2017 -- S 0637 SUBSTITUTE A

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LC001675/SUB A/2

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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: Senators DiPalma, Seveney, Miller, Satchell, and Kettle

     Date Introduced: March 29, 2017

     Referred To: Senate Environment & Agriculture

     It is enacted by the General Assembly as follows:

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

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

     39-26.3-2. Definitions.

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

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

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

renewable distributed generation interconnection to the distribution system for a renewable

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

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

within title 39.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

estimate.

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

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

     (6) "Renewable energy resource" means those resources set forth in §39-26-5.

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

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

     39-26.3-4.1. Interconnection standards.

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

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

for and directly related to the interconnection.

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

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

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

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

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

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

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

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

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

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

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

earlier interconnecting renewable energy customer as determined by the public utilities

commission.

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

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

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

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

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

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

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

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

be one hundred seventy-five (175) calendar days or two hundred (200) calendar days if a detailed

study is required. All electric distribution company system modifications must be completed by

the date which is the later of: (1) No longer than two hundred seventy (270) calendar days, or

three hundred sixty (360) calendar days if substation work is necessary, from the date of the

electric distribution company's receipt of the interconnecting renewable energy customer's

executed interconnection service agreement; or (2) The interconnecting renewable energy

customer's agreed upon extension of the time between the execution of the interconnection

services agreement and interconnection as set forth in writing. All deadlines herein are subject to

all payments being made in accordance with the distributed generation interconnection tariff on

file with the public utilities commission and the interconnection service agreement. These system

modification deadlines cannot be extended due to customer delays in providing required

information, all of which must be requested and obtained before completion of the impact study.

The deadlines for completion of system modifications will be extended only to the extent of

events that are clearly not under the control of the electric distribution company, such as extended

prohibitive weather, union work stoppage or force majeure, or third party delays, including,

without limitation, delays due to ISO-NE requirements not attributable to electric distribution

company actions, and which cannot be resolved despite commercially reasonable efforts. The

electric distribution company shall notify the customer of the start of any claimed deadline

extension as soon as practicable, its cause and when it concludes, all in writing. Any actual

damages that a court of competent jurisdiction orders the electric distribution company to pay to

an interconnecting renewable energy customer as a direct result of the electric distribution

company's failure to comply with the requirements of this subsection shall be payable by its

shareholders and may not be recovered from customers, provided that the total amount of

damages awarded for any and all such claims shall not exceed, in the aggregate, an amount equal

to the amount of the incentive the electric distribution company would have earned as provided

for in §§39-26.6-12(j)(3) and 39-26.1-4 in the year in which the system modifications were

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required to be completed. In no event shall the electric distribution company be liable to the

interconnecting renewable energy customer for any indirect, incidental, special, consequential, or

punitive damages of any kind whatsoever as a result of the electric distribution company's failure

to comply with this section.

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

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

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

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

penalties in the performance metrics.

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

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

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

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

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

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

modifications because of an interconnection policy change implemented by the electric

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

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

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

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

the cost of the system modifications

     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

***

     This act would prohibit electrical distribution companies from charging an

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

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

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

modifications be completed no later than fourteen (14) calendar months from the effective date of

the interconnecting renewable energy customer's interconnection service agreement subject to all

payments being made in accordance with the interconnection service agreement, or the renewable

energy customer's agreed upon expected interconnection date as set forth in the executed

interconnection service agreement and full payment for all required system modifications. The act

would enable replacement of a renewable energy resource with limitations on study time and

system modification costs.

     This act would take effect upon passage.

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