Chapter 216

2009 -- H 6458

Enacted 11/09/09

 

A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS

 

     Introduced By: Representatives Fox, Ehrhardt, Walsh, Ruggiero, and A Rice

     Date Introduced: October 29, 2009

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. Section 39-26.1-7 of the General Laws in chapter 26.1 entitled "Long-Term

Contracting Standard For Renewable Energy" is hereby amended to read as follows:

 

     39-26.1-7. Town of New Shoreham Project.-- (a) On or before August 15, 2009, the

electric distribution company shall solicit proposals for one newly developed renewable energy

resources project of ten (10) megawatts or less that includes a proposal to enhance the electric

reliability and environmental quality of the Town of New Shoreham. The electric distribution

company shall select a project for negotiating a contract that shall be conditioned upon approval

by the commission. Negotiations shall proceed in good faith to achieve a commercially

reasonable contract. Should the distribution company and the selected party agree to a contract,

the contract shall be filed with the commission no later than October 15, 2009 for commission

approval. The commission shall review the contract and issue an order approving or disapproving

the contract on or before December 31, 2009 January 31, 2010. If the parties are unable to reach

agreement on a contract prior to October 15, 2009, an unsigned copy shall be filed by the electric

distribution company prior to that same date, and the commission shall have the discretion to

order the parties to arbitrate the dispute on an expedited basis. Notwithstanding anything in this

section to the contrary, and notwithstanding any solicitation made pursuant to this section, the

distribution company and the selected party may agree to a contract for a project that includes up

to (but not exceeding) eight (8) wind turbines with aggregate nameplate capacity of no more than

thirty (30) megawatts, subject to and conditioned upon the approval of the commission, even if

the actual capacity factor of the project results in the project technically exceeding ten (10)

megawatts. Upon approval of the contract, the provisions of section 39-26.1-4 and the provisions

of paragraphs (a), (b), (c), (d), and (f) of section 39-26.1-5 shall apply, and all costs incurred in

the negotiation, administration, enforcement, and implementation of the agreement shall be

recovered annually by the electric distribution company in electric distribution rates. To the

extent that there are benefits for customers of the Block Island Power Company or its successor,

the commission shall determine an allocation of cost responsibility between customers of the

electric distribution company and customers of Block Island Power Company or its successor

after the cost estimates are filed with the commission, but the commission need not determine the

final cost allocation at the time the commission considers and/or approves the contract between

the electric distribution company and the project developer. The allocation of costs shall assure

that individual customers in the Town of New Shoreham pay higher charges related to the project

on their individual bills than any charges for the same project that may be included in individual

bills of customers of the electric distribution company. The commission shall provide for an

appropriate rate design and billing method between the electric distribution company and Block

Island Power Company at the appropriate time.

     (b) The solicitation shall require that each proposal include provisions for a transmission

cable between the Town of New Shoreham and the mainland of the state. The electric distribution

company, at its option, may propose to own, operate, or otherwise participate in such

transmission cable project, subject to commission approval. The electric distribution company,

however, has the option to decline to own, operate, or otherwise participate in the transmission

cable project, even if the commission approves such arrangements. Should the electric

distribution company own, operate, and maintain the cable, the annual costs incurred by the

electric distribution company shall be recovered annually through a fully reconciling rate

adjustment from customers of the electric distribution company and/or from the Block Island

Power Company or its successor, subject to any federal approvals that may be required by law;

provided, however, the parties shall use all reasonable efforts to obtain socialization of the costs

of the cable in New England transmission rates administered by the ISO New England, to the

extent permitted. The allocation of the cable costs shall be determined by the commission and

assure that individual customers in the Town of New Shoreham pay higher charges related to the

cable on their individual bills than any charges for the same project that may be included in

individual bills of customers of the electric distribution company.

     (c) Any charges incurred by the Block Island Power Company or its successor pursuant

to this section shall be recovered annually in rates through a fully reconciling rate adjustment,

subject to approval by the commission. If the electric distribution company owns, operates, or

otherwise participates in the transmission cable project, pursuant to subsection 39-26.1-7(b) the

provisions of section 39-26.1-4 shall not apply to the cable cost portion of the Town of New

Shoreham Project.

     (d) Any contract entered into pursuant to this section shall count as part of the minimum

long-term contract capacity.

 

     SECTION 2. This act shall take effect upon passage.

     

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LC03037

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