2014 -- H 7786

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LC004486

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - CONTRACTING STANDARD FOR

RENEWABLE ENERGY

     

     Introduced By: Representative Arthur Handy

     Date Introduced: March 04, 2014

     Referred To: House Corporations

     (Division of Public Utilities & Carriers)

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 39-26.1-3 of the General Laws in Chapter 39-26.1 entitled "Long-

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Term Contracting Standard for Renewable Energy" is hereby amended to read as follows:

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     39-26.1-3. Long-term contract standard. -- (a) Beginning on or before July 1, 2010,

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each electric-distribution company shall be required to annually solicit proposals from renewable-

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energy developers and, provided commercially reasonable proposals have been received, enter

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into long-term contracts with terms of up to fifteen (15) years for the purchase of capacity,

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energy, and attributes from newly developed, renewable-energy resources. Subject to commission

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approval, the electric-distribution company may enter into contracts for term lengths longer than

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fifteen (15) years. Notwithstanding any other provisions of this chapter, on or before August 15,

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2009, the electric-distribution company shall solicit proposals for one newly developed

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renewable-energy-resources project as required in section §39-26.1-7. Proposals for the sale of

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output from an offshore-wind project received under the provisions of this section shall be

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diligently and fully considered without prejudice, regardless of the status of any proceedings

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under sections §§39-26.1-7 or 39-26.1-8.

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      (b) The timetable and method for solicitation and execution of such contracts shall be

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proposed by the electric-distribution company, and shall be subject to review and approval by the

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commission prior to issuance by the company; provided that the timetable is reasonably designed

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to result in the electric-distribution company having the minimum long-term contract capacity

 

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under contract within four (4) years of the date of the first solicitation; it is not necessary that the

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projects associated with these contracts be operational within these four (4) years, as the

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operational dates shall be specified in the contract. The electric-distribution company shall,

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subject to review and approval of the commission, select a reasonable method of soliciting

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proposals from renewable-energy developers, which shall include, at a minimum, an annual

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public solicitation, but may also include individual negotiations. The solicitation process shall

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permit a reasonable amount of negotiating discretion for the parties to engage in commercially

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reasonable, arms-length negotiations over final contract terms. Each long-term contract entered

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into pursuant to this section shall contain a condition that it shall not be effective without

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commission review and approval. The electric-distribution company shall file such contract,

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along with a justification for its decision, within a reasonable time after it has executed the

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contract following a solicitation or negotiation. The commission shall hold public hearings to

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review the contract within forty-five (45) days of the filing and issue a written order approving or

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rejecting the contract within sixty (60) days ninety (90) days of the filing;. iIn rejecting a contract,

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the commission may advise the parties of the reason for the contract being rejected and direct the

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parties to attempt to address the reasons for rejection in a revised contract within a specified

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period not to exceed ninety (90) days. The commission shall approve the contract if it determines

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that: (1) tThe contract is commercially reasonable; (2) tThe requirements for the annual

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solicitation have been met; and (3) tThe contract is consistent with the purposes of this chapter. A

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report on each solicitation shall be filed with the commission each year within a reasonable time

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after decisions are made by the electric distribution company regarding the solicitation results,

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even if no contracts are executed following the solicitation.

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      (c) (1) No electric distribution company shall be obligated to enter into long-term

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contracts for newly developed renewable energy resources on terms which the electric-

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distribution company reasonably believes to be commercially unreasonable; provided, however, if

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there is a dispute about whether these terms are commercially unreasonable, the commission shall

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make the final determination after an evidentiary hearing. The electric-distribution company shall

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not be obligated to enter into long-term contracts pursuant to this section that would, in the

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aggregate, exceed the minimum long-term contract capacity, but may do so voluntarily subject to

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commission approval. As long as the electric-distribution company has entered into long-term

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contracts in compliance with this section, the electric-distribution company shall not be required

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by regulation or order to enter into power-purchase contracts with renewable-generation projects

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for power, renewable-energy certificates, or any other attributes with terms of more than three (3)

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years in meeting its applicable annual renewable portfolio standard requirements set forth in

 

LC004486 - Page 2 of 4

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section §39-26-4 or pursuant to any other provision of the law.

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      (2) Except as provided in section §§39-26.1-7 and 39-26.1-8, an electric distribution

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company shall not be required to enter into long-term contracts for newly developed renewable

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energy resources that exceed the following five (5) year phased schedule:

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      By December 30, 2010: Twenty-five percent (25%) of the minimum, long-term contract

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capacity;

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      By December 30, 2011: Fifty percent (50%) of the minimum, long-term contract

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capacity;

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      By December 30, 2012: Seventy-five percent (75%) of the minimum, long-term contract

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capacity;

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      By December 30, 2014: One hundred percent (100%) of the minimum, long-term

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contract capacity; but may do so earlier voluntarily, subject to commission approval.

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      (d) Compliance with the long-term contract standard shall be demonstrated through

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procurement pursuant to the provisions of a long-term contract of energy, capacity, and attributes

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reflected in NE-GIS certificates relating to generating units certified by the commission as using

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newly developed renewable-energy resources, as evidenced by reports issued by the NE-GIS

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administrator and the terms of the contract; provided, however, that the NE-GIS certificates were

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procured pursuant to the provisions of a long-term contract. The electric-distribution company

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also may purchase other attributes from the generator as part of the long-term contract.

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      (e) After the adoption of the rules and regulations promulgated by the commission

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pursuant to this chapter, an electric-distribution company may, at its sole election, immediately

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and from time to time, procure additional, commercially reasonable long-term contracts for newly

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developed renewable-energy resources on an earlier timetable or above the minimum long-term

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contract capacity, subject to commission approval.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - CONTRACTING STANDARD FOR

RENEWABLE ENERGY

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     This act would allow the public utilities commission ninety (90) days to approve or reject

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long-term renewable energy contracts. The act would eliminate the forty-five (45) day hearing

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deadline.

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     This act would take effect upon passage.

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LC004486

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