A proposal moving through the New Hampshire Legislature could reshape how electricity is generated in the state, allowing utilities to invest directly in natural gas and nuclear energy for the first time in decades.
House Bill 1775 received backing this week from the House Finance Committee, advancing a plan that would permit electric utilities to own limited amounts of power generation infrastructure. The bill now heads back to the full House for another vote after already passing once earlier this year.
If enacted, the measure would mark a significant shift from New Hampshire’s current system. Since utility restructuring in the late 1990s, power companies have largely been restricted to distributing electricity rather than producing it.
The proposal, introduced by Republican Rep. JD Bernardy of South Hampton, would allow utilities to invest in or operate natural gas and nuclear generation projects under specific limits. Individual facilities would be capped at 5 megawatts, and total utility-owned generation could not exceed 10% of a company’s peak distribution load.
Supporters say the bill is designed to strengthen New Hampshire’s energy supply and prepare for future demand.
Rep. Douglas Thomas of Londonderry said additional in-state generation could support energy-intensive developments such as data centers. Backers also argue that diversifying into gas and nuclear power could help stabilize supply as demand evolves.
Bernardy described the legislation as building on existing rules that already allow utilities to own small-scale renewable projects, such as solar installations.
However, the proposal has sparked debate among lawmakers over its potential impact on the state’s competitive energy market.
Opponents say allowing utilities to generate their own power could undermine the system created during restructuring, which aimed to increase competition and give consumers more choice over energy providers.
Rep. Tony Caplan, a Democrat from Henniker, warned the bill could tilt the market in favor of large utilities.
“It risks crowding out competition,” he said during committee discussions.
Other lawmakers raised concerns about the broader policy implications. Rep. Kat McGhee of Hollis argued that expanding incentives beyond renewable energy to include fossil fuels and nuclear power could weaken the state’s push toward diversification.
Rep. Chris Muns of Hampton also questioned whether the bill would shift costs onto ratepayers, particularly given the high price associated with building new nuclear facilities.
The bill includes additional provisions that have drawn scrutiny. Among them is a proposal to repeal certain efficiency and emissions requirements for utility-funded fossil fuel generation, a change critics say could have environmental implications.
Supporters counter that the bill’s limits — including the 10% cap on utility-owned generation — would prevent utilities from gaining excessive control over the market.
So far, major utilities have signaled caution. Eversource said it does not currently own generation assets in New Hampshire and has no immediate plans to invest under the proposed framework. Unitil, which operates a small solar installation in the state, has taken a neutral position and has not indicated plans to pursue gas or nuclear projects.
The debate reflects broader questions about how New Hampshire should balance energy independence, market competition, and long-term infrastructure planning.
The House is expected to take up the bill again later this year, where lawmakers will decide whether the proposal advances or stalls amid ongoing concerns about costs and market impact.
