The New Hampshire House of Representatives recently passed a bill that would pave the way for consumer-regulated electricity. After passing in the Senate with amendments on May 8, the bill is now awaiting confirmation from the House.
If successful, HB 672 would allow off-grid electricity providers in New Hampshire to operate without oversight from the state’s utility regulator, the New Hampshire Public Utilities Commission. Businesses would be able to generate and sell electricity directly to customers without registering as utilities, ushering in a new era of consumer choice in the electricity sector.
The bill defines “off-grid electricity providers” as any “entity, person, private company, electric cooperative, municipal agency, or otherwise, that engages in any combination of generating, transmitting, distributing, or selling electricity at retail to consumers.” HB 672 also creates a new classification for off-grid electricity providers, exempting them from certain regulations so long as they operate separately from the primary electrical grid and do not cross state boundaries.
However, HB 672 is not a free-for-all. Private providers must still pass basic safety tests and meet minimum reliability and transparency standards. The new legislation simply means that new providers operating independently from the grid will not be treated like utilities and forced to go through time-consuming, burdensome regulations.
In a press release from the New Hampshire House Republicans, House Majority Leader Jason Osborne (R-Auburn) hailed the bill as a “win for free markets, limited government, and energy freedom. By cutting through the red tape, we are empowering innovation, reducing costs, and proving that New Hampshire will not let bureaucratic interference stifle progress.”
Most Americans get their electricity from the grid, except for intentional off-grid communities, remote dwellings, and cabins. However, with the improvements in battery technologies and rooftop solar, more Americans have shown interest in going off-grid. Furthermore, power-hungry data centers need more reliable power, and they need it fast. The average time for new power generation to existing transmission is five years.
By allowing small, independent providers to sell power directly to consumers, HB 672 opens the door for them to build and operate energy systems for local communities, private landlords, and large energy customers. This is especially critical while energy prices are rising well above inflation and eco-aware Americans seek to minimize their environmental impact.
By broadening consumer choice, HB 672 lowers barriers r for eco-innovative energy companies to enter state markets, potentially offering lower rates and a smaller environmental footprint than traditional utilities. Moreover, with summer fast approaching and energy demand expected to increase, more providers could help alleviate pressure on the existing grid.
Travis Fisher, a volunteer advisor with Advocates for Consumer Regulated Electricity, notes in a Substack post that in contrast to other economic development initiatives that require state funding (think expensive tax credits and other subsidies), consumer-regulated electricity is a solution that comes at no cost to the taxpayer. In the worst-case scenario, consumers stick with their traditional providers and forgo the new options; in the best-case scenario, a more efficient, consumer-oriented, and innovative energy market emerges, where providers respond to price signals and incentives to deliver the best service to consumers.
“This is a major step toward a more resilient and scalable energy future for New Hampshire,” House Science, Technology, and Energy Chairman Rep. Michael Vose (R-Epping) said about the pending legislation.
The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.
