2014 -- H 7791

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LC005042

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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 -- LONG-TERM CONTRACTING

STANDARD FOR RENEWABLE ENERGY

     

     Introduced By: Representatives Naughton, Marcello, Newberry, and E Coderre

     Date Introduced: March 04, 2014

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 39-26.1 of the General Laws entitled "Long-Term Contracting

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Standard for Renewable Energy" is hereby amended by adding thereto the following section:

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     39-26.1-10. Reconsideration of excess costs to ratepayers. – (a) The division of public

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utilities shall biannually introduce a docket before the public utilities commission reexamining

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the avoided cost implications on the anniversary of any power purchase contract approved under

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this chapter that provides for costs in excess of those paid for power under chapter 26.4 of title 39

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and that has not yet begun local construction or installation of generation infrastructure. Excess

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cost to ratepayers shall be reexamined with regard to any new evidence as to benefits associated

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with said projects considering likely liquidated damages for terminating said contract. Should

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those excess costs less the costs of termination exceed the benefits, the public utilities

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commission shall order the electric distribution company to terminate said contract.

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     (b) For the purposes of administration of this section, liquidated damages shall be

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narrowly construed to include actual costs incurred by parties to the contracts and real derivative

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damages, excepting therefrom any allowances for unearned profits or returns. Investors, if any, in

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the project or in public offerings of project bonds shall be entitled to interest to date of the

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termination and the refund of any principal but neither the electric distribution company nor its

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ratepayers shall be responsible if the actuarial damages together with cash on hand of the project

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developer do not compensate investors in the amount specified. It is the policy and determination

 

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of the legislature that those who obtain power supply contractors providing for compensation in

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excess of the prevailing market and their investors have no contract rights to profits or returns or

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investment security in said projects from power not yet delivered.

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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 -- LONG-TERM CONTRACTING

STANDARD FOR RENEWABLE ENERGY

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     This act would require that the public utilities commission review biannually any power

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purchase contract calling for the local construction or installation of generation infrastructure

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which has not yet commenced. It would further require a cost benefit analysis be performed to

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determine if said contracts are in the best interest of ratepayers. This act would allow for the

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termination of any contract in which the cost to ratepayers exceeds the benefits.

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     This act would take effect upon passage.

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