| Chapter 062 |
| 2015 -- S 0081 Enacted 06/16/2015 |
| A N A C T |
| RELATING TO PUBLIC UTILITIES AND CARRIERS - RENEWABLE ENERGY |
| Introduced By: Senators Sosnowski, Conley, Walaska, and Goldin |
| Date Introduced: January 22, 2015 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Section 39-26.6-24 of the General Laws in Chapter 39-26.6 entitled "The |
| Renewable Energy Growth Program" is hereby amended to read as follows: |
| 39-26.6-24. Rate design review by the commission. -- (a) On or after July 1, 2015, the |
| commission shall open a docket to consider rate design and distribution cost allocation among |
| rate classes in light of net metering and the changing distribution system that is expected to |
| include more distributed-energy resources, including, but not limited to, distributed generation. |
| The commission will determine the appropriate cost responsibility and contributions to the |
| operation, maintenance, and investment in the distribution system that is relied upon by all |
| customers, including, without limitation, non-net metered non net-metered and net-metered |
| customers. In that docket, the commission shall require the electric-distribution company to file a |
| revenue-neutral allocated cost of service study for all rate classes and a proposal for new rates for |
| all customers in each rate class. The electric-distribution company shall use the distribution |
| revenue requirement upon which the then-current distribution rates were set. The electric- |
| distribution company may use the allocated cost of service that was filed with the compliance |
| filing from the rate case when the then-current distribution rates were set. The commission may |
| also address the rate design for the equitable recovery of costs associated with energy efficiency |
| and any renewable-energy programs that are recovered in rates. |
| (b) In establishing any new rates the commission may deem appropriate, the commission |
| shall take into account and balance the following factors: |
| (1) The benefits of distributed-energy resources; |
| (2) The distribution services being provided to net-metered customers when the |
| distributed generation is not producing electricity; |
| (3) Simplicity, understandability, and transparency of rates to all customers, including |
| non-net metered and net-metered customers; |
| (4) Equitable ratemaking principles regarding the allocation of the costs of the |
| distribution system; |
| (5) Cost causation principles; |
| (6) The general assembly's legislative purposes in creating the distributed-generation |
| growth program; and |
| (7) Any other factors the commission deems relevant and appropriate in establishing a |
| fair rate structure. The rates shall be designed for each proposed rate class in accordance with |
| industry-standard, cost; cost-allocation principles. The commission may consider any reasonable |
| rate design options, including without limitation, fixed charges, minimum-monthly charges, |
| demand charges, volumetric charges, or any combination thereof, with the purpose of assuring |
| recovery of costs fairly across all rate classes. |
| (c) The commission shall issue an order in the docket by no later than December 1, 2015 |
| March 1, 2016. Any new rates shall take effect for usage on and after January 1, 2016 April 1, |
| 2016; provided, however, that the electric-distribution company may seek an extension if |
| necessary to make the billing system changes necessary to implement a new rate structure. After |
| new, revenue-neutral rates are set in the docket specified above, the commission may approve |
| changes to the rate design in any future distribution-base rate cases when a fully allocated |
| embedded cost of service study is being reviewed in the rate case, subject to the principles set |
| forth in subsection (b) of this section. |
| SECTION 2. This act shall take effect upon passage. |
| ======== |
| LC000480 |
| ======== |