Bill to repeal alternative regulation statute prompts industry and consumer tradeoffs
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Summary
SB 537 would repeal the statute enabling the Public Utilities Commission to approve alternative forms of regulation. The Department of Energy sought clarification; utilities warned repeal would remove tools that can be tailored to promote affordability, while the consumer advocate urged surgical fixes rather than repeal.
The committee heard testimony on Senate Bill 537, which would repeal statutory language authorizing ‘‘alternative forms of regulation’’ for utilities. Josh Elliott of the New Hampshire Department of Energy said the intent is to clarify that any performance‑based or alternative mechanisms remain subject to traditional prudence and ‘‘used and useful’’ criteria, not to ban incentive regulation outright.
The consumer advocate urged fixing the statute rather than repealing it, saying some alternative models can be designed to reward performance and advance affordability. Eversource representatives told the committee that the enabling statute dates to 1994 and that removing it could block the PUC from approving certain multi‑year, performance‑based rate designs that the company has proposed; they urged legislative refinements instead of repeal.
Clean‑energy and consumer groups warned the committee not to eliminate tools that could be used to prioritize affordability, energy efficiency and demand flexibility. Conservation Law Foundation said some forms of alternative regulation can be directed at affordability metrics and urged careful consideration.
The committee asked the consumer advocate and parties to draft possible statutory language to reconcile concerns about prudence while preserving tools for performance‑based oversight. No vote was taken during the session.
