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Home > Sustainable Energy > Electric Renewable Portfolio Standard (RPS)
 

Electric Renewable Portfolio Standard (RPS)

New Hampshire 's RPS statute, RSA 362-F, requires each electricity provider to meet customer load by purchasing or acquiring certificates representing generation from renewable energy based on total megawatt-hours supplied. New Hampshire ’s RPS statute divides renewable energy sources into four separate classes that include the following:

  • Class I resources include generation facilities that began operation after January 1, 2006 and produce electricity from: wind energy; geothermal energy; hydrogen derived from biomass fuel or methane gas; ocean thermal, wave, current, or tidal energy; methane gas; or biomass. Displacement of electricity by end-use customers from solar hot water heating systems, incremental new production from Class III and IV sources, and existing hydropower and biomass facilities that began operation as a new facility through capital investment also qualify as class I sources.
  • Class II sources include generation facilities that produce electricity from solar technologies and began operation after January 1, 2006 .
  • Class III sources include generation facilities that began operation on or before January 1, 2006 and produce electricity from eligible biomass technologies having a gross nameplate capacity of 25 megawatts or less or methane gas facilities.
  • Class IV sources include hydroelectric generation facilities that began operation on or before January 1, 2006 and have a gross nameplate capacity of 5 megawatts or less, has installed upstream and downstream diadromous fish passages approved by FERC and have obtained all necessary water quality certifications under section 401 of the Clean Water Act.

The RPS requirement increases to 7.5% for 2010, 13.8% for 2015 and 23.8% for 2025. The RPS obligations by class and year are:

Calendar Year

Class I

Class II

Class III

Class IV

2008

0.0%

0.0%

3.5%

0.5%

2009

0.5%

0.0%

4.5%

1.0%

2010

1.0%

0.04%

5.5%

1.0%

2011

2.0%

0.08%

6.5%

1.0%

2012

3.0%

0.15%

6.5%

1.0%

2013

4.0%

0.2%

6.5%

1.0%

2014

5.0%

0.3%

6.5%

1.0%

2015

6.0%

0.3%

6.5%

1.0%

2016

7.0%

0.3%

6.5%

1.0%

2017

8.0%

0.3%

6.5%

1.0%

2018

9.0%

0.3%

6.5%

1.0%

2019

10.0%

0.3%

6.5%

1.0%

2020

11.0%

0.3%

6.5%

1.0%

2021

12.0%

0.3%

6.5%

1.0%

2022

13.0%

0.3%

6.5%

1.0%

2023

14.0%

0.3%

6.5%

1.0%

2024

15.0%

0.3%

6.5%

1.0%

2025

16.0%

0.3%

6.5%

1.0%

Under the RPS statute, electricity providers are required to generate or purchase renewable energy certificates from suppliers through the New England Power Pool generation information system (NEPOOL-GIS). A renewable energy certificate represents 1 megawatt-hour of electricity produced from eligible renewable energy sources and may be sold separately from the associated electricity.

If the electricity providers are not able to meet the RPS requirements by purchasing or acquiring renewable energy certificates, they must pay alternative compliance payments (ACPs). The 2012 alternative compliance payment prices by class are:

Inflation Adjusted Alternative Compliance Payment per Megawatt-hour
Class
2008
2009
2010
2011
2012
Class I
$58.58
$60.92
$60.93
$62.13
$64.02
Class II
$153.85
$159.98
$160.01
$163.16
$168.13
Class III
$28.72
$29.86
$29.87
$30.46
$31.39
Class IV
$28.72
$29.86
$29.87
$30.46
$31.39

Proceeds from the ACPs are then used to fund qualified renewable energy initiatives and projects.

On an annual basis, the New Hampshire Public Utilities Commission will review electricity providers’ compliance with the previous year’s RPS requirements. Electricity providers include New Hampshire ’s competitive electricity suppliers and electric distribution utilities (Public Service Company of New Hampshire, Granite State Electric Company, Unitil Energy Systems, Inc. and the New Hampshire Electric Cooperative).  In accordance with the Commission administration rules, Chapter Puc 2500 which implements the New Hampshire ’s RPS Program, electricity providers file annual compliance reports by July 1 st of each year.

If you have any questions about the RPS program, please check our Frequently Asked Questions for answers or contact Kate Epsen at (603)271-2431 or Kate.Epsen@puc.nh.gov

The information on this website is a summary of New Hampshire ’s RPS program. For more details see the Puc 2500 Rules.