2013 -- H 5935 SUBSTITUTE A

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LC02123/SUB A/2

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - MUNICIPAL STREETLIGHT

INVESTMENT ACT

     Introduced By: Representatives Ruggiero, Walsh, Tanzi, Valencia, and Chippendale

     Date Introduced: March 27, 2013

     Referred To: House Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 39 of the General Laws entitled "PUBLIC UTILITIES AND

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CARRIERS" is hereby amended by adding thereto the following chapter:

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     CHAPTER 30

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MUNICIPAL STREETLIGHT INVESTMENT ACT

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     39-30-1. Findings and purposes – (a) The Rhode Island general assembly finds and

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declares that:

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     (1) Taxpayers are mandated to pay the electric distribution company large sums every

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year to light municipal and many state-owned streets;

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     (2) Municipalities are limited in how they can manage this public safety resource because

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they do not own or control the light fixtures within their borders;

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     (3) There is no incentive in the applicable electric rate tariff for installing energy efficient

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lighting technologies that may reduce both power and maintenance expenses;

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     (4) There is no provision in the applicable electric rate tariff for municipalities to work

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collectively to manage the maintenance of the street lighting system; and

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     (5) Municipalities around the country have saved considerable resources by purchasing

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their streetlight systems from electric distribution companies and contracting for the maintenance

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independently.

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     (b) Now, therefore, the purpose of this chapter is to reduce municipal street lighting costs

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and improve service to citizens by:

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     (1) Improving public safety with street lights that provide better illumination;

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     (2) Reducing maintenance costs by allowing municipalities to own the street and area

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lighting within their borders and to enter into regional maintenance service contracts;

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     (3) Reducing whole-system cost through municipal ownership and regional management

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and by eliminating the current "facilities charge;"

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     (4) Providing innovative and proven technologies for more efficient lighting; and

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     (5) Providing more responsive service for lighting repairs.

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     39-30-2. Definitions. -- When used in this chapter, the following terms shall have the

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following meanings:

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     (1) "Office" means the Office of Energy Resources.

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     (2) "Electric distribution company" means a company defined in subdivision 39-1-2(12),

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supplying standard offer service, last resort service, or any successor service to end-use

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customers.

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     (3) "Lighting equipment" means all equipment used to light streets in the municipality,

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the operation and maintenance of which is currently charged to the municipality, including

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lighting ballasts, fixtures, and other equipment necessary for the conversion of electric energy

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into street lighting service, but excluding the utility poles upon which the lighting equipment is

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fixed. Lighting equipment shall include, but not be limited to, decorative street and area lighting

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equipment and solid-state (LED) lighting technologies.

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     39-30-3. Streetlight investment. -- (a) Any city or town receiving street lighting service

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from an electric distribution company pursuant to an electric rate tariff providing for the use by

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such municipality of lighting equipment owned by the electric distribution company, at its option,

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upon sixty (60) days notice to the electric company and to the department, and subject to the

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provisions of subsections (b) through (e), may:

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     (1) Convert its street lighting service from the subject tariff rate to an alternative tariff

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rate providing for delivery service by the electric distribution company of electric energy,

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whether or not supplied by the electric distribution company, over distribution facilities and wires

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owned by the electric distribution company to lighting equipment owned or leased by the

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municipality, and further providing for the use by such municipality of the space on any pole,

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lamp post, or other mounting surface previously used by the electric distribution company for the

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mounting of the lighting equipment. The alternative tariff rate shall provide for monthly bills for

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street and area lighting that shall include a schedule of energy charges based on a determination

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annual kilowatt-hour usage per lumen rating or nominal wattage of all types of lighting

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equipment, but shall not include facility, support, maintenance, or accessory charges. The new

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tariff shall use existing usage calculation methods and existing rates for any currently existing

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lighting equipment, only setting reasonable new rates for newly adopted lighting equipment. The

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new tariff shall be structured so as to allow options for various street lighting controls, including

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both conventional dusk/dawn operation using photocell or scheduling controls, as well as

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schedule-based dimming or on/off controls that dim or turn off street lights during periods of low

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activity. The electric distribution company, in consultation with the office, shall file the new tariff

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with the public utilities commission within sixty (60) days of the effective date of this chapter and

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the commission shall then issue a decision within sixty (60) days after the filing to effectuate the

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purposes and provisions of this chapter.

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     (2) Purchase electric energy for use in such municipal lighting equipment from the

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electric distribution company or any other person allowed by law to provide electric energy; and

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     (3) After due diligence, including an analysis of the cost impact to the municipality,

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acquire all of the public street and area lighting equipment of the electric distribution company in

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the municipality, compensating the electric distribution company as necessary, in accordance

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with subsection (b).

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     (b) Any municipality exercising the option to convert its lighting equipment pursuant to

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subsection (a) must compensate the electric distribution company for the original cost, less

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depreciation and less amortization, of any active or inactive existing public lighting equipment

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owned by the electric distribution company and installed in the municipality as of the date the

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municipality exercises its right of acquisition pursuant to subsection (a), net of any salvage value.

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Upon such payment, the municipality shall have the right to use, alter, remove, or replace such

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acquired lighting equipment in any way the municipality deems appropriate. Any contract a

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municipality enters for such services must require appropriate levels of training and certification

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of personnel providing pole service for public and worker safety, evidence of twenty-four (24)

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hour call capacity and a committed timely response schedule for both emergency and routine

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outages. The municipality may also request that the electric company remove any part of such

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lighting equipment that it does not acquire from the electric distribution company in which case

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the municipality shall reimburse the electric distribution company the cost of removal by the

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electric distribution company, along with the original cost, less depreciation, of the removed part,

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net of any salvage value.

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     (c) When a municipality exercises its option pursuant to this subsection, the municipality

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will notify the electric distribution company of any alterations to street and area lighting

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inventory within sixty (60) days of the alteration. The electric distribution company will then

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adjust its monthly billing determinations to reflect the alteration within sixty (60) days.

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     (d) When a municipality exercises its option pursuant to subsection (a), anyone other than

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the electric distribution company controlling the right to use space on any pole, lamp post, or

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other mounting surface previously used by the electric distribution company in such municipality

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shall allow the municipality to assume the rights and obligations of the electric distribution

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company with respect to such space for the unexpired term of any lease, easement, or other

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agreement under which the electric distribution company used such space; provided, however,

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that:

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     (i) The municipality is subject to the same terms and conditions that pole owners make to

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others that attach to the poles; and

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     (ii) In the assumption of the rights and obligations of the electric distribution company by

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such a municipality, such municipality shall in no way or form restrict, impede, or prohibit

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universal access for the provision of electric and other services.

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     (e) Any dispute regarding the terms of the alternative tariff, the compensation to be paid

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the electric distribution company, or any other matter arising in connection with the exercise of

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the option provided in subsection (a), including, but not limited to, the terms on which space is to

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be provided to the municipality in accordance with subsection (c), shall be resolved by the

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division of public utilities and carriers within ninety (90) days of any request for such resolution

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by the municipality or any person involved in such dispute.

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     (f) Notwithstanding any general or special law, rule, or regulation to the contrary, any

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affiliate of any electric distribution company whose street lighting service is converted by any

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municipality in accordance with the provisions of this section may solicit and compete for the

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business of any such municipality for the provision of lighting equipment or any other service

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such as equipment maintenance in connection therewith.

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     39-30-4. Liberal construction. -- The provisions of this chapter shall be liberally

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construed to give effect to the purposes thereof.

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     39-30-5. Severability. -- If any provision of this chapter or the application thereof to any

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person or circumstances is held invalid, such invalidity shall not affect other provisions or

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applications of the chapter, which can be given effect without the invalid provision or application,

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and to this end the provisions of this chapter are declared to be severable.

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     SECTION 2. This act shall take effect upon passage.

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LC02123/SUB A/2

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - MUNICIPAL STREETLIGHT

INVESTMENT ACT

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     This act would establish a procedure to allow municipalities to purchase, rather than rent,

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their street lights for the purpose of reducing municipal street lighting costs.

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     This act would take effect upon passage.

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LC02123/SUB A/2

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