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Combined Heat and Power Partnership

System Benefits Charge

Date Last Updated2/25/2014
Policy TypePublic Benefits Fund
State/FederalNH
Policy Administrator/Contact OfficeNew Hampshire Public Utilities Commission
Policy Initiation Date5/21/1996
Policy SummaryNew 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 efficiency fund, which took effect in 2002, is funded by a non-bypassable surcharge of 1.8 mills per kilowatt-hour ($0.0018/kWh) on electric bills (a separate surcharge of 1.5 mills per kWh ($0.0015/kWh) supports low-income energy assistance programs). Approximately $19 million is collected annually to support the efficiency fund, although the annual sum collected has varied in recent years due to changes in the surcharge rate. 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.

Initially, the core electric programs were funded solely by a portion of the System Benefits Charge (SBC) on customers' bills. In recent years, the program budgets have been supplemented by funds obtained by the utilities from the ISO-NE's Forward Capacity Market (about $2.5 million in 2014), the Regional Greenhouse Gas Emissions Reductions Fund (about $6 million in 2014) and the American Reinvestment and Recovery Act. In addition, any unspent funds from prior program years are carried forward to the following year's budget, including interest based on the prime rate.

The core gas programs are funded by the Local Distribution Adjustment Charge (LDAC) on customers' bills. Any unspent funds from prior program years are carried forward to the following year's budget, including interest based on the prime rate.

Funding for CHP projects provided by these resources would be found under related dCHPP incentive types (e.g., loan, grant, or rebate).
CHP Eligibility RequirementsDoes Not Specify
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required/
Other Performance Requirements
Does Not Specify
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