Chapter 140

2011 -- H 6222 SUBSTITUTE A AS AMENDED

Enacted 06/29/11

 

A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - RENEWAL ENERGY

 

     Introduced By: Representatives Blazejewski, Ehrhardt, Ruggiero, Gallison, and Tanzi

     Date Introduced: June 02, 2011

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. Title 39 of the General Laws entitled "PUBLIC UTILITIES AND

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

 

CHAPTER 26.3

DISTRIBUTED GENERATION INTERCONNECTION

 

     39-26.3-1. Policy objective. The general assembly hereby finds and declares that the

expeditious completion of the application process for renewable distributed generation is in the

public interest. For this reason, certain standards and other provisions for the processing of

applications are hereby set forth to assure that the application process assists in the development

of renewable generation resources in a timely manner.

 

     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 section 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 section 39-26.2-4 of this chapter.

 

     39-26.3-3. Application process. (a) The application process set out in this section shall

be applicable to electric distribution companies thirty (30) days after the enactment of this

chapter.

     (b) An applicant for a renewable distributed generation interconnection must submit an

application to the electric distribution company for an impact study, including a request for an

estimate of the cost of interconnecting the renewable distributed generation resource to the

distribution system. The applicant may request a feasibility study prior to requesting an impact

study, but the applicant is not required to do so and may submit an application for an impact

study without having obtained a feasibility study. The distribution company shall follow the

schedule below for all applications.

     (c) Upon receipt of a completed application requesting a feasibility study and receipt of

the applicable feasibility study fee, the electric distribution company shall provide a feasibility

study to the applicant within thirty (30) days.

     (d) Upon receipt of a completed application requesting an impact study and receipt of the

applicable impact study fee, the electric distribution company shall provide an impact study

within ninety (90) days.

     (e) In anticipation of the electric distribution company needing to add resources that are

not currently in Rhode Island or covered in rates, to provide the necessary services to advance the

aggressive goals and objectives set forth in title 39, the electric distribution company shall be

authorized to add up to two (2) incremental employee resources located in Rhode Island that shall

be primarily dedicated to servicing Rhode Island applicants and customers in connection with net

metering and the development of distributed generation resources, including the requisite

resources to perform impact and feasibility studies for distributed generation interconnections and

to assure that feasibility studies and impact studies, as well as other engineering activity

necessary to facilitate the completion of distributed generation projects in Rhode Island are

implemented and delivered on a timely basis. Prior to new rates going into effect following the

company’s next general rate case filing, the cost of such incremental employee resources shall be

recovered through rates on an annual basis through an annual reconciliation mechanism, provided

that the total amount of fees collected from impact studies and feasibility studies shall be netted

against such costs. Only the cost of time and work actually spent on Rhode Island renewable

energy project matters shall be included in such annual reconciliation. The commission shall have

the authority to review these positions in the electric distribution company’s next general rate

case as a cost of service in the same manner as it reviews all other expenses in a rate case to

determine whether they should continue. Nothing contained in this section shall preclude the

electric distribution company from adding additional resources, subject to commission approval.

     (f) Notwithstanding any other provision of this chapter, the application process and fees

set forth in this chapter apply only to interconnections to the distribution system by renewable

distributed generation resources. To the extent that a renewable generation resource seeks an

interconnection to the transmission system and such interconnection request is governed by rules

and regulations under the exclusive jurisdiction of the federal energy regulatory commission, the

provisions of this chapter shall not apply.

     (g) The rules and fees established in this chapter shall be incorporated within the

applicable “Standards for Interconnection of Distributed Generation” approved by the

commission.

 

     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.

     (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: ten thousand dollars ($10,000).

     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 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

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

 

     39-26.3-5. Liberal construction of chapter required. – This chapter shall be construed

liberally in aid of its policy objective.

 

     39-26.3-6. Severability. – If any provision of this chapter or the application thereof to

any person or circumstances is held invalid, such invalidity shall not affect other provisions or

application of the chapter, which can be given effect without the invalid provision or application,

and to this end the provisions of this chapter are declared to be severable.

 

     SECTION 2. This act shall take effect upon passage.

     

=======

LC02796/SUB A

=======