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:

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

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Metering" is hereby amended to read as follows:

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

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

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

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

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excluding all other listed eligible biomass fuels;

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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multi-municipal collaborative through public entity municipal net metering financing

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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

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

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

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

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

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facilities to the extent there is any uncertainty or disagreement.

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

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

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

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

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

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

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

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financing arrangement pursuant to subdivision (7).

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

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

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

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

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

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

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

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

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

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metered accounts.

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

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

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

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established in this chapter.

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

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

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metered.

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

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

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

 

LC005287/SUB A - Page 3 of 5

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of the state.

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

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

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time, or involves a different type of renewable energy.

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

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

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

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board of the city of Providence.

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

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

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

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

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multiplied by the sum of the distribution company's:

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

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metering customer;

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      (ii) Distribution kilowatt hour charge;

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      (iii) Transmission kilowatt hour charge; and

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      (iv) Transition kilowatt hour charge.

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

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

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

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

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

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general laws.

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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 - NET METERING

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

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

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own electric consumption.

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     This act would take effect upon passage.

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