2017 -- H 5318 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - NET METERING

     Introduced By: Representative J. Aaron Regunberg

     Date Introduced: February 01, 2017

     Referred To: House Environment and Natural Resources

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 39-26.4-3 of the General Laws in Chapter 39-26.4 entitled "Net

Metering" is hereby amended to read as follows:

     39-26.4-3. Net metering.

     (a) The following policies regarding net metering of electricity from eligible net-metering

systems and community remote-net-metering systems and regarding any person that is a

renewable self-generator shall apply:

     (1) (i) The maximum, allowable capacity for eligible net-metering systems, based on

nameplate capacity, shall be ten megawatts (10 MW), effective sixty (60) days after passage. The

aggregate amount of net metering in the Block Island Power Company and the Pascoag Utility

District shall not exceed three percent (3%) of peak load for each utility district; and

     (ii) Through December 31, 2018, the maximum, aggregate amount of community remote-

net-metering systems built shall be thirty megawatts (30 MW). Any of the unused MW amount

after December 31, 2018, shall remain available to community remote-net-metering systems until

the MW aggregate amount is interconnected. After December 31, 2018, the commission may

expand or modify the aggregate amount after a public hearing upon petition by the office of

energy resources. The commission shall determine within six (6) months of such petition being

docketed by the commission whether the benefits of the proposed expansion exceed the cost. This

aggregate amount shall not apply to public entity facilities or multi-municipal collaborative

facilities. By June 30, 2019 2018, the commission shall conduct a study examining the cost and

benefit to all customers of the inclusion of the distribution charge as a part of the net-metering

calculation.

     (2) For ease of administering net-metered accounts and stabilizing net-metered account

bills, the electric-distribution company may elect (but is not required) to estimate for any twelve-

month (12) period:

     (i) The production from the eligible net-metering system or community remote-net-

metering system; and

     (ii) Aggregate consumption of the net-metered accounts at the eligible net-metering-

system site or the sum of the consumption of the eligible credit-recipient accounts associated with

the community remote-net-metering system, and establish a monthly billing plan that reflects the

expected credits that would be applied to the net-metered accounts over twelve (12) months. The

billing plan would be designed to even out monthly billings over twelve (12) months, regardless

of actual production and usage. If such election is made by the electric-distribution company, the

electric-distribution company would reconcile payments and credits under the billing plan to

actual production and consumption at the end of the twelve-month (12) period and apply any

credits or charges to the net-metered accounts for any positive or negative difference, as

applicable. Should there be a material change in circumstances at the eligible net-metering system

site or associated accounts during the twelve-month (12) period, the estimates and credits may be

adjusted by the electric-distribution company during the reconciliation period. The electric-

distribution company also may elect (but is not required) to issue checks to any net-metering

customer in lieu of billing credits or carry-forward credits or charges to the next billing period.

For residential-eligible net-metering systems and community-remote-net-metering systems

twenty-five kilowatts (25 kw) or smaller, the electric-distribution company, at its option, may

administer renewable net-metering credits month to month allowing unused credits to carry

forward into the following billing period.

     (3) If the electricity generated by an eligible net-metering system or community remote-

net-metering system during a billing period is equal to, or less than, the net-metering customer's

usage at the eligible net-metering-system site or the sum of the usage of the eligible credit-

recipient accounts associated with the community remote-net-metering system during the billing

period, the customer shall receive renewable net-metering credits, that shall be applied to offset

the net-metering customer's usage on accounts at the eligible net-metering-system site, or shall be

used to credit the eligible credit-recipient's electric account.

     (4) If the electricity generated by an eligible net-metering system or community remote-

net-metering system during a billing period is greater than the net-metering customer's usage on

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accounts at the eligible net-metering-system site or the sum of the usage of the eligible credit-

recipient accounts associated with the community remote-net-metering system during the billing

period, the customer shall be paid by excess renewable net-metering credits for the excess

electricity generated up to an additional twenty-five percent (25%) beyond the net-metering

customer's usage at the eligible net-metering-system site, or the sum of the usage of the eligible

credit-recipient accounts associated with the community remote net-metering system during the

billing period; unless the electric-distribution company and net-metering customer have agreed to

a billing plan pursuant to subdivision (2).

     (5) The rates applicable to any net-metered account shall be the same as those that apply

to the rate classification that would be applicable to such account in the absence of net-metering,

including customer and demand charges, and no other charges may be imposed to offset net-

metering credits.

     (b) The commission shall exempt electric-distribution company customer accounts

associated with an eligible, net-metering system from back-up or standby rates commensurate

with the size of the eligible net-metering system, provided that any revenue shortfall caused by

any such exemption shall be fully recovered by the electric-distribution company through rates.

     (c) Any prudent and reasonable costs incurred by the electric-distribution company

pursuant to achieving compliance with subsection (a) and the annual amount of any renewable

net-metering credits or excess, renewable net-metering credits provided to accounts associated

with eligible net-metering systems or community remote-net-metering systems, shall be

aggregated by the distribution company and billed to all distribution customers on an annual basis

through a uniform, per-kilowatt-hour (kwh) surcharge embedded in the distribution component of

the rates reflected on customer bills.

     (d) The billing process set out in this section shall be applicable to electric-distribution

companies thirty (30) days after the enactment of this chapter.

     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 include the benefit to all customers in the public utility commission's

study examining the cost of the inclusion of the distribution charge as part of the net metering

calculation.

     This act would take effect upon passage.

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