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Question 1 of 30
1. Question
Consider a scenario where Granite State Power, an electric utility operating exclusively within New Hampshire, proposes a significant restructuring of its residential rate schedule to incorporate time-of-use (TOU) pricing. This proposal aims to incentivize off-peak energy consumption and reflect the actual cost of generation more accurately. What is the primary regulatory body in New Hampshire responsible for reviewing, approving, or denying such a rate change, and what is the general procedural framework it follows?
Correct
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities within the state, including electric utilities. RSA 374:22 grants the NHPUC broad authority to investigate and regulate the rates, charges, and services of public utilities to ensure they are just and reasonable. When a utility proposes a change in its rate structure, such as a shift towards a time-of-use (TOU) pricing model, the commission must conduct a formal rate case. This process involves reviewing the utility’s proposed rates, evaluating the associated costs and revenues, and considering the impact on consumers. Public hearings are a mandatory component of these proceedings, allowing stakeholders, including consumer advocates and individual customers, to present testimony and evidence. The commission’s final decision is based on a thorough examination of all submitted evidence and arguments, aiming to balance the utility’s need for a fair rate of return with the public interest in affordable and reliable service. The commission’s findings and orders are subject to judicial review, but the initial determination rests with the NHPUC’s regulatory expertise.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities within the state, including electric utilities. RSA 374:22 grants the NHPUC broad authority to investigate and regulate the rates, charges, and services of public utilities to ensure they are just and reasonable. When a utility proposes a change in its rate structure, such as a shift towards a time-of-use (TOU) pricing model, the commission must conduct a formal rate case. This process involves reviewing the utility’s proposed rates, evaluating the associated costs and revenues, and considering the impact on consumers. Public hearings are a mandatory component of these proceedings, allowing stakeholders, including consumer advocates and individual customers, to present testimony and evidence. The commission’s final decision is based on a thorough examination of all submitted evidence and arguments, aiming to balance the utility’s need for a fair rate of return with the public interest in affordable and reliable service. The commission’s findings and orders are subject to judicial review, but the initial determination rests with the NHPUC’s regulatory expertise.
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Question 2 of 30
2. Question
When a developer proposes to construct a new solar photovoltaic facility in New Hampshire with a generating capacity of 75 megawatts, what primary regulatory framework governs the comprehensive evaluation and approval of its site and facility, and what is the essential authorization required before construction can commence?
Correct
The New Hampshire Public Utilities Commission (NHPUC) has established specific procedures and criteria for the siting of energy facilities, particularly those involving renewable energy sources like solar arrays. RSA 162-F, the Electric and Natural Gas Utility Facility Site Evaluation Act, governs this process. A key aspect of this legislation is the requirement for a Certificate of Site and Facility (CSF) for major energy facilities. For a proposed solar energy project exceeding a certain capacity, which is generally 50 megawatts in New Hampshire, the developer must demonstrate that the project aligns with the state’s energy policy and environmental standards. This includes a thorough site evaluation that considers impacts on scenic and natural resources, as well as the availability of adequate transmission infrastructure. The NHPUC’s role is to ensure that proposed facilities are consistent with the public interest, balancing economic development, environmental protection, and reliable energy supply. The siting process involves public hearings and input from various stakeholders, including local communities and state agencies. When evaluating a solar project under RSA 162-F, the commission considers factors such as the proposed facility’s contribution to the state’s renewable energy portfolio standards, the economic benefits to the region, and the mitigation of potential adverse environmental impacts, such as visual impacts or habitat disruption. The ultimate decision on granting a CSF is based on a comprehensive assessment of these factors, ensuring that the project serves the public good.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) has established specific procedures and criteria for the siting of energy facilities, particularly those involving renewable energy sources like solar arrays. RSA 162-F, the Electric and Natural Gas Utility Facility Site Evaluation Act, governs this process. A key aspect of this legislation is the requirement for a Certificate of Site and Facility (CSF) for major energy facilities. For a proposed solar energy project exceeding a certain capacity, which is generally 50 megawatts in New Hampshire, the developer must demonstrate that the project aligns with the state’s energy policy and environmental standards. This includes a thorough site evaluation that considers impacts on scenic and natural resources, as well as the availability of adequate transmission infrastructure. The NHPUC’s role is to ensure that proposed facilities are consistent with the public interest, balancing economic development, environmental protection, and reliable energy supply. The siting process involves public hearings and input from various stakeholders, including local communities and state agencies. When evaluating a solar project under RSA 162-F, the commission considers factors such as the proposed facility’s contribution to the state’s renewable energy portfolio standards, the economic benefits to the region, and the mitigation of potential adverse environmental impacts, such as visual impacts or habitat disruption. The ultimate decision on granting a CSF is based on a comprehensive assessment of these factors, ensuring that the project serves the public good.
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Question 3 of 30
3. Question
Consider a scenario in New Hampshire where a residential customer, Ms. Anya Sharma, installs a rooftop solar photovoltaic system. Her system generates more electricity than she consumes during daylight hours, exporting the surplus to the electrical grid. Under New Hampshire’s net metering provisions, specifically as guided by RSA 362-F and subsequent PUC interpretations, how is the excess energy exported by Ms. Sharma typically compensated by her electric utility?
Correct
In New Hampshire, the regulation of energy generation and distribution, particularly concerning renewable energy sources and their integration into the grid, is a complex interplay of state statutes and Public Utilities Commission (PUC) rules. The Net Metering rule, as established by RSA 362-F, governs how customers who generate their own electricity, primarily from renewable sources like solar, are compensated for excess energy sent back to the grid. The core principle is that customers receive a credit on their electricity bill for this exported energy, typically at a rate equivalent to the retail rate of electricity they would otherwise purchase. This encourages the adoption of distributed generation. The New Hampshire PUC, through its dockets and orders, further refines these regulations, addressing specific technical requirements, interconnection standards, and the calculation of credits. For instance, the PUC’s decisions often clarify the nuances of what constitutes “excess energy” and the specific billing mechanisms employed by utilities. Understanding the statutory basis in RSA 362-F and the subsequent regulatory interpretations by the PUC is crucial for anyone involved in distributed generation projects in New Hampshire, including developers, installers, and consumers. The objective is to create a framework that is both supportive of renewable energy growth and equitable for all ratepayers.
Incorrect
In New Hampshire, the regulation of energy generation and distribution, particularly concerning renewable energy sources and their integration into the grid, is a complex interplay of state statutes and Public Utilities Commission (PUC) rules. The Net Metering rule, as established by RSA 362-F, governs how customers who generate their own electricity, primarily from renewable sources like solar, are compensated for excess energy sent back to the grid. The core principle is that customers receive a credit on their electricity bill for this exported energy, typically at a rate equivalent to the retail rate of electricity they would otherwise purchase. This encourages the adoption of distributed generation. The New Hampshire PUC, through its dockets and orders, further refines these regulations, addressing specific technical requirements, interconnection standards, and the calculation of credits. For instance, the PUC’s decisions often clarify the nuances of what constitutes “excess energy” and the specific billing mechanisms employed by utilities. Understanding the statutory basis in RSA 362-F and the subsequent regulatory interpretations by the PUC is crucial for anyone involved in distributed generation projects in New Hampshire, including developers, installers, and consumers. The objective is to create a framework that is both supportive of renewable energy growth and equitable for all ratepayers.
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Question 4 of 30
4. Question
Consider the scenario of “Granite State Power Solutions,” a duly registered competitive electricity supplier operating within New Hampshire’s deregulated energy market. Following a market analysis, the New Hampshire Public Utilities Commission (NH PUC) identifies that Granite State Power Solutions’ pricing structure, while not violating any explicit anti-competitive statutes, appears to be strategically designed to capture a significant market share by offering prices marginally below those of its closest competitors. The NH PUC believes this strategy, if continued, could lead to market consolidation detrimental to long-term consumer choice. Under New Hampshire law, what is the most accurate description of the NH PUC’s authority in this situation?
Correct
The question probes the understanding of New Hampshire’s statutory framework for competitive energy markets, specifically focusing on the role and limitations of the Public Utilities Commission (NH PUC) in overseeing such markets. New Hampshire RSA 374-F:3, V, establishes the framework for competitive generation of electricity. This statute, along with subsequent legislative actions and NH PUC rulemakings, outlines the process for market participants to register and operate within the state’s wholesale electricity market. A key aspect of this regulation is the distinction between the NH PUC’s authority to set rules and oversee market conduct, and its limited power to directly dictate the operational specifics or market participation strategies of individual competitive suppliers beyond ensuring compliance with established regulations. The commission’s role is primarily regulatory and oversight, not operational management of private energy generation entities. Therefore, while the NH PUC can impose penalties for non-compliance with established rules, it cannot unilaterally mandate that a specific competitive supplier cease operations if that supplier is otherwise in compliance with all statutory and regulatory requirements, nor can it directly dictate their pricing strategies beyond ensuring transparency and preventing market manipulation. The commission’s authority is to ensure a fair and competitive market, not to manage individual firms within it.
Incorrect
The question probes the understanding of New Hampshire’s statutory framework for competitive energy markets, specifically focusing on the role and limitations of the Public Utilities Commission (NH PUC) in overseeing such markets. New Hampshire RSA 374-F:3, V, establishes the framework for competitive generation of electricity. This statute, along with subsequent legislative actions and NH PUC rulemakings, outlines the process for market participants to register and operate within the state’s wholesale electricity market. A key aspect of this regulation is the distinction between the NH PUC’s authority to set rules and oversee market conduct, and its limited power to directly dictate the operational specifics or market participation strategies of individual competitive suppliers beyond ensuring compliance with established regulations. The commission’s role is primarily regulatory and oversight, not operational management of private energy generation entities. Therefore, while the NH PUC can impose penalties for non-compliance with established rules, it cannot unilaterally mandate that a specific competitive supplier cease operations if that supplier is otherwise in compliance with all statutory and regulatory requirements, nor can it directly dictate their pricing strategies beyond ensuring transparency and preventing market manipulation. The commission’s authority is to ensure a fair and competitive market, not to manage individual firms within it.
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Question 5 of 30
5. Question
Consider a proposed solar photovoltaic project in Concord, New Hampshire, with a nameplate capacity of 500 kilowatts (kW), seeking to interconnect with the local electric distribution utility’s grid. The utility’s engineering assessment determines that a significant upgrade to a nearby substation is required to safely accommodate the bidirectional power flow from this new generation source. Under New Hampshire’s established regulatory framework for distributed energy resources, what is the general principle regarding the allocation of costs for such necessary grid infrastructure improvements?
Correct
The question pertains to the regulatory framework governing distributed generation (DG) in New Hampshire, specifically concerning interconnection standards and cost allocation for grid upgrades. New Hampshire’s Public Utilities Commission (NHPUC) establishes these rules, often through rulemaking proceedings or by adopting standards from organizations like the Institute of Electrical and Electronics Engineers (IEEE). The relevant statute is RSA 374:54, which grants the commission authority to regulate public utilities, including interconnection rules. For distributed generation projects, particularly those exceeding a certain capacity or requiring significant grid modifications, the cost of necessary upgrades to the utility’s infrastructure is a critical consideration. New Hampshire’s approach, consistent with many states, generally places the responsibility for the cost of interconnection and any necessary system upgrades on the applicant seeking to connect their DG facility. This is often framed as a “cost causer” principle, where the entity requesting the connection bears the costs of making that connection feasible and safe for the existing grid. The specific rules and cost allocation methodologies are detailed in NHPUC’s various dockets and orders related to distributed generation and net metering. For example, the commission’s rules on interconnection standards, often found within the state’s administrative rules (e.g., Chapter Puc 500 series), outline the process and financial responsibilities. The concept is to ensure that existing ratepayers are not burdened with the costs of new generation facilities that benefit specific developers or customers. Therefore, the applicant is typically responsible for the costs associated with any grid upgrades necessitated by their interconnection request.
Incorrect
The question pertains to the regulatory framework governing distributed generation (DG) in New Hampshire, specifically concerning interconnection standards and cost allocation for grid upgrades. New Hampshire’s Public Utilities Commission (NHPUC) establishes these rules, often through rulemaking proceedings or by adopting standards from organizations like the Institute of Electrical and Electronics Engineers (IEEE). The relevant statute is RSA 374:54, which grants the commission authority to regulate public utilities, including interconnection rules. For distributed generation projects, particularly those exceeding a certain capacity or requiring significant grid modifications, the cost of necessary upgrades to the utility’s infrastructure is a critical consideration. New Hampshire’s approach, consistent with many states, generally places the responsibility for the cost of interconnection and any necessary system upgrades on the applicant seeking to connect their DG facility. This is often framed as a “cost causer” principle, where the entity requesting the connection bears the costs of making that connection feasible and safe for the existing grid. The specific rules and cost allocation methodologies are detailed in NHPUC’s various dockets and orders related to distributed generation and net metering. For example, the commission’s rules on interconnection standards, often found within the state’s administrative rules (e.g., Chapter Puc 500 series), outline the process and financial responsibilities. The concept is to ensure that existing ratepayers are not burdened with the costs of new generation facilities that benefit specific developers or customers. Therefore, the applicant is typically responsible for the costs associated with any grid upgrades necessitated by their interconnection request.
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Question 6 of 30
6. Question
Consider a hypothetical scenario where Granite State Electric, a regulated utility operating within New Hampshire, proposes to construct a new, large-scale natural gas-fired power plant. The utility submits its proposal to the New Hampshire Public Utilities Commission (NHPUC) for approval, asserting that this facility is essential to meet projected demand increases and enhance grid reliability. During the regulatory review process, it becomes apparent that Granite State Electric’s least cost integrated resource planning (LCIRP) analysis did not adequately explore or quantify the potential cost-effectiveness of a diversified portfolio of distributed energy resources (DERs), including solar photovoltaics, battery storage, and demand response programs, as viable alternatives or complements to the proposed centralized generation. Under New Hampshire energy law, what is the most probable outcome of the NHPUC’s review regarding Granite State Electric’s proposal?
Correct
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities in the state, including electric utilities. A key aspect of this oversight involves ensuring that utilities operate efficiently and that their rates are just and reasonable. The concept of “least cost integrated resource planning” (LCIRP) is central to this. LCIRP requires utilities to consider all available energy resources and demand-side management options to meet future energy needs in the most cost-effective manner for customers, while also considering reliability and environmental impacts. When a utility proposes a new generation facility or a significant infrastructure upgrade, the NHPUC conducts a thorough review. This review often involves analyzing the utility’s LCIRP filings, which detail how the proposed project aligns with the state’s long-term energy goals and whether it represents the least cost option compared to alternatives. The Commission’s decision-making process is guided by statutes such as RSA 374:22-a and RSA 378:18, which mandate the provision of safe, reasonable, and adequate service at reasonable rates. Furthermore, New Hampshire’s energy policy emphasizes the importance of competition and the development of a diverse energy portfolio. The NHPUC’s role is to balance these objectives, ensuring that utility investments benefit ratepayers and contribute to the state’s energy security and sustainability. Therefore, a utility’s failure to demonstrate that a proposed project is the least cost option, as determined through a comprehensive LCIRP process, would be a primary basis for the NHPUC to deny approval for such an investment.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities in the state, including electric utilities. A key aspect of this oversight involves ensuring that utilities operate efficiently and that their rates are just and reasonable. The concept of “least cost integrated resource planning” (LCIRP) is central to this. LCIRP requires utilities to consider all available energy resources and demand-side management options to meet future energy needs in the most cost-effective manner for customers, while also considering reliability and environmental impacts. When a utility proposes a new generation facility or a significant infrastructure upgrade, the NHPUC conducts a thorough review. This review often involves analyzing the utility’s LCIRP filings, which detail how the proposed project aligns with the state’s long-term energy goals and whether it represents the least cost option compared to alternatives. The Commission’s decision-making process is guided by statutes such as RSA 374:22-a and RSA 378:18, which mandate the provision of safe, reasonable, and adequate service at reasonable rates. Furthermore, New Hampshire’s energy policy emphasizes the importance of competition and the development of a diverse energy portfolio. The NHPUC’s role is to balance these objectives, ensuring that utility investments benefit ratepayers and contribute to the state’s energy security and sustainability. Therefore, a utility’s failure to demonstrate that a proposed project is the least cost option, as determined through a comprehensive LCIRP process, would be a primary basis for the NHPUC to deny approval for such an investment.
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Question 7 of 30
7. Question
Consider a scenario where Granite State Power, an electric distribution utility operating solely within New Hampshire, seeks approval from the New Hampshire Public Utilities Commission (NHPUC) to implement a novel demand-response program that would significantly alter its load management strategies and impact customer billing structures. What is the primary procedural mechanism the NHPUC would employ to evaluate this proposed program, ensuring public input and adherence to state energy regulations?
Correct
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities within the state. When a utility proposes a significant change to its service, such as the construction of a new transmission line or a substantial rate adjustment, it must file a formal petition or application with the NHPUC. This filing initiates a regulatory process that allows for public input and a thorough review by the Commission. The Commission’s role is to ensure that proposed actions are in the public interest, considering factors like reliability, affordability, environmental impact, and the financial health of the utility. Public hearings are a crucial component of this process, providing an avenue for customers, intervenors, and other stakeholders to voice their concerns and present evidence. The Commission then deliberates on the submitted evidence, testimony, and legal arguments to issue a decision, which may approve, deny, or modify the utility’s proposal. This structured approach, governed by New Hampshire statutes like RSA 374 and RSA 378, ensures that utility operations are conducted in a manner that balances the needs of the utility with the protection of the public.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities within the state. When a utility proposes a significant change to its service, such as the construction of a new transmission line or a substantial rate adjustment, it must file a formal petition or application with the NHPUC. This filing initiates a regulatory process that allows for public input and a thorough review by the Commission. The Commission’s role is to ensure that proposed actions are in the public interest, considering factors like reliability, affordability, environmental impact, and the financial health of the utility. Public hearings are a crucial component of this process, providing an avenue for customers, intervenors, and other stakeholders to voice their concerns and present evidence. The Commission then deliberates on the submitted evidence, testimony, and legal arguments to issue a decision, which may approve, deny, or modify the utility’s proposal. This structured approach, governed by New Hampshire statutes like RSA 374 and RSA 378, ensures that utility operations are conducted in a manner that balances the needs of the utility with the protection of the public.
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Question 8 of 30
8. Question
Consider a newly proposed biomass facility in New Hampshire with a designed maximum output capacity of 75 megawatts. This facility utilizes sustainably harvested wood waste from local forestry operations as its primary fuel source. If this facility seeks to operate as a qualifying small power producer under the federal Public Utility Regulatory Policies Act (PURPA) and New Hampshire’s implementing regulations, what is the primary regulatory threshold related to its generating capacity that must be met to be considered a small power producer?
Correct
The Public Utility Regulatory Policies Act of 1978 (PURPA) established a framework for encouraging cogeneration and small power production. In New Hampshire, the Public Utilities Commission (NHPUC) implements PURPA through regulations that define qualifying facilities (QFs) and establish rate-setting methodologies. For a facility to qualify as a small power producer under PURPA, it must meet certain criteria, including a maximum generating capacity of 80 megawatts (MW). Additionally, it must primarily use renewable energy sources or waste products as its energy input. New Hampshire’s regulations, particularly those stemming from RSA 362-F, govern the terms and conditions under which electric utilities must purchase power from QFs. The avoided cost methodology is central to this, as it determines the rate utilities pay for this power, reflecting the cost the utility would have incurred to generate the equivalent power itself. The NHPUC periodically reviews and updates these avoided cost rates to reflect changes in fuel costs, plant operations, and other relevant factors. Therefore, understanding the capacity limitations and the regulatory basis for avoided cost calculations is crucial for assessing a facility’s status and its relationship with the utility.
Incorrect
The Public Utility Regulatory Policies Act of 1978 (PURPA) established a framework for encouraging cogeneration and small power production. In New Hampshire, the Public Utilities Commission (NHPUC) implements PURPA through regulations that define qualifying facilities (QFs) and establish rate-setting methodologies. For a facility to qualify as a small power producer under PURPA, it must meet certain criteria, including a maximum generating capacity of 80 megawatts (MW). Additionally, it must primarily use renewable energy sources or waste products as its energy input. New Hampshire’s regulations, particularly those stemming from RSA 362-F, govern the terms and conditions under which electric utilities must purchase power from QFs. The avoided cost methodology is central to this, as it determines the rate utilities pay for this power, reflecting the cost the utility would have incurred to generate the equivalent power itself. The NHPUC periodically reviews and updates these avoided cost rates to reflect changes in fuel costs, plant operations, and other relevant factors. Therefore, understanding the capacity limitations and the regulatory basis for avoided cost calculations is crucial for assessing a facility’s status and its relationship with the utility.
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Question 9 of 30
9. Question
Consider a scenario in New Hampshire where a customer installs a solar photovoltaic system with an aggregate capacity of 1.2 megawatts (MW). This system is designed to serve the electricity needs of a large industrial facility owned by the same customer. The facility’s annual electricity consumption is approximately 8,000 megawatt-hours (MWh). The solar system is projected to generate 1,500 MWh annually. Under New Hampshire’s net metering provisions, what is the primary consideration for this system’s eligibility to receive credits for excess generation exported to the grid, beyond its direct consumption at the facility?
Correct
The New Hampshire Public Utilities Commission (NHPUC) has established specific guidelines for qualifying renewable energy sources for net metering under RSA 362-F. For solar photovoltaic systems, a key requirement is that the system must be installed and operated in accordance with the utility’s interconnection agreement and relevant state and federal regulations. Furthermore, the system must be primarily intended to offset the customer’s own electricity consumption. The capacity of such a system is capped at 1 megawatt (MW) for residential and small commercial customers. Systems exceeding this capacity may still be eligible for net metering, but under different provisions or tariff structures that might not offer the same retail rate credit for excess generation. The commission’s decisions, such as those in cases involving utility tariff filings or specific customer disputes, often clarify these operational and capacity limits. Understanding the distinction between systems designed for self-consumption versus those intended for wholesale energy sales is crucial for determining eligibility under the net metering statute. The statute aims to encourage distributed generation for the benefit of the customer and the grid, but with defined parameters to ensure fair compensation and grid stability.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) has established specific guidelines for qualifying renewable energy sources for net metering under RSA 362-F. For solar photovoltaic systems, a key requirement is that the system must be installed and operated in accordance with the utility’s interconnection agreement and relevant state and federal regulations. Furthermore, the system must be primarily intended to offset the customer’s own electricity consumption. The capacity of such a system is capped at 1 megawatt (MW) for residential and small commercial customers. Systems exceeding this capacity may still be eligible for net metering, but under different provisions or tariff structures that might not offer the same retail rate credit for excess generation. The commission’s decisions, such as those in cases involving utility tariff filings or specific customer disputes, often clarify these operational and capacity limits. Understanding the distinction between systems designed for self-consumption versus those intended for wholesale energy sales is crucial for determining eligibility under the net metering statute. The statute aims to encourage distributed generation for the benefit of the customer and the grid, but with defined parameters to ensure fair compensation and grid stability.
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Question 10 of 30
10. Question
A New Hampshire electric distribution utility, Granite State Power & Light, has submitted a petition to the Public Utilities Commission (NHPUC) seeking approval for a new tariff designed to recover costs associated with its expanded residential solar interconnection support program and its newly mandated energy efficiency portfolio. The proposed tariff includes a fixed monthly charge for all customers, intended to cover administrative expenses and a portion of the program incentives. What is the primary legal and regulatory basis the NHPUC would utilize to evaluate the reasonableness and appropriateness of Granite State Power & Light’s proposed cost recovery mechanism for these programs, considering New Hampshire’s statutory framework for utility regulation and energy policy?
Correct
The question pertains to the New Hampshire Public Utilities Commission’s (NHPUC) authority regarding the approval of electric utility rate structures, specifically concerning the recovery of costs associated with distributed generation (DG) and demand-side management (DSM) programs. New Hampshire RSA 374:22 establishes the commission’s broad oversight of public utility rates, ensuring they are just and reasonable. However, the specific mechanisms for cost recovery for DG and DSM are often detailed in subsequent legislation and commission rules. RSA 374:39-a governs the establishment of energy efficiency programs by electric utilities, including provisions for cost recovery. RSA 374:49-c addresses distributed generation, allowing utilities to propose rate adjustments or tariffs to recover costs associated with interconnection and programs that support DG. When a utility proposes to recover costs for these programs, the NHPUC must review the proposal to determine if it aligns with statutory mandates, such as promoting cost-effectiveness, non-discrimination, and the public interest. The commission’s decision-making process involves evaluating the prudence of the expenditures, the expected benefits of the programs, and the impact on all customer classes. Therefore, the commission’s approval is contingent upon a thorough examination of whether the proposed cost recovery mechanism is consistent with the overall framework for promoting both energy efficiency and distributed generation in New Hampshire, as outlined in relevant statutes and commission orders. The commission’s role is to balance the need for utilities to recover legitimate costs with the imperative to protect ratepayers from excessive or unjustified charges, ensuring that the recovery mechanisms support the state’s energy policy goals.
Incorrect
The question pertains to the New Hampshire Public Utilities Commission’s (NHPUC) authority regarding the approval of electric utility rate structures, specifically concerning the recovery of costs associated with distributed generation (DG) and demand-side management (DSM) programs. New Hampshire RSA 374:22 establishes the commission’s broad oversight of public utility rates, ensuring they are just and reasonable. However, the specific mechanisms for cost recovery for DG and DSM are often detailed in subsequent legislation and commission rules. RSA 374:39-a governs the establishment of energy efficiency programs by electric utilities, including provisions for cost recovery. RSA 374:49-c addresses distributed generation, allowing utilities to propose rate adjustments or tariffs to recover costs associated with interconnection and programs that support DG. When a utility proposes to recover costs for these programs, the NHPUC must review the proposal to determine if it aligns with statutory mandates, such as promoting cost-effectiveness, non-discrimination, and the public interest. The commission’s decision-making process involves evaluating the prudence of the expenditures, the expected benefits of the programs, and the impact on all customer classes. Therefore, the commission’s approval is contingent upon a thorough examination of whether the proposed cost recovery mechanism is consistent with the overall framework for promoting both energy efficiency and distributed generation in New Hampshire, as outlined in relevant statutes and commission orders. The commission’s role is to balance the need for utilities to recover legitimate costs with the imperative to protect ratepayers from excessive or unjustified charges, ensuring that the recovery mechanisms support the state’s energy policy goals.
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Question 11 of 30
11. Question
A regulated electric distribution utility operating in New Hampshire proposes to implement a new rate structure to recover the costs associated with upgrading its distribution grid to accommodate a significant increase in customer-sited solar photovoltaic installations. The proposed rate includes a fixed monthly charge applied to all customers, regardless of their energy consumption or participation in distributed generation programs, and a per-kilowatt-hour charge for energy consumed from the grid. The utility argues that the fixed charge is necessary to recover the capital costs of grid modernization, which benefits all customers by improving reliability and enabling the integration of DG. What is the primary legal and regulatory consideration the New Hampshire Public Utilities Commission (PUC) would scrutinize when evaluating this proposed rate structure for cost recovery?
Correct
The Public Utilities Commission (PUC) in New Hampshire has established specific guidelines for the recovery of costs associated with distributed generation (DG) projects by electric distribution utilities. These guidelines are crucial for ensuring that the costs of integrating DG are fairly allocated among all customer classes and do not unduly burden non-participating customers. New Hampshire RSA 374:64, as amended, and subsequent PUC orders, such as those in Docket DE 18-009, outline the principles for rate design and cost recovery. Utilities are permitted to recover prudent and necessary costs incurred in connection with DG interconnection and integration, provided these costs are demonstrably for the benefit of the overall grid and customer base. The commission reviews these cost recovery mechanisms to ensure they align with the state’s energy policy objectives, including the promotion of renewable energy while maintaining grid reliability and affordability. Specifically, the PUC scrutinizes whether the proposed cost recovery mechanisms, such as fixed charges, volumetric charges, or a combination thereof, are designed to recover costs without creating significant cross-subsidies. The commission’s decisions often emphasize a performance-based approach, linking cost recovery to the achievement of specific operational or policy goals related to DG integration. Therefore, a utility seeking to recover costs for DG interconnection infrastructure upgrades in New Hampshire would need to demonstrate the necessity and prudence of these expenditures, their direct link to accommodating DG, and how the proposed recovery mechanism aligns with equitable cost allocation principles as interpreted by the PUC.
Incorrect
The Public Utilities Commission (PUC) in New Hampshire has established specific guidelines for the recovery of costs associated with distributed generation (DG) projects by electric distribution utilities. These guidelines are crucial for ensuring that the costs of integrating DG are fairly allocated among all customer classes and do not unduly burden non-participating customers. New Hampshire RSA 374:64, as amended, and subsequent PUC orders, such as those in Docket DE 18-009, outline the principles for rate design and cost recovery. Utilities are permitted to recover prudent and necessary costs incurred in connection with DG interconnection and integration, provided these costs are demonstrably for the benefit of the overall grid and customer base. The commission reviews these cost recovery mechanisms to ensure they align with the state’s energy policy objectives, including the promotion of renewable energy while maintaining grid reliability and affordability. Specifically, the PUC scrutinizes whether the proposed cost recovery mechanisms, such as fixed charges, volumetric charges, or a combination thereof, are designed to recover costs without creating significant cross-subsidies. The commission’s decisions often emphasize a performance-based approach, linking cost recovery to the achievement of specific operational or policy goals related to DG integration. Therefore, a utility seeking to recover costs for DG interconnection infrastructure upgrades in New Hampshire would need to demonstrate the necessity and prudence of these expenditures, their direct link to accommodating DG, and how the proposed recovery mechanism aligns with equitable cost allocation principles as interpreted by the PUC.
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Question 12 of 30
12. Question
A major electric distribution utility operating within New Hampshire proposes to recover the costs of a significant grid modernization project aimed at improving reliability and integrating distributed energy resources. The utility submits a formal petition to the New Hampshire Public Utilities Commission (NHPUC) requesting an adjustment to its existing rate structure to reflect these capital expenditures. What is the primary legal framework and procedural requirement governing the NHPUC’s review and approval of such a rate adjustment in New Hampshire?
Correct
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities, including electric distribution utilities, to ensure fair rates and reliable service. RSA 374:22 outlines the commission’s authority to approve or modify proposed rate schedules. When a utility seeks to recover costs associated with infrastructure upgrades, such as those mandated by federal environmental regulations or to enhance grid resilience, it must file a petition with the NHPUC. The commission then conducts a formal rate case, which involves detailed review of the utility’s proposed expenditures, an analysis of the prudence and reasonableness of those costs, and an assessment of the impact on customer rates. Public hearings and opportunities for public comment are integral to this process, allowing stakeholders to voice concerns and present evidence. The commission’s decision is based on whether the proposed rates are just and reasonable, and whether the expenditures are prudent and necessary for the provision of safe and adequate service, in accordance with New Hampshire statutes.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities, including electric distribution utilities, to ensure fair rates and reliable service. RSA 374:22 outlines the commission’s authority to approve or modify proposed rate schedules. When a utility seeks to recover costs associated with infrastructure upgrades, such as those mandated by federal environmental regulations or to enhance grid resilience, it must file a petition with the NHPUC. The commission then conducts a formal rate case, which involves detailed review of the utility’s proposed expenditures, an analysis of the prudence and reasonableness of those costs, and an assessment of the impact on customer rates. Public hearings and opportunities for public comment are integral to this process, allowing stakeholders to voice concerns and present evidence. The commission’s decision is based on whether the proposed rates are just and reasonable, and whether the expenditures are prudent and necessary for the provision of safe and adequate service, in accordance with New Hampshire statutes.
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Question 13 of 30
13. Question
Consider a privately owned solar photovoltaic system installed on a commercial property in Concord, New Hampshire. The system has a nameplate capacity of 950 kilowatts (kW). The property owner intends to export any excess electricity generated during daylight hours to the grid. According to New Hampshire’s net metering statutes and the Public Utilities Commission’s regulatory framework, what is the primary determining factor for this system’s eligibility to receive net metering credits at the retail rate for exported energy, assuming all technical interconnection standards are met?
Correct
The New Hampshire Public Utilities Commission (NHPUC) has established specific guidelines regarding the interconnection of distributed generation (DG) systems with the electric grid, particularly concerning net metering. Under New Hampshire law, specifically RSA 362-F, electric distribution utilities are required to offer net metering to eligible customers. This statute defines eligible customers and sets limits on the aggregate capacity of net metered systems that can be interconnected. The NHPUC also issues specific rules and orders that further detail the technical and procedural requirements for interconnection, including the definition of “customer-generator” and the capacity limits for net metering. For systems up to 1 megawatt (MW), the net metering provisions generally apply, allowing these customers to receive credit for excess electricity sent back to the grid at the retail rate. However, the aggregate capacity of all net metered systems in the state is subject to a statutory cap. Once this cap is reached, new applicants may be subject to different terms, potentially including avoided cost rates for exported energy. Therefore, understanding the current aggregate capacity and the specific rules governing customer-generator status and export compensation is crucial for determining the applicable net metering framework in New Hampshire.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) has established specific guidelines regarding the interconnection of distributed generation (DG) systems with the electric grid, particularly concerning net metering. Under New Hampshire law, specifically RSA 362-F, electric distribution utilities are required to offer net metering to eligible customers. This statute defines eligible customers and sets limits on the aggregate capacity of net metered systems that can be interconnected. The NHPUC also issues specific rules and orders that further detail the technical and procedural requirements for interconnection, including the definition of “customer-generator” and the capacity limits for net metering. For systems up to 1 megawatt (MW), the net metering provisions generally apply, allowing these customers to receive credit for excess electricity sent back to the grid at the retail rate. However, the aggregate capacity of all net metered systems in the state is subject to a statutory cap. Once this cap is reached, new applicants may be subject to different terms, potentially including avoided cost rates for exported energy. Therefore, understanding the current aggregate capacity and the specific rules governing customer-generator status and export compensation is crucial for determining the applicable net metering framework in New Hampshire.
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Question 14 of 30
14. Question
A commercial entity in New Hampshire, operating a solar photovoltaic system with a nameplate capacity of 250 kilowatts (kW), exports surplus electricity to the grid during off-peak hours. The entity is billed under a time-of-use (TOU) rate structure by its electric utility. According to New Hampshire’s net metering statutes and the Public Utilities Commission’s (NHPUC) established practices for customer-generators with systems between 100 kW and 1 MW, how is the credit for this exported energy typically determined?
Correct
The New Hampshire Public Utilities Commission (NHPUC) has established specific guidelines for the interconnection of distributed generation (DG) systems to the electric grid, particularly concerning net metering. Under New Hampshire law, specifically RSA 362-F, which governs net metering, eligible customer-generators can receive credit for excess electricity generated and sent to the grid. The rate at which this credit is applied is crucial for the economic viability of DG installations. For customer-generators with a nameplate capacity exceeding 100 kilowatts (kW) but not exceeding 1 megawatt (MW), the net metering credit rate is generally determined by the utility’s retail rate for electricity. However, the specific mechanism for calculating this credit, especially when considering the time-of-use (TOU) components of rates, requires careful adherence to NHPUC rules. These rules often mandate that the credit reflects the value of the energy delivered to the grid, taking into account the time of day and potentially the demand charges or other components of the utility’s rate structure. Therefore, understanding how the NHPUC interprets and applies these rate structures to net metering credits for larger DG systems is key. The commission’s decisions and orders provide the most direct guidance on the application of these principles in practice, ensuring that the credits are fair and reflective of the energy’s value to the grid at the time of export.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) has established specific guidelines for the interconnection of distributed generation (DG) systems to the electric grid, particularly concerning net metering. Under New Hampshire law, specifically RSA 362-F, which governs net metering, eligible customer-generators can receive credit for excess electricity generated and sent to the grid. The rate at which this credit is applied is crucial for the economic viability of DG installations. For customer-generators with a nameplate capacity exceeding 100 kilowatts (kW) but not exceeding 1 megawatt (MW), the net metering credit rate is generally determined by the utility’s retail rate for electricity. However, the specific mechanism for calculating this credit, especially when considering the time-of-use (TOU) components of rates, requires careful adherence to NHPUC rules. These rules often mandate that the credit reflects the value of the energy delivered to the grid, taking into account the time of day and potentially the demand charges or other components of the utility’s rate structure. Therefore, understanding how the NHPUC interprets and applies these rate structures to net metering credits for larger DG systems is key. The commission’s decisions and orders provide the most direct guidance on the application of these principles in practice, ensuring that the credits are fair and reflective of the energy’s value to the grid at the time of export.
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Question 15 of 30
15. Question
A resident in Concord, New Hampshire, has lodged a formal complaint with the New Hampshire Public Utilities Commission (NHPUC) detailing persistent and prolonged power outages impacting their neighborhood, allegedly due to the electric utility’s inadequate maintenance of aging distribution infrastructure. Considering the regulatory framework governing public utilities in New Hampshire, what is the primary procedural recourse available to the NHPUC to address such a complaint and ensure the utility fulfills its obligation to provide reliable service?
Correct
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities in the state, including electric utilities. RSA 374:22 outlines the commission’s authority to investigate complaints regarding utility service and to issue orders for correction. When a customer files a complaint about an electric utility’s failure to maintain its distribution lines, leading to frequent power outages, the NHPUC has a statutory mandate to act. The commission’s process typically involves an investigation to determine if the utility is providing safe, adequate, and reliable service as required by law. If the investigation reveals a violation of service standards or a pattern of negligence, the NHPUC can order the utility to take specific remedial actions. These actions might include infrastructure upgrades, improved maintenance schedules, or enhanced response protocols for outages. The commission’s authority extends to imposing penalties or requiring compensation to affected customers in certain circumstances, although the primary focus is on ensuring future service reliability. The goal is to uphold the public interest by ensuring that utilities meet their obligations under New Hampshire law.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities in the state, including electric utilities. RSA 374:22 outlines the commission’s authority to investigate complaints regarding utility service and to issue orders for correction. When a customer files a complaint about an electric utility’s failure to maintain its distribution lines, leading to frequent power outages, the NHPUC has a statutory mandate to act. The commission’s process typically involves an investigation to determine if the utility is providing safe, adequate, and reliable service as required by law. If the investigation reveals a violation of service standards or a pattern of negligence, the NHPUC can order the utility to take specific remedial actions. These actions might include infrastructure upgrades, improved maintenance schedules, or enhanced response protocols for outages. The commission’s authority extends to imposing penalties or requiring compensation to affected customers in certain circumstances, although the primary focus is on ensuring future service reliability. The goal is to uphold the public interest by ensuring that utilities meet their obligations under New Hampshire law.
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Question 16 of 30
16. Question
Consider a hypothetical scenario where Granite State Electric, a major investor-owned utility operating within New Hampshire, seeks approval from the New Hampshire Public Utilities Commission (NHPUC) to construct a new 115 kV transmission line to serve an expanding industrial park in the northern part of the state. The utility submits a detailed application outlining the project’s engineering specifications, environmental impact assessment, and projected costs. What is the primary procedural mechanism the NHPUC will employ to evaluate the merits of Granite State Electric’s proposal, ensuring compliance with New Hampshire energy law and protecting the public interest?
Correct
The New Hampshire Public Utilities Commission (NHPUC) regulates the state’s energy utilities. When a utility proposes a significant change in its service, such as the construction of a new transmission line or a major rate adjustment, it must file a formal petition with the NHPUC. This petition is subject to a review process that includes opportunities for public comment and intervention by interested parties. For major projects impacting the state’s infrastructure, the process often involves an adjudicatory hearing to thoroughly examine the proposal’s economic, environmental, and public interest aspects. The Commission’s decision, typically issued in the form of an order, is based on the evidence presented and the applicable statutory and regulatory framework. RSA 374:22 outlines the Commission’s authority to approve or deny such proposals, ensuring they are just and reasonable and in the public good. The statutory framework in New Hampshire emphasizes a balance between utility operational needs and the protection of consumer interests and environmental quality. The Commission’s mandate extends to ensuring reliability and affordability of energy services within the state.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) regulates the state’s energy utilities. When a utility proposes a significant change in its service, such as the construction of a new transmission line or a major rate adjustment, it must file a formal petition with the NHPUC. This petition is subject to a review process that includes opportunities for public comment and intervention by interested parties. For major projects impacting the state’s infrastructure, the process often involves an adjudicatory hearing to thoroughly examine the proposal’s economic, environmental, and public interest aspects. The Commission’s decision, typically issued in the form of an order, is based on the evidence presented and the applicable statutory and regulatory framework. RSA 374:22 outlines the Commission’s authority to approve or deny such proposals, ensuring they are just and reasonable and in the public good. The statutory framework in New Hampshire emphasizes a balance between utility operational needs and the protection of consumer interests and environmental quality. The Commission’s mandate extends to ensuring reliability and affordability of energy services within the state.
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Question 17 of 30
17. Question
Consider a scenario where Granite State Power, an electric utility operating primarily in New Hampshire, proposes to acquire the service territory and assets of a smaller, financially distressed utility, Green Valley Electric, which also operates within New Hampshire. What is the primary regulatory body in New Hampshire responsible for reviewing and approving or denying such a significant change in service territory and utility operations, and what is the overarching legal principle that guides its decision-making process in this context?
Correct
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities in the state. When a utility proposes a significant change in its service territory, such as the acquisition of another utility’s assets or a substantial expansion of its service area, a formal regulatory review process is typically initiated. This process is designed to ensure that such actions are in the public interest, financially sound for the utility, and do not negatively impact existing customers or the competitive landscape. The specific legal framework governing these transactions is found within New Hampshire statutes, particularly those pertaining to public utilities and their regulation. While the NHPUC has broad authority, decisions regarding service territory changes and mergers are often guided by principles of public convenience and necessity, as well as considerations of economic feasibility and impact on rates. The commission will review evidence presented by the utility, interested parties, and potentially intervenors to determine if the proposed action aligns with the state’s energy policy objectives and statutory mandates. This review might involve public hearings, expert testimony, and detailed financial analyses. The ultimate approval or denial of such a proposal rests with the NHPUC, following a thorough evaluation of all submitted information and legal arguments.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities in the state. When a utility proposes a significant change in its service territory, such as the acquisition of another utility’s assets or a substantial expansion of its service area, a formal regulatory review process is typically initiated. This process is designed to ensure that such actions are in the public interest, financially sound for the utility, and do not negatively impact existing customers or the competitive landscape. The specific legal framework governing these transactions is found within New Hampshire statutes, particularly those pertaining to public utilities and their regulation. While the NHPUC has broad authority, decisions regarding service territory changes and mergers are often guided by principles of public convenience and necessity, as well as considerations of economic feasibility and impact on rates. The commission will review evidence presented by the utility, interested parties, and potentially intervenors to determine if the proposed action aligns with the state’s energy policy objectives and statutory mandates. This review might involve public hearings, expert testimony, and detailed financial analyses. The ultimate approval or denial of such a proposal rests with the NHPUC, following a thorough evaluation of all submitted information and legal arguments.
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Question 18 of 30
18. Question
Consider a scenario where Granite State Power, an electric utility operating in New Hampshire, proposes to issue new long-term debt to finance the construction of a significant utility-scale solar photovoltaic facility. What is the primary legal and regulatory prerequisite under New Hampshire law that Granite State Power must satisfy before it can legally proceed with this debt issuance?
Correct
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities within the state, including electric power generation and distribution. RSA 374:22-b, concerning the financing of certain utility projects, outlines the commission’s authority to approve or disapprove the issuance of securities by public utilities. This statute requires that any such issuance must be found to be for a lawful purpose, compatible with the public interest, and necessary or appropriate for the transaction of the utility’s business. In the context of a utility seeking to finance a new, large-scale solar generation facility, the NHPUC’s review would scrutinize the financial prudence of the investment, the terms of the financing, and its alignment with the state’s energy policies, such as promoting renewable energy sources. The commission’s decision hinges on whether the proposed financing structure and the project itself serve the public good and are economically sound for ratepayers. The commission’s approval is a prerequisite for the utility to legally undertake such a financing, ensuring that utility capital investments are made responsibly and in a manner that benefits the state’s energy landscape and its consumers.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities within the state, including electric power generation and distribution. RSA 374:22-b, concerning the financing of certain utility projects, outlines the commission’s authority to approve or disapprove the issuance of securities by public utilities. This statute requires that any such issuance must be found to be for a lawful purpose, compatible with the public interest, and necessary or appropriate for the transaction of the utility’s business. In the context of a utility seeking to finance a new, large-scale solar generation facility, the NHPUC’s review would scrutinize the financial prudence of the investment, the terms of the financing, and its alignment with the state’s energy policies, such as promoting renewable energy sources. The commission’s decision hinges on whether the proposed financing structure and the project itself serve the public good and are economically sound for ratepayers. The commission’s approval is a prerequisite for the utility to legally undertake such a financing, ensuring that utility capital investments are made responsibly and in a manner that benefits the state’s energy landscape and its consumers.
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Question 19 of 30
19. Question
Consider a scenario in New Hampshire where an independent power producer (IPP) has developed a small-scale solar photovoltaic project intended for interconnection with the local electric distribution utility. The IPP is seeking to understand the primary regulatory mechanism that dictates the price the utility must pay for any excess electricity generated and exported to the grid, as established under federal law and implemented by state-level oversight. Which of the following best describes this mechanism and its New Hampshire context?
Correct
The question probes the regulatory framework governing distributed generation (DG) interconnection in New Hampshire, specifically focusing on the provisions related to the Public Utility Regulatory Policies Act of 1978 (PURPA) and its state-level implementation. In New Hampshire, the Public Utilities Commission (NHPUC) oversees these matters. PURPA mandates that utilities purchase power from qualifying facilities (QFs) at a “avoided cost” rate. This avoided cost represents the cost a utility would have incurred to generate or purchase electricity itself. For small-scale DG, the NHPUC has established specific rules and guidelines for interconnection and net metering. These rules often differentiate between customer-sited generation and third-party owned systems. A key aspect is the calculation of avoided costs, which are periodically updated by the NHPUC based on forecasted fuel prices, plant operations, and other relevant factors. These avoided costs are crucial for determining the compensation received by DG system owners who sell excess power back to the grid. The specific provisions for interconnection, including technical requirements and application processes, are detailed in the state’s utility regulations, such as those promulgated under RSA 374-F, which addresses energy conservation and alternative energy sources. The NHPUC’s authority to set these rates and rules ensures that the integration of distributed generation aligns with the state’s energy policy objectives, including promoting renewable energy and maintaining grid reliability. The concept of “avoided cost” is central to PURPA’s aim of encouraging non-utility generation by providing a fair market price for the power produced.
Incorrect
The question probes the regulatory framework governing distributed generation (DG) interconnection in New Hampshire, specifically focusing on the provisions related to the Public Utility Regulatory Policies Act of 1978 (PURPA) and its state-level implementation. In New Hampshire, the Public Utilities Commission (NHPUC) oversees these matters. PURPA mandates that utilities purchase power from qualifying facilities (QFs) at a “avoided cost” rate. This avoided cost represents the cost a utility would have incurred to generate or purchase electricity itself. For small-scale DG, the NHPUC has established specific rules and guidelines for interconnection and net metering. These rules often differentiate between customer-sited generation and third-party owned systems. A key aspect is the calculation of avoided costs, which are periodically updated by the NHPUC based on forecasted fuel prices, plant operations, and other relevant factors. These avoided costs are crucial for determining the compensation received by DG system owners who sell excess power back to the grid. The specific provisions for interconnection, including technical requirements and application processes, are detailed in the state’s utility regulations, such as those promulgated under RSA 374-F, which addresses energy conservation and alternative energy sources. The NHPUC’s authority to set these rates and rules ensures that the integration of distributed generation aligns with the state’s energy policy objectives, including promoting renewable energy and maintaining grid reliability. The concept of “avoided cost” is central to PURPA’s aim of encouraging non-utility generation by providing a fair market price for the power produced.
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Question 20 of 30
20. Question
Consider a proposal for a new 200-megawatt solar photovoltaic generation facility in Concord, New Hampshire. The project developer has submitted an application for a certificate of site and facility to the New Hampshire Public Utilities Commission (NHPUC). During the review process, the New Hampshire Department of Environmental Services (DES) identifies potential impacts on local wetlands and recommends specific mitigation measures. Following the NHPUC’s public hearing and deliberation, the commission issues a decision on the certificate. Which entity holds the primary legal authority to grant or deny the certificate of site and facility for this energy project in New Hampshire, thereby permitting its construction and operation?
Correct
The question pertains to the authority of the New Hampshire Public Utilities Commission (NHPUC) concerning the siting of electric generation facilities. New Hampshire law, specifically RSA 162-F, establishes a comprehensive process for the siting of energy facilities. Under RSA 162-F:14, the NHPUC has the exclusive authority to issue a certificate of site and facility for such projects. This certificate process involves a thorough review of environmental, economic, and public interest factors. While other state agencies, such as the Department of Environmental Services (DES), are involved in providing input and reviewing specific environmental aspects, their recommendations do not supersede the final decision-making authority of the NHPUC for the site and facility certificate itself. The Governor and Executive Council’s role in approving such certificates is a procedural step after the NHPUC has made its determination, as outlined in RSA 162-F:17. Therefore, the ultimate decision-making power for the site and facility certificate rests with the NHPUC, not the Department of Environmental Services or the Governor and Executive Council acting independently of the commission’s findings.
Incorrect
The question pertains to the authority of the New Hampshire Public Utilities Commission (NHPUC) concerning the siting of electric generation facilities. New Hampshire law, specifically RSA 162-F, establishes a comprehensive process for the siting of energy facilities. Under RSA 162-F:14, the NHPUC has the exclusive authority to issue a certificate of site and facility for such projects. This certificate process involves a thorough review of environmental, economic, and public interest factors. While other state agencies, such as the Department of Environmental Services (DES), are involved in providing input and reviewing specific environmental aspects, their recommendations do not supersede the final decision-making authority of the NHPUC for the site and facility certificate itself. The Governor and Executive Council’s role in approving such certificates is a procedural step after the NHPUC has made its determination, as outlined in RSA 162-F:17. Therefore, the ultimate decision-making power for the site and facility certificate rests with the NHPUC, not the Department of Environmental Services or the Governor and Executive Council acting independently of the commission’s findings.
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Question 21 of 30
21. Question
A regional energy cooperative in New Hampshire proposes to construct a new 115kV transmission line spanning across three different municipalities to enhance grid reliability and integrate renewable energy sources. This project involves acquiring new rights-of-way and will have a substantial impact on local land use. What state-level regulatory body in New Hampshire holds the primary authority to approve the utility’s application for the construction of this new transmission infrastructure, considering its public utility nature and impact across municipal borders?
Correct
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities within the state. When a utility proposes a significant change, such as the construction of a new transmission line that crosses municipal boundaries, a formal regulatory process is triggered. This process ensures that proposed projects are in the public interest, considering factors like reliability, cost-effectiveness, environmental impact, and the needs of ratepayers. The NHPUC’s authority to approve or deny such projects stems from its statutory mandate to regulate utilities for the benefit of New Hampshire citizens. Specifically, RSA 374:22 grants the commission broad powers to authorize the construction of new utility facilities, including transmission lines, after conducting appropriate hearings and investigations. The commission evaluates the necessity and reasonableness of the proposed construction, weighing the benefits against potential detriments. Other regulatory bodies may have oversight over specific aspects, such as environmental permitting (e.g., through the New Hampshire Department of Environmental Services) or federal siting of interstate transmission, but the primary state-level approval for the utility’s action, including the financial and operational aspects, rests with the NHPUC. Therefore, a proposal for a new transmission line requiring a certificate of site and purpose would necessitate an application and approval from the NHPUC.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities within the state. When a utility proposes a significant change, such as the construction of a new transmission line that crosses municipal boundaries, a formal regulatory process is triggered. This process ensures that proposed projects are in the public interest, considering factors like reliability, cost-effectiveness, environmental impact, and the needs of ratepayers. The NHPUC’s authority to approve or deny such projects stems from its statutory mandate to regulate utilities for the benefit of New Hampshire citizens. Specifically, RSA 374:22 grants the commission broad powers to authorize the construction of new utility facilities, including transmission lines, after conducting appropriate hearings and investigations. The commission evaluates the necessity and reasonableness of the proposed construction, weighing the benefits against potential detriments. Other regulatory bodies may have oversight over specific aspects, such as environmental permitting (e.g., through the New Hampshire Department of Environmental Services) or federal siting of interstate transmission, but the primary state-level approval for the utility’s action, including the financial and operational aspects, rests with the NHPUC. Therefore, a proposal for a new transmission line requiring a certificate of site and purpose would necessitate an application and approval from the NHPUC.
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Question 22 of 30
22. Question
Consider a proposed 150 kW solar photovoltaic system to be installed in Concord, New Hampshire, by a commercial entity. According to the New Hampshire Public Utilities Commission’s established interconnection rules for distributed generation, who is typically responsible for the costs associated with a detailed grid impact study required for such a system’s interconnection application?
Correct
The New Hampshire Public Utilities Commission (NHPUC) has established specific guidelines regarding the interconnection of distributed generation (DG) systems with the electric grid. These regulations are designed to ensure grid reliability, safety, and fair cost allocation. For systems exceeding a certain capacity, typically 100 kilowatts (kW), the interconnection process involves a more detailed review than for smaller systems. This review often includes an impact study to assess how the proposed DG system will affect the existing distribution infrastructure. The cost of this impact study is generally borne by the applicant, as per the established rules, to cover the utility’s expenses in conducting the necessary technical analysis. This principle is rooted in the idea that the party proposing a change that necessitates additional analysis should bear the associated costs. The specific details of these studies and cost responsibilities are outlined in the NHPUC’s rules and the interconnection tariffs of the state’s electric utilities, such as Eversource Energy and Liberty Utilities, which operate under the commission’s oversight. These rules aim to balance the promotion of renewable energy with the need to maintain a stable and cost-effective grid for all ratepayers.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) has established specific guidelines regarding the interconnection of distributed generation (DG) systems with the electric grid. These regulations are designed to ensure grid reliability, safety, and fair cost allocation. For systems exceeding a certain capacity, typically 100 kilowatts (kW), the interconnection process involves a more detailed review than for smaller systems. This review often includes an impact study to assess how the proposed DG system will affect the existing distribution infrastructure. The cost of this impact study is generally borne by the applicant, as per the established rules, to cover the utility’s expenses in conducting the necessary technical analysis. This principle is rooted in the idea that the party proposing a change that necessitates additional analysis should bear the associated costs. The specific details of these studies and cost responsibilities are outlined in the NHPUC’s rules and the interconnection tariffs of the state’s electric utilities, such as Eversource Energy and Liberty Utilities, which operate under the commission’s oversight. These rules aim to balance the promotion of renewable energy with the need to maintain a stable and cost-effective grid for all ratepayers.
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Question 23 of 30
23. Question
Consider a scenario where Granite State Electric proposes to acquire Northern Lights Power, a smaller utility operating primarily in western New Hampshire. The proposed merger aims to achieve economies of scale and streamline operational management. Which of the following actions by the New Hampshire Public Utilities Commission (NHPUC) would most accurately reflect its statutory duty under RSA 374:26 to approve or deny such a transaction based on the public interest?
Correct
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities in the state. When a utility proposes a significant change to its service territory or operational structure, such as a merger or acquisition, it must demonstrate that the proposed action is in the public interest. This involves a rigorous review process that considers various factors. RSA 374:26 requires that any such change be approved by the commission and that the commission must find that the proposed action is consistent with the public good. Key considerations for the NHPUC in evaluating a utility merger or acquisition under this statute include the impact on rates for consumers, the quality and reliability of service, the financial stability of the combined entity, and the potential for increased competition or market power. The commission also examines the operational efficiencies that might be gained and how those benefits would be passed on to ratepayers. Furthermore, the commission will assess any potential negative impacts on employees or the broader economic development of New Hampshire. A proposal that fails to adequately address these multifaceted concerns, particularly regarding consumer rates and service quality, would likely be denied. Therefore, the primary determinant for approval hinges on a comprehensive assessment of whether the proposed transaction demonstrably benefits the public interest as defined by New Hampshire law and the commission’s regulatory framework.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities in the state. When a utility proposes a significant change to its service territory or operational structure, such as a merger or acquisition, it must demonstrate that the proposed action is in the public interest. This involves a rigorous review process that considers various factors. RSA 374:26 requires that any such change be approved by the commission and that the commission must find that the proposed action is consistent with the public good. Key considerations for the NHPUC in evaluating a utility merger or acquisition under this statute include the impact on rates for consumers, the quality and reliability of service, the financial stability of the combined entity, and the potential for increased competition or market power. The commission also examines the operational efficiencies that might be gained and how those benefits would be passed on to ratepayers. Furthermore, the commission will assess any potential negative impacts on employees or the broader economic development of New Hampshire. A proposal that fails to adequately address these multifaceted concerns, particularly regarding consumer rates and service quality, would likely be denied. Therefore, the primary determinant for approval hinges on a comprehensive assessment of whether the proposed transaction demonstrably benefits the public interest as defined by New Hampshire law and the commission’s regulatory framework.
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Question 24 of 30
24. Question
A utility company proposes to construct a new high-voltage transmission line in New Hampshire to enhance grid reliability. The proposed route passes through a portion of the White Mountain National Forest, prompting objections from local conservation groups citing potential impacts on wildlife habitats and recreational trails. The utility has submitted an application for a Certificate of Site and Facility (CSF) to the New Hampshire Public Utilities Commission (NHPUC). What is the primary legal standard the NHPUC will apply when evaluating this application, considering the specific concerns raised?
Correct
The scenario involves a dispute over the siting of a new transmission line in New Hampshire, a process governed by specific state statutes and regulatory frameworks. The New Hampshire Public Utilities Commission (NHPUC) is the primary body responsible for approving such projects, balancing the need for reliable energy infrastructure with environmental and community concerns. Key legislation like RSA 162-H, the “Energy Facility Site Evaluation and Development Act,” outlines the procedures for obtaining a Certificate of Site and Facility (CSF). This act requires applicants to demonstrate that the proposed facility is needed, will not unreasonably affect environmental quality or public health, and will not cause undue adverse effects on the scenic, aesthetic, historic, and recreational values of the area. In this case, the proposed route traverses a section of the White Mountain National Forest, raising significant environmental and recreational impact considerations. The applicant must present a comprehensive site evaluation report detailing alternative routes, environmental impact assessments, and mitigation strategies. Public hearings are a mandatory component of the NHPUC’s review process, providing an opportunity for affected parties, including local communities and environmental groups, to voice their concerns and present evidence. The commission’s decision hinges on whether the applicant has met the statutory burdens of proof, considering all submitted evidence and testimony. The ultimate approval, if granted, will include specific conditions designed to minimize adverse impacts.
Incorrect
The scenario involves a dispute over the siting of a new transmission line in New Hampshire, a process governed by specific state statutes and regulatory frameworks. The New Hampshire Public Utilities Commission (NHPUC) is the primary body responsible for approving such projects, balancing the need for reliable energy infrastructure with environmental and community concerns. Key legislation like RSA 162-H, the “Energy Facility Site Evaluation and Development Act,” outlines the procedures for obtaining a Certificate of Site and Facility (CSF). This act requires applicants to demonstrate that the proposed facility is needed, will not unreasonably affect environmental quality or public health, and will not cause undue adverse effects on the scenic, aesthetic, historic, and recreational values of the area. In this case, the proposed route traverses a section of the White Mountain National Forest, raising significant environmental and recreational impact considerations. The applicant must present a comprehensive site evaluation report detailing alternative routes, environmental impact assessments, and mitigation strategies. Public hearings are a mandatory component of the NHPUC’s review process, providing an opportunity for affected parties, including local communities and environmental groups, to voice their concerns and present evidence. The commission’s decision hinges on whether the applicant has met the statutory burdens of proof, considering all submitted evidence and testimony. The ultimate approval, if granted, will include specific conditions designed to minimize adverse impacts.
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Question 25 of 30
25. Question
A regulated electric distribution utility in New Hampshire submits a filing to the NHPUC proposing a new rate structure for its commercial customers, intended to take effect in 60 days. The filing includes a comprehensive cost-of-service study and justification for the proposed changes. According to New Hampshire statutes governing utility rate filings, what is the minimum statutory notice period the utility must provide before the proposed rates can become effective, and what is the maximum additional period the NHPUC can suspend these rates to conduct an investigation?
Correct
The New Hampshire Public Utilities Commission (NHPUC) has established specific procedural rules for the review of proposed changes to utility rate schedules. RSA 378:3 requires that any proposed rate increase or change in service classification must be filed with the Commission at least thirty days prior to the proposed effective date. This thirty-day period is a statutory minimum, allowing the Commission and interested parties to review the filing for compliance with applicable laws and regulations, and to assess its impact on consumers. During this period, the NHPUC may suspend the proposed rates for an additional period, not exceeding seventy-five days from the date the rates would otherwise become effective, if it deems the suspension necessary to investigate the reasonableness of the proposed changes. This investigative period is crucial for ensuring that rates are just and reasonable as mandated by RSA 378:7. The Commission can also initiate an investigation on its own motion. The filing must contain detailed information supporting the proposed changes, including cost-of-service studies, revenue requirements, and proposed rate designs. The Commission’s review process involves analysis of these filings, potential public hearings, and the opportunity for intervenors to participate. The outcome of this review can be approval, modification, or rejection of the proposed rates.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) has established specific procedural rules for the review of proposed changes to utility rate schedules. RSA 378:3 requires that any proposed rate increase or change in service classification must be filed with the Commission at least thirty days prior to the proposed effective date. This thirty-day period is a statutory minimum, allowing the Commission and interested parties to review the filing for compliance with applicable laws and regulations, and to assess its impact on consumers. During this period, the NHPUC may suspend the proposed rates for an additional period, not exceeding seventy-five days from the date the rates would otherwise become effective, if it deems the suspension necessary to investigate the reasonableness of the proposed changes. This investigative period is crucial for ensuring that rates are just and reasonable as mandated by RSA 378:7. The Commission can also initiate an investigation on its own motion. The filing must contain detailed information supporting the proposed changes, including cost-of-service studies, revenue requirements, and proposed rate designs. The Commission’s review process involves analysis of these filings, potential public hearings, and the opportunity for intervenors to participate. The outcome of this review can be approval, modification, or rejection of the proposed rates.
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Question 26 of 30
26. Question
A commercial entity in Concord, New Hampshire, intends to install a new solar photovoltaic array to offset its electricity consumption. The proposed system has a nameplate capacity of 150 kilowatts. Considering New Hampshire’s regulatory framework for distributed generation interconnection, which procedural pathway is most likely to govern the review and approval of this installation by the New Hampshire Public Utilities Commission and the relevant electric distribution utility?
Correct
The New Hampshire Public Utilities Commission (NHPUC) has established rules and guidelines for the interconnection of distributed generation (DG) systems to the electric grid. Specifically, RSA 374:54 and related administrative rules, such as those found in the NH Code of Administrative Rules, Chapter Puc 900, govern the process. When a customer proposes to install a solar photovoltaic system with a capacity exceeding 100 kilowatts (kW) but not exceeding 1 megawatt (MW), the interconnection process generally falls under the NHPUC’s “Small Generator Interconnection” procedures. These procedures are designed to ensure that interconnections are safe, reliable, and do not adversely impact the existing grid infrastructure or other customers. The process involves a detailed application, a technical review by the utility (e.g., Eversource or Unitil), and potential studies to assess grid impacts. For systems above 1 MW, the process typically moves to a larger generator interconnection framework, which often involves more extensive and costly studies. The threshold of 100 kW is a key differentiator in the procedural requirements and the level of technical scrutiny applied by the NHPUC and the electric distribution utility. Understanding these capacity-based distinctions is crucial for navigating the regulatory landscape of distributed generation in New Hampshire.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) has established rules and guidelines for the interconnection of distributed generation (DG) systems to the electric grid. Specifically, RSA 374:54 and related administrative rules, such as those found in the NH Code of Administrative Rules, Chapter Puc 900, govern the process. When a customer proposes to install a solar photovoltaic system with a capacity exceeding 100 kilowatts (kW) but not exceeding 1 megawatt (MW), the interconnection process generally falls under the NHPUC’s “Small Generator Interconnection” procedures. These procedures are designed to ensure that interconnections are safe, reliable, and do not adversely impact the existing grid infrastructure or other customers. The process involves a detailed application, a technical review by the utility (e.g., Eversource or Unitil), and potential studies to assess grid impacts. For systems above 1 MW, the process typically moves to a larger generator interconnection framework, which often involves more extensive and costly studies. The threshold of 100 kW is a key differentiator in the procedural requirements and the level of technical scrutiny applied by the NHPUC and the electric distribution utility. Understanding these capacity-based distinctions is crucial for navigating the regulatory landscape of distributed generation in New Hampshire.
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Question 27 of 30
27. Question
A regulated electric distribution utility in New Hampshire, Granite State Power & Light, has filed a petition with the New Hampshire Public Utilities Commission (NHPUC) seeking to recover costs associated with significant grid modernization investments aimed at enhancing reliability and integrating distributed energy resources. The utility’s filing includes detailed projections of capital expenditures and operational savings. What is the primary legal and regulatory framework that the NHPUC will utilize to evaluate Granite State Power & Light’s petition for a rate adjustment in New Hampshire, and what core principle guides this evaluation?
Correct
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities within the state, including electric, natural gas, and water companies. A key aspect of this regulation involves approving rate adjustments, often referred to as rate cases. When a utility proposes a change in its rates, the NHPUC conducts a thorough review to ensure that the proposed rates are just and reasonable, reflecting the actual cost of providing service and allowing for a fair rate of return on the utility’s invested capital. This process typically involves extensive filings by the utility, discovery by intervenors (such as consumer advocates, industrial users, and environmental groups), and public hearings. The NHPUC’s decision is based on established regulatory principles and statutory mandates, such as RSA 378, which governs rate adjustments. The commission must balance the need for utilities to recover their costs and attract capital with the imperative to protect ratepayers from excessive charges. The outcome of a rate case can significantly impact the financial health of the utility and the cost of energy for New Hampshire consumers. The specific methodology for determining a utility’s revenue requirement and rate of return can involve complex analyses of the utility’s capital structure, operating expenses, and investments. The commission’s final order will detail the approved rates and the justification for its findings, often specifying a period during which the new rates will be in effect.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities within the state, including electric, natural gas, and water companies. A key aspect of this regulation involves approving rate adjustments, often referred to as rate cases. When a utility proposes a change in its rates, the NHPUC conducts a thorough review to ensure that the proposed rates are just and reasonable, reflecting the actual cost of providing service and allowing for a fair rate of return on the utility’s invested capital. This process typically involves extensive filings by the utility, discovery by intervenors (such as consumer advocates, industrial users, and environmental groups), and public hearings. The NHPUC’s decision is based on established regulatory principles and statutory mandates, such as RSA 378, which governs rate adjustments. The commission must balance the need for utilities to recover their costs and attract capital with the imperative to protect ratepayers from excessive charges. The outcome of a rate case can significantly impact the financial health of the utility and the cost of energy for New Hampshire consumers. The specific methodology for determining a utility’s revenue requirement and rate of return can involve complex analyses of the utility’s capital structure, operating expenses, and investments. The commission’s final order will detail the approved rates and the justification for its findings, often specifying a period during which the new rates will be in effect.
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Question 28 of 30
28. Question
Consider a hypothetical scenario where Granite State Electric, a regulated utility operating solely within New Hampshire, submits a petition to the Public Utilities Commission (NHPUC) seeking approval for a significant upward adjustment in its electricity rates. The utility justifies this request by citing increased fuel costs and substantial investments in grid modernization infrastructure. What is the primary legal standard the NHPUC will apply when evaluating the prudency of Granite State Electric’s proposed expenditures for grid modernization, as mandated by New Hampshire energy law?
Correct
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities in the state, including electric utilities. When a utility proposes a rate increase, the commission must conduct a thorough review to ensure the proposed rates are just and reasonable, and that the utility is operating efficiently. This process involves analyzing the utility’s cost of service, including its operating expenses, capital investments, and a fair rate of return on its invested capital. The NHPUC’s authority to set rates is derived from New Hampshire Revised Statutes Annotated (RSA) Chapter 374, which governs public utilities. Specifically, RSA 374:22 grants the commission the power to investigate and determine reasonable rates. The commission’s decision-making process is guided by principles of cost-of-service regulation, which aims to allow utilities to recover their prudently incurred costs and earn a reasonable profit, while also protecting consumers from excessive charges. The commission’s orders are subject to judicial review, but its findings of fact are typically given deference if supported by substantial evidence. The process for approving rate adjustments often involves public hearings and opportunities for intervenors, such as consumer advocacy groups, to present their cases. The concept of “prudency” is central to cost recovery, meaning that the utility must demonstrate that its expenditures were necessary and reasonable for providing service.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) oversees the regulation of public utilities in the state, including electric utilities. When a utility proposes a rate increase, the commission must conduct a thorough review to ensure the proposed rates are just and reasonable, and that the utility is operating efficiently. This process involves analyzing the utility’s cost of service, including its operating expenses, capital investments, and a fair rate of return on its invested capital. The NHPUC’s authority to set rates is derived from New Hampshire Revised Statutes Annotated (RSA) Chapter 374, which governs public utilities. Specifically, RSA 374:22 grants the commission the power to investigate and determine reasonable rates. The commission’s decision-making process is guided by principles of cost-of-service regulation, which aims to allow utilities to recover their prudently incurred costs and earn a reasonable profit, while also protecting consumers from excessive charges. The commission’s orders are subject to judicial review, but its findings of fact are typically given deference if supported by substantial evidence. The process for approving rate adjustments often involves public hearings and opportunities for intervenors, such as consumer advocacy groups, to present their cases. The concept of “prudency” is central to cost recovery, meaning that the utility must demonstrate that its expenditures were necessary and reasonable for providing service.
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Question 29 of 30
29. Question
Consider a hypothetical scenario in New Hampshire where a small business owner, Ms. Anya Sharma, installs a 15-kilowatt solar photovoltaic system on her commercial property. This system is designed to meet a significant portion of her electricity needs. Ms. Sharma is seeking to understand the regulatory framework governing the compensation for any excess electricity her system generates and sends back to the grid. Based on New Hampshire energy law, specifically concerning customer-sited renewable energy generation and its integration with the utility grid, which of the following accurately describes the primary legal and regulatory basis for determining how Ms. Sharma’s excess generation will be credited?
Correct
New Hampshire’s approach to renewable energy development, particularly concerning net metering and its integration into the state’s grid, is governed by specific statutes and Public Utilities Commission (PUC) rules. The Public Utility Regulatory Policies Act of 1978 (PURPA) established a federal framework, but states have considerable latitude in implementing its provisions. In New Hampshire, RSA 362-F governs net metering. This statute, as amended, sets forth the eligibility requirements for renewable energy systems, the size limitations for participation, and the rates at which excess generation is credited. The PUC then promulgates rules, such as those found in the N.H. Code Admin. R. Puc 1600 series, to operationalize these statutory mandates. These rules detail the application process, interconnection standards, and billing procedures. The core principle of net metering is to credit customers for the electricity they send back to the grid, typically at a retail rate, thereby offsetting their consumption. However, legislative changes and commission decisions can modify these crediting mechanisms, sometimes transitioning to avoided cost rates or other alternative compensation structures for larger systems or specific technologies, especially as the cumulative capacity of net-metered systems grows. The question tests the understanding of how New Hampshire law, specifically RSA 362-F and associated PUC rules, defines the framework for customer-sited renewable energy generation and its compensation, distinguishing between statutory intent and the detailed implementation by the regulatory body. It also probes the potential for modifications to compensation structures based on system size and cumulative capacity, reflecting evolving policy considerations.
Incorrect
New Hampshire’s approach to renewable energy development, particularly concerning net metering and its integration into the state’s grid, is governed by specific statutes and Public Utilities Commission (PUC) rules. The Public Utility Regulatory Policies Act of 1978 (PURPA) established a federal framework, but states have considerable latitude in implementing its provisions. In New Hampshire, RSA 362-F governs net metering. This statute, as amended, sets forth the eligibility requirements for renewable energy systems, the size limitations for participation, and the rates at which excess generation is credited. The PUC then promulgates rules, such as those found in the N.H. Code Admin. R. Puc 1600 series, to operationalize these statutory mandates. These rules detail the application process, interconnection standards, and billing procedures. The core principle of net metering is to credit customers for the electricity they send back to the grid, typically at a retail rate, thereby offsetting their consumption. However, legislative changes and commission decisions can modify these crediting mechanisms, sometimes transitioning to avoided cost rates or other alternative compensation structures for larger systems or specific technologies, especially as the cumulative capacity of net-metered systems grows. The question tests the understanding of how New Hampshire law, specifically RSA 362-F and associated PUC rules, defines the framework for customer-sited renewable energy generation and its compensation, distinguishing between statutory intent and the detailed implementation by the regulatory body. It also probes the potential for modifications to compensation structures based on system size and cumulative capacity, reflecting evolving policy considerations.
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Question 30 of 30
30. Question
Consider a commercial entity in New Hampshire that wishes to install a 1.5 MW solar photovoltaic system. This system is intended to offset its own electricity consumption and potentially sell excess power back to the grid. According to New Hampshire energy law, specifically concerning distributed generation interconnections, who is generally responsible for the costs associated with the necessary impact studies required to assess the grid’s ability to safely and reliably accommodate this size of generation?
Correct
The New Hampshire Public Utilities Commission (NHPUC) has specific regulations regarding the interconnection of distributed generation (DG) systems with the electric grid. When a customer proposes to install a DG system that is larger than what is typically considered “net metering” under RSA 362-F, the interconnection process shifts. For systems exceeding 1 MW, RSA 362-F:10 outlines a more rigorous review process. This process requires a detailed technical study, often referred to as a “small generator interconnection study” or a similar impact assessment, to evaluate the potential effects on the grid’s reliability, safety, and operational stability. The utility, in this case, Eversource Energy in New Hampshire, is responsible for conducting or facilitating this study. The costs associated with these studies are typically borne by the applicant seeking interconnection, as stipulated by commission rules and utility tariffs designed to cover the expenses of such analyses. These studies assess factors like voltage fluctuations, fault current levels, and the need for any system upgrades to maintain grid integrity. The commission’s oversight ensures that these interconnections are performed in a manner that protects the existing infrastructure and other customers. Therefore, the cost of a necessary impact study for a DG system exceeding 1 MW would be the responsibility of the applicant.
Incorrect
The New Hampshire Public Utilities Commission (NHPUC) has specific regulations regarding the interconnection of distributed generation (DG) systems with the electric grid. When a customer proposes to install a DG system that is larger than what is typically considered “net metering” under RSA 362-F, the interconnection process shifts. For systems exceeding 1 MW, RSA 362-F:10 outlines a more rigorous review process. This process requires a detailed technical study, often referred to as a “small generator interconnection study” or a similar impact assessment, to evaluate the potential effects on the grid’s reliability, safety, and operational stability. The utility, in this case, Eversource Energy in New Hampshire, is responsible for conducting or facilitating this study. The costs associated with these studies are typically borne by the applicant seeking interconnection, as stipulated by commission rules and utility tariffs designed to cover the expenses of such analyses. These studies assess factors like voltage fluctuations, fault current levels, and the need for any system upgrades to maintain grid integrity. The commission’s oversight ensures that these interconnections are performed in a manner that protects the existing infrastructure and other customers. Therefore, the cost of a necessary impact study for a DG system exceeding 1 MW would be the responsibility of the applicant.