System Benefits Charge

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 calculated by adding together the energy efficiency component of the charge, the low-income component, and the lost base revenue component.

The energy efficiency component charges for Eversource, Liberty Utilities, Unitil, and the New Hampshire Electric Cooperative for 2024-2026 are: $0.00577/kWh (2024), $0.00603/kWh (2025), $0.00619/kWh (2026)

The Lost Base Revenue (LBR) component varies by utility and was added to the SBC in 2017. Below are the estimated LBR component rates for 2024-2026:

• Eversource - $0.00178/kWh (2024), $0.00217/kWh (2025), $0.00246/kWh (2026)
• Liberty Utilities, Unitil, and the New Hampshire Electric Cooperative's SBC do not include the LBR. 

The low-income energy assistance portion is 0.0015/kWh for each utility.

The estimated total SBCs (including the energy efficiency, low-income, and LBR components) for 2024-2026 are: 

• Eversource - $0.00905/kWh (2024), $0.00970/kWh (2025), $0.01015/kWh (2026)
• Liberty Utilities, Unitil, and the New Hampshire Electric Cooperative each have a total SBC of: $0.00727/kWh (2024), $0.00753/kWh (2025), $0.00769/kWh (2026)

The SBC is allowed to fund commercial and residential energy efficiency programs, support research and development, investments in the commercialization of new and beneficial technology, and low-income customer programs, just to name a few. No less than 20 percent of the portion of the funds collected for energy efficiency shall be expended on low-income energy efficiency programs. $400,000 of SBC funding is set aside for the New Hampshire Department of Energy (NH DOE) for education and outreach. 

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.

In June 2012, legislation was enacted 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. At least 15 percent of funds must go to the low-income core energy efficiency program.

The NH DOE 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 NH DOE's website.