TITLE 39
Public Utilities and Carriers

CHAPTER 39-26.2
Distributed Generation Standard Contracts

SECTION 39-26.2-6


§ 39-26.2-6 Standard contract enrollment program.

(a) Each electric distribution company shall conduct at least three (3) standard contract enrollments during each program year; however, during 2011 the electric distribution company need only conduct one enrollment. Each enrollment shall be open for a two (2) week period during which the electric distribution company is required to receive standard short-form applications requesting standard contracts for distributed generation energy projects. The short-form applications shall require the applicant to provide the project owner's identity and the project's proposed location, nameplate capacity, and renewable energy class and allow for additional information relative to the permitting, financial feasibility, ability to build, and timing for deployment of the proposed projects. For small distributed generation projects, the applicant must submit an affidavit confirming that the project is not a segment of a larger project being planned for enlargement over time. For large distributed generation projects, the short-form application shall also require the applicant to bid a bundled price for the sale of the energy, capacity, renewable energy certificates, and all other environmental attributes and market products that are available or may become available from the distributed generation facility, on a per kilowatt-hour basis for the output of the project. Subject to the provisions of subsections (b) and (c) below, the electric distribution company shall not be required to enter into standard contracts in excess of the annual target for the applicable program year and shall not be required to enter into standard contracts in excess of any limit set by the board and approved by the commission for a given enrollment. However, the electric distribution company may voluntarily exceed an enrollment period limit as long as it does not exceed an annual target for the applicable program year.

(b) For small distributed generation projects, the electric distribution company shall select projects for standard contracts based on the lowest proposal prices received with any distributed generation project which meets the requirements of all applicable tariffs and regulations, and meets the criteria of a renewable energy class in effect, until the class target is met. Enrollment periods will be governed by a solicitation and enrollment process rules that shall be filed with the commission each October 15 by the electric distribution company, and approved by the commission within sixty (60) days of such filing.

(c) For large distributed generation projects, the electric distribution company shall select projects for standard contracts based on the lowest proposed prices received, but not to exceed the applicable standard contract ceiling price, provided, that the selected projects meet the requirements of all applicable tariffs and regulations and meet the criteria of a renewable energy class in effect until the class target is met. Except for 2011, no enrollment period shall seek to enroll more than one-third (1/3) of the annual goal for the distribution company for large distributed generation projects.

(d) If there are more projects than what is specified for a class target at the same price, the electric distribution company shall review the applications submitted and select first those projects that appear to be the furthest along in development and likely to be deployed in consultation with the office. Those projects that are likely to be deployed on the earliest timelines shall be selected. To the extent the electric distribution company is unable to make a clear distinction on this basis, the electric company shall report the results to the board and not enter into contracts with those projects that are tied on pricing. In such case, the board may take such action as it deems appropriate for the selection of projects, including seeking more information from the projects. Alternatively, the board may consider adjustments to the ceiling price and a rebid, or simply wait until the next enrollment.

(e) Should an electric distribution company determine that it has entered into sufficient standard contracts to achieve a program-year class target, it shall immediately report this to the board, the office of energy resources, and the commission, and cease entering into standard contracts for that renewable energy class for the remainder of the program year. An electric distribution company may exceed the renewable energy class target if the last standard contract entered into may cause the total purchased to exceed the target. The office and the electric distribution company shall enter into a memorandum of understanding regarding the sharing of the information and data related to the distributed generation program.

(f) The electric distribution company is authorized to enter into standard contracts up to the applicable ceiling price. As long as the terms of the standard contract are materially the same as the standard contract terms approved by the commission and the pricing is no higher than the applicable ceiling price, such contracts shall be deemed prudent and approved by the commission for purposes of recovering the costs in rates.

(g) A distributed generation project that also is being employed by a customer for net metering purposes may submit an application to sell the excess output from its distributed generation project. In such case, however, at the election of the self-generator all of the renewable energy certificates and environmental attributes pertaining to the energy consumed on site may be sold to the electric distribution company on a month-to-month basis outside of the terms of the standard contract. In such case, the portion of the renewable energy certificates that pertain to the energy consumed on site during the net metering billing period shall be priced at the average market price of renewable energy certificates, which may be determined by using the price of renewable energy certificates purchased or sold by the electric distribution company.

History of Section.
(P.L. 2011, ch. 129, § 1; P.L. 2011, ch. 143, § 1; P.L. 2013, ch. 167, § 2; P.L. 2013, ch. 202, § 2.)