Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0465 Compare Versions

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99 S TATE OF RHODE IS LAND
1010 IN GENERAL ASSEMBLY
1111 JANUARY SESSION, A.D. 2023
1212 ____________
1313
1414 A N A C T
1515 RELATING TO PUBLIC UTILITIES AND CARRIES -- MICROGRIDS DOCKET
1616 Introduced By: Senators Zurier, Euer, Lauria, and Sosnowski
1717 Date Introduced: March 07, 2023
1818 Referred To: Senate Commerce
1919
2020
2121 It is enacted by the General Assembly as follows:
2222 SECTION 1. The General Assembly hereby finds: 1
2323 (1) Rhode Island residents and businesses are vulnerable to disruptions to its electrical 2
2424 system caused by extreme weather and other system constraints. In response to these disruptions, 3
2525 multiple United States jurisdictions have sought to establish microgrids, or smaller grids with local 4
2626 control capability that can disconnect from the larger electricity grid and operate autonomously. 5
2727 (2) Increased use of renewable energy, advanced distributed energy resources, and energy 6
2828 efficiency in Rhode Island provides significant economic, health, environmental, and workforce 7
2929 benefits to the State. Microgrids have the ability to facilitate the achievement of Rhode Island’s 8
3030 goals as established in the Act on Climate by enabling integration of more renewable energy and 9
3131 other distributed energy resources. Microgrids can also provide valuable services to the public 10
3232 utility’s electrical grid, including energy storage, demand response, and other ancillary services 11
3333 such as load shifting, frequency response, and voltage control. 12
3434 (3) Microgrids are able to isolate themselves from the larger electricity grid in times of 13
3535 emergency. By running autonomously, microgrids can provide a building or set of buildings with 14
3636 emergency power for critical medical equipment, refrigeration, and charging communications 15
3737 devices. Microgrids can also provide backup power for hospitals and emergency centers. The use 16
3838 of microgrids would build energy resiliency into our communities, thereby increasing public safety 17
3939 and security. 18
4040 (4) Rhode Island has set some of the most ambitious renewable energy goals in the nation, 19
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4444 and few microgrids have been developed, as they have been hindered by a number of factors, 1
4545 including interconnection barriers and a lack of standard terms regarding the value of services 2
4646 exchanged between a microgrid operator and the utility. 3
4747 (5) Without standard terms regarding interconnection and the value of microgrid services, 4
4848 businesses and residents developing microgrids may choose to leave the utility grid altogether, 5
4949 thereby weakening the overall system and increasing costs to other utility customers. 6
5050 SECTION 2. Title 39 of the General Laws entitled "PUBLIC UTILITIES AND 7
5151 CARRIERS" is hereby amended by adding thereto the following chapter: 8
5252 CHAPTER 33 9
5353 MICROGRIDS DOCKET 10
5454 39-33-1. Definitions. 11
5555 As used in this chapter: 12
5656 (1) “Commission” means the public utilities commission. 13
5757 (2) “Microgrid project” means a group of interconnected loads and distributed energy 14
5858 resources within clearly defined electrical boundaries that acts as a single controllable entity with 15
5959 respect to the utility’s electrical grid and can connect to a public utility’s electrical grid to operate 16
6060 in grid-connected mode and can disconnect from the grid to operate in autonomous mode, and that: 17
6161 (i) Is subject to a microgrid services tariff; and 18
6262 (ii) Generates or produces energy. 19
6363 (3) “Microgrid services tariff” means a tariff approved by the commission that: 20
6464 (i) Is designed to provide fair compensation for electricity, electric grid services, and other 21
6565 benefits provided to, or by, the electric utility, the person or entity operating the microgrid, and 22
6666 other ratepayers; 23
6767 (ii) To the extent possible, standardizes and streamlines the related interconnection 24
6868 processes for microgrid projects; and 25
6969 (iii) Does not apply to a municipal utility as described in this title. 26
7070 39-33-2. Microgrids docket. 27
7171 (a) By October 1, 2023, the public utilities commission shall open a proceeding to establish 28
7272 a microgrid services tariff. 29
7373 (b) Any person or entity may own or operate an eligible microgrid project or projects; 30
7474 provided that, the person or entity complies with all applicable statutes, rules, tariffs, and orders 31
7575 governing the ownership and interconnection of the project or projects. 32
7676 (c) In establishing a microgrid services tariff, the commission shall consider the actions 33
7777 taken to establish and deploy microgrids in other jurisdictions, including, but not limited to, Puerto 34
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8181 Rico, California, and Hawaii. 1
8282 (d) The general assembly respectfully requests that the commission approve a microgrid 2
8383 tariff on or before April 1, 2025. If the commission finds that this deadline is not feasible, it shall 3
8484 provide a detailed report to the general assembly by January 1, 2025 to describe why the original 4
8585 deadline cannot be met, a new deadline, and what resources are necessary to complete the tariff. 5
8686 SECTION 3. This act shall take effect upon passage. 6
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9393 EXPLANATION
9494 BY THE LEGISLATIVE COUNCIL
9595 OF
9696 A N A C T
9797 RELATING TO PUBLIC UTILITIES AND CARRIES -- MICROGRIDS DOCKET
9898 ***
9999 This act would, by October 1, 2023, mandate the public utilities commission to establish a 1
100100 microgrid services tariff on a microgrid project. A microgrid project would mean a group of 2
101101 interconnected loads and distributed energy resources within clearly defined electrical boundaries 3
102102 that acts as a single controllable entity with respect to the utility’s electrical grid and can connect 4
103103 to a public utility’s electrical grid to operate in grid-connected mode and can disconnect from the 5
104104 grid to operate in autonomous mode. 6
105105 This act would take effect upon passage. 7
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