Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0172 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- S 0172
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7	7	LC001925
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO PUBLIC UTILITIES AND CARRIERS -- DUTIES OF UTILITIES AND
16	16	CARRIERS
17	17	Introduced By: Senators Rogers, DeLuca, and Paolino
18	18	Date Introduced: February 16, 2023
19	19	Referred To: Senate Commerce
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22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Section 39-2-1.2 of the General Laws in Chapter 39-2 entitled "Duties of 1
24	24	Utilities and Carriers" is hereby amended to read as follows: 2
25	25	39-2-1.2. Utility base rate — Advertising, demand-side management, and renewables. 3
26	26	(a) In addition to costs prohibited in § 39-1-27.4(b), no public utility distributing or 4
27	27	providing heat, electricity, or water to or for the public shall include as part of its base rate any 5
28	28	expenses for advertising, either direct or indirect, that promotes the use of its product or service, or 6
29	29	is designed to promote the public image of the industry. No public utility may furnish support of 7
30	30	any kind, direct or indirect, to any subsidiary, group, association, or individual for advertising and 8
31	31	include the expense as part of its base rate. Nothing contained in this section shall be deemed as 9
32	32	prohibiting the inclusion in the base rate of expenses incurred for advertising, informational or 10
33	33	educational in nature, that is designed to promote public safety conservation of the public utility’s 11
34	34	product or service. The public utilities commission shall promulgate such rules and regulations as 12
35	35	are necessary to require public disclosure of all advertising expenses of any kind, direct or indirect, 13
36	36	and to otherwise effectuate the provisions of this section. 14
37	37	(b) Effective as of January 1, 2008, and for a period of twenty (20) years thereafter, each 15
38	38	electric distribution company shall include a charge per kilowatt-hour delivered to fund demand-16
39	39	side management programs. The 0.3 mills per kilowatt-hour delivered to fund renewable energy 17
40	40	programs shall remain in effect until December 31, 2028. The electric distribution company shall 18
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44	44	establish and, after July 1, 2007, maintain, two (2) separate accounts, one for demand-side 1
45	45	management programs (the “demand-side account”), which shall be funded by the electric demand-2
46	46	side charge and administered and implemented by the distribution company, subject to the 3
47	47	regulatory reviewing authority of the commission, and one for renewable energy programs, which 4
48	48	shall be administered by the Rhode Island commerce corporation pursuant to § 42-64-13.2 and shall 5
49	49	be held and disbursed by the distribution company as directed by the Rhode Island commerce 6
50	50	corporation for the purposes of developing, promoting, and supporting renewable energy programs. 7
51	51	During the time periods established in this subsection, the commission may, in its 8
52	52	discretion, after notice and public hearing, increase the sums for demand-side management and 9
53	53	renewable resources. In addition, the commission shall, after notice and public hearing, determine 10
54	54	the appropriate charge for these programs. The office of energy resources, and/or the administrator 11
55	55	of the renewable energy programs, may seek to secure for the state an equitable and reasonable 12
56	56	portion of renewable energy credits or certificates created by private projects funded through those 13
57	57	programs. As used in this section, “renewable energy resources” shall mean: (1) Power generation 14
58	58	technologies, as defined in § 39-26-5, “eligible renewable energy resources,” including off-grid 15
59	59	and on-grid generating technologies located in Rhode Island, as a priority; (2) Research and 16
60	60	development activities in Rhode Island pertaining to eligible renewable energy resources and to 17
61	61	other renewable energy technologies for electrical generation; or (3) Projects and activities directly 18
62	62	related to implementing eligible renewable energy resources projects in Rhode Island. 19
63	63	Technologies for converting solar energy for space heating or generating domestic hot water may 20
64	64	also be funded through the renewable energy programs. Fuel cells may be considered an energy 21
65	65	efficiency technology to be included in demand-side management programs. Special rates for low-22
66	66	income customers in effect as of August 7, 1996, shall be continued, and the costs of all of these 23
67	67	discounts shall be included in the distribution rates charged to all other customers. Nothing in this 24
68	68	section shall be construed as prohibiting an electric distribution company from offering any special 25
69	69	rates or programs for low-income customers which are not in effect as of August 7, 1996, subject 26
70	70	to the approval by the commission. 27
71	71	(1) The renewable energy investment programs shall be administered pursuant to rules 28
72	72	established by the Rhode Island commerce corporation. Said rules shall provide transparent criteria 29
73	73	to rank qualified renewable energy projects, giving consideration to: 30
74	74	(i) The feasibility of project completion; 31
75	75	(ii) The anticipated amount of renewable energy the project will produce; 32
76	76	(iii) The potential of the project to mitigate energy costs over the life of the project; and 33
77	77	(iv) The estimated cost per kilowatt-hour (KWh) of the energy produced from the project. 34
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81	81	(c) [Deleted by P.L. 2012, ch. 241, art. 4, § 14.] 1
82	82	(d) The chief executive officer of the commerce corporation is authorized and may enter 2
83	83	into a contract with a contractor for the cost-effective administration of the renewable energy 3
84	84	programs funded by this section. A competitive bid and contract award for administration of the 4
85	85	renewable energy programs may occur every three (3) years and shall include, as a condition, that 5
86	86	after July 1, 2008, the account for the renewable energy programs shall be maintained and 6
87	87	administered by the commerce corporation as provided for in subsection (b) of this section. 7
88	88	(e) Effective January 1, 2007, and for a period of twenty-one (21) years thereafter, each 8
89	89	gas distribution company shall include, with the approval of the commission, a charge per deca 9
90	90	therm delivered to fund demand-side management programs (the “gas demand-side charge”), 10
91	91	including, but not limited to, programs for cost-effective energy efficiency, energy conservation, 11
92	92	combined heat and power systems, and weatherization services for low-income households. 12
93	93	(f) Each gas company shall establish a separate account for demand-side management 13
94	94	programs (the “gas demand-side account”) that shall be funded by the gas demand-side charge and 14
95	95	administered and implemented by the distribution company, subject to the regulatory reviewing 15
96	96	authority of the commission. The commission may establish administrative mechanisms and 16
97	97	procedures that are similar to those for electric demand-side management programs administered 17
98	98	under the jurisdiction of the commission and that are designed to achieve cost-effectiveness and 18
99	99	high, life-time savings of efficiency measures supported by the program. 19
100	100	(g) The commission may, if reasonable and feasible, except from this demand-side 20
101	101	management charge: 21
102	102	(1) Gas used for distribution generation; and 22
103	103	(2) Gas used for the manufacturing processes, where the customer has established a self-23
104	104	directed program to invest in and achieve best-effective energy efficiency in accordance with a plan 24
105	105	approved by the commission and subject to periodic review and approval by the commission, which 25
106	106	plan shall require annual reporting of the amount invested and the return on investments in terms 26
107	107	of gas savings. 27
108	108	(h) The commission may provide for the coordinated and/or integrated administration of 28
109	109	electric and gas demand-side management programs in order to enhance the effectiveness of the 29
110	110	programs. Such coordinated and/or integrated administration may after March 1, 2009, upon the 30
111	111	recommendation of the office of energy resources, be through one or more third-party entities 31
112	112	designated by the commission pursuant to a competitive selection process. 32
113	113	(i) Effective January 1, 2007, the commission shall allocate, from demand-side 33
114	114	management gas and electric funds authorized pursuant to this section, an amount not to exceed 34
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118	118	three percent (3%) of such funds on an annual basis for the retention of expert consultants, and 1
119	119	reasonable administration costs of the energy efficiency and resources management council 2
120	120	associated with planning, management, and evaluation of energy-efficiency programs, renewable 3
121	121	energy programs, system reliability least-cost procurement, and with regulatory proceedings, 4
122	122	contested cases, and other actions pertaining to the purposes, powers, and duties of the council, 5
123	123	which allocation may by mutual agreement, be used in coordination with the office of energy 6
124	124	resources to support such activities. 7
125	125	(j) Effective January 1, 2016, the commission shall annually allocate from the 8
126	126	administrative funding amount allocated in subsection (i) from the demand-side management 9
127	127	program as described in subsection (i) as follows: forty percent (40%) for the purposes identified 10
128	128	in subsection (i) and sixty percent (60%) annually to the office of energy resources for activities 11
129	129	associated with planning, management, and evaluation of energy-efficiency programs, renewable 12
130	130	energy programs, system reliability, least-cost procurement, and with regulatory proceedings, 13
131	131	contested cases, and other actions pertaining to the purposes, powers, and duties of the office of 14
132	132	energy resources. 15
133	133	(k) On April 15, of each year, the office and the council shall submit to the governor, the 16
134	134	president of the senate, and the speaker of the house of representatives, separate financial and 17
135	135	performance reports regarding the demand-side management programs, including the specific level 18
136	136	of funds that were contributed by the residential, municipal, and commercial and industrial sectors 19
137	137	to the overall programs; the businesses, vendors, and institutions that received funding from 20
138	138	demand-side management gas and electric funds used for the purposes in this section; and the 21
139	139	businesses, vendors, and institutions that received the administrative funds for the purposes in 22
140	140	subsections (i) and (j). These reports shall be posted electronically on the websites of the office of 23
141	141	energy resources and the energy efficiency and resources management council. 24
142	142	(l) On or after August 1, 2015, at the request of the Rhode Island infrastructure bank, each 25
143	143	electric distribution company, except for the Pascoag Utility District and Block Island Power 26
144	144	Company, shall remit two percent (2%) of the amount of the 2014 electric demand-side charge 27
145	145	collections to the Rhode Island infrastructure bank. 28
146	146	(m) On or after August 1, 2015, at the request of the Rhode Island infrastructure bank, each 29
147	147	gas distribution company shall remit two percent (2%) of the amount of the 2014 gas demand-side 30
148	148	charge collections to the Rhode Island infrastructure bank. 31
149	149	(n) Effective January 1, 2022, the commission shall allocate, from demand-side 32
150	150	management gas and electric funds authorized pursuant to this section, five million dollars 33
151	151	($5,000,000) of such funds on an annual basis to the Rhode Island infrastructure bank. Gas and 34
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155	155	electric demand-side funds transferred to the Rhode Island infrastructure bank pursuant to this 1
156	156	section shall be eligible to be used in any energy efficiency, renewable energy, or demand-side 2
157	157	management project financing program administered by the Rhode Island infrastructure bank 3
158	158	notwithstanding any other restrictions on the use of such collections set forth in this chapter. The 4
159	159	infrastructure bank shall report annually to the commission within ninety (90) days of the end of 5
160	160	each calendar year how collections transferred under this section were utilized. 6
161	161	(o) Effective July 1, 2023, the commission may defer or suspend any and all fees or charges 7
162	162	collected for demand-side management or renewables. The commission shall notify the governor, 8
163	163	speaker of the house and the senate president of the commission's final determination to suspend 9
164	164	or defer any of the fees or charges under this section and the anticipated cost and programmatic 10
165	165	impact. A suspension or deferral is only effective for the rate period approved by the commission 11
166	166	and expires on the date the approved rate period ends. 12
167	167	SECTION 2. This act shall take effect upon passage. 13
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174	174	EXPLANATION
175	175	BY THE LEGISLATIVE COUNCIL
176	176	OF
177	177	A N A C T
178	178	RELATING TO PUBLIC UTILITIES AND CARRIERS -- DUTIES OF UTILITIES AND
179	179	CARRIERS
180	180	***
181	181	This act would allow the commission to defer or suspend any fees or charges collected for 1
182	182	demand-side management or renewables on or after July 1, 2023. The commission would notify 2
183	183	the governor, speaker of the house, and the senate president of the commission's decision to suspend 3
184	184	any fees or charges under this section with the suspended or deferred fees or charges to expire on 4
185	185	the date the approved rate period ends. 5
186	186	This act would take effect upon passage. 6
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