System Benefits Charge

Program System Benefits Charge
Category Regulatory Policy
Implementing sector State
Last Update
State New Hampshire
Sectors Residential

New Hampshire's 1996 electric industry restructuring legislation authorized the creation of a system benefits charge (SBC) to support energy efficiency programs and energy assistance programs for low-income residents. The total base SBC is 3.48 mills per kilowatt-hour ($0.00348/kWh). The SBC was increased in 2017 for the first time since 2001 from its former 3.3 mills per kWh ($0.0033/kWh), due to the state's energy efficiency resource standard, adopted in August 2016. 

The energy efficiency component of the charge is currently 1.98 mills per kWh ($0.00198/kWh) on electric bills (an increase of $0.00018 from the previous charge of $0.0018). The low-income energy assistance portion is 1.5 mills per kWh ($0.0015/kWh). The SBC charge for a residential customer using 650 kWh per month is $2.26 per month. 

A new Lost Base Revenue (LBR) component was also added to the SBC in 2017.  The LBR component varies by utility (Liberty Utilities = 0.06 mills per kWh ($0.00006/kWh), Eversource = $0.08 ($0.00008/kWh), and Unitil = 0.09 mills per kWh ($0.00009/kWh). New Hampshire Electric Cooperative's SBC does not include the LBR. The total SBCs including the LBR component are: 3.54 mills/kWh for Liberty Utilities, 3.56 mills/kWh for Eversource, and 3.57 mills/kWh for Unitil.

New Hampshire enacted legislation (H.B. 1490) in June 2012 converting the state's greenhouse gas emissions fund into an energy efficiency fund. As a result, certain proceeds received by the state from emissions auction proceeds will be allocated as an additional source of funding to electric distribution companies for core energy efficiency programs that are funded by SBC funds.

The New Hampshire Public Utilities Commission (PUC) has approved several core energy efficiency programs that receive SBC funding. All efficiency programs are administered by the state's utilities, with oversight from the PUC. About $37 million is expected to be collected for 2017 core energy efficiency programs through the SBC, the ISO New England Forward Capacity Market auction, and greenhouse gas emissions auction proceeds.

Commercial programs funded by the SBC generally support new construction and major renovations, lighting upgrades, occupancy sensors, controls, air conditioning improvements, programmable thermostats, efficient motors, variable-frequency drives, energy-management systems, LED traffic lights, and custom projects. Residential programs funded by the SBC support Energy Star lighting and appliances, Energy Star new home construction, insulation, thermostats, and other efficiency measures. SBC programs for qualified low-income residents provide funding for insulation, thermostats, lighting upgrades, and efficient refrigerators.

The PUC reports the results and effectiveness of the SBC annually to the state’s Legislative Oversight Committee on Electric Restructuring. These annual reports are available on the PUC's web site, and the latest report from October 2016 can be found here.

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