2017 -- H 5483 SUBSTITUTE A

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LC000960/SUB 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

     

     Introduced By: Representatives Marshall, Regunberg, Ruggiero, McKiernan, and
Handy

     Date Introduced: February 15, 2017

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 39-26.3-2 of the General Laws in Chapter 39-26.3 entitled

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"Distributed Generation Interconnection" is hereby amended to read as follows:

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     39-26.3-2. Definitions.

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     The following terms shall have the meanings given below for purposes of this chapter:

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     (1) "Applicant" means an electric distribution customer or distributed generation

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developer who submits an application to the electric distribution company for the installation of a

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renewable distributed generation interconnection to the distribution system for a renewable

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distributed generation project that, as contemplated, meets the eligibility requirements for net

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metering contained within title 39 or the eligibility requirements for a standard contract contained

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within title 39.

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     (2) "Impact study" means an engineering study that includes an estimate of the cost of

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interconnecting to the distribution system that would be assessed on the applicant for an

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interconnection that is based on an engineering study of the details of the proposed generation

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project. Such estimate generally will have a probability of accuracy of plus or minus twenty five

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percent (25%). Such an estimate may be relied upon by the applicant for purposes of determining

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the expected cost of interconnection, but the distribution company may not be held liable or

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responsible if the actual costs exceed the estimate as long as the estimate was provided in good

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faith and the interconnection was implemented prudently by the electric distribution company.

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     (3) "Impact study fee" means a fee that shall be charged to the applicant to obtain an

 

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impact study as specified in § 39-26.2-4 of this chapter.

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     (4) "Feasibility study" means a high-level project assessment that includes an estimate of

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the cost of interconnecting to the distribution system that would be assessed on the applicant for

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an interconnection. Such estimate is not based on any engineering study, but is based on past

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experience and judgment of the electric distribution company, taking into account the information

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in the application, the location of the interconnection, and general knowledge of the distribution

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and transmission system. Such estimate cannot be relied upon by the applicant for purposes of

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holding the electric distribution company liable or responsible for its accuracy as long as the

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electric distribution company has provided the estimate in good faith. The feasibility study

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estimate shall be a range within which the electric distribution company believes the

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interconnection costs are likely to be and shall include a disclaimer that explains the nature of the

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estimate.

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     (5) "Feasibility study fee" means a fee that shall be charged to the applicant to obtain a

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feasibility study as specified in § 39-26.2-4 of this chapter.

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     (6) "Renewable energy resource" as defined pursuant to §39-26-5.

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     SECTION 2. Chapter 39-26.3 of the General Laws entitled "Distributed Generation

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Interconnection" is hereby amended by adding thereto the following section:

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     39-26.3-7. Interconnection standards.

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     (a) The electric distribution company may only charge an interconnecting renewable

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energy customer for any system modifications to its electric power system specifically necessary

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for and directly related to its interconnection.

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     (b) If the public utilities commission determines that a specific system modification

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benefiting other customers has been accelerated due to an interconnection request, it may order

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the interconnecting customer to fund the modification subject to repayment of the depreciated

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value of the modification as of the time the modification would have been necessary as

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determined by the public utilities commission. Any system modifications benefiting other

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customers shall be included in rates as determined by the public utilities commission.

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     (c) If an interconnecting renewable energy customer is required to pay for system

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modifications and a subsequent renewable energy or commercial customer relies on those

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modifications to connect to the distribution system within ten (10) years of the earlier

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interconnecting renewable energy customer's payment, the subsequent customer will make a

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prorated contribution toward the cost of the system modifications which will be credited to the

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earlier interconnecting renewable energy customer as determined by the public utilities

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commission.

 

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     (d) An electric distribution company shall acknowledge to the interconnecting renewable

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energy customer receipt of an application to initiate the interconnection process within three (3)

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business days of receipt. The electric distribution company shall notify the interconnecting

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renewable energy customer in writing within ten (10) business days of receipt that the application

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is or is not complete and, if not, advise what is missing. Any disputes regarding whether and

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when an application to initiate the interconnection process is complete shall be resolved

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expeditiously at the public utilities commission. The maximum time allowed between the date of

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the completed application and delivery of an executable interconnection service agreement shall

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be one hundred fifty (150) calendar days. All electric distribution company system modifications

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must be completed by the date which is the later of:

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     (1) No longer than two hundred seventy (270) calendar days, or three hundred sixty (360)

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calendar days if substation work is necessary, from the effective date of the interconnecting

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renewable energy customer's interconnection service agreement; or

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     (2) The interconnecting renewable energy customer's agreed upon extension of the time

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between the execution of the interconnection service agreement and interconnection as set forth

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in writing. All deadlines herein are subject to all payments being made in accordance with the

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distributed generation interconnection tariff on file with the public utilities commission and the

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interconnection service agreement. These system modification deadlines cannot be extended due

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to customer delays in providing required information, all of which must be requested and

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obtained before completion of the impact study. The deadlines for completion of system

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modifications will be extended only to the extent of events that are clearly not under the control

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of the electric distribution company, such as extended prohibitive weather, union work stoppage

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or force majeure, or third party delays, including, without limitation, delays due to ISO-NE

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requirements not attributable to electric distribution company actions, and which cannot be

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resolved despite commercially reasonable efforts. The electric distribution company shall notify

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the customer of the start of any claimed deadline extension as soon as practicable, its cause and

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when it concludes, all in writing. Any actual damages that a court of competent jurisdiction

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orders the electric distribution company to pay to an interconnecting renewable energy customer

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as a direct result of the electric distribution company's failure to comply with the requirements of

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this subsection shall be payable by its shareholders and may not be recovered from customers,

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provided that the total amount of damages awarded for any and all such claims shall not exceed,

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in the aggregate, an amount equal to the amount of the incentive the electric distribution company

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would have earned as provided for in §§39-26.6-12(j)(3) and 39-26.1-4 in the year in which the

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system modifications were required to be completed. In no event shall the electric distribution

 

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company be liable to the interconnecting renewable energy customer for any indirect, incidental,

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special, consequential, or punitive damages of any kind whatsoever as a result of the electric

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distribution company's failure to comply with this section.

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     (e) On or before September 1, 2017, the public utilities commission shall initiate a docket

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to establish metrics for the electric distribution company's performance in meeting the time

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frames set forth herein and in the distributed generation interconnection standards approved by

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the public utilities commission. The public utilities commission may include incentives and

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penalties in the performance metrics.

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     (f) The proposed interconnection of any new renewable energy resource that replaces the

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same existing renewable energy resource of the same or less nameplate capacity that has been in

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operation in the twelve (12) months preceding notifications of such replacement shall be subject

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to a sixty (60) day review. The purpose of such sixty (60) day review is to allow the electric

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distribution company to determine whether any system modifications are required to support the

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interconnection of the replacement renewable energy resource. If there is a need for system

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modifications because of an interconnection policy change implemented by the electric

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distribution company then the system modification may be included in rates as determined by the

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public utilities commission. If there is a need for system modifications only because of a change

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in the rating or utility disturbance response that adversely affects the impact of the facility on the

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disturbance system then the interconnecting renewable energy customer shall be responsible for

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the cost of the system modifications.

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     SECTION 3. 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

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     This act would prohibit electrical distribution companies from charging an

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interconnecting renewable energy customer for system modifications that are not directly related

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to the interconnection, except accelerated modifications for which the developer is repaid when

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the modification would have otherwise been made. It would also require that any system

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modifications be completed no later than:

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     (1) Fourteen (14) calendar months from the effective date of the interconnecting

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renewable energy customer's interconnection service agreement subject to all payments being

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made in accordance with the interconnection service agreement; or

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     (2) The renewable energy customer's agreed upon expected interconnection date as set

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forth in the executed interconnection service agreement and full payment for all required system

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modifications.

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     This act would take effect upon passage.

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