Common use of INTRODUCTION AND PROCEDURAL HISTORY Clause in Contracts

INTRODUCTION AND PROCEDURAL HISTORY. The Commission established an inclusive process for implementing New Hampshire’s Energy Efficiency Resource Standard (“EERS”) in Order No. 25,932 (August 2, 2016) (the “Planning Order”), requiring the state’s electric and natural gas utilities, as administrators of the programs offered to the public to meet the EERS, to “prepare the triennial EERS plans in 1 All references to the NH Utilities for purposes of the Plan and this Agreement shall include NHEC unless explicitly stated otherwise. collaboration with stakeholders and the EESE Board as Advisory Council.” Planning Order at 10-11. In Docket No. DE 17-136, the Commission approved the first triennial plan with an implementation period of the EERS for years 2018-2020. See Order No. 26,095 (January 2, 2018). The 2018-2020 Plan was updated for each of the years 2019 and 2020. On December 31, 2018, the Commission adopted the 2019 update plan with Order No. 26,207, which included a number of recommendations for the 2021-2023 Plan including a planning process with robust stakeholder input and a filing deadline for a proposed plan of July 1, 2020. On June 5, 2020 the NH Utilities and the OCA filed an uncontested motion, supported by Commission Staff (“Staff”), to amend Order 26,207 and extend the filing deadline so that the NH Utilities, OCA and stakeholders participating in the planning process could account for the rapidly developing and widespread effects of the coronavirus pandemic, as well as incorporate the findings of the energy efficiency studies that was still ongoing, into the draft of the 2021- 2023 Plan. The Commission granted the extension, issued an Order nisi opening the instant docket for consideration of the 2021-2023 Plan, and extended the filing deadline to September 1, 2020. Order No. 26,375 (June 30, 2020). After ten months and considerable efforts made by numerous stakeholders including the Settling Parties and Staff, the NH Utilities filed the 2021-2023 Plan on September 1, 2020 with a unanimous vote of support from the EERS Committee and a strong majority vote of support from the EESE Board. Discovery took place from September 8 to October 6. Staff, OCA, and several intervenors filed testimony on October 29. Further discovery was conducted in response to that testimony, and the Settling Parties met with Staff to discuss possible settlement on November 19 and 20. This extended and robust stakeholder planning process and subsequent adjudicative process have produced this Agreement among the Settling Parties.

INTRODUCTION AND PROCEDURAL HISTORY. The By Order of Notice entered on December 13, 2019, the Commission established an inclusive process for implementing opened this administrative proceeding at the express directive of the General Court pursuant to Chapter 286 of the 2019 New Hampshire’s Energy Efficiency Resource Standard Hampshire Laws, which was effective on September 17, 2019 and enacted sections 50 through 54 of RSA 378. See RSA 378:51, II (“EERS”) in Order No. 25,932 (August 2, 2016) (the “Planning Order”), requiring the state’s Commission to “open an adjudicative proceeding within 90 days of the effective date of this subdivision, to which all electric and natural gas utilitiesutilities shall be mandatory parties”). Chapter 286 directs the Commission to “require electric and natural gas utilities to establish and jointly operate a statewide, as administrators multi-use, online energy data platform” subject to certain limitations and requirements. RSA 378:51, I. RSA 378:51, II sets forth a list of platform-related issues the Commission must resolve in this proceeding. Additionally, RSA 378:51, III requires the Commission to “defer the implementation” of the programs offered platform upon a determination that “the cost of such platform to be recovered from customers is unreasonable and not in the public interest.” The Commission conducted a prehearing conference on February 3, 2020 and by secretarial letter issued on February 14, 2020 approved an agreed-upon procedural schedule. In due course and without objection, the Commission granted all intervention requests. The parties submitted comments on the scope of the docket on March 11, 2020 and thereafter conducted a series of technical sessions. In April 2020, various parties submitted a series of “use case” proposals in an effort to meet clarify the EERSdesired capabilities of the statewide, multi-use, online energy data platform. The NH Utilities thereafter filed written comments on the use case proposals, and a total of three technical sessions were devoted to “prepare discussing the triennial EERS plans in 1 All references to use cases, the NH Utilities for purposes Utilities’ comments, and reply comments of the Plan non-utility parties. On August 12, 2020 (the deadline originally established by the Commission) Packetized Energy Technologies submitted written direct testimony. On August 17, 2020, pursuant to an extension granted by the Commission, the Commission received written direct testimony from Eversource and this Agreement shall include NHEC unless explicitly stated otherwiseUnitil (filing jointly); Liberty; Clean Energy New Hampshire; the OCA; Mission:data; UtilityAPI, Inc.; the City of Lebanon, the Town of Hanover, Community Choice Partners, Inc., and Xx. collaboration with stakeholders XxXxx (filed jointly under the banner of the “Local Government Coalition”); Greentel Group; and Staff. The Local Government Coalition submitted revised written testimony on August 18, 2020, making certain minor corrections. At the EESE Board as Advisory Council.” Planning Order at 10-11. In Docket No. DE 17-136request of Staff, the Commission approved the first triennial plan with an implementation period of the EERS for years 2018-certain changes to applicable discovery deadlines on September 9, 2020. See Order No. 26,095 (January 2Written discovery ensued, 2018). The 2018-2020 Plan was updated for each of the years 2019 as did both formal and 2020informal technical sessions. On December 31October 23, 20182020, the Commission adopted received rebuttal testimony from the 2019 update plan with Order No. 26,207OCA, which included a number of recommendations for the 2021-2023 Plan including a planning process with robust stakeholder input Eversource and a Unitil (filing deadline for a proposed plan of July 1, 2020. On June 5, 2020 the NH Utilities and the OCA filed an uncontested motion, supported by Commission Staff (“Staff”jointly), to amend Order 26,207 Mission:data, the Local Government Coalition, UtilityAPI, and extend the filing deadline so that the NH UtilitiesStaff. Thereafter, OCA additional discovery, technical sessions, and stakeholders participating settlement conferences ensued, culminating in the planning process could account for the rapidly developing and widespread effects this proposed resolution of the coronavirus pandemic, as well as incorporate issues the findings of the energy efficiency studies that was still ongoing, into the draft of the 2021- 2023 Plan. The Commission granted the extension, issued an Order nisi opening the instant docket for consideration of the 2021-2023 Plan, and extended the filing deadline to September 1, 2020. Order No. 26,375 (June 30, 2020). After ten months and considerable efforts made by numerous stakeholders including the Settling Parties and Staff, the NH Utilities filed the 2021-2023 Plan on September 1, 2020 with a unanimous vote of support from the EERS Committee and a strong majority vote of support from the EESE Board. Discovery took place from September 8 to October 6. Staff, OCA, and several intervenors filed testimony on October 29. Further discovery was conducted must address in response to that testimony, and the Settling Parties met with Staff to discuss possible settlement on November 19 and 20. This extended and robust stakeholder planning process and subsequent adjudicative process have produced this Agreement among the Settling Partiesdocket.

INTRODUCTION AND PROCEDURAL HISTORY. The 1.1 On October 1, 2020, Eversource filed its 2020 LCIRP with the New Hampshire Public Utilities Commission established an inclusive process for implementing New Hampshire’s Energy Efficiency Resource Standard (“EERS”) in Order No. 25,932 (August 2, 2016) (the “Planning OrderCommission”), requiring the state’s electric and natural gas utilities, as administrators of the programs offered ) pursuant to the public to meet the EERSrequirements of RSA 378:38 and Order Nos. 26,362 (June 3, to “prepare the triennial EERS plans 2020) and 26,371 (June 22, 2020) in 1 All references to the NH Utilities for purposes of the Plan and this Agreement shall include NHEC unless explicitly stated otherwise. collaboration with stakeholders and the EESE Board as Advisory Council.” Planning Order at 10-11. In Docket No. DE 19-139. The Company supplemented its 2020 LCIRP filing on March 31, 2021 consistent with the procedural schedule established by the Commission. Eversource filed a second supplement on October 18, 2022 in response to DOE’s testimony and pursuant to the Commission’s October 7, 2022 procedural order. 1.2 DOE filed a technical statement on January 18, 2023 stating that DOE recommends that the Commission accept the October 18, 2022 supplemental filing and approve the Company’s 2020 LCIRP, inclusive of the October 18, 2022 supplement, subject to specific recommendations related to (a) the Company’s NWA threshold and analysis; and (b) application of the N-1 planning standard for distributed energy resources (DER). 1.3 On January 19, 2023, XXX filed a letter with the Commission in response to the Commission’s January 17-136, 2023 procedural order requesting a status update. 1.4 Eversource also filed a letter with the Commission on January 19, 2023 to provide a status update. In that letter, Eversource proposed a framework for resolving two issues (NWA thresholds and analysis and N-1 planning criteria for DER). 1.5 While the DOE did not agree to Eversource’s proposed January 19 resolution, the Commission approved Settling Parties have engaged in discussions since January 19, 2023 regarding the first triennial plan with an implementation period Company’s NWA framework threshold and analysis and N-1 planning criteria. As a result of the EERS for years 2018-2020. See Order No. 26,095 (January 2, 2018). The 2018-2020 Plan was updated for each of the years 2019 and 2020. On December 31, 2018these discussions, the Commission adopted the 2019 update plan with Order No. 26,207, which included a number of recommendations for the 2021-2023 Plan including a planning process with robust stakeholder input and a filing deadline for a proposed plan of July 1, 2020. On June 5, 2020 the NH Utilities and the OCA filed Settling Parties have agreed to an uncontested motion, supported by Commission Staff (“Staff”), to amend Order 26,207 and extend the filing deadline so that the NH Utilities, OCA and stakeholders participating in the planning process could account for the rapidly developing and widespread effects of the coronavirus pandemic, as well as incorporate the findings of the energy efficiency studies that was still ongoing, into the draft of the 2021- 2023 NWA1 Investigation Plan. The Commission granted NWA Investigation Plan is attached to this Settlement Agreement as Appendix A. 1.6 The Settling Parties also recognize that DOE’s position on the extension, issued an Order nisi opening Company’s N-1 planning standard applied to DER interconnections is contingent upon the instant docket for consideration outcome of DOE Docket No. IP 2022-001 (opened at the direction of the 2021General Court to investigate interconnection standards, inter alia). 1 For the purposes of this settlement, appendices and any attachments, non-2023 Plan, wires alternative(s) (NWAs) and extended the filing deadline to September 1, 2020. Order No. 26,375 non-wires solutions (June 30, 2020). After ten months and considerable efforts made by numerous stakeholders including the Settling Parties and Staff, the NH Utilities filed the 2021-2023 Plan on September 1, 2020 with a unanimous vote of support from the EERS Committee and a strong majority vote of support from the EESE Board. Discovery took place from September 8 to October 6. Staff, OCA, and several intervenors filed testimony on October 29. Further discovery was conducted in response to that testimony, and the Settling Parties met with Staff to discuss possible settlement on November 19 and 20. This extended and robust stakeholder planning process and subsequent adjudicative process have produced this Agreement among the Settling PartiesNWS) are used interchangeably.

INTRODUCTION AND PROCEDURAL HISTORY. The On June 28, 2019, Northern submitted its Petition requesting Commission established an inclusive process for implementing New Hampshire’s Energy Efficiency Resource Standard review and approval of certain Precedent Agreements with Portland Natural Gas Transmission System (“EERS”) in Order No. 25,932 (August 2, 2016) (the “Planning OrderPNGTS”), requiring the state’s electric TransCanada Pipelines Limited (“TransCanada”), and Enbridge Gas, Inc. (“Enbridge”) for a firm natural gas utilitiespipeline transportation path from Xxxx, Ontario to Granite State Gas Transmission, Inc.’s (“Granite”) interconnects as administrators part of PNGTS’s Xxxxxxxxx Xpress (“WXP”) Phase III Project.1 The Company specifically requested a finding by the programs offered Commission that the WXP PAs are prudent, reasonable, and consistent with the public interest. Northern 1 The Precedent Agreements are collectively referred to in this Settlement Agreement as the “WXP PAs.” submitted a parallel petition to the public to meet the EERSMaine Public Utilities Commission on May 13, to “prepare the triennial EERS plans in 1 All references to the NH Utilities for purposes 2019; that matter remains pending.2 The Commission issued an Order of the Plan and this Agreement shall include NHEC unless explicitly stated otherwise. collaboration with stakeholders and the EESE Board as Advisory Council.” Planning Order at 10-11. In Docket No. DE 17-136Notice on July 18, the Commission approved the first triennial plan with an implementation period of the EERS for years 2018-2020. See Order No. 26,095 (January 22019, 2018). The 2018-2020 Plan was updated for each of the years 2019 and 2020. On December 31, 2018, the Commission adopted the 2019 update plan with Order No. 26,207, which included a number of recommendations for the 2021-2023 Plan including a planning process with robust stakeholder input and a filing deadline for a proposed plan of July 1, 2020. On June 5, 2020 the NH Utilities and the OCA filed an uncontested motionsubmitted a Letter of Participation on July 24, supported by 2019. The Commission held a prehearing conference on August 6, 2019, and the parties participated in technical conference on August 6, August 21, and August 27, 2019. Staff (“Staff”)witness Al-Xxxx Xxxxx submitted testimony on September 10, to amend Order 26,207 and extend 2019. In support of its Petition, the filing deadline so that Company provided the NH Utilities, OCA and stakeholders participating in the planning process could account for the rapidly developing and widespread effects Prefiled Testimony of the coronavirus pandemicXxxxxx X. Xxxxxx, as well as incorporate the findings copies of the energy efficiency studies that was still ongoingWXP PAs and other supporting appendices. Xx. Xxxxxx’x testimony described, into inter alia, the draft proposed route of the 2021- WXP Project, the terms and conditions of the WXP PAs, the Company’s planning load forecast, and the Company’s analyses of its existing resource portfolio and the proposed WXP capacity. Northern stated that the WXP PAs will provide the Company with the ability to transport 10,000 Dth/day of natural gas from Xxxx to Granite for a 15-year initial term, with an option to extend. Applying the Company’s latest design year forecast for the 2022-2023 Plangas year, approximately 4,200 Dth/day of the proposed capacity will be supported by Northern’s New Hampshire Division customers. The Commission granted projected in- service date for Xxxxxxxxx XPress Phase III is November 1, 2022. Under the extensionTransCanada PA, issued Northern may be subject to “cancellation costs” if, for example, Northern does not execute the Firm Transportation Service Contract, TransCanada is unable to obtain necessary project authorizations, or TransCanada otherwise decides to cancel the project. TransCanada does have an Order nisi opening obligation to minimize Cancellation Costs, including minimizing costs before all necessary authorizations are received and accepted. A copy of 2 Docket 2019-00101. Northern’s estimated cancellation costs were included with Appendix 1-B to the instant docket for consideration Company’s Petition, and were updated during the pendency of this proceeding. The Enbridge PA includes a Financial Backstopping Agreement that would require payment of “pre-service costs” by Northern (and other shippers) in the event of a termination of the 2021Precedent Agreement due to a failure of shippers or Enbridge to meet conditions precedent that results in Enbridge canceling the project. As with TransCanada, Enbridge has an obligation to minimize Pre-2023 PlanService Costs. An estimate of Northern’s share of pre-service costs was included with Appendix 1-C to the Company’s Petition, and extended were updated during the filing deadline to September 1pendency of this proceeding. Under the PNGTS and TransCanada PAs, 2020. Order No. 26,375 (June Northern may withdraw from the Agreements without penalty if the Company does not obtain required regulatory approvals by November 30, 2020). After ten months and considerable efforts made by numerous stakeholders including the Settling Parties and Staff2019.3 As noted above, the NH Utilities filed the 2021Commission Staff submitted pre-2023 Plan on September 1, 2020 with a unanimous vote of support from the EERS Committee and a strong majority vote of support from the EESE Board. Discovery took place from September 8 to October 6. Staff, OCA, and several intervenors filed testimony on October 29September 10, 2019. Further discovery was conducted In his testimony, Xx. Xxxxx explained the Staff’s belief that it is reasonable and in the public interest for Northern to enter into the WXP PAs at this time, but that it would be “premature for the Commission to rule on the prudency of cost recovery, pending a request by the Company and consideration of future decision related to the proposed cost recovery.” Xx. Xxxxx recommended that recovery of any future costs associated with the terms of the WXP PAs be determined in future rate proceedings and be largely dependent on future Company decisions in response to that testimony, and the Settling Parties met with Staff to discuss possible settlement on November 19 and 20. This extended and robust stakeholder planning process and subsequent adjudicative process have produced this Agreement among the Settling Partieschanging circumstances.