Senate hears SB 230 to authorize microgrids, including small modular reactors; utilities and DOE urge study before action

Senator David Waters (District 4) introduced SB 230, legislation to authorize certain localized electric microgrids and to define small modular reactors (SMRs) within state law for microgrid applications. The bill would allow non‑utility entities that meet statutory guardrails to construct, operate and interconnect microgrids that serve multiple loads — up to 10 megawatts for renewable‑powered microgrids and up to 300 megawatts for SMR‑powered systems — subject to Public Utilities Commission review and conditions.

Sponsor’s intent: Waters told the committee the bill is designed to provide a clear statutory definition and approval pathway for microgrids so communities, critical infrastructure operators and private investors understand requirements and limits. The bill includes a list of public interest priorities — reliability for hospitals, nursing homes, wastewater treatment, public safety facilities, military installations and data centers — and directs the PUC to approve petitions that meet public‑interest criteria and consumer protections. The SMR definition in the bill used a 300‑megawatt maximum per unit; sponsor testimony said this mirrors definitions used by federal nuclear laboratories and recent industry proposals.

Concerns raised: Eversource told the committee it supports microgrid development in principle but urged caution. The company warned the bill’s current language could allow duplicative infrastructure in public rights‑of‑way, raise safety and emergency‑response issues if third parties operate energized lines, and create questions about cost recovery if a utility’s reliability upgrade would otherwise be the least‑cost solution. Department of Energy staff urged delaying statutory changes until the department completes a legislatively mandated microgrid investigation (HB 558) and issues recommendations later this year. DOE said several of the technical issues the bill tries to settle are already under active departmental review.

Consumer protections and cost allocation: SB 230 would require microgrid petitioners to demonstrate benefits (resilience, economic development, support for critical infrastructure), to assume costs for any system upgrades that would otherwise be borne by the distribution system, and to follow zoning and permitting requirements. The bill also directs the PUC to evaluate public‑interest factors and included reporting requirements so the legislature can monitor outcomes.

What’s next: the committee heard extensive technical and policy evidence but did not adopt final language. DOE and the utility recommended the committee wait for the department’s report and use it to inform statutory language. Sponsor said that even if the committee waits, having a statutory definition of SMR and an approval path would be helpful for investors evaluating New Hampshire projects.