2014 -- H 8010 SUBSTITUTE A

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LC005287/SUB A

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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 - NET METERING

     Introduced By: Representatives Carnevale, Handy, O'Brien, Guthrie, and Johnston

     Date Introduced: April 03, 2014

     Referred To: House Environment and Natural Resources

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 39-26.4-2 of the General Laws in Chapter 39-26.4 entitled "Net

Metering" is hereby amended to read as follows:

     39-26.4-2. Definitions. -- Terms not defined in this section herein shall have the same

meaning as contained in chapter 26 of title 39 of the general laws. When used in this chapter:

      (1) "Eligible net metering resource" means eligible renewable energy resource as defined

in section 39-26-5 including biogas created as a result of anaerobic digestion, but, specifically

excluding all other listed eligible biomass fuels;

      (2) "Eligible Net Metering System" means a facility generating electricity using an

eligible net metering resource that is reasonably designed and sized to annually produce

electricity in an amount that is equal to or less than the renewable self-generator's usage at the

eligible net metering system site measured by the three (3) year average annual consumption of

energy over the previous three (3) years at the electric distribution account(s) located at the

eligible net metering system site. A projected annual consumption of energy may be used until

the actual three (3) year average annual consumption of energy over the previous three (3) years

at the electric distribution account(s) located at the eligible net metering system site becomes

available for use in determining eligibility of the generating system. The eligible net metering

system must be owned by the same entity that is the customer of record on the net metered

accounts. Notwithstanding any other provisions of this chapter, any eligible net metering

resource: (i) owned by a public entity municipality or multi-municipal collaborative or (ii) owned

and operated by a renewable generation developer on behalf of a public entity municipality or

multi-municipal collaborative through public entity municipal net metering financing

arrangement shall be treated as an eligible net metering system and all municipal accounts

designated by the public entity municipality or multi-municipal collaborative for net metering

shall be treated as accounts eligible for net metering within an eligible net metering system site.

      (3) "Eligible Net Metering System Site" means the site where the eligible net metering

system is located or is part of the same campus or complex of sites contiguous to one another and

the site where the eligible net metering system is located or a farm in which the eligible net

metering system is located. Except for an eligible net metering system owned by or operated on

behalf of a public entity municipality or multi-municipal collaborative through a public entity

municipal net metering financing arrangement, the purpose of this definition is to reasonably

assure that energy generated by the eligible net metering system is consumed by net metered

electric service account(s) that are actually located in the same geographical location as the

eligible net metering system. Except for an eligible net metering system owned by or operated on

behalf of a public entity municipality or multi- municipal collaborative through a public entity

municipal net metering financing arrangement, all of the net metered accounts at the eligible net

metering system site must be the accounts of the same customer of record and customers are not

permitted to enter into agreements or arrangements to change the name on accounts for the

purpose of artificially expanding the eligible net metering system site to contiguous sites in an

attempt to avoid this restriction. However, a property owner may change the nature of the

metered service at the accounts at the site to be master metered in the owner's name, or become

the customer of record for each of the accounts, provided that the owner becoming the customer

of record actually owns the property at which the account is located. As long as the net metered

accounts meet the requirements set forth in this definition, there is no limit on the number of

accounts that may be net metered within the eligible net metering system site.

      (4) "Excess Renewable Net Metering Credit" means a credit that applies to an eligible

net metering system for that portion of the renewable self-generator's production of electricity

beyond one hundred percent (100%) and no greater than one hundred twenty-five percent (125%)

of the renewable self-generator's own consumption at the eligible net metering system site during

the applicable billing period. Such excess renewable net metering credit shall be equal to the

electric distribution company's avoided cost rate, which is hereby declared to be the electric

distribution company's standard offer service kilo-watt hour (kWh) charge for the rate class and

time-of-use billing period (if applicable) applicable to the distribution customer account(s) at the

eligible net metering system site. Where there are accounts at the eligible net metering system site

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in different rate classes, the electric distribution company may calculate the excess renewable net

metering credit based on the average of the standard offer service rates applicable to those on- site

accounts. The electric distribution company has the option to use the energy received from such

excess generation to serve the standard offer service load. The commission shall have the

authority to make determinations as to the applicability of this credit to specific generation

facilities to the extent there is any uncertainty or disagreement.

      (5) "Farm" shall be defined in accordance with section 44-27-2, except that all buildings

associated with the farm shall be eligible for net metering credits as long as: (i) The buildings are

owned by the same entity operating the farm or persons associated with operating the farm; and

(ii) The buildings are on the same farmland as the project on either a tract of land contiguous with

or reasonably proximate to such farmland or across a public way from such farmland.

      (6) "Multi-municipal collaborative" means a group of towns and/or cities that enter into

an agreement for the purpose of co-owning a renewable generation facility or entering into a

financing arrangement pursuant to subdivision (7).

      (7) "Public entity Municipal net metering financing arrangement" means arrangements

entered into by a public entity municipality or multi-municipal collaborative with a private entity

to facilitate the financing and operation of a net metering resource, in which the private entity

owns and operates an eligible net metering resource on behalf of a public entity municipality or

multi-municipal collaborative, where: (i) The eligible net metering resource is located on property

owned or controlled by the municipality public entity or one of the municipalities, as applicable,

and (ii) The production from the eligible net metering resource and primary compensation paid by

the public entity municipality or multi-municipal collaborative to the private entity for such

production is directly tied to the consumption of electricity occurring at the designated net

metered accounts.

      (8) "Net metering" means using electricity generated by an eligible net metering system

for the purpose of self-supplying power at the eligible net metering system site and thereby

offsetting consumption at the eligible net metering system site through the netting process

established in this chapter.

      (9) "Net metering customer" means a customer of the electric distribution company

receiving and being billed for distribution service whose distribution account(s) are being net

metered.

      (10) "Person" means an individual, firm, corporation, association, partnership, farm,

town or city of the State of Rhode Island, multi-municipal collaborative, or the State of Rhode

Island or any department of the state government, governmental agency or public instrumentality

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of the state.

      (11) "Project" means a distinct installation of an eligible net metering system. An

installation will be considered distinct if it is installed in a different location, or at a different

time, or involves a different type of renewable energy.

     (12) "Public entity" means the state of Rhode Island, municipalities, wastewater

treatment facilities, public transit agencies or any water distributing plant or system employed for

the distribution of water to the consuming public within this state including the water supply

board of the city of Providence.

      (12)(13) "Renewable Net Metering Credit" means a credit that applies to an Eligible Net

Metering System up to one hundred percent (100%) of the renewable self-generator's usage at the

Eligible Net Metering System Site over the applicable billing period. This credit shall be equal to

the total kilowatt hours of electricity generated and consumed on-site during the billing period

multiplied by the sum of the distribution company's:

      (i) Standard offer service kilowatt hour charge for the rate class applicable to the net

metering customer;

      (ii) Distribution kilowatt hour charge;

      (iii) Transmission kilowatt hour charge; and

      (iv) Transition kilowatt hour charge.

      (13)(14) "Renewable self-generator" means an electric distribution service customer who

installs or arranges for an installation of renewable generation that is primarily designed to

produce electricity for consumption by that same customer at its distribution service account(s).

      (14)(15) "Municipality and towns and cities" means any Rhode Island town or city,

including any agency or instrumentality thereof, with the powers set forth in title 45 of the

general laws.

     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 - NET METERING

***

     This act would define "public entities" for purposes of net metering. Net metering is a

process whereby certain electric consumers are permitted to generate electricity and offset their

own electric consumption.

     This act would take effect upon passage.

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