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| 5 | 5 | | 2025 -- H 5485 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC001352 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S T A T E O F R H O D E I S L A N D |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2025 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO PUBLIC UTILITIES AND CARRIERS -- DUTIES OF UTILITIES AND |
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| 16 | 16 | | CARRIERS |
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| 17 | 17 | | Introduced By: Representative Lauren H. Carson |
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| 18 | 18 | | Date Introduced: February 13, 2025 |
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| 19 | 19 | | Referred To: House Corporations |
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| 20 | 20 | | (Office of Energy Resources) |
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| 21 | 21 | | |
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| 22 | 22 | | It is enacted by the General Assembly as follows: |
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| 23 | 23 | | SECTION 1. Section 39-2-1.2 of the General Laws in Chapter 39-2 entitled "Duties of 1 |
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| 24 | 24 | | Utilities and Carriers" is hereby amended to read as follows: 2 |
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| 25 | 25 | | 39-2-1.2. Utility base rate — Advertising, demand-side management, and renewables. 3 |
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| 26 | 26 | | (a) In addition to costs prohibited in § 39-1-27.4(b), no public utility distributing or 4 |
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| 27 | 27 | | providing heat, electricity, or water to or for the public shall include as part of its base rate any 5 |
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| 28 | 28 | | expenses for advertising, either direct or indirect, that promotes the use of its product or service, or 6 |
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| 29 | 29 | | is designed to promote the public image of the industry. No public utility may furnish support of 7 |
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| 30 | 30 | | any kind, direct or indirect, to any subsidiary, group, association, or individual for advertising and 8 |
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| 31 | 31 | | include the expense as part of its base rate. Nothing contained in this section shall be deemed as 9 |
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| 32 | 32 | | prohibiting the inclusion in the base rate of expenses incurred for advertising, informational or 10 |
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| 33 | 33 | | educational in nature, that is designed to promote public safety conservation of the public utility’s 11 |
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| 34 | 34 | | product or service. The public utilities commission shall promulgate such rules and regulations as 12 |
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| 35 | 35 | | are necessary to require public disclosure of all advertising expenses of any kind, direct or indirect, 13 |
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| 36 | 36 | | and to otherwise effectuate the provisions of this section. 14 |
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| 37 | 37 | | (b) Effective as of January 1, 2008, and for a period of twenty (20) years thereafter, each 15 |
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| 38 | 38 | | electric distribution company shall include a charge per kilowatt-hour delivered to fund demand-16 |
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| 39 | 39 | | side management programs. The 0.3 mills per kilowatt-hour delivered to fund renewable energy 17 |
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| 40 | 40 | | programs shall remain in effect until December 31, 2028 2033. The electric distribution company 18 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | LC001352 - Page 2 of 7 |
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| 44 | 44 | | shall establish and, after July 1, 2007, maintain, two (2) separate accounts, one for demand-side 1 |
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| 45 | 45 | | management programs (the “demand-side account”), which shall be funded by the electric demand-2 |
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| 46 | 46 | | side charge and administered and implemented by the distribution company, subject to the 3 |
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| 47 | 47 | | regulatory reviewing authority of the commission, and one for renewable energy programs, which 4 |
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| 48 | 48 | | shall be administered by the Rhode Island commerce corporation pursuant to § 42-64-13.2 and shall 5 |
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| 49 | 49 | | be held and disbursed by the distribution company as directed by the Rhode Island commerce 6 |
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| 50 | 50 | | corporation for the purposes of developing, promoting, and supporting renewable energy programs. 7 |
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| 51 | 51 | | During the time periods established in this subsection, the commission may, in its 8 |
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| 52 | 52 | | discretion, after notice and public hearing, increase the sums for demand-side management and 9 |
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| 53 | 53 | | renewable resources. In addition, the commission shall, after notice and public hearing, determine 10 |
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| 54 | 54 | | the appropriate charge for these programs. The office of energy resources, and/or the administrator 11 |
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| 55 | 55 | | of the renewable energy programs, may seek to secure for the state an equitable and reasonable 12 |
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| 56 | 56 | | portion of renewable energy credits or certificates created by private projects funded through those 13 |
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| 57 | 57 | | programs. As used in this section, “renewable energy resources” shall mean: (1) Power generation 14 |
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| 58 | 58 | | technologies, as defined in § 39-26-5, “eligible renewable energy resources,” including off-grid 15 |
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| 59 | 59 | | and on-grid generating technologies located in Rhode Island, as a priority; (2) Research and 16 |
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| 60 | 60 | | development activities in Rhode Island pertaining to eligible renewable energy resources and to 17 |
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| 61 | 61 | | other renewable energy technologies for electrical generation; or (3) Projects and activities directly 18 |
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| 62 | 62 | | related to implementing eligible renewable energy resources projects in Rhode Island. 19 |
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| 63 | 63 | | Technologies for converting solar energy for space heating or generating domestic hot water may 20 |
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| 64 | 64 | | also be funded through the renewable energy programs. Fuel cells may be considered an energy 21 |
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| 65 | 65 | | efficiency technology to be included in demand-side management programs. Special rates for low-22 |
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| 66 | 66 | | income customers in effect as of August 7, 1996, shall be continued, and the costs of all of these 23 |
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| 67 | 67 | | discounts shall be included in the distribution rates charged to all other customers. Nothing in this 24 |
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| 68 | 68 | | section shall be construed as prohibiting an electric distribution company from offering any special 25 |
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| 69 | 69 | | rates or programs for low-income customers which are not in effect as of August 7, 1996, subject 26 |
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| 70 | 70 | | to the approval by the commission. 27 |
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| 71 | 71 | | (1) The renewable energy investment programs shall be administered pursuant to rules 28 |
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| 72 | 72 | | established by the Rhode Island commerce corporation. Said rules shall provide transparent criteria 29 |
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| 73 | 73 | | to rank qualified renewable energy projects, giving consideration to: 30 |
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| 74 | 74 | | (i) The feasibility of project completion; 31 |
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| 75 | 75 | | (ii) The anticipated amount of renewable energy the project will produce; 32 |
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| 76 | 76 | | (iii) The potential of the project to mitigate energy costs over the life of the project; and 33 |
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| 77 | 77 | | (iv) The estimated cost per kilowatt-hour (KWh) of the energy produced from the project. 34 |
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| 78 | 78 | | |
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| 79 | 79 | | |
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| 80 | 80 | | LC001352 - Page 3 of 7 |
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| 81 | 81 | | (c) [Deleted by P.L. 2012, ch. 241, art. 4, § 14.] 1 |
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| 82 | 82 | | (d) The chief executive officer of the commerce corporation is authorized and may enter 2 |
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| 83 | 83 | | into a contract with a contractor for the cost-effective administration of the renewable energy 3 |
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| 84 | 84 | | programs funded by this section. A competitive bid and contract award for administration of the 4 |
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| 85 | 85 | | renewable energy programs may occur every three (3) years and shall include, as a condition, that 5 |
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| 86 | 86 | | after July 1, 2008, the account for the renewable energy programs shall be maintained and 6 |
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| 87 | 87 | | administered by the commerce corporation as provided for in subsection (b) of this section. 7 |
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| 88 | 88 | | (e) Effective January 1, 2007, and for a period of twenty-one (21) years thereafter, each 8 |
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| 89 | 89 | | gas distribution company shall include, with the approval of the commission, a charge per deca 9 |
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| 90 | 90 | | therm delivered to fund demand-side management programs (the “gas demand-side charge”), 10 |
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| 91 | 91 | | including, but not limited to, programs for cost-effective energy efficiency, energy conservation, 11 |
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| 92 | 92 | | combined heat and power systems, and weatherization services for low-income households. 12 |
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| 93 | 93 | | (f) Each gas company shall establish a separate account for demand-side management 13 |
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| 94 | 94 | | programs (the “gas demand-side account”) that shall be funded by the gas demand-side charge and 14 |
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| 95 | 95 | | administered and implemented by the distribution company, subject to the regulatory reviewing 15 |
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| 96 | 96 | | authority of the commission. The commission may establish administrative mechanisms and 16 |
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| 97 | 97 | | procedures that are similar to those for electric demand-side management programs administered 17 |
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| 98 | 98 | | under the jurisdiction of the commission and that are designed to achieve cost-effectiveness and 18 |
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| 99 | 99 | | high, life-time savings of efficiency measures supported by the program. 19 |
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| 100 | 100 | | (g) The commission may, if reasonable and feasible, except from this demand-side 20 |
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| 101 | 101 | | management charge: 21 |
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| 102 | 102 | | (1) Gas used for distribution generation; and 22 |
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| 103 | 103 | | (2) Gas used for the manufacturing processes, where the customer has established a self-23 |
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| 104 | 104 | | directed program to invest in and achieve best-effective energy efficiency in accordance with a plan 24 |
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| 105 | 105 | | approved by the commission and subject to periodic review and approval by the commission, which 25 |
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| 106 | 106 | | plan shall require annual reporting of the amount invested and the return on investments in terms 26 |
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| 107 | 107 | | of gas savings. 27 |
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| 108 | 108 | | (h) The commission may provide for the coordinated and/or integrated administration of 28 |
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| 109 | 109 | | electric and gas demand-side management programs in order to enhance the effectiveness of the 29 |
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| 110 | 110 | | programs. Such coordinated and/or integrated administration may after March 1, 2009, upon the 30 |
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| 111 | 111 | | recommendation of the office of energy resources, be through one or more third-party entities 31 |
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| 112 | 112 | | designated by the commission pursuant to a competitive selection process. 32 |
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| 113 | 113 | | (i) Effective January 1, 2007, the commission shall allocate, from demand-side 33 |
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| 114 | 114 | | management gas and electric funds authorized pursuant to this section, an amount not to exceed 34 |
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| 115 | 115 | | |
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| 116 | 116 | | |
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| 117 | 117 | | LC001352 - Page 4 of 7 |
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| 118 | 118 | | three percent (3%) of such funds on an annual basis for the retention of expert consultants, and 1 |
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| 119 | 119 | | reasonable administration costs of the energy efficiency and resource management council 2 |
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| 120 | 120 | | associated with planning, management, and evaluation of energy-efficiency programs, renewable 3 |
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| 121 | 121 | | energy programs, system reliability, least-cost procurement, and with regulatory proceedings, 4 |
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| 122 | 122 | | contested cases, and other actions pertaining to the purposes, powers, and duties of the council, 5 |
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| 123 | 123 | | which allocation may by mutual agreement, be used in coordination with the office of energy 6 |
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| 124 | 124 | | resources to support such activities. 7 |
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| 125 | 125 | | (j) Effective January 1, 2016, the commission shall annually allocate from the 8 |
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| 126 | 126 | | administrative funding amount allocated in subsection (i) from the demand-side management 9 |
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| 127 | 127 | | program as described in subsection (i) as follows: (1) for the energy efficiency and resource 10 |
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| 128 | 128 | | management council, no more than forty percent (40%) for the purposes identified in subsection (i) 11 |
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| 129 | 129 | | and (2) sixty percent (60%) of three percent (3%) from the demand-side management gas and 12 |
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| 130 | 130 | | electric funds annually to the office of energy resources for activities associated with planning, 13 |
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| 131 | 131 | | management, and evaluation of energy-efficiency programs, renewable energy programs, system 14 |
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| 132 | 132 | | reliability, least-cost procurement, and with regulatory proceedings, contested cases, and other 15 |
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| 133 | 133 | | actions pertaining to the purposes, powers, and duties of the office of energy resources and shall 16 |
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| 134 | 134 | | have exclusive authority to direct the use of the office administrative and programmatic funds. 17 |
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| 135 | 135 | | (k) On April 15, of each year, the office and the council shall submit to the governor, the 18 |
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| 136 | 136 | | president of the senate, and the speaker of the house of representatives, separate financial and 19 |
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| 137 | 137 | | performance reports regarding the demand-side management programs, including the specific level 20 |
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| 138 | 138 | | of funds that were contributed by the residential, municipal, and commercial and industrial sectors 21 |
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| 139 | 139 | | to the overall programs; the businesses, vendors, and institutions that received funding from 22 |
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| 140 | 140 | | demand-side management gas and electric funds used for the purposes in this section; and the 23 |
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| 141 | 141 | | businesses, vendors, and institutions that received the administrative funds for the purposes in 24 |
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| 142 | 142 | | subsections (i) and (j). These reports shall be posted electronically on the websites of the office of 25 |
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| 143 | 143 | | energy resources and the energy efficiency and resources management council. 26 |
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| 144 | 144 | | (l) On or after August 1, 2015, at the request of the Rhode Island infrastructure bank, each 27 |
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| 145 | 145 | | electric distribution company, except for the Pascoag Utility District and Block Island Power 28 |
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| 146 | 146 | | Company, shall remit two percent (2%) of the amount of the 2014 electric demand-side charge 29 |
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| 147 | 147 | | collections to the Rhode Island infrastructure bank. 30 |
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| 148 | 148 | | (m) On or after August 1, 2015, at the request of the Rhode Island infrastructure bank, each 31 |
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| 149 | 149 | | gas distribution company shall remit two percent (2%) of the amount of the 2014 gas demand-side 32 |
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| 150 | 150 | | charge collections to the Rhode Island infrastructure bank. 33 |
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| 151 | 151 | | (n) Effective January 1, 2022, the commission shall allocate, from demand-side 34 |
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| 152 | 152 | | |
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| 153 | 153 | | |
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| 154 | 154 | | LC001352 - Page 5 of 7 |
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| 155 | 155 | | management gas and electric funds authorized pursuant to this section, five million dollars 1 |
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| 156 | 156 | | ($5,000,000) of such funds on an annual basis to the Rhode Island infrastructure bank. Gas and 2 |
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| 157 | 157 | | electric demand-side funds transferred to the Rhode Island infrastructure bank pursuant to this 3 |
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| 158 | 158 | | section shall be eligible to be used in any energy efficiency, renewable energy, clean transportation, 4 |
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| 159 | 159 | | clean heating, energy storage, or demand-side management project financing program administered 5 |
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| 160 | 160 | | by the Rhode Island infrastructure bank notwithstanding any other restrictions on the use of such 6 |
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| 161 | 161 | | collections set forth in this chapter. The infrastructure bank shall report annually to the commission 7 |
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| 162 | 162 | | within ninety (90) days of the end of each calendar year how collections transferred under this 8 |
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| 163 | 163 | | section were utilized. 9 |
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| 164 | 164 | | (o) The Rhode Island office of energy resources, in coordination with the energy efficiency 10 |
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| 165 | 165 | | and resource management council, and following consultation with the public utilities commission 11 |
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| 166 | 166 | | and division of public utilities and carriers, shall issue a request for proposals for the cost-effective 12 |
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| 167 | 167 | | administration and implementation of statewide energy efficiency programs funded by this section 13 |
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| 168 | 168 | | no later than September 30, 2023. The draft request for proposals shall be reviewed through at least 14 |
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| 169 | 169 | | one technical session at the public utilities commission prior to issuance. Public utilities 15 |
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| 170 | 170 | | commission approval shall not be required. The Rhode Island office of energy resources, in 16 |
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| 171 | 171 | | coordination with the energy efficiency and resource management council, shall evaluate proposals 17 |
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| 172 | 172 | | and determine whether energy efficiency administration and implementation by the electric and gas 18 |
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| 173 | 173 | | distribution company or a third party is likely to achieve the most net benefits for electric and gas 19 |
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| 174 | 174 | | customers in Rhode Island. After January 1, 2025, the office of energy resources may, periodically, 20 |
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| 175 | 175 | | and at its discretion, issue additional requests for proposals for the administration and 21 |
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| 176 | 176 | | implementation of statewide energy efficiency programs funded through this chapter of an electric 22 |
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| 177 | 177 | | distribution company as defined in § 39-1-2(a)(12) or gas distribution company included as a 23 |
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| 178 | 178 | | public utility in § 39-1-2(a)(20) that has greater than one hundred thousand (100,000) customers. 24 |
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| 179 | 179 | | (1) Nothing in this chapter shall prohibit the electric and/or gas distribution company from 25 |
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| 180 | 180 | | submitting a proposal to administer and implement the state energy efficiency programs. 26 |
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| 181 | 181 | | (2) If the office of energy resources, in coordination with the energy efficiency and resource 27 |
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| 182 | 182 | | management council, determines that the use of a third-party administrator is likely to achieve the 28 |
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| 183 | 183 | | most net benefits for electric and gas customers in Rhode Island, it shall file its recommendation 29 |
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| 184 | 184 | | with the public utilities commission, which shall docket and rule on the matter pursuant to its 30 |
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| 185 | 185 | | general statutory authorization. 31 |
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| 186 | 186 | | (3) If the commission determines that the recommended third-party administrator is in the 32 |
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| 187 | 187 | | interest of Rhode Island utility customers, it shall provide for the full cost recovery for the third-33 |
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| 188 | 188 | | party administrator consistent with the terms of the approved contract, and which shall reflect the 34 |
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| 189 | 189 | | |
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| 190 | 190 | | |
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| 191 | 191 | | LC001352 - Page 6 of 7 |
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| 192 | 192 | | overall annual budget approved by the commission. The third-party administrator shall be subject 1 |
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| 193 | 193 | | to all the requirements set forth for the electric and gas distribution company per § 39-1-27.7. 2 |
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| 194 | 194 | | (4) If the commission determines that a third-party administrator will administer the state 3 |
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| 195 | 195 | | energy efficiency programs on or after June 1, 2024, the commission shall direct the gas and electric 4 |
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| 196 | 196 | | distribution company to collect and transfer the gas and electric energy efficiency funds to the third-5 |
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| 197 | 197 | | party administrator for the annual state energy efficiency program beginning with the program year 6 |
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| 198 | 198 | | and thereafter for the remaining program years. The gas and electric distribution company shall 7 |
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| 199 | 199 | | transfer the annual administrative funds to the office of energy resources and energy efficiency and 8 |
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| 200 | 200 | | resource management council. 9 |
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| 201 | 201 | | (5) If a third-party administrator implements the annual energy efficiency programs then 10 |
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| 202 | 202 | | they shall be required to develop and design the annual state energy efficiency program with the 11 |
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| 203 | 203 | | office of energy resources and energy efficiency and resource management council, including a 12 |
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| 204 | 204 | | vote by the energy efficiency and resource management council prior to the third-party 13 |
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| 205 | 205 | | administrator filing the annual program plan to the public utilities commission for review and a 14 |
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| 206 | 206 | | decision. 15 |
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| 207 | 207 | | (6) The third-party administrator shall file the annual state energy efficiency program plan 16 |
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| 208 | 208 | | to the public utilities commission for review and approval no later than September 30, 2024, and 17 |
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| 209 | 209 | | annually thereafter on such date. 18 |
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| 210 | 210 | | (7) The third-party administrator shall provide all information requested by the office of 19 |
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| 211 | 211 | | energy resources, energy efficiency and resource management council, division of public utilities 20 |
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| 212 | 212 | | and carriers, and the public utilities commission, including responses to data requests, which are 21 |
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| 213 | 213 | | necessary for the agencies to carry out their respective oversight roles, and shall be accountable to 22 |
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| 214 | 214 | | the same standards as the utility with administering and implementing energy efficiency, system 23 |
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| 215 | 215 | | reliability, and least-cost procurement standards and goals in accordance with § 39-1-27.7 and this 24 |
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| 216 | 216 | | section. 25 |
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| 217 | 217 | | (8) If the office does not recommend advancement of a third-party administrator, the 26 |
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| 218 | 218 | | electric and gas distribution company shall continue to administer statewide energy efficiency 27 |
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| 219 | 219 | | programs. 28 |
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| 220 | 220 | | SECTION 2. This act shall take effect upon passage. 29 |
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| 221 | 221 | | ======== |
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| 222 | 222 | | LC001352 |
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| 223 | 223 | | ======== |
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| 224 | 224 | | |
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| 225 | 225 | | |
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| 226 | 226 | | LC001352 - Page 7 of 7 |
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| 227 | 227 | | EXPLANATION |
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| 228 | 228 | | BY THE LEGISLATIVE COUNCIL |
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| 229 | 229 | | OF |
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| 230 | 230 | | A N A C T |
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| 231 | 231 | | RELATING TO PUBLIC UTILITIES AND CARRIERS -- DUTIES OF UTILITIES AND |
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| 232 | 232 | | CARRIERS |
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| 233 | 233 | | *** |
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| 234 | 234 | | This act would provide that the renewable energy fund remains in existence until December 1 |
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| 235 | 235 | | 31, 2033, to align with the mandate that one hundred percent (100%) of Rhode Island's electricity 2 |
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| 236 | 236 | | demand is from renewable energy and also to comply with federal grant requirements. 3 |
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| 237 | 237 | | This act would take effect upon passage. 4 |
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| 238 | 238 | | ======== |
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| 239 | 239 | | LC001352 |
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| 240 | 240 | | ======== |
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