2016 -- H 8331

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LC006196

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO PUBLIC UTILITIES -- PUBLIC UTILITIES COMMISSION

     Introduced By: Representative Brian P. Kennedy

     Date Introduced: June 13, 2016

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 39-1-27.1 of the General Laws in Chapter 39-1 entitled "Public

Utilities Commission" is hereby amended to read as follows:

     39-1-27.1. Retail electric licensing commission plan requirements and nonregulated

power producer registration requirements. -- (a) The retail electric licensing commission shall

by January 1, 1997 submit a plan to the legislature which shall include, but not be limited to, the

following:

      (1) A recommendation for taxing and/or assessing electric distribution companies,

electric transmission companies and nonregulated power producers;

      (2) Recommendations regarding changes to the regional power pool that would facilitate

the creation of an independent system operator and voluntary power exchange; and

      (3) Proposals for consumer protections, access to books and records, and other

requirements the retail electric licensing commission determines to be reasonable, necessary and

in the public interest.

      (b) (1) On or before January 1, 1997, the public utilities commission shall establish

regulations applicable to nonregulated power producers that are selling electricity in this state that

are necessary to meet (directly or through contract) the operating and reliability standards of the

regional power pool.

      (2) In addition, the public utilities commission shall participate in all proceedings before

the federal energy regulatory commission with respect to the modification and/or termination of

wholesale all requirements contracts in place as of January 1, 1996, between electric distribution

companies operating in this state and their affiliated power suppliers. The purpose of such

participation is to ensure that termination fees payable by ultimate customers in this state are

determined in accordance with the provisions of § 39-1-27.4. To facilitate such participation, the

public utilities commission is authorized to assess electric distribution companies under its

jurisdiction for its reasonable expenses incurred in connection with its participation in those

proceedings, up to a maximum of one hundred thousand dollars ($100,000) per year, which

assessments shall be in addition to all other assessments authorized by this title.

      (3) On January 1, 1998, and annually for the next four (4) years thereafter, the public

utilities commission shall transmit to the governor, the speaker of the house and the president of

the senate, a report detailing: developments in the competitive power supply market in this state;

estimated savings realized by customers as a result of the introduction of retail competition in the

power supply market; progress towards implementation of a regional transmission agreement for

New England and other reforms implemented by the regional power pool; and the status of

electric industry restructuring activities in the other New England states and any

recommendations for statutory changes.

      (c) All nonregulated power producers seeking to do business in this state must file with

the division of public utilities and carriers a notarized registration application that includes the

information identified below and any additional information required by the division of public

utilities and carriers pursuant to regulations issued to protect the public interest in connection with

the registration of entities seeking to sell electricity at retail:

      (1) Legal name;

      (2) Business address;

      (3) The name of the state where organized; the date of organization; a copy of the

articles of incorporation, association, partnership agreement, or other similar document regarding

legal organization;

      (4) Name and business address of all officers and directors, partners; or other similar

officials;

      (5) Name, title, and telephone number of customer service contact person;

      (6) Name, title, and telephone number of regulatory contact person;

      (7) Name, title and address of registered agent for service of process;

      (8) Brief description of the nature of business being conducted; and

      (9) Evidence of financial soundness except those nonregulated power producers who

may be obligated entities under §39-26-2(16) shall provide security such as a surety bond bonds,

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a recent financial statement, or other financial instrument showing evidence of liquid funds, such

as a certificate of deposit, an irrevocable letter of credit, a line of credit, a loan or guarantees or

other mechanism as in an amount specified by the division, pursuant to rules and regulations

promulgated by the division on or before February 1, 2017, provided that the amount be not less

than twenty-five thousand dollars ($25,000), nor more than five hundred thousand dollars

($500,000). The financial instrument shall name the public utilities commission and division of

public utilities and carriers as obligees. Financial security shall be reviewed each year at the time

a nonregulated power producer makes its annual filing. The financial security shall be available to

satisfy penalties assessed by the division for violations of any consumer protection rules or laws

related to nonregulated power producers, refunds ordered by the division, or failure to comply

with the provisions of chapter 26 of title 39, as determined by the public utilities commission.

Payments made pursuant to this subsection for violation of the provisions of §39-26-4 shall be

forfeited, and shall be remitted to the renewable energy development fund established in §39-26-

7, or any successor funds, and all other forfeitures will be remitted to the state's general fund.

      (d) Copies of all filings pursuant to subsection (c), shall be served upon the commission

and all electric distribution companies. Updated information shall be filed within ten (10) days of

any change to the information included in a registration application, as filed or previously

updated. Registration applications filed pursuant to subsection (c), shall become effective thirty

(30) days after filing with the division, unless rejected during the thirty (30) day period. If the

division should reject a registration application, it shall specify the applicable reasons in writing

and, if practicable, identify alternative ways to overcome any deficiencies. After an opportunity

of a hearing, the division may rescind a nonregulated power producer's registration for cause.

Nonregulated power producers shall be authorized to do business in this state after their

registration becomes effective and while it remains in good standing.

      (e) A filing fee of one hundred dollars ($100) shall accompany all registration

applications filed pursuant to subsection (c). Nonregulated power producers shall thereafter renew

their registrations with the division on an annual basis. Applications for renewal shall be filed

before the close of business on December 31 of each calendar year. Applications for renewal shall

specify any changes in previously filed registration information. A filing fee of one hundred

dollars ($100) shall accompany all applications for renewal of nonregulated power producer

status.

     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 -- PUBLIC UTILITIES COMMISSION

***

     This act would require certain nonregulated power producers which are defined as

"obligated entities" under chapter 26 of title 39 and are seeking to sell electricity at retail to show

evidence of financial security by way of a financial instrument in an amount of not less than

$25,000 or more than $500,000.

     This act would take effect upon passage.

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