2020 -- H 8011

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LC005271

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS --DISTRIBUTED GENERATION

INTERCONNECTION

     Introduced By: Representatives McKiernan, Bennett, Almeida, Millea, and Serpa

     Date Introduced: March 13, 2020

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 39-26.3-4 and 39-26.3-4.1 of the General Laws in Chapter 39-26.3

entitled "Distributed Generation Interconnection" are hereby amended to read as follows:

     39-26.3-4. Study cost fees.

     (a) After thirty (30) days from the enactment of this chapter until the end of calendar year

2012, the feasibility study fee shall be in accordance with the schedule set forth below:

     (1) Residential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is twenty-five kilowatts (25 kw) or less: zero dollars ($0).

     (2) Residential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is greater than twenty-five kilowatts (25 kw): fifty dollars ($50.00).

     (3) Non-residential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is one hundred kilowatts (100 kw) or less: one hundred dollars ($100).

     (4) Non-residential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is two hundred fifty kilowatts (250 kw) or less: three hundred dollars

($300).

     (5) Non-residential applicants for interconnections of renewable distributed generation that

is greater than two hundred fifty kilowatts (250 kw), up to one megawatt: one thousand dollars

($1,000).

     (6) Non-residential applicants for interconnections of renewable distributed generation

greater than one megawatt: two thousand five hundred dollars ($2,500).

     Beginning January 1, 2013 and for every year thereafter, the commission shall set a new

fee schedule that is no less than what is specified herein. The purpose of the fee schedule is to

provide a disincentive to applicants contemplating a renewable distributed generation project from

requesting order of magnitude estimates unless they are serious about pursuing such projects, and

to prevent the electric distribution company from charging more than it actually costs to conduct

such studies with all due efficiency.

     (b) After thirty (30) days from the enactment of this chapter until the end of calendar year

2012, the impact study fee shall be in accordance with the schedule set forth below:

     (1) Residential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is twenty-five kilowatts (25 kw) or less: zero dollars ($0).

     (2) Residential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is greater than twenty-five kilowatts (25 kw): one hundred dollars

($100).

     (3) Non-residential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is one hundred kilowatts (100 kw) or less: five hundred dollars ($500)

     (4) Non-residential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is two hundred fifty kilowatts (250 kw) or less: one thousand five

hundred dollars ($1,500).

     (5) Non-residential applicants for interconnections of renewable distributed generation that

is greater than two hundred fifty kilowatts (250 kw), up to one megawatt: five thousand dollars

($5,000).

     (6) Non-residential applicants for interconnections of renewable distributed generation

greater than one megawatt: actual cost or ten thousand dollars ($10,000), whichever is less.

     Beginning January 1, 2013 and for every year thereafter, the commission shall set a new

fee schedule that is no less than what is specified herein. The purpose of the impact study fee

schedule is to assure that an applicant is responsible for paying a reasonable amount of the cost of

the study in advance of installing the distributed generation, but that the advance cost is justified

and is not so high as to discourage an applicant from pursuing a project.

     (c) To the extent that an impact study fee established under this section does not cover the

reasonable cost of an impact study for a given non-residential project that commences operation,

the balance of such costs shall be recovered from such applicant through billings after the project

is online. The electric distribution company may, at its sole election, offset net-metering credits or

any standard contract payments until the full fee(s) is reimbursed, if it finds it administratively

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convenient to use that means of billing for the balance of the fee for a given project.

     (d) The electric distribution company shall report the total number of interconnection

studies and its total charges to conduct feasibility and impact studies on each individual circuit in

Rhode Island to the independent interconnection ombudsman and to the division of public utilities

and carriers and to the public utilities commission no later than October 30, 2020, and update that

report every six (6) months. The electric distribution company shall not charge more than it cost to

conduct any interconnection studies, shall not charge for time spent studying feasibility or impact

that can be assessed based on prior studies, and shall not charge a customer for any time spent

responding to disputes related to its studies.

     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 distribution system specifically

necessary for and directly related to the interconnection. Transmission system improvements are

administered by ISO-NE pursuant to Federal Energy Regulatory Commission requirements as

applicable to renewable energy customers subject to federal jurisdiction. The company will provide

an industry standard estimate-level detailed audit and line item budget account of its actual cost to

the interconnecting customer with every cost estimate it issues and within ninety days of

completing any system modifications, always including any and all supporting records and

documentation.

     (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 that will be credited to the earlier

interconnecting, renewable-energy customer as determined by the public utilities commission.

     (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,

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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. of any and all elements of the application

that are materially incomplete within the ten (10) business days. Once the incomplete items that are

material to the interconnection process are addressed, the electric distribution company will

conduct a supplemental completeness review and application screens within no more than five (5)

days, notifying the applicant which interconnection process will be followed and whether their

application is still materially incomplete or deficient and providing a complete and specific list of

any and all incomplete items or deficiencies and provide specific detailed instructions or

recommendations on why items are deficient and how to correct any remaining deficiencies in a

form that enables the applicant to fully address them. Once all materially deficient items are then

addressed, the electric distribution company will issue a final decision on all screens and on which

interconnection process will be followed within two (2) days. As long as the interconnecting

customer provides all requested information within ten (10) days of the request, the interconnection

deadlines in this section will not be extended. The electric distribution company shall maintain an

example of a complete and current model interconnection application with all required attachments

and supplemental information in an easily accessible location on its website for ease of reference,

which shall be updated within five (5) calendar days of any update to any of the electric distribution

company’s technical standards or specifications for interconnection as addressed in subsection (h)

of this section. 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 written request for

extension of the time between the execution of the interconnection service agreement and

interconnection, as set forth agreed to by the electric distribution company 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

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providing required information, all of which must be requested and obtained within the time period

required 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 delays directly attributable to third-party delays, including, without limitation,

delays due to parties other than ISO-NE, requirements documented in writing, that are not

attributable to electric distribution company actions, and which cannot be resolved despite

commercially reasonable efforts. ISO-NE administers its own interconnection studies and

requirements for its jurisdictional facilities and its requirements are not cause for delay of a

distribution system interconnection. The electric distribution company shall notify the customer in

writing of the start of any claimed deadline extension as soon as practicable, its cause and when it

concludes, all in writing. and within five (5) calendar days of occurrence, to allow for customer

intervention and involvement, shall inform the customer of the cause and expected length of the

delay, and shall provide a detailed written explanation and documentation of such cause. The

electric distribution company shall respond within five (5) calendar days in writing to a customer’s

request for additional information and documents relating to the cause of the delay and the expected

length of the delay. Any actual, consequential, indirect, incidental or special damages that a court

of competent jurisdiction orders the electric distribution company to pay to incurred by 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 to the customer by it’s

the electric distribution company 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 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

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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-day (60) review. The purpose of such sixty-day (60) 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.

     (g) The public utilities commission, in consultation with the office of energy resources,

shall appoint an independent ombudsman to oversee the distribution company’s administration of

interconnection to ensure that the interconnection process works efficiently to serve the purposes

of Rhode Island’s energy plan and policy. The appointed ombudsman shall oversee and supervise

any and all elements of the interconnection process including, but not limited to: providing dispute

resolution assistance upon written request by a party to a dispute under the interconnection tariff,

planning and management of infrastructure safety and reliability investments and all other

investments to ensure and facilitate access to the distribution system; processing of applications;

management of queue position; interactions with ISO-NE; implementation of system

modifications; and administration and exemptions to the interconnection tax. This position shall be

funded out of the electric distribution company’s interconnection study fees assessed to

interconnecting customers.

     (h) The electric distribution company may not change its technical standards or

specifications for interconnection, as addressed in the Company’s ESB 756 where applicable to

Rhode Island “Requirements for Parallel Generation Connected to a National Grid owned EPS” or

otherwise, without approval of the public utilities commission and without properly publishing any

such changes to customers no less than thirty (30) days before implementation. Any changed

interconnection standards will not apply to interconnecting customers with complete

interconnection applications.

     (i) The electric distribution company shall ensure that its interconnection application

process adequately informs its customers of the procedure to certify qualification and pursue the

Internal Revenue Service’s safe-harbor against the contribution in aid of construction tax,

exempting interconnections designed to send electricity to the electric distribution company.

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     SECTION 2. This act shall take effect thirty (30) days after passage.

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LC005271

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS --DISTRIBUTED GENERATION

INTERCONNECTION

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     This act would require the electric distribution company to report interconnection studies

and not charge more than actual costs for the studies.

     This act would take effect thirty (30) days after passage.

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LC005271

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