Committee considers expanding industrial net metering to 5 MW and adding 20‑year legacy term

Sen. Tim Lang (R‑District 2) introduced Senate Bill 106 to the Energy and Natural Resources Committee, saying the bill would let industrial host generators produce up to 5 megawatts and provide a 20‑year term so projects can secure financing. “This bill seeks to address that concern” about high energy costs for manufacturers, Lang said.

The proposal would raise the current 1‑megawatt cap for certain industrial customer generation and create a rolling 20‑year legacy period so that each facility’s net‑metering clock begins on commissioning. Supporters told the committee the change would lower energy costs for large electricity customers and help attract and retain manufacturers.

Mike Skelton, president and CEO of the Business and Industry Association of New Hampshire, called SB 106 “one of the most important pro‑business pieces of legislation filed this session,” citing comparative price pressure in New Hampshire where electricity costs have risen faster than in many states.

Businesses and trade groups testified in favor. Jonathan Lapointe of Associated Grocers said a 1 MW rooftop array installed at the Pembroke facility in 2021 already offsets nearly 20% of the company’s load and urged removal of the 1 MW cap to allow larger on‑site projects. John Morrison of Hitchner Manufacturing described the company’s 25,000,000 kWh annual consumption and said expanded industrial generation could offset a portion of that demand. Kyle King, operations sustainability manager for Coca‑Cola Beverages Northeast, said the company may need up to a 3 MW project to meet sustainability goals at its Londonderry facility.

Supporters also included Clean Energy New Hampshire and the Business and Industry Association; they argued the state faces rising peak load projections and that industrial self‑generation is a tool to lower costs and increase reliability.

Opposition and legal concerns were raised during the hearing. Attorney Jim Shannon, representing a developer with a nearly complete 1 MW project, asked the committee not to make the bill retroactive. He said a provision referencing facilities “eligible for net‑metering with an effective date after January 1, 2023” would impair contractual expectations for projects with interconnection or in‑service dates and could impose a significant revenue loss for investors. Shannon recommended any effective date be prospective to give projects time to finish interconnection and testing.

The Department of Energy testified neutral. Josh Elliott, director of the Division of Policy and Programs, said the department is “neutral on this bill,” asked the committee to allow time for executive branch review and noted the PUC net‑metering docket (Docket 22‑0060) had already considered legacy‑period issues and adopted a sunset to Dec. 31, 2040. Elliott also warned the committee that a 20‑year guaranteed legacy period can operate like an insurance policy for a particular facility and that ratepayers ultimately bear the cost of guaranteeing a long, one‑way ratchet.

Clean Energy New Hampshire pushed back on the subsidy framing in the hearing, saying the value of distributed generation is greater than current compensation levels and that a 20‑year legacy is necessary for project financing; Sam Evans Brown said he had seen “0 evidence” in the docket of substantial cost shifting.

Committee members asked about the appropriate length of any legacy period and whether a rolling 20‑year term or a mechanism for renewal might better balance investor certainty with long‑term ratepayer protection. No committee vote was taken; senators asked staff and agencies to continue discussions and to review questions about retroactivity and interconnection timelines.

Ending: The committee closed the public hearing with no vote and signaled a desire for more stakeholder work on effective dates, the legacy term and cost‑shift analysis before taking further action.