculating all default service charges. The customer-generator shall be billed for all other applicable charges on all kilowatt-hours supplied to the customer from the electric distribution system;

c. Customers who receive default service shall receive a monetary bill credit for surplus electricity exported, calculated at the default service rate assessed on a per kilowatt-hour basis;

d The monetary credits shall carry forward to subsequent billing periods until used; and

e. If the monetary credit balance exceeds $100 as of the end of the March billing period, on an annual basis, the customer-generator may elect to receive a payment from the distribution utility; and

(5) Large customer-generators subject to the alternative net metering tariff shall be grandfathered pursuant to RSA 362-A:9, XVI and commission order 26,029.

(m) For customer-generators subject to the standard net metering tariff, on or before June 1 of each year, each distribution utility shall provide to customer-generators taking default service that have accumulated a surplus in excess of 600 kilowatt-hours at the end of their March billing cycle written notice that provides:

(1) The number of accumulated surplus kilowatt-hours;

(2) A statement that the customer-generator will continue to accumulate any net surplus unless it elects one of the following 2 options:

a. Receive a bill credit equal to the economic value of the applicable surplus; or

b. Elect payment by check of the economic value of the surplus;

(3) The capacity in kilowatts, if any, associated with such surplus generation, whether actual, pursuant to (n)(5) below, or estimated, pursuant to (n)(6) or (7) below, as applicable; and

(4) The average rate, expressed in dollars or cents per kilowatt-hour, that the energy component of such surplus will be valued at, the rate for the capacity value of such surplus, expressed in dollars or cents per kilowatt, and the total economic value of such surplus, expressed in dollar and cents.

(n) For customer-generators subject to the alternative net metering tariff, on or before June 1 of each year, each distribution utility shall provide to customer-generators that have accumulated monetary bill credits of $100 or more at the end of their March billing cycle written notice that provides:

(1) The total accumulated monetary bill credits;

(2) A statement that the customer-generator will continue to carry forward any net monetary bill credits unless it elects to receive payment by check; and

(3) A description of the process through which the customer-generator may elect to receive payment by check of the balance of such accumulated monetary bill credits.

(o) Unless an electric distribution utility elects otherwise as provided in (p) below, and except as may be provided otherwise pursuant to (v) below, the commission shall annually determine the rates for utility avoided costs for energy and capacity consistent with the requirements of the Public Utilities Regulatory Policy Act of 1978 (PURPA) (16 USC § 824a-3 and 18 CFR § 292.304) and as set forth below:

(1) On or before May 15 of each year, the commission shall publish on its website its calculation of the rates for avoided costs of energy and capacity for the previous year ending March 31, to be used by utilities to calculate the economic value of surplus net-metered generation for the previous year, which may be paid or credited to customer-generators subject to the standard net metering tariff, starting in the June billing cycle, along with supporting calculations, an explanation of assumptions and data sources, and estimated portions of annual surplus generated during the hour or hours used to calculate avoided capacity costs pursuant to (6) and (7) below, capacity factors, if actual hourly surplus generation data is not used for such calculation pursuant to (5) below;

(2) The rates for avoided energy costs shall be based on the short-term avoided energy costs for the New Hampshire load zone in the wholesale electricity market administered by ISO New England, Inc., consisting of the hourly real time locational marginal price (LMP) of electricity plus generation-related ancillary service charges, all adjusted for the average line loss in New Hampshire between the wholesale metering point and the retail metering point;

(3) The rate for the avoided generation related capacity costs shall be based on the applicable ISO New England, Inc. Forward Capacity Market (FCM) price for the power year most closely matching the 12 months ending in the March billing cycle. The avoided FCM price shall be adjusted to account for any peak energy rent payments made from the energy market that reduce direct capacity costs charged to load and for average line loss in New Hampshire between the wholesale metering point and the retail metering point. Such adjusted price shall be used to determine the rate for avoided capacity costs in dollars per kilowatt to be used by utilities to calculate the value of generation capacity associated with surplus generation on a customer-by-customer basis. If there is more than one hour in each power year on which ISO New England, Inc. allocates FCM costs to load, the commission shall structure the rate proportionally to ISO New England, Inc.'s allocation of such costs;

(4) In determining the customer-specific value of avoided capacity costs, each utility shall multiply the quantity (in kilowatts) of each customer-generator's surplus generation exported to the distribution system at the hour or hours of capacity peak with respect to which FCM costs are allocated to load, whether actual, pursuant to (5) below, or estimated, pursuant to (6) or (7) below, as applicable, by the rate or rates determined by the commission pursuant to (1) and (3) above;

(5) If hourly meter data is available for a customer-generator's net meter and the utility has the technical capability to utilize that data for avoided cost calculations, the utility, at its election by written notice to the commission on or before June 1 of each year, shall calculate the value of avoided capacity costs or avoided energy costs, or both, for each such customer-generator using actual hourly surplus generation data. The value of avoided energy costs shall be individually calculated by weighting the actual avoided energy costs for each hour of the 12 months ending the immediately preceding March 31, as determined by the commission pursuant to (1) and (2) above, by the actual hourly surplus electricity exported to the distribution system in each hour for the same period to determine a customer-specific average rate for the energy value of net surplus generation;

(6) For all types of net-metered systems other than solar photovoltaic (PV) systems, and for which actual hourly data is not utilized pursuant to (5) above:

a. The rate for avoided energy costs shall be calculated by using a simple average of hourly cost data from ISO New England, Inc. for the 12 months ending the immediately preceding March 31, assuming that surplus generation is, on average, equally distributed over all hours of the year; and

b. The portion of surplus generation estimated to be produced during the hour or hours of capacity peak on which FCM costs are allocated to load shall be equal to the number of such hours divided by 8,760;

(7) For net-metered PV systems for which actual hourly data is not utilized pursuant to (5) above, the rate for avoided energy costs shall be calculated as a weighted average annual rate by weighting the actual avoided costs for each hour of the 12 months ending the immediately preceding March 31 by the hourly generation output profile for PV systems in New Hampshire determined as follows:

a. If verifiable hourly generation output data is available and on file at the commission by April 5 for the applicable year from at least 25 kilowatts of PV system capacity operating within New Hampshire, then the output profile for PV systems shall be the hourly average of all such data; or

b. If such data is not available, the hourly generation output profile shall be the modeled hourly PV performance data output produced by the U.S. Department of Energy, National Renewable Energy Laboratory, PVWatts software, version 6.1.2, (available at https://pvwatts.nrel.gov/) with the default settings for Concord, New Hampshire; and

c. The portion of surplus generation estimated to be produced during the hour or hours of capacity peak on which FCM costs are allocated to load shall be in the same proportion as the output profile utilized pursuant to (7) a. or b. above.

(p) To correct an error in its determination of avoided costs, the commission shall, on its own motion, the motion of a utility, or the motion of a third party, revise its determination of rates for avoided costs and capacity factors as necessary. Any amounts paid or credited at the originally published rates and capacity factors shall be subject to reconciliation by the revised rates and factors.

(q) Annually, by written notice to the commission on or before June 1 of each year, each electric distribution utility may elect, by filing notice with the commission, to purchase or value surplus generation from customer-generators subject to the standard net metering tariff for the preceding year ending in the March billing cycle at a rate that is equal to the energy supply component of the applicable default service rate, instead of the avoided cost rates determined by the commission pursuant to paragraph (n) above, provided that payment is issued to such customer-generators at least as often as whenever the value of such credit, in excess of amounts owned by the customer-generator, is greater than $50.

(r) Upon termination of net energy metering, there shall be no payment or credit to a customer-generator subject to the standard net metering tariff for any remaining excess generation.

(s) For customer-generators subject to the alternative net metering tariff, upon termination of net energy metering the utility shall pay to such customer-generators an amount equal to the accumulated balance of any monetary bill credits.

(t) The commission shall waive any provision of Puc 900 or RSA 362-A, by order after notice and an opportunity for a hearing, if it determines that waiver of the applicable statute or rule section is a targeted net energy metering arrangement that is part of a utility strategy to minimize distribution costs, pursuant to RSA 362-A:9.

(u) The commission shall consider any request for a waiver, whether filed pursuant to (s) above or otherwise, pursuant to Puc 201.05.

(v) A distribution utility may perform an annual calculation to determine the net effect of net metering on its default service and distribution revenues and expenses in the prior calendar year. Pursuant to Puc 203, the commission shall determine by order, after notice and hearing, the utility-specific method of performing the calculation and applying the results, as well as a reconciliation mechanism to collect or credit any such net effects with appropriate carrying charges and credits applied.

(w) Pursuant to Puc 203, upon petition by a utility or on its own motion, the commission shall, by order, after notice and hearing, establish on a utility-specific basis a methodology by which customer-generators shall be provided service under time-based net energy metering tariffs, provided that it determines the resulting rates are just and reasonable and in accordance with RSA 362-A:9, VIII.

(x) Renewable energy certificates associated with the customer-generator's facility shall remain the property of the customer-generator until such certificates are sold or transferred.

(y) The following grandfathering provisions shall apply to customer-generators subject to either the standard net metering tariff or the alternative net metering tariff:

(1) Subsequent sales or other transfers of ownership of a net-metered facility or the property upon which the facility is located shall not affect the terms and conditions under which the customer-generator is rendered net metering service. New owners may continue to take service under the same terms and conditions in effect at the time of such sale or transfer and grandfathered pursuant to RSA 362-A:9, XV, RSA 362-A:9, XVI, and commission order 26,029. Following that date, the new owners shall transition to tariffs that are in effect at the time, provided that the facility is not moved to a different location by the purchaser, transferee, or otherwise;

(2) Residential small customer-generators may expand the capacity of their facilities without limitation, provided that the expansion does not result in total facility capacity in excess of 100 kilowatts, and remain subject to the same applicable net metering tariff;

(3) A non-residential small customer-generator may expand the capacity of its facility by an amount up to the greater of either 20 kilowatts or 50 percent of the system capacity allocated into the standard net metering tariff program prior to September 1, 2017, or 50 percent of the original capacity of a facility installed under the alternative net metering tariff, as applicable, provided that in neither case shall such expansion have the effect of increasing the facility's capacity to an amount in excess of 100 kilowatts;

(4) A non-residential large customer-generator may expand the capacity of its facility by an amount up to the greater of either:

a. 50 kilowatts, or

b. a capacity amount such that the expanded facility is sized to produce 110 percent of the customer-generator's annual kilowatt-hour on-site usage, as clearly demonstrated through the customer-generator's documentation of any consecutive 12 months within the previous 2 years;

(5) No such expansion under (3) or (4) shall have the effect of increasing the facility's capacity to a level in excess of one megawatt. Expansion of a net-metered facility by or for a non-residential customer-generator smaller than the applicable limitation shall allow the customer-generator to continue to be grandfathered under the applicable net metering tariff, while any such expansion in excess of the applicable limitation hall result in the entire net-metered facility losing its net metering grandfathered status under the applicable net metering tariff; and

(6) Any facility expansion or other modification shall be reported to the distribution utility within 30 days of expansion or modification, or earlier if so required under the utility's distributed generation interconnection procedures.

N.H. Admin. Code § Puc 903.02

INTERIM #5921, eff 11-7-94, EXPIRED 3-7-95

New. #7424, eff 1-12-01; ss by #9353, INTERIM, eff 1-12-09, EXPIRED: 7-11-09

New. #9515, eff 7-18-09; ss by #9998, eff 9-20-11

Amended by Volume XL Number 33, Filed August 13, 2020, Proposed by #13080, Effective 9/14/2020, Expires 9/14/2030