2016 -- H 7366

========

LC004070

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

____________

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - MUNICIPAL STREETLIGHT

INVESTMENT ACT

     Introduced By: Representatives Ruggiero, Gallison, Maldonado, Trillo, and Marshall

     Date Introduced: January 28, 2016

     Referred To: House Municipal Government

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 39-30-2 and 39-30-3 of the General Laws in Chapter 39-30

entitled "Municipal Streetlight Investment Act" are hereby amended to read as follows:

     39-30-2. Definitions. -- When used in this chapter, the following terms shall have the

following meanings:

      (1) "Office" means the Office of Energy Resources.

      (2) "Electric distribution company" means a company defined in subdivision 39-1-2(12),

supplying standard offer service, last resort service, or any successor service to end-use streetlight

customers.

      (3) "Lighting equipment" means all equipment used to light streets in the municipality,

the operation and maintenance of which is currently charged to the municipality streetlight

customer, including lighting ballasts, fixtures, and other equipment necessary for the conversion

of electric energy into street lighting service, but excluding the utility poles upon which the

lighting equipment is fixed. Lighting equipment shall include, but not be limited to, decorative

street and area lighting equipment and solid-state (LED) lighting technologies.

     39-30-3. Streetlight investment. -- (a) Any city or town streetlight customer receiving

street lighting service from an electric distribution company pursuant to an electric rate tariff

providing for the use by such municipality streetlight customer of lighting equipment owned by

the electric distribution company, at its option, upon sixty (60) days notice to the electric

company and to the department, and subject to the provisions of subsections (b) through (e), may:

      (1) Convert its street lighting service from the subject tariff rate to an alternative tariff

rate providing for delivery service by the electric distribution company of electric energy,

whether or not supplied by the electric distribution company, over distribution facilities and wires

owned by the electric distribution company to lighting equipment owned or leased by the

municipality streetlight customer, and further providing for the use by such municipality

streetlight customer of the space on any pole, lamp post, or other mounting surface previously

used by the electric distribution company primarily for the mounting of the lighting equipment

and for any other reasonable purpose that does not impede universal access for the provision of

electric and other services, at the streetlight customer's discretion. The alternative tariff rate shall

provide for monthly bills for street and area lighting that shall include a schedule of energy

charges based on a determination annual kilowatt-hour usage per lumen rating or nominal

wattage of all types of lighting equipment, but shall not include facility, support, maintenance, or

accessory charges. The new tariff shall use existing usage calculation methods and existing rates

for any currently existing lighting equipment, only setting reasonable new rates for newly adopted

lighting equipment. The new tariff shall be structured so as to allow options for various street

lighting controls, including both conventional dusk/dawn operation using photocell or scheduling

controls, as well as schedule-based dimming or on/off controls that dim or turn off street lights

during periods of low activity. The electric distribution company, in consultation with the office,

shall file the new tariff with the public utilities commission within sixty (60) days of the effective

date of this chapter and the commission shall then issue a decision within sixty (60) days after the

filing to effectuate the purposes and provisions of this chapter.

      (2) Purchase electric energy for use in such municipal lighting equipment from the

electric distribution company or any other person allowed by law to provide electric energy; and

      (3) After due diligence, including an analysis of the cost impact to the municipality or

streetlight customer, acquire all of the public street and area lighting equipment of the electric

distribution company in the municipality or controlled by the streetlight customer, including all

warranties and assigned access agreements pursuant to subsection (d) of this section,

compensating the electric distribution company as necessary, in accordance with subsection (b).

      (b) Any municipality or streetlight customer exercising the option to convert its lighting

equipment pursuant to subsection (a) must compensate the electric distribution company for the

original cost, less depreciation and less amortization, of any active or inactive existing public

lighting equipment owned by the electric distribution company and installed in the municipality

or controlled by the streetlight customer as of the date the municipality streetlight customer

LC004070 - Page 2 of 8

exercises its right of acquisition pursuant to subsection (a), net of any salvage value. Upon such

payment, the municipality streetlight customer shall have the right to use, alter, remove, or

replace such acquired lighting equipment in any way the municipality streetlight customer deems

appropriate. Any contract a municipality streetlight customer enters for such services must

require appropriate levels of training and certification of personnel providing pole service for

public and worker safety, evidence of twenty-four (24) hour call capacity and a committed timely

response schedule for both emergency and routine outages. The municipality streetlight customer

may also request that the electric company remove any part of such lighting equipment that it

does not acquire from the electric distribution company in which case the municipality streetlight

customer shall reimburse the electric distribution company the cost of removal by the electric

distribution company, along with the original cost, less depreciation, of the removed part, net of

any salvage value.

      (c) When a municipality streetlight customer exercises its option pursuant to this

subsection, the municipality streetlight customer will notify the electric distribution company of

any alterations to street and area lighting inventory within sixty (60) days of the alteration. The

electric distribution company will then adjust its monthly billing determinations to reflect the

alteration within sixty (60) days.

      (d) When a municipality streetlight customer exercises its option pursuant to subsection

(a), anyone other than the electric distribution company controlling the right to use space on any

pole, lamp post, or other mounting surface previously used by the electric distribution company in

such municipality or for streetlights controlled by a streetlight customer shall allow the

municipality streetlight customer to assume the rights and obligations of the electric distribution

company with respect to such space for the unexpired term of any lease, easement, or other

agreement under which the electric distribution company used such space, all of which

agreements the electric distribution company shall assign and provide to the streetlight customer;

provided, however, that:

      (i) The municipality or streetlight customer is subject to the same terms and conditions

that pole owners make to others that attach to the poles; and

      (ii) In the assumption of the rights and obligations of the electric distribution company

by such a municipality streetlight customer, such municipality streetlight customer shall in no

way or form restrict, impede, or prohibit universal access for the provision of electric and other

services.

      (e) Any dispute regarding the terms of the alternative tariff, the compensation to be paid

the electric distribution company, or any other matter arising in connection with the exercise of

LC004070 - Page 3 of 8

the option provided in subsection (a), including, but not limited to, the terms on which space is to

be provided to the municipality in accordance with subsection (c), shall be resolved by the

division of public utilities and carriers within ninety (90) days of any request for such resolution

by the municipality or any person involved in such dispute.

      (f) Notwithstanding any general or special law, rule, or regulation to the contrary, any

affiliate of any electric distribution company whose street lighting service is converted by any

municipality streetlight customer in accordance with the provisions of this section may solicit and

compete for the business of any such municipality streetlight customer for the provision of

lighting equipment or any other service such as equipment maintenance in connection therewith.

     SECTION 2. 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 § 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 or multi-municipal collaborative or (ii) owned and operated

by a renewable generation developer on behalf of a public entity or multi-municipal collaborative

through public entity net metering financing arrangement shall be treated as an eligible net

metering system and all accounts designated by the public entity 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

LC004070 - Page 4 of 8

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 or multi-municipal collaborative through a public entity 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 or multi-

municipal collaborative through a public entity 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

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.

LC004070 - Page 5 of 8

      (5) "Farm" shall be defined in accordance with § 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 net metering financing arrangement" means arrangements entered into

by a public entity 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 or multi-municipal collaborative, where: (i) The

eligible net metering resource is located on property owned or controlled by the 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 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

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

LC004070 - Page 6 of 8

board of the city of Providence.

      (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.

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

metering customer;

      (ii)(B) Distribution kilowatt hour charge;

      (iii)(C) Transmission kilowatt hour charge; and

      (iv)(D) Transition kilowatt hour charge.

     (ii) This credit as applied against usage at unmetered streetlights shall be based on the

total kilowatt hours of consumption as billed by the electric distribution company.

      (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).

      (15) "Municipality" 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 3. This act shall take effect upon passage.

========

LC004070

========

LC004070 - Page 7 of 8

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - MUNICIPAL STREETLIGHT

INVESTMENT ACT

***

     This act would allow streetlight customers that currently pay for street lighting services to

make streetlight investments and allow such public entities to use purchased streetlight equipment

without restriction except as necessary to protect other distribution service. It would also require

the electric distribution company to assign and provide any access agreements to streetlight

infrastructure to the acquiring public entity and would allow unmetered streetlights to be net

metered based on total billed consumption.

     This act would take effect upon passage.

========

LC004070

========

LC004070 - Page 8 of 8