Should NH allow "off-grid electricity providers"?

Many of the innovations that have come to define the technological age we live in—from artificial intelligence to cryptocurrency mining—all have one thing in common: they demand large amounts of electricity. Tech companies and utilities are currently grappling with ways to meet this need. You’ve likely read headlines about proposals to power data centers using “small modular rectors” (SMRs) and even a push to restart Three Mile Island nuclear power plant. HB 672, a bill in the New Hampshire Legislature, is aimed at encouraging similar developments in New Hampshire by allowing off-grid electricity providers.

What is an off-grid electricity provider?

Connecting a new power source to the electrical grid can be costly, complicated, and take many years to accomplish. This is where the idea of an off-grid electricity provider, as outlined in HB 672, comes in. Theoretically, a company wishing to provide power for a data center, industrial park, or other large-scale energy user could enter into a contract with their electricity-hungry customer, build an independent power generating facility, and supply power to that customer without ever connecting to the existing public power grid. Under HB 672, this power facility would not be considered a public utility, and would therefore be exempt from regulation by the New Hampshire Public Utilities Commission (PUC). This would make it faster and less expensive to build the infrastructure needed to power a data center.

Importantly, this does not mean off-grid facilities would be exempt from all regulations—just those applied to public utilities. A large power facility (greater than 30MW) would still need approval from the Site Evaluation Committee (SEC), which would look at potential environmental impacts of the project, for example. If the power plant used a nuclear reactor, it would be subject to regulation by the U.S. Nuclear Regulatory Commission (NRC).

The latest version of HB 672 also includes a provision that off-grid electricity providers would remain subject to other applicable laws and regulations, such as municipal and state highway safety regulations.

Making NH an “innovation test bed”

HB 672’s prime sponsor, Rep. Michael Vose (R-Epping) refers to it as “enabling legislation” and believes the bill would encourage innovation in New Hampshire. Allowing off-grid energy providers could attract energy-intensive businesses to the Granite State—including data centers, cutting edge biotech labs, and advanced manufacturing—without burdening the existing power grid. The bill was inspired in part by deregulated micro-energy markets in Texas.

It would be important for any such project to be completely “islanded” from the grid, not even relying on grid power as a backup. As energy experts at the public hearings for this bill explained, using the grid as backup power is still a form of interconnection, since the grid would need to be capable of bearing the energy load if it was ever called upon.

Concerns about safety

Some have expressed concerns about the bill, particularly Rep. Wendy Thomas (D-Merrimack), who spoke against it on the House floor. She argued that the bill opens the door to a “dangerous and unregulated energy free-for-all.” Rep. Thomas pointed out that the purpose of regulation, like that provided by the PUC, is not to stifle innovation but to “protect public safety, ensure reliability, and prevent reckless development that could put people at risk.”

At the various hearings on this bill, some questioned whether power lines connecting an off-grid plant to its independent customer might be constructed along public roadways. If so, what would happen if an accident resulted in a downed powerline—would EMS responders know who to call in order to de-energize the line?

On the opposite end of the spectrum, some stakeholders at the hearings wondered if the bill was even necessary, since it might be possible to build off-grid power projects under current law. Rep. Vose acknowledges this, but argues that explicitly enshrining the idea in state statute would encourage energy providers to invest in New Hampshire.

What do you think?

Should NH pass a law specifically allowing off-grid power providers and exempting them from PUC regulation? Or, should the Senate vote down the bill? HB 672 will be up for a vote soon in the NH Senate. Reach out to your state senator to make your voice heard.