A new plan for energy efficiency programs in New Hampshire is getting its first hearing Wednesday in front of state regulators.
The four utilities that run the state’s program, known as NH Saves, have proposed a $253 million plan that would continue providing rebates for residents who want to make their homes more energy efficient in a variety of ways, like buying energy efficient appliances, adding insulation, or doing ambitious remodel projects.
Over the lifetime of the energy efficiency measures proposed, the utilities say the plan will save Granite Staters more than $675 million.
The last time the utilities proposed an energy efficiency plan, in 2020, it was ambitious and expansive. It ended in a controversy that unfolded over months, multiple lawsuits, and a new state policy.
That policy sets the budgets for energy efficiency programs in state law, with modest yearly increases. It was a compromise between the high budgets the utilities proposed, and the Public Utilities Commissions’ view expressed in their rejection of that plan, that ratepayers should spend less money on energy efficiency programming.
For the first time since that law was passed, the Public Utilities Commission will consider a three-year plan, for 2024-2026. It’s more modest than the 2020 plan that was rejected. But commissioners have been asking the utilities a lot of questions — and the state’s consumer advocate, Don Kreis, says they appear to him to be chafing at the new law, and could undermine the programs by creating new restrictions.
What could happen if these plans aren’t approved?
Commissioners could reject the plan, but they would need to have a basis for doing so. If they rejected the plan, the current programs would remain in effect, according to the new state law.
The commission could approve the plans but make new conditions that make it difficult for utilities to implement them, said Kreis. For example, he said, they could change the rate that they use to calculate the future benefits of energy efficiency, which would make energy efficient interventions look less cost effective in the present.
Commissioners have shown some disapproval for ratepayer-funded energy efficiency in New Hampshire generally. The chair of the commission, Daniel Goldner, was one of the commissioners who rejected the utilities’ 2020 plan. The commissioners released a controversial report in January that called into question how the state tests the cost-effectiveness of energy efficiency and evaluates its economic benefits.
As the plan has moved through its approval process, the commission has sent a lot of questions to the utilities about the energy efficiency programs. Kreis said there’s consensus from a variety of groups, from clean energy advocates to the Department of Energy, that they want the commission to approve the new plan.
But “the commissioners appear to be skeptical about adopting that answer,” even though, in his view, the new state law arguably says they must approve the plan.
Kate Peters, who works on energy efficiency at Eversource, said the utilities are excited about the plan they submitted.
“This plan primarily focuses on consistency and stability and program implementation," she said. "So there aren't a lot of whole scale changes. We are primarily continuing and in some cases expanding the suite of programs that we have been offering, which are very popular with our customers."
What does energy efficiency do?
Energy efficiency is a broad term for all the things residents and businesses can do to use less energy in our daily lives. That could be putting in lightbulbs or appliances like refrigerators and washing machines that use less electricity, or adding more insulation to a home or an office, so that it takes less heat to make it warm in the winter.
In the long run, these practices can help save money, because consumers we’re spending less on electricity and heat. They can also help reduce our reliance on the fossil fuels that cause climate change.
What are the climate connections with an energy efficiency plan?
Using less electricity and heat uses less fossil fuels. But reducing demand for energy helps with other things, too. As the U.S. transitions cars and heating systems to electricity with the goal of using less gasoline, gas heating, fuel oil, and propane, communities are relying more on the electric grid, which will need to expand and transform to serve more demand. Energy efficiency programs could help with that transition.
How different states are thinking about climate change can determine how cost-saving energy efficiency programs play out. In Massachusetts, where lawmakers recently passed a new climate law, Eversource has larger programs. That’s partly because it’s a larger state. But Kate Peters said the company also does a lot of outreach and marketing, because one of the goals of that program is to reduce greenhouse gas emissions. So they have a big budget for trying to get people interested in making their homes more efficient so they can meet that goal.
“It is incumbent upon us in Massachusetts to drive the level of demand that will meet the state's climate objectives, which are integrated into our goals for the efficiency plan,” she said.
In New Hampshire, Eversource says they’re following our state policy, which is focused on reducing energy use, rather than greenhouse gas emissions.
How long is the hearing process?
Regulators must approve or deny the plan by Nov. 30, according to state law. Right now, two hearings are currently scheduled, but the commissioners have said they may not need all that time.
The first hearing starts on Wednesday, Oct. 25 at 9 a.m.
For updates on hearing times visit this page. The PUC accepts public comment via email (puc@puc.nh.gov). Read more about consumer involvement in these hearings here.
