2015 -- S 0081

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LC000480

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - RENEWABLE ENERGY

     Introduced By: Senators Sosnowski, Conley, Walaska, and Goldin

     Date Introduced: January 22, 2015

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 39-26.6-24 of the General Laws in Chapter 39-26.6 entitled "The

Renewable Energy Growth Program" is hereby amended to read as follows:

     39-26.6-24. Rate design review by the commission. -- (a) On or after July 1, 2015, the

commission shall open a docket to consider rate design and distribution cost allocation among

rate classes in light of net metering and the changing distribution system that is expected to

include more distributed-energy resources, including, but not limited to, distributed generation.

The commission will determine the appropriate cost responsibility and contributions to the

operation, maintenance, and investment in the distribution system that is relied upon by all

customers, including, without limitation, non-net metered and net-metered customers. In that

docket, the commission shall require the electric-distribution company to file a revenue-neutral

allocated cost of service study for all rate classes and a proposal for new rates for all customers in

each rate class. The electric-distribution company shall use the distribution revenue requirement

upon which the then-current distribution rates were set. The electric-distribution company may

use the allocated cost of service that was filed with the compliance filing from the rate case when

the then-current distribution rates were set. The commission may also address the rate design for

the equitable recovery of costs associated with energy efficiency and any renewable-energy

programs that are recovered in rates.

      (b) In establishing any new rates the commission may deem appropriate, the commission

shall take into account and balance the following factors:

      (1) The benefits of distributed-energy resources;

      (2) The distribution services being provided to net-metered customers when the

distributed generation is not producing electricity;

      (3) Simplicity, understandability, and transparency of rates to all customers, including

non-net metered and net-metered customers;

      (4) Equitable ratemaking principles regarding the allocation of the costs of the

distribution system;

      (5) Cost causation principles;

      (6) The general assembly's legislative purposes in creating the distributed-generation

growth program; and

      (7) Any other factors the commission deems relevant and appropriate in establishing a

fair rate structure. The rates shall be designed for each proposed rate class in accordance with

industry-standard, cost; allocation principles. The commission may consider any reasonable rate

design options, including without limitation, fixed charges, minimum-monthly charges, demand

charges, volumetric charges, or any combination thereof, with the purpose of assuring recovery of

costs fairly across all rate classes.

      (c) The commission shall issue an order in the docket by no later than December 1, 2015

March 1, 2016. Any new rates shall take effect for usage on and after January 1, 2016 April 1,

2016; provided, however, that the electric-distribution company may seek an extension if

necessary to make the billing system changes necessary to implement a new rate structure. After

new, revenue-neutral rates are set in the docket specified above, the commission may approve

changes to the rate design in any future distribution-base rate cases when a fully allocated

embedded cost of service study is being reviewed in the rate case, subject to the principles set

forth in subsection (b) of this section.

     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 - RENEWABLE ENERGY

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     This act would change the date the public utilities commission would issue an order in

the docket to consider rate design and distribution cost allocation from December 1, 2015 to

March 1, 2016. In addition, any new rates would take effect on April 1, 2016.

     This act would take effect upon passage.

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