2018 -- H 7674

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LC003862

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- THE RHODE ISLAND PUBLIC

POWER UTILITY COUNCIL ACT

     

     Introduced By: Representatives Regunberg, Handy, Keable, McLaughlin, and Ranglin-
Vassell

     Date Introduced: February 15, 2018

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Legislative findings. - It is hereby found and declared:

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     (1) Rhode Island continues to experience an energy cost crisis and faces the prospect of

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ever-increasing energy prices in the future as well as failures of customer service and continuity

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of operations in emergency circumstances for utility customers.

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     (2) Public power utilities are not-for-profit community-owned utility companies typically

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governed by elected or appointed boards made up of municipal officials and community citizens.

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This is contrasted to for-profit investor-owned utility companies such as National Grid which are

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governed by private boards and operate to benefit shareholders rather than the consumer public.

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     (3) Fifteen percent (15%) of all electricity consumers in the United States (forty-nine

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million (49,000,000) consumers in forty-nine (49) states) are currently served by public not-for-

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profit power utilities, including the customers of the Pascoag Utility District in Rhode Island and

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nationwide public power customers pay rates that are on average thirteen percent (13%) less than

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the rates paid by customers of for-profit investor owned utility companies.

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     (4) Locally-owned not-for-profit public power utilities are economic development

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engines for their local communities. Public power utilities employ ninety-three thousand (93,000)

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people nationally and provide consumer service and response at the local level.

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     SECTION 2. Title 42 of the General Laws entitled "STATE AFFAIRS AND

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GOVERNMENT" is hereby amended by adding thereto the following chapter:

 

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CHAPTER 140.5

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THE RHODE ISLAND PUBLIC POWER UTILITY COUNCIL ACT

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     42-140.5-1. Short title.

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     This chapter shall be known and may be cited as the "The Rhode Island Public Power

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Utility Council Act."

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     42-140.5-2. Establishment of council -- Purposes.

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     (a) There is hereby authorized, created and established a council to be known as "The

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Rhode Island Public Power Utility Council" with the powers and duties set forth in this chapter.

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     (b) The purposes of this council are to:

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     (1) Evaluate and make recommendations for the most appropriate and effective form of

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public not-for-profit power utility enabling legislation to best serve the needs of power consumers

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in Rhode Island including consideration of lowest cost for the utility consumer, local control and

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effective response to local consumer needs in terms of economics, customer service, emergency

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response and continuation of operations.

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     (2) Develop and implement a process for comprehensive stakeholder involvement in the

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design and implementation of a new statutory model for public not-for-profit power utilities in

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Rhode Island.

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     (3) Promote public understanding of the benefits of municipal level or regional public

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not-for-profit power utilities.

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     (4) After passage of public not-for-profit power utility enabling legislation suitable to the

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conditions in Rhode Island, continue to provide public stakeholder involvement in the

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establishment and implementation of public not-for-profit power utilities in Rhode Island at the

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municipal level.

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     42-140.5-3. Composition and appointment.

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     (a) The council shall consist of fifteen (15) members appointed by the governor with the

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advice and consent of the senate; eleven (11) members shall be voting members, and the governor

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shall give due consideration to appointment of persons with knowledge of:

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     (1) Public not-for-profit power utility establishment and operation;

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     (2) Energy generation, distribution and regulation;

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     (3) The needs of residential users, large commercial/industrial users, small

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commercial/industrial users, large nonprofit institutional users, small nonprofit institutional users,

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and municipal users; and

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     (4) Specific knowledge of the needs of low-income utility customers.

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     (b) Four (4) members shall be ex officio, non-voting members, including three (3)

 

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municipal officials and the commissioner of the office of energy resources. From the eleven (11)

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voting members, the governor shall appoint one person to be chairperson of the council and one

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person to be vice chairperson of the council; the commissioner of the office of energy resources

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shall be the executive secretary and executive director of the council.

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     (c) With the exception of the commissioner of the office of energy resources; of the

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initial appointments; three (3) members shall be appointed for a term of one year; three (3)

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members shall be appointed for a term of two (2) years, and four (4) members shall be appointed

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for a term of three (3) years; thereafter members shall be appointed for a term of three (3) years

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and may be reappointed.

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     (d) A simple majority of the total number of voting members shall constitute a quorum.

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     (e) A vacancy other than by expiration shall be filled in the manner of the original

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appointment but only for the unexpired portion of the term. The appointing authority shall have

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the power to remove an appointee for just cause.

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     (f) The members of the council shall not be compensated for their service but shall be

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reimbursed for their actual expenses necessarily incurred in the performance of their duties. The

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provisions of this subsection shall not apply to the executive secretary/executive director.

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     42-140.5-4. Powers and duties.

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     The council shall have the power to:

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     (1) Develop and recommend the optimal statutory form for public not-for-profit power

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utilities to meet the needs of Rhode Island utility consumers, including how public not-for-profit

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power utilities engage with current programs and factors including:

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     (i) Least cost procurement law and state energy efficiency programs;

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     (ii) State low-income home energy assistance program – oil fuel heating support;

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     (iii) Renewable energy standard;

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     (iv) Renewable energy growth tariff program;

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     (v) Net metering and virtual net metering programs;

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     (vi) Engagement with ISO-New England;

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     (vii) Engagement with the federal energy regulatory commission;

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     (viii) Rhode Island’s electrical and foreman labor unions;

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     (ix) Insurance and liabilities;

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     (x) Renewable energy, energy efficiency, heating assistance, power shutoffs customer;

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and

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     (xi) Storm restoration.

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     (2) Monitor and evaluate implementation of public not-for-profit power utilities in Rhode

 

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Island including making findings and recommendations with regard to changes, modifications or

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continuation of any statutory framework for public power in Rhode Island.

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     (3) Submit to the joint committee on energy an annual report on/or before April 15 of

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each year, commencing in 2019, regarding public power establishment and implementation in

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Rhode Island including recommendations regarding any improvements to the statutory structure

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for public power which might be necessary or desirable.

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     (4) Participate in proceedings of the public utilities commission that pertain to the

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purposes of the council.

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     (5) Consider such other matters as it may deem appropriate to the fulfillment of its

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purposes, and may advise the governor, the general assembly, other parties, and the public with

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regard to matters pertaining to its purposes and duties, which advice may include findings and

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recommendations.

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     42-140.5-5. Additional general powers.

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     In order to effectuate its powers and duties the council has the following additional

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powers:

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     (1) To make any studies of conditions, activities, or problems related to the state’s

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adoption and implementation of public not-for-profit power utilities.

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     (2) To adopt and amend bylaws, to establish committees, to elect and/or appoint officers

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and agents, and to engage consultants and professional services as necessary and appropriate to

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fulfill its purposes.

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     (3) To accept and administer grants from the federal government and from other sources,

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public or private, for the carrying out of any of its functions, which loans or grants shall not be

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expended for other than the purposes for which provided.

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     (4) To work with the appropriate federal, regional, state and municipal agencies and

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authorities and private entities.

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     (5) To apply for, accept and expend allocations, grants and bequests of funds, for the

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purpose of carrying out the lawful responsibilities of the council.

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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 STATE AFFAIRS AND GOVERNMENT -- THE RHODE ISLAND PUBLIC

POWER UTILITY COUNCIL ACT

***

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     This act would establish the Rhode Island public power utility council, whose purpose it

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would be to evaluate and make recommendations for public not-for-profit power utility enabling

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legislation to best serve the needs of power consumers in Rhode Island, to develop and implement

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a process for comprehensive stakeholder involvement in the public not-for-profit power utilities,

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and to promote public understanding of public not-for-profit power utilities, in addition to other

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responsibilities.

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     This act would take effect upon passage.

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