New Hampshire SB 597: relative to utility rate increases to inflation-adjusted thresholds and performance incentive metrics for utilities.

Bill Text

SB 597-FN - AS INTRODUCED

2026 SESSION

 26-2238

 12/08

SENATE BILL 597-FN

AN ACT relative to utility rate increases to inflation-adjusted thresholds and performance incentive metrics for utilities.

SPONSORS: Sen. Perkins Kwoka, Dist 21; Sen. Rosenwald, Dist 13; Sen. Watters, Dist 4; Sen. Long, Dist 20; Sen. Prentiss, Dist 5; Sen. Altschiller, Dist 24; Sen. Fenton, Dist 10; Rep. McGhee, Hills. 35; Rep. Wall, Straf. 11; Rep. Cormen, Graf. 15

COMMITTEE: Energy and Natural Resources

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ANALYSIS

 This bill prohibits the public utilities commission, pursuant to its rulemaking authority, from adopting an energy rate for any electric utility that exceeds the previous year’s rate after adjusting for inflation. The bill also directs the public utilities commission to implement performance incentive metrics for utilities, including determining whether TOTEX ratemaking should be established.

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 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

 26-2238

 12/08

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty-Six

AN ACT relative to utility rate increases to inflation-adjusted thresholds and performance incentive metrics for utilities.

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

 1 Short Title. This act shall be known as the "Lower Energy Prices Act." 

 2 Statement of Findings and Purpose. The goal of these alternative regulatory mechanisms is to incentivize utilities to improve their operational efficiency, customer service, and overall performance, while also aligning their incentives with the broader needs of commerce, industry, and the consumer. Unlike traditional cost of service regulation, where utilities earn return on capital expenditures, performance-based regulation focuses on outcomes and encourages utilities to achieve specific targets and metrics. This approach can lead to improved service quality, cost savings, innovation, and a more sustainable and resilient energy sector. The general court finds that: 

 I. New Hampshire has the eighth highest utility bills in the country. 

 II. A ruling in July 2025 by the public utilities commission raised the monthly residential customer charge by 43 percent. 

 III. It is the duty of the general court to act on behalf of the best interest of Granite Staters, and that includes providing them with economic freedom by lowering their everyday costs. 

 3 New Paragraph; Public Utilities Commission; Rulemaking Authority; Energy Rate Increases Restricted. Amend RSA 365:8 by inserting after paragraph II the following new paragraph: 

 III. The commission shall not approve an energy rate for any electric utility that exceeds the previous year’s rate by more than 4 percent after adjusting for inflation. 

 4 Supervisory Power of Department of Energy and Public Utilities Commission; Performance Incentive Mechanisms. RSA 374:3-a is repealed and reenacted to read as follows: 

 374:3-a Performance Incentive Mechanisms. 

 I. No later than one year following the effective date of this section, the commission shall open an investigative proceeding to evaluate whether to establish performance incentive mechanisms that directly tie electric and gas utility revenues to achievement on performance metrics for the purposes of grid modernization. 

 II. In establishing performance incentive mechanisms, the public utilities commission shall consider: 

 (a) Electric rate affordability and volatility risk; 

 (b) Optimization of utility asset utilization factors; 

 (c) Maintenance and improvement of service reliability and safety; 

 (d) Peak load reduction attributable to demand response programs; 

 (e) Rapid integration of distributed energy resources; 

 (f) Timely execution of competitive procurement and third-party interconnection; 

 (g) Adoption of time-of-use rates and other demand flexibility strategies; 

 (h) Customer engagement and satisfaction; 

 (i) Public access to utility system information, including but not limited to public access to electric system planning data and aggregated customer energy usage data, and individual access to granular information about one's own energy usage data; 

 (j) Fair compensation for utility employees; and

 (k) Grid modernization, as defined in RSA 374-F:2, XI. 

 III. As part of the investigative proceeding, the commission shall recommend implementation timelines and deadlines for the adoption of the performance incentive mechanisms for each electric and gas utility. 

 IV. In determining its recommendations, the commission shall consider for each electric and gas