0227-hb 1309

CHAPTER 227

HB 1309 - FINAL VERSION

AN ACT relative to wood-to-energy rate order buydowns.

SPONSORS: Rep. Bradley, Carr 8; Rep. MacGillivray, Hills 21; Rep. Norelli, Rock 31; Rep. Guay, Coos 6; Rep. Bergeron, Hills 32; Sen. Below, Dist 5; Sen. F. King, Dist 1

This bill requires that if the public utilities commission approves buydowns of the 6 wood-to-energy plant rate orders and the one trash-to-energy plant rate order as being in the public interest, the commission shall close "Best Efforts" Proceeding, Docket No. 96-148 and "Light Loading" Proceeding, Docket No. 96-149.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT relative to wood-to-energy rate order buydowns.

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

I. The general court finds that it is important to lower the price paid for electricity by customers of Public Service Company of New Hampshire (PSNH). The general court finds that facilitating buydowns of any or all of the 6 wood-to-energy plant rate orders and/or the one trash-to-energy plant rate order would assist in accomplishing the goal of lower electricity prices. The general court further finds that this goal is consistent with section 2 of HB 464 passed in the 1999 legislative session, 1999, 289:2.

II. The general court recognizes that agreements between PSNH and the plants must be consensual in nature between the parties, and must provide enough benefits to customers that the public utilities commission would find implementation of buydowns to be in the public interest.

III. As part of considering the proposed settlement agreement between PSNH and the governor on electric industry restructuring, the general court urges the public utilities commission to request that PSNH and the plants enter into substantive negotiations to reach agreement on rate order buydowns. The general court finds that such rate order buydowns would significantly improve the terms of the proposed settlement agreement from a customer point of view.

IV. In order to encourage PSNH and the plants to enter into negotiations, the general court finds that if the public utilities commission approves negotiated rate order buydowns as being in the public interest, the commission should close "Best Efforts" Proceeding, Docket No. 96-148 and "Light Loading" Proceeding, Docket No. 96-149.

V. The general court finds that although the public utilities commission has already issued an order in the Public Service Company of New Hampshire Proposed Restructuring Settlement, Docket No. 99-099, it is still desirable that a good faith effort be made by PSNH and the plants to reach negotiated rate order buydowns, and that the commission should continue to facilitate rate order buydowns in the most expeditious manner possible.

VI. The general court finds that it is also important to lower the price paid for electricity by customers of the Connecticut Valley Electric Company (CVEC). The general court finds that facilitating buydowns of the trash-to-energy plant rate order may assist in accomplishing the goal of lower electric prices. The general court therefore urges that the commissions, CVEC and the plant examine whether similar negotiated rate order buydowns would significantly lower electric rates, and whether rate reduction bonds as described in RSA 369-A would be appropriate to facilitate the financing of such negotiated rate order buydowns.

227:2 Closing of Docket Nos. 96-148 and 96-149. If the public utilities commission approves buydowns of the 6 wood-to-energy plant rate orders and the one trash-to-energy plant rate order as being in the public interest, the commission shall close "Best Efforts" Proceeding, Docket No. 96-148 and "Light Loading" Proceeding, Docket No. 96-149.