2013 -- S 0641 SUBSTITUTE B | |
======= | |
LC01653/SUB B | |
======= | |
STATE OF RHODE ISLAND | |
| |
IN GENERAL ASSEMBLY | |
| |
JANUARY SESSION, A.D. 2013 | |
| |
____________ | |
| |
A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS - DISTRIBUTED GENERATION | |
STANDARD CONTRACTS | |
|
      |
|
      |
     Introduced By: Senators Walaska, Miller, Paiva Weed, Ruggerio, and DiPalma | |
     Date Introduced: March 06, 2013 | |
     Referred To: Senate Environment & Agriculture | |
It is enacted by the General Assembly as follows: | |
1-1 |
     SECTION 1. Section 39-26.1-3 of the General Laws in Chapter 39-26.1 entitled "Long- |
1-2 |
Term Contracting Standard for Renewable Energy" is hereby amended to read as follows: |
1-3 |
     39-26.1-3. Long-term contract standard. -- (a) Beginning on or before July 1, 2010, |
1-4 |
each electric distribution company shall be required to annually solicit proposals from renewable |
1-5 |
energy developers and, provided commercially reasonable proposals have been received, enter |
1-6 |
into long-term contracts with terms of up to fifteen (15) years for the purchase of capacity, energy |
1-7 |
and attributes from newly developed renewable energy resources. Subject to commission |
1-8 |
approval, the electric distribution company may enter into contracts for term lengths longer than |
1-9 |
fifteen (15) years. Notwithstanding any other provisions of this chapter, on or before August 15, |
1-10 |
2009, the electric distribution company shall solicit proposals for one newly developed renewable |
1-11 |
energy resources project as required in section 39-26.1-7. Proposals for the sale of output from an |
1-12 |
offshore wind project received under the provisions of this section shall be diligently and fully |
1-13 |
considered without prejudice, regardless of the status of any proceedings under sections 39-26.1-7 |
1-14 |
or 39-26.1-8. |
1-15 |
      (b) The timetable and method for solicitation and execution of such contracts shall be |
1-16 |
proposed by the electric distribution company, and shall be subject to review and approval by the |
1-17 |
commission prior to issuance by the company; provided that the timetable is reasonably designed |
1-18 |
to result in the electric distribution company having the minimum long-term contract capacity |
1-19 |
under contract within four (4) years of the date of the first solicitation; it is not necessary that the |
2-1 |
projects associated with these contracts be operational within these four (4) years, as the |
2-2 |
operational dates shall be specified in the contract. The electric distribution company shall, |
2-3 |
subject to review and approval of the commission, select a reasonable method of soliciting |
2-4 |
proposals from renewable energy developers, which shall include, at a minimum, an annual |
2-5 |
public solicitation, but may also include individual negotiations. The solicitation process shall |
2-6 |
permit a reasonable amount of negotiating discretion for the parties to engage in commercially |
2-7 |
reasonable arms-length negotiations over final contract terms. Each long-term contract entered |
2-8 |
into pursuant to this section shall contain a condition that it shall not be effective without |
2-9 |
commission review and approval. The electric distribution company shall file such contract, along |
2-10 |
with a justification for its decision, within a reasonable time after it has executed the contract |
2-11 |
following a solicitation or negotiation. The commission shall hold public hearings to review the |
2-12 |
contract within forty-five (45) days of the filing and issue a written order approving or rejecting |
2-13 |
the contract within sixty (60) days of the filing; in rejecting a contract the commission may advise |
2-14 |
the parties of the reason for the contract being rejected and direct the parties to attempt to address |
2-15 |
the reasons for rejection in a revised contract within a specified period not to exceed ninety (90) |
2-16 |
days. The commission shall approve the contract if it determines that: (1) the contract is |
2-17 |
commercially reasonable; (2) the requirements for the annual solicitation have been met; and (3) |
2-18 |
the contract is consistent with the purposes of this chapter. A report on each solicitation shall be |
2-19 |
filed with the commission each year within a reasonable time after decisions are made by the |
2-20 |
electric distribution company regarding the solicitation results, even if no contracts are executed |
2-21 |
following the solicitation. |
2-22 |
      (c) (1) No electric distribution company shall be obligated to enter into long-term |
2-23 |
contracts for newly developed renewable energy resources on terms which the electric |
2-24 |
distribution company reasonably believes to be commercially unreasonable; provided, however, if |
2-25 |
there is a dispute about whether these terms are commercially unreasonable, the commission shall |
2-26 |
make the final determination after an evidentiary hearing. The electric distribution company shall |
2-27 |
not be obligated to enter into long-term contracts pursuant to this section that would, in the |
2-28 |
aggregate, exceed the minimum long-term contract capacity, but may do so voluntarily subject to |
2-29 |
commission approval. As long as the electric distribution company has entered into long-term |
2-30 |
contracts in compliance with this section, the electric distribution company shall not be required |
2-31 |
by regulation or order to enter into power purchase contracts with renewable generation projects |
2-32 |
for power, renewable energy certificates, or any other attributes with terms of more than three (3) |
2-33 |
years in meeting its applicable annual renewable portfolio standard requirements set forth in |
2-34 |
section 39-26-4 or pursuant to any other provision of the law. |
3-1 |
      (2) Except as provided in section 39-26.1-7 and 39-26.1-8, an electric distribution |
3-2 |
company shall not be required to enter into long-term contracts for newly developed renewable |
3-3 |
energy resources that exceed the following |
3-4 |
      By December 30, 2010: Twenty-five percent (25%) of the minimum long-term contract |
3-5 |
capacity; |
3-6 |
      By December 30, 2011: Fifty percent (50%) of the minimum long-term contract |
3-7 |
capacity; |
3-8 |
      By December 30, 2012: Seventy-five percent (75%) of the minimum long-term contract |
3-9 |
capacity; |
3-10 |
      By December 30, |
3-11 |
contract capacity; but may do so earlier voluntarily, subject to commission approval. |
3-12 |
      (d) Compliance with the long-term contract standard shall be demonstrated through |
3-13 |
procurement pursuant to the provisions of a long-term contract of energy, capacity and attributes |
3-14 |
reflected in NE-GIS certificates relating to generating units certified by the commission as using |
3-15 |
newly developed renewable energy resources, as evidenced by reports issued by the NE-GIS |
3-16 |
administrator and the terms of the contract; provided, however, that the NE-GIS certificates were |
3-17 |
procured pursuant to the provisions of a long-term contract. The electric distribution company |
3-18 |
also may purchase other attributes from the generator as part of the long-term contract. |
3-19 |
      (e) After the adoption of the rules and regulations promulgated by the commission |
3-20 |
pursuant to this chapter, an electric distribution company may, at its sole election, immediately |
3-21 |
and from time to time, procure additional commercially reasonable long-term contracts for newly |
3-22 |
developed renewable energy resources on an earlier timetable or above the minimum long-term |
3-23 |
contract capacity, subject to commission approval. |
3-24 |
     SECTION 2. Sections 39-26.2-3, 39-26.2-4, 39-26.2-6, 39-26.2-7, 39-26.2-8 and 39- |
3-25 |
26.2-12 of the General Laws in Chapter 39-26.2 entitled "Distributed Generation Standard |
3-26 |
Contracts" are hereby amended to read as follows: |
3-27 |
     39-26.2-3. Definitions. -- When used in this chapter, the following terms shall have the |
3-28 |
following meanings: |
3-29 |
      (1) "Annual target" means the target for total renewable energy nameplate capacity of |
3-30 |
new distributed generation standard contracts set out in section 39-26.2-3. |
3-31 |
      (2) "Commission" means the Rhode Island public utilities commission. |
3-32 |
      (3) "Board" shall mean the distributed generation standard contract board established |
3-33 |
pursuant to the provisions of chapter 39-26.2-9, or the office of energy resources. Until such time |
3-34 |
as the board is duly constituted, the office of energy resources shall serve as the board with the |
4-1 |
same powers and duties pursuant to this chapter. |
4-2 |
      (4) "Distributed generation contract capacity" means ten percent (10%) of an electric |
4-3 |
distribution company's minimum long-term contract capacity under the long-term contracting |
4-4 |
standard for renewable energy in section 39-26.1-2, inclusive of solar capacity. The distributed |
4-5 |
generation contract capacity shall be reserved for acquisition by the electric distribution company |
4-6 |
through standard contracts pursuant to the provisions of this chapter. |
4-7 |
      (5) "Distributed generation facility" means an electrical generation facility that is a |
4-8 |
newly developed renewable energy resource as defined in section 39-26.1-2, located in the |
4-9 |
electric distribution company's load zone with a nameplate capacity no greater than five |
4-10 |
megawatts (5 MW), using eligible renewable energy resources as defined by section 39-26-5, |
4-11 |
including biogas created as a result of anaerobic digestion, but, specifically excluding all other |
4-12 |
listed eligible biomass fuels, and connected to an electrical power system owned, controlled, or |
4-13 |
operated by the electric distribution company. |
4-14 |
      (6) "Distributed generation project" means a distinct installation of a distributed |
4-15 |
generation facility. An installation will be considered distinct if it is installed in a different |
4-16 |
geographical location and at a different time, or if it involves a different type of renewable energy |
4-17 |
class. |
4-18 |
      (7) "Electric distribution company" means a company defined in subdivision 39-1-2(12), |
4-19 |
supplying standard offer service, last resort service, or any successor service to end-use |
4-20 |
customers, but not including the Block Island Power Company or the Pascoag Utility District. |
4-21 |
      (8) "Large distributed generation project" means a distributed generation project that has |
4-22 |
a nameplate capacity that exceeds the size of a small distributed generation project in a given |
4-23 |
year, but is no greater than |
4-24 |
     (9) "Office" means the Rhode Island office of energy resources. |
4-25 |
      |
4-26 |
December 31. |
4-27 |
      |
4-28 |
technologies using eligible renewable energy resources as defined by section 39-26-5. For each |
4-29 |
program year, the board shall determine the renewable energy classes as are reasonably feasible |
4-30 |
for use in meeting distributed generation objectives from renewable energy resources and are |
4-31 |
consistent with the goal of meeting the annual target for the program year. For the program year |
4-32 |
ending December 31, 2012, there shall be at least four (4) technology classes and at least two (2) |
4-33 |
shall be for solar generation technology, and at least one shall be for wind. The board may add, |
4-34 |
eliminate, or adjust renewable energy classes for each program year with public notice given at |
5-1 |
least sixty (60) days previous to any renewable energy class change becoming effective. For each |
5-2 |
program year, the board shall set renewable energy class targets for each class established. Class |
5-3 |
targets are the total program-year target amounts of nameplate capacity reserved for standard |
5-4 |
contracts for each renewable energy class. The sum of all the class targets shall equal the annual |
5-5 |
target. |
5-6 |
      |
5-7 |
System renewable energy certificate as defined in subdivision 39-26-2(15); |
5-8 |
      |
5-9 |
energy project that has a nameplate capacity |
5-10 |
kilowatts (50 KW) to five hundred kilowatts (500 KW); Wind: fifty kilowatts (50 KW) to one and |
5-11 |
one-half megawatts (1.5 MW). For technologies other than solar and wind, the board shall set the |
5-12 |
nameplate capacity size limits, but such limits may not exceed one megawatt. The board may |
5-13 |
lower the nameplate capacity from year to year for any of these categories, but may not increase |
5-14 |
the capacity beyond what is specified in this definition. In no case may a project developer be |
5-15 |
allowed to segment a distributed generation project into smaller sized projects in order to fall |
5-16 |
under this definition. |
5-17 |
      |
5-18 |
rate for the purchase of all capacity, energy, and attributes generated by a distributed generation |
5-19 |
facility. A contract may have a different term if it is mutually agreed to by the seller and the |
5-20 |
electric distribution company and it is approved by the commission. The terms of the standard |
5-21 |
contract for each program year and for each renewable energy class shall be set pursuant to the |
5-22 |
provisions of this chapter. |
5-23 |
      |
5-24 |
output of a distributed generation facility which price is approved annually for each renewable |
5-25 |
energy class pursuant to the procedure established in this chapter, for the purchase of energy, |
5-26 |
capacity, renewable energy certificates, and all other environmental attributes and market |
5-27 |
products that are available or may become available from the distributed generation facility. |
5-28 |
     39-26.2-4. Standard contracts -- Annual targets. -- (a) To the extent eligible projects |
5-29 |
are available and submit conforming applications, an electric distribution company shall enter |
5-30 |
into standard contracts for an aggregate nameplate capacity of at least forty megawatts (40 MW) |
5-31 |
of distributed generation projects by the end of 2014, unless such schedule is extended by the |
5-32 |
board. The contracting shall be spread over four (4) years, based on the annual targets, aggregated |
5-33 |
to reflect annual targets from prior program years, contained in the following four (4) year phased |
5-34 |
schedule, unless such schedule is adjusted by the board in any given year: |
6-1 |
      (1) By December 30, 2011: a minimum of five megawatts (5 MW) nameplate; |
6-2 |
      (2) By December 30, 2012: a minimum aggregate of twenty megawatts (20 MW) |
6-3 |
nameplate; |
6-4 |
      (3) By December 30, 2013: a minimum aggregate of thirty megawatts (30 MW) |
6-5 |
nameplate; |
6-6 |
      (4) By December 30, 2014: a minimum aggregate of forty megawatts (40 MW) |
6-7 |
nameplate. |
6-8 |
      (b) By October 15, 2011 and each calendar year following until October 15, 2013, the |
6-9 |
board may recommend to the commission that the annual target for the following program year |
6-10 |
be adjusted upward to reflect any shortfalls in meeting the previous program year's annual target |
6-11 |
or to reflect any standard contracts entered into during prior program years that are voided. The |
6-12 |
board may also recommend to the commission that the annual target for the following program |
6-13 |
year be adjusted downward by any amounts that the previous program year's annual targets were |
6-14 |
exceeded by the standard contracts entered into during that program year. |
6-15 |
      (c) The board may, based on market data and other information available to it including |
6-16 |
pricing for standard contracts received during previous program years, recommend a reduction of |
6-17 |
the annual target for the upcoming program year where the board determines that market |
6-18 |
conditions would be likely to produce unfavorably high target pricing for standard contracts |
6-19 |
during that upcoming program year. In considering such issues, the board may take into account |
6-20 |
the reasonableness of current pricing and its impact on all electric distribution customers who will |
6-21 |
be paying for the output for up to twenty (20) years at such prices. The board may |
6-22 |
recommend and the commission shall authorize an extension of time to achieve the forty |
6-23 |
megawatt (40 MW) |
6-24 |
      (d) The electric distribution company must contract for at least forty megawatts (40 |
6-25 |
MW) of nameplate capacity distributed generation projects by the end of 2014, unless such |
6-26 |
schedule is extended by the board. The electric distribution company may not be required to |
6-27 |
contract for more than forty megawatts (40 MW) or the distributed generation contract capacity, |
6-28 |
but may do so voluntarily, subject to commission approval. |
6-29 |
      (e) Each year, the board shall file its recommendations relating to the schedule, along |
6-30 |
with its report and recommendations regarding ceiling prices, for the commission's review and |
6-31 |
approval as specified in subsection 39-26.2-5(b). |
6-32 |
      (f) Nothing in this chapter shall derogate from the statutory authority of the commission |
6-33 |
or the division, including, but not limited to, the authority to protect ratepayers from unreasonable |
6-34 |
rates. |
7-1 |
     39-26.2-6. Standard contract enrollment program. -- (a) Each electric distribution |
7-2 |
company shall conduct at least three (3) standard contract enrollments during each program year; |
7-3 |
however, during 2011 the electric distribution company need only conduct one enrollment. Each |
7-4 |
enrollment shall be open for a two (2) week period during which the electric distribution |
7-5 |
company is required to receive standard short-form applications requesting standard contracts for |
7-6 |
distributed generation energy projects. The short-form applications shall require the applicant to |
7-7 |
provide the project owner's identity and the project's proposed location, nameplate capacity, and |
7-8 |
renewable energy class and allow for additional information relative to the permitting, financial |
7-9 |
feasibility, ability to build, and timing for deployment of the proposed projects. For small |
7-10 |
distributed generation projects, the applicant must submit an affidavit confirming that the project |
7-11 |
is not a segment of a larger project being planned for enlargement over time. For large distributed |
7-12 |
generation projects, the short-form application shall also require the applicant to bid a bundled |
7-13 |
price for the sale of the energy, capacity, renewable energy certificates, and all other |
7-14 |
environmental attributes and market products that are available or may become available from the |
7-15 |
distributed generation facility, on a per kilowatt-hour basis for the output of the project. Subject |
7-16 |
to the provisions of subsections (b) and (c) below, the electric distribution company shall not be |
7-17 |
required to enter into standard contracts in excess of the annual target for the applicable program |
7-18 |
year and shall not be required to enter into standard contracts in excess of any limit set by the |
7-19 |
board and approved by the commission for a given enrollment. However, the electric distribution |
7-20 |
company may voluntarily exceed an enrollment period limit as long as it does not exceed an |
7-21 |
annual target for the applicable program year. |
7-22 |
      (b) For small distributed generation projects, the electric distribution company |
7-23 |
|
7-24 |
|
7-25 |
received with any distributed generation project which meets the requirements of all applicable |
7-26 |
tariffs and regulations, and meets the criteria of a renewable energy class in effect, until the class |
7-27 |
target is met. Enrollment periods will be governed by a solicitation and enrollment process rules |
7-28 |
that shall be filed with the commission each October 15 by the electric distribution company, and |
7-29 |
approved by the commission within sixty (60) days of such filing. |
7-30 |
      (c) For large distributed generation projects, the electric distribution company shall |
7-31 |
select projects for standard contracts based on the lowest proposed prices received, but not to |
7-32 |
exceed the applicable standard contract ceiling price, provided, that the selected projects meet the |
7-33 |
requirements of all applicable tariffs and regulations and meet the criteria of a renewable energy |
7-34 |
class in effect until the class target is met. Except for 2011, no enrollment period shall seek to |
8-1 |
enroll more than one-third (1/3) of the annual goal for the distribution company for large |
8-2 |
distributed generation projects. |
8-3 |
      (d) If there are more projects than what is specified for a class target at the same price, |
8-4 |
the electric distribution company shall review the applications submitted and select first those |
8-5 |
projects that appear to be the furthest along in development and likely to be deployed in |
8-6 |
consultation with the office. Those projects that are likely to be deployed on the earliest timelines |
8-7 |
shall be selected. To the extent the electric distribution company is unable to make a clear |
8-8 |
distinction on this basis, the electric company shall report the results to the board and not enter |
8-9 |
into contracts with those projects that are tied on pricing. In such case, the board may take such |
8-10 |
action as it deems appropriate for the selection of projects, including seeking more information |
8-11 |
from the projects. Alternatively, the board may consider adjustments to the ceiling price and a |
8-12 |
rebid, or simply wait until the next enrollment. |
8-13 |
     (e) Should an electric distribution company determine that it has entered into sufficient |
8-14 |
standard contracts to achieve a program-year class target, it shall immediately report this to the |
8-15 |
board, the office of energy resources, and the commission, and cease entering into standard |
8-16 |
contracts for that renewable energy class for the remainder of the program year. An electric |
8-17 |
distribution company may exceed the renewable energy class target if the last standard contract |
8-18 |
entered into may cause the total purchased to exceed the target. The office and the electric |
8-19 |
distribution company shall enter into a memorandum of understanding regarding the sharing of |
8-20 |
the information and data related to the distributed generation program. |
8-21 |
      (f) The electric distribution company is authorized to enter into standard contracts up to |
8-22 |
the applicable ceiling price. As long as the terms of the standard contract are materially the same |
8-23 |
as the standard contract terms approved by the commission and the pricing is no higher than the |
8-24 |
applicable ceiling price, such contracts shall be deemed prudent and approved by the commission |
8-25 |
for purposes of recovering the costs in rates. |
8-26 |
      (g) A distributed generation project that also is being employed by a customer for net |
8-27 |
metering purposes may submit an application to sell the excess output from its distributed |
8-28 |
generation project. In such case, however, at the election of the self-generator all of the renewable |
8-29 |
energy certificates and environmental attributes pertaining to the energy consumed on site may be |
8-30 |
sold to the electric distribution company on a month-to-month basis outside of the terms of the |
8-31 |
standard contract. In such case, the portion of the renewable energy certificates that pertain to the |
8-32 |
energy consumed on site during the net metering billing period shall be priced at the average |
8-33 |
market price of renewable energy certificates, which may be determined by using the price of |
8-34 |
renewable energy certificates purchased or sold by the electric distribution company. |
9-1 |
     39-26.2-7. Standard contract -- Form and provisions. -- The following process shall be |
9-2 |
implemented to establish the non-price terms and conditions of the standard contract: |
9-3 |
      (1) A working group ("contract working group") shall be established and supervised by |
9-4 |
the board, consisting of the following members: (i) The director of the office of energy resources; |
9-5 |
(ii) A designee from the division of public utilities and carriers; (iii) Two (2) designees of the |
9-6 |
electric distribution company; (iv) Two (2) individuals designated by the office of energy |
9-7 |
resources who are experienced developers of renewable generation projects; (v) One individual |
9-8 |
designated by the office of energy resources who represents a customer of the electric distribution |
9-9 |
company; and (vi) A lawyer designated by the office of energy resources who has at least three |
9-10 |
(3) years of experience in negotiating and/or developing power purchase agreements. With |
9-11 |
respect to the lawyer designated in (vi) above, the electric distribution company shall enter into a |
9-12 |
cost reimbursement agreement with such lawyer, to compensate the lawyer for the time spent |
9-13 |
serving in the contract working group at the reasonable hourly rate negotiated by the office of |
9-14 |
energy resources. The costs incurred by the electric distribution company under the |
9-15 |
reimbursement agreement shall be recovered in rates by the electric distribution company in the |
9-16 |
year incurred or the year following incurrence through an appropriate filing with the commission. |
9-17 |
The contract working group shall be an advisory group that is not to be considered to be an |
9-18 |
agency for purposes of the administrative procedures act or any other laws pertaining to public |
9-19 |
bodies. |
9-20 |
      (2) The contract working group shall work in good faith to develop standard contracts |
9-21 |
that would be applicable for various technologies for both small and large distributed generation |
9-22 |
projects. The standard contracts should balance the need for the project to obtain financing |
9-23 |
against the need for the distribution company to protect itself and its distribution customers |
9-24 |
against unreasonable risks. The standard contract should be developed from contracting terms |
9-25 |
typically utilized in the wholesale power industry, taking into account the size of each project and |
9-26 |
the technology. The standard contracts shall provide for the purchase of energy, capacity, |
9-27 |
renewable energy certificates, and all other environmental attributes and market products that are |
9-28 |
available or may become available from the distributed generation facility. However, the electric |
9-29 |
distribution company shall retain the right to separate out pricing for each market product under |
9-30 |
the contracts for administrative and accounting purposes to avoid any detrimental accounting |
9-31 |
effects or for administrative convenience, provided that such accounting as specified in the |
9-32 |
contract does not affect the price and financial benefits to the seller as a seller of a bundled |
9-33 |
product. The standard contract also shall: |
10-34 |
      (i) Hold the distributed generation facility owner liable for the cost of interconnection |
10-35 |
from the distributed generation facility to the interconnect point with the distribution system, and |
10-36 |
for any upgrades to the existing distributed generation system that may be required by the electric |
10-37 |
distribution company. However, a distributed generation facility owner may appeal to the |
10-38 |
commission to reduce any required system upgrade costs to the extent such upgrades can be |
10-39 |
shown to benefit other customers of the electric distribution company and the balance of such |
10-40 |
costs shall be included in rates by the electric distribution company for recovery in the year |
10-41 |
incurred or the year following incurrence; |
10-42 |
      (ii) Require the distributed generation facility owner to make a performance guarantee |
10-43 |
deposit to the electric distribution company of fifteen dollars ($15.00) for small distributed |
10-44 |
generation projects or twenty-five dollars ($25.00) for large distributed generation projects for |
10-45 |
every renewable energy certificate estimated to be generated per year under the contract, but at |
10-46 |
least five hundred dollars ($500) and not more than seventy-five thousand dollars ($75,000), paid |
10-47 |
at the time of contract execution; |
10-48 |
      (iii) Require the electric distribution company to refund the performance guarantee |
10-49 |
deposit on a pro-rated basis of renewable energy credits actually delivered by the distributed |
10-50 |
generation facility over the course of the first year of the project's operation, paid quarterly; |
10-51 |
      (iv) Provide that if the distributed generation facility has not generated ninety percent |
10-52 |
(90%) of the output proposed in its enrollment application within eighteen (18) months after |
10-53 |
execution of the contract, the contract |
10-54 |
performance guarantee |
10-55 |
generation facility that has not generated ninety percent (90%) of the output proposed in its |
10-56 |
enrollment application within forty-eight (48) months after execution of the contract shall result |
10-57 |
in the contract being terminated and the performance guarantee being forfeited. Any forfeited |
10-58 |
performance guarantee deposits shall be credited to all distribution customers in rates and not |
10-59 |
retained by the electric distribution company; |
10-60 |
     (v) Provide for flexible payment schedules that may be negotiated between the buyer and |
10-61 |
seller, but shall be no longer than quarterly if an agreement cannot be reached; |
10-62 |
      (vi) Require that an electric meter which conforms with standard industry norms be |
10-63 |
installed to measure the electrical energy output of the distributed generation facility, and require |
10-64 |
a system or procedure by which the distributed generation facility owner shall demonstrate |
10-65 |
creation of renewable energy credits, in a manner recognized and accounted for by the GIS; such |
10-66 |
demonstration of renewable energy credit creation to be at the distributed generation facility |
10-67 |
owner's expense. The electric distribution company may, at its discretion, offer to provide such a |
10-68 |
renewable energy credit measurement and accounting system or procedure to the distributed |
11-1 |
generation facility owner, and the distributed generation facility owner may, at its discretion, use |
11-2 |
the electric distribution company's program, or use that of an independent third party, approved |
11-3 |
by the commission, and the costs of such measurement and accounting are paid for by the |
11-4 |
distributed generation facility owner. |
11-5 |
     (vii) All distributed generation projects that have executed contracts will be required to |
11-6 |
submit quarterly reports on the progress of the project to the distribution company and the office |
11-7 |
of energy resources. Failure to submit these quarterly progress reports may result in the |
11-8 |
termination of the contract. |
11-9 |
      (3) If the contract working group reaches agreement on the terms of standard contracts, |
11-10 |
the board shall file the contracts with the commission for approval. If there are any |
11-11 |
disagreements, they shall be identified to the commission. The commission shall review the |
11-12 |
standard contracts for conformance with the standards set forth in subsection (2). Should there be |
11-13 |
any disputes, the commission shall issue an order resolving them. To the extent the commission |
11-14 |
needs expert assistance to resolve any disagreements noted in the filing, the commission is |
11-15 |
authorized to hire a consultant to assist it in the proceedings, the costs of which shall be recovered |
11-16 |
from electric distribution customers pursuant to a uniform factor established by the commission |
11-17 |
in rates for recovery by the electric distribution company in the year incurred or the year |
11-18 |
following incurrence, as requested through a filing by the electric distribution company. The |
11-19 |
commission shall issue an order approving standard forms of contract within sixty (60) days of |
11-20 |
the filing. |
11-21 |
     39-26.2-8. Standard contract -- Reporting. -- (a) After each enrollment during a |
11-22 |
program year the electric distribution companies shall provide a report to the board, office of |
11-23 |
energy resources, and the commission of the aggregate amount of project nameplate capacity that |
11-24 |
was the subject of standard contracts entered into during that enrollment and the prices under |
11-25 |
each of the standard contracts that were executed. |
11-26 |
      (b) Each quarter of a program year, the electric distribution company shall provide an |
11-27 |
accounting to office of energy resource, the board, and the commission of the total amount paid to |
11-28 |
distributed generation facilities under standard contracts during that quarter, until the forty |
11-29 |
megawatt (40 MW) target is met; |
11-30 |
      (c) Until the forty megawatt (40 MW) target is met, the electric distribution company |
11-31 |
shall submit preliminary reports to office of energy resources, the board, and the commission |
11-32 |
indicating the number of standard contracts and total estimated annual generation, price, class, |
11-33 |
and any other relevant information for the purposes of better specifying classes, targets, or |
11-34 |
standard contract prices so as to achieve the purposes set forth in this chapter. Such reports shall |
12-1 |
be submitted no later than sixty (60) days prior to the end of the calendar year. |
12-2 |
     (d) The electric distribution company shall in consultation with the office utilize uniform |
12-3 |
standard forms for evaluating project proposals and shall rank projects according to uniform |
12-4 |
criteria. |
12-5 |
     (e) At the end of each enrollment, the electric distribution company shall, upon request by |
12-6 |
an applicant, provide said applicant with written feedback on the evaluation of said applicant's |
12-7 |
project proposal. |
12-8 |
     39-26.2-12. Powers and duties. – (a) The board shall have the power to: |
12-9 |
      (1) Develop and recommend to the public utilities commission for review and approval |
12-10 |
ceiling prices for standard contracts under the distributed generation standard contracts; |
12-11 |
      (2) Develop and recommend to the commission adjustments up or down to the annual |
12-12 |
target for standard contracts for the following program year; |
12-13 |
      (3) Monitor and evaluate performance under the distributed generation standard |
12-14 |
contracts act, including an assessment of ratepayer impact and the project selection process, to be |
12-15 |
submitted annually in a report to the governor and the general assembly as provided in subsection |
12-16 |
39-26.2-12(b). |
12-17 |
      (4) Participate in proceedings of the public utilities commission that pertain to the |
12-18 |
purposes of the board. |
12-19 |
      (5) In order to provide funding for the purposes of engaging consultants and professional |
12-20 |
services as necessary and appropriate for the board to fulfill its duties and purposes, an allocation |
12-21 |
of no less than fifty thousand dollars ($50,000) from unused portions of Regional Greenhouse |
12-22 |
Gas Initiative ("RGGI") auction proceeds not dedicated to efficiency measures but to overhead |
12-23 |
expenses shall be transmitted from the office of energy resources to the board. |
12-24 |
     (b) On January 15 of each year the office of energy resources shall submit to the |
12-25 |
governor, the president of the senate, and the speaker of the house of representatives, an annual |
12-26 |
jobs, economic impact and environmental impact study on the distributed generation standard |
12-27 |
contracts program. The study shall include, but not be limited to, environmental benefits, |
12-28 |
including carbon emission reductions from the installations; economic impacts including, but not |
12-29 |
limited to, direct and indirect jobs created; system reliability improvements; property and income |
12-30 |
tax benefits; and ratepayer impacts including, but not limited to, hedges against general inflation |
12-31 |
and fuel price volatility, short term price impacts, and wholesale price suppression. |
13-32 |
     SECTION 3. This act shall take effect upon passage. |
      | |
======= | |
LC01653/SUB B | |
======== | |
EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS - DISTRIBUTED GENERATION | |
STANDARD CONTRACTS | |
*** | |
14-1 |
     This act would amend the definition of a small distributed generation project, and would |
14-2 |
allow hydroelectric projects to participate in the standard contract enforcement program. |
14-3 |
     This act would take effect upon passage. |
      | |
======= | |
LC01653/SUB B | |
======= |