New Hampshire HB 1475: directing the department of energy to study the portion of electric distribution costs attributable to fixed versus usage-based charges.

Bill Text

HB 1475-FN - AS INTRODUCED

2026 SESSION

 26-2955

 06/07

HOUSE BILL 1475-FN

AN ACT directing the department of energy to study the portion of electric distribution costs attributable to fixed versus usage-based charges.

SPONSORS: Rep. Harrington, Straf. 18; Rep. Berezhny, Graf. 11; Rep. Bernardy, Rock. 36; Rep. D. Thomas, Rock. 16; Rep. Vose, Rock. 5

COMMITTEE: Science, Technology and Energy

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ANALYSIS

 This bill directs the department of energy to study the fixed and variable components of electric distribution costs in New Hampshire, evaluate specific cost categories, and report its findings.

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Explanation: Matter added to current law appears in bold italics.

 Matter removed from current law appears [in brackets and struckthrough.]

 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

 26-2955

 06/07

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty-Six

AN ACT directing the department of energy to study the portion of electric distribution costs attributable to fixed versus usage-based charges.

Be it Enacted by the Senate and House of Representatives in General Court convened:

 1 Department of Energy; Study Required. 

 I. The department of energy shall conduct a study of electric distribution utilities operating in New Hampshire to determine what portion of distribution costs are fixed and do not vary with a customer’s electricity usage, and what portion are variable and directly related to the quantity of electricity consumed.

 II. For the purposes of this section: 

 (a) “Fixed charge” means a fee that is assessed to each customer in a rate class, without regard to kilowatt-hours consumed.

 (b) “Usage-based charge” means a fee that varies according to the number of kilowatt-hours consumed during a billing period.

 III. The department shall consider, but not be limited to, the following cost categories in its study:

 (a) Storm recovery costs;

 (b) Costs for replacement of utility poles and other infrastructure not dependent on usage; and

 (c) Costs relating to capacity upgrades or additions required by increased electric demand.

 IV. The department may consult with electric utilities and independent experts as needed.

 V. The department shall submit a report, including recommendations, to the house science, technology and energy committee, the senate energy and natural resources committee, and the governor, no later than November 1, 2026. The report shall be made available to the public.

 2 Effective Date. This act shall take effect upon its passage.

 LBA

 26-2955

 11/30/25

HB 1475-FN- FISCAL NOTE

AS INTRODUCED

AN ACT directing the department of energy to study the portion of electric distribution costs attributable to fixed versus usage-based charges.

FISCAL IMPACT: This bill does not provide funding.

 Estimated State Impact

FY 2026

FY 2027

FY 2028

FY 2029

 Revenue

$0

$0

$0

$0

 Revenue Fund(s)

None

 Expenditures*

$0

Indeterminable Increase $1,000,000+ (Utility Assessments)

De Minimis Increase

(Various Funds)

 De Minimis Increase (Various Funds)

 Funding Source(s)

Utility Assessments and Various Funds

 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

 County Expenditures

$0

De Minimis Increase

 Local Revenue

$0

$0

$0

$0

 Local Expenditures

$0

De Minimis Increase

METHODOLOGY:

This bill requires the Department of Energy to conduct a study of fixed and variable components of electric distribution costs for New Hampshire distribution utilities and report findings and recommendations to the Governor and legislative committees by November 1, 2026.

The Department of Energy states this bill will require work to be performed through docketed investigations into each of the three electric distribution utilities operating in New Hampshire. The Department would hire one or more consultants to conduct cost-of-service analyses with emphasis on storm recovery costs, pole and infrastructure replacement, and capacity upgrades tied to demand. The Department assumes all consultant and proceeding costs would be specially assessed to the utilities under existing statutory authority, meaning there would be no cost to the Department’s operating budget. Because the consultant work would be procured through an RFP, the Department cannot precisely estimate the charges; however, it expects the combined consultant costs for all three utilities to be at least $1,000,000, which would be fully recovered through utility assessments.

Utilities are expected to pass