2025 -- H 5819
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LC002062
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2025
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A N A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS -- NET METERING
Introduced By: Representatives Lima, J. Brien, Phillips, Casey, and Costantino
Date Introduced: February 28, 2025
Referred To: House Corporations
It is enacted by the General Assembly as follows:
SECTION 1. Section 39-26.4-2 of the General Laws in Chapter 39-26.4 entitled "Net 1
Metering" is hereby amended to read as follows: 2
39-26.4-2. Definitions. 3
Terms not defined in this section herein shall have the same meaning as contained in 4
chapter 26 of this title. When used in this chapter: 5
(1) “Community remote net-metering system” means a facility generating electricity using 6
an eligible net-metering resource that allocates net-metering credits to a minimum of one account 7
for a system associated with low- or moderate-income housing eligible credit recipients, or three 8
(3) eligible credit-recipient customer accounts, provided that no more than fifty percent (50%) of 9
the credits produced by the system are allocated to one eligible credit recipient, and provided further 10
at least fifty percent (50%) of the credits produced by the system are allocated to the remaining 11
eligible credit recipients in an amount not to exceed that which is produced annually by twenty-12
five kilowatt (25 KW) AC capacity. The community remote net-metering system may transfer 13
credits to eligible credit recipients in an amount that is equal to or less than the sum of the usage of 14
the eligible credit recipient accounts measured by the three-year (3) average annual consumption 15
of energy over the previous three (3) years. A projected annual consumption of energy may be used 16
until the actual three-year (3) average annual consumption of energy over the previous three (3) 17
years at the eligible credit recipient accounts becomes available for use in determining eligibility 18
of the generating system. The community remote net-metering system may be owned by the same 19
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entity that is the customer of record on the net-metered account or may be owned by a third party. 1
(2) “Core forest” refers to unfragmented forest blocks of single or multiple parcels totaling 2
two hundred fifty (250) acres or greater unbroken by development and at least twenty-five (25) 3
yards from mapped roads, with eligibility questions to be resolved by the director of the department 4
of environmental management. Such determination shall constitute a contested case as defined in 5
§ 42-35-1. 6
(3) “Electric distribution company” shall have the same meaning as § 39-1-2, but shall not 7
include Block Island Power Company or Pascoag Utility District, each of whom shall be required 8
to offer net metering to customers through a tariff approved by the public utilities commission after 9
a public hearing. Any tariff or policy on file with the public utilities commission on the date of 10
passage of this chapter shall remain in effect until the commission approves a new tariff. 11
(4) “Eligible credit recipient” means one of the following eligible recipients in the electric 12
distribution company’s service territory whose electric service account or accounts may receive 13
net-metering credits from a community remote net-metering system. Eligible credit recipients 14
include the following definitions: 15
(i) Residential accounts in good standing. 16
(ii) “Low- or moderate-income housing eligible credit recipient” means an electric service 17
account or accounts in good standing associated with any housing development or developments 18
owned or operated by a public agency, nonprofit organization, limited-equity housing cooperative, 19
or private developer that receives assistance under any federal, state, or municipal government 20
program to assist the construction or rehabilitation of housing affordable to low- or moderate-21
income households, as defined in the applicable federal or state statute, or local ordinance, 22
encumbered by a deed restriction or other covenant recorded in the land records of the municipality 23
in which the housing is located, that: 24
(A) Restricts occupancy of no less than fifty percent (50%) of the housing to households 25
with a gross, annual income that does not exceed eighty percent (80%) of the area median income 26
as defined annually by the United States Department of Housing and Urban Development (HUD); 27
(B) Restricts the monthly rent, including a utility allowance, that may be charged to 28
residents, to an amount that does not exceed thirty percent (30%) of the gross, monthly income of 29
a household earning eighty percent (80%) of the area median income as defined annually by HUD; 30
(C) Has an original term of not less than thirty (30) years from initial occupancy. 31
Electric service account or accounts in good standing associated with housing 32
developments that are under common ownership or control may be considered a single low- or 33
moderate-income housing eligible credit recipient for purposes of this section. The value of the 34
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credits shall be used to provide benefits to tenants. 1
(iii) “Educational institutions” means public and private schools at the primary, secondary, 2
and postsecondary levels. 3
(iv) “Commercial or industrial customers” means any nonresidential customer of the 4
electric distribution company. 5
(5) “Eligible net-metering resource” means eligible renewable energy resource, as defined 6
in § 39-26-5 including biogas created as a result of anaerobic digestion, but, specifically excluding 7
all other listed eligible biomass fuels. 8
(6) “Eligible net-metering system” means a facility generating electricity using an eligible 9
net-metering resource that is reasonably designed and sized to annually produce electricity in an 10
amount that is equal to, or less than, the renewable self-generator’s usage at the eligible net-11
metering system site measured by the three-year (3) average annual consumption of energy over 12
the previous three (3) years at the electric distribution account(s) located at the eligible net-metering 13
system site. A projected annual consumption of energy may be used until the actual three-year (3) 14
average annual consumption of energy over the previous three (3) years at the electric distribution 15
account(s) located at the eligible net-metering system site becomes available for use in determining 16
eligibility of the generating system. The eligible net-metering system may be owned by the same 17
entity that is the customer of record on the net-metered accounts or may be owned by a third party 18
that is not the customer of record at the eligible net-metering system site and which may offer a 19
third-party, net-metering financing arrangement or net-metering financing arrangement, as 20
applicable. Notwithstanding any other provisions of this chapter, any eligible net-metering 21
resource: (i) Owned by a public entity, educational institution, hospital, nonprofit, or multi-22
municipal collaborative; or (ii) Owned and operated by a renewable-generation developer on behalf 23
of a public entity, educational institution, hospital, nonprofit, or multi-municipal collaborative 24
through a net-metering financing arrangement shall be treated as an eligible net-metering system 25
and all accounts designated by the public entity, educational institution, hospital, nonprofit, or 26
multi-municipal collaborative for net metering shall be treated as accounts eligible for net metering 27
within an eligible net-metering system site; or (iii) Owned and operated by a renewable-generation 28
developer on behalf of one or more commercial or industrial customer(s) through net-metering 29
financing arrangement(s) shall be treated as an eligible net-metering system within an eligible net-30
metering system site. Notwithstanding any other provision to the contrary, effective July 1, 2060, 31
an eligible net-metering system means a facility generating electricity using an eligible net-32
metering resource that is interconnected behind the same meter as the net-metering customer’s load. 33
(7) “Eligible net-metering system site” means the site where the eligible net-metering 34
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system or community remote net-metering system is located or is part of the same campus or 1
complex of sites contiguous to one another and the site where the eligible net-metering system or 2
community remote net-metering system is located or a farm on which the eligible net-metering 3
system or community remote net-metering system is located. Except for an eligible net-metering 4
system owned by or operated on behalf of a public entity, educational institution, hospital, 5
nonprofit, or multi-municipal collaborative or for a commercial or industrial customer through a 6
net-metering financing arrangement, the purpose of this definition is to reasonably assure that 7
energy generated by the eligible net-metering system is consumed by net-metered electric service 8
account(s) that are actually located in the same geographical location as the eligible net-metering 9
system. All energy generated from any eligible net-metering system is, and will be considered, 10
consumed at the meter where the renewable energy resource is interconnected for valuation 11
purposes. Except for an eligible net-metering system owned by, or operated on behalf of, a public 12
entity, educational institution, hospital, nonprofit, or multi-municipal collaborative, or for a 13
commercial or industrial customer through a net-metering financing arrangement, or except for a 14
community remote net-metering system, all of the net-metered accounts at the eligible net-metering 15
system site must be the accounts of the same customer of record and customers are not permitted 16
to enter into agreements or arrangements to change the name on accounts for the purpose of 17
artificially expanding the eligible net-metering system site to contiguous sites in an attempt to avoid 18
this restriction. However, a property owner may change the nature of the metered service at the 19
accounts at the site to be master metered in the owner’s name, or become the customer of record 20
for each of the accounts, provided that the owner becoming the customer of record actually owns 21
the property at which the account is located. As long as the net-metered accounts meet the 22
requirements set forth in this definition, there is no limit on the number of accounts that may be net 23
metered within the eligible net-metering system site. 24
(8) “Excess renewable net-metering credit” means a credit that applies to an eligible net-25
metering system or community remote net-metering system for that portion of the production of 26
electrical energy beyond one hundred percent (100%) and no greater than one hundred twenty-five 27
percent (125%) of the renewable self-generator’s own consumption at the eligible net-metering 28
system site or the sum of the usage of the eligible credit recipient accounts associated with the 29
community remote net-metering system during the applicable billing period. Such excess 30
renewable net-metering credit shall be equal to the electric distribution company’s avoided cost 31
rate, which is hereby declared to be the electric distribution company’s last resort service kilowatt 32
hour (KWh) charge for the rate class wholesale rate and time-of-use billing period (if applicable) 33
applicable to the customer of record for the eligible net-metering system or applicable to the 34
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customer of record for the community remote net-metering system. The commission shall have the 1
authority to make determinations as to the applicability of this credit to specific generation facilities 2
to the extent there is any uncertainty or disagreement. 3
(9) “Farm” shall be defined in accordance with § 44-27-2, except that all buildings 4
associated with the farm shall be eligible for net-metering credits as long as: (i) The buildings are 5
owned by the same entity operating the farm or persons associated with operating the farm; and (ii) 6
The buildings are on the same farmland as the project on either a tract of land contiguous with, or 7
reasonably proximate to, such farmland or across a public way from such farmland. 8
(10) “Hospital” means and shall be defined and established as set forth in chapter 17 of 9
title 23. 10
(11) “Multi-municipal collaborative” means a group of towns and/or cities that enter into 11
an agreement for the purpose of co-owning a renewable-generation facility or entering into a 12
financing arrangement pursuant to subsection (15). 13
(12) “Municipality” means any Rhode Island town or city, including any agency or 14
instrumentality thereof, with the powers set forth in title 45. 15
(13) “Net metering” means using electrical energy generated by an eligible net-metering 16
system for the purpose of self-supplying electrical energy and power at the eligible net-metering 17
system site, or with respect to a community remote net-metering system, for the purpose of 18
generating net-metering credits to be applied to the electric bills of the eligible credit recipients 19
associated with the community net-metering system. The amount so generated will thereby offset 20
consumption at the eligible net-metering system site through the netting process established in this 21
chapter, or with respect to a community remote net-metering system, the amounts generated in 22
excess of that amount will result in credits being applied to the eligible credit-recipient accounts 23
associated with the community remote net-metering system. 24
(14) “Net-metering customer” means a customer of the electric distribution company 25
receiving and being billed for distribution service whose distribution account(s) are being net 26
metered. 27
(15) “Net-metering financing arrangement” means arrangements entered into by a public 28
entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or a commercial 29
or industrial customer with a private entity to facilitate the financing and operation of a net-metering 30
resource, in which the private entity owns and operates an eligible net-metering resource on behalf 31
of a public entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or 32
commercial or industrial customer, where: (i) The eligible net-metering resource is located on 33
property owned or controlled by the public entity, educational institution, hospital, municipality, 34
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multi-municipal collaborative, or commercial or industrial customer as applicable; and (ii) The 1
production from the eligible net-metering resource and primary compensation paid by the public 2
entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or commercial or 3
industrial customer to the private entity for such production is directly tied to the consumption of 4
electricity occurring at the designated net-metered accounts. 5
(16) “Nonprofit” means a nonprofit corporation as defined and established through chapter 6
6 of title 7, and shall include religious organizations that are tax exempt pursuant to 26 U.S.C. § 7
501(d). 8
(17) “Person” means an individual, firm, corporation, association, partnership, farm, town 9
or city of the state of Rhode Island, multi-municipal collaborative, or the state of Rhode Island or 10
any department of the state government, governmental agency, or public instrumentality of the 11
state. 12
(18) “Preferred site” means a location for a renewable energy system that has had prior 13
development, including, but not limited to: landfills, gravel pits and quarries, highway and major 14
road median strips, brownfields, superfund sites, parking lots or sites that are designated 15
appropriate for carports, and all rooftops including, but not limited to, residential, commercial, 16
industrial, and municipal buildings. 17
(19) “Project” means a distinct installation of an eligible net-metering system or a 18
community remote net-metering system. An installation will be considered distinct if it is installed 19
in a different location, or at a different time, or involves a different type of renewable energy. 20
Subject to the safe-harbor provisions in § 39-26.4-3(a)(1), new and distinct projects cannot be 21
located on adjoining parcels of land within core forests, except for preferred sites. 22
(20) “Public entity” means the federal government, the state of Rhode Island, 23
municipalities, wastewater treatment facilities, public transit agencies, or any water distributing 24
plant or system employed for the distribution of water to the consuming public within this state 25
including the water supply board of the city of Providence. 26
(21) “Public entity net-metering system” means a system generating renewable energy at 27
a property owned or controlled by the public entity that is participating in a net-metering financing 28
arrangement where the public entity has designated accounts in its name to receive net-metering 29
credits. 30
(22) “Renewable net-metering credit” means a credit that applies to an eligible net-31
metering system or a community remote net-metering system up to one hundred percent (100%) of 32
either the renewable self-generator’s usage at the eligible net-metering system site or the sum of 33
the usage of the eligible credit-recipient accounts associated with the community remote net-34
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metering system over the applicable billing period. This credit shall be equal to the total kilowatt 1
hours of electrical energy generated up to the amount consumed on-site, and/or generated up to the 2
sum of the eligible credit-recipient account usage during the billing period multiplied by the sum 3
of the distribution company’s: 4
(i) Last resort service kilowatt-hour charge for the rate class applicable to the net-metering 5
customer, except that for remote public entity and multi-municipality collaborative net-metering 6
systems that submit an application for an interconnection study on or after July 1, 2017, and 7
community remote net-metering systems, the last resort service kilowatt-hour charge shall be net 8
of the renewable energy standard charge or credit; 9
(ii) Distribution kilowatt-hour charge; 10
(iii) Transmission kilowatt-hour charge; and 11
(iv) Transition kilowatt-hour charge. 12
For projects after April 15, 2023, subject to the allowable two hundred seventy-five 13
megawatts alternating current (275 MWac), under § 39-26.4-3(a)(1)(vi), the credit shall be reduced 14
by twenty percent (20%). 15
Notwithstanding the foregoing, except for systems that have requested an interconnection 16
study for which payment has been received by the distribution company, or if an interconnection 17
study is not required, a completed and paid interconnection application, by December 31, 2018, the 18
renewable net-metering credit for all remote public entity and multi-municipal collaborative net-19
metering systems shall not include the distribution kilowatt-hour charge commencing on January 20
1, 2050. 21
(23) “Renewable self-generator” means an electric distribution service customer of record 22
for the eligible net-metering system or community remote net-metering system at the eligible net-23
metering system site which system is primarily designed to produce electrical energy for 24
consumption by that same customer at its distribution service account(s), and/or, with respect to 25
community remote net-metering systems, electrical energy which generates net-metering credits to 26
be applied to offset the eligible credit-recipient account usage. 27
(24) “Third party” means and includes any person or entity, other than the renewable self-28
generator, who or that owns or operates the eligible net-metering system or community remote net-29
metering system on the eligible net-metering system site for the benefit of the renewable self-30
generator. 31
(25) “Third-party, net-metering financing arrangement” means the financing of eligible 32
net-metering systems or community remote net-metering systems through lease arrangements or 33
power/credit purchase agreements between a third party and renewable self-generator, except for 34
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those entities under a public entity net-metering financing arrangement. A third party engaged in 1
providing financing arrangements related to such net-metering systems with a public or private 2
entity is not a public utility as defined in § 39-1-2. 3
SECTION 2. This act shall take effect upon passage. 4
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS -- NET METERING
***
This act would change the excess renewable net-metering credit to be billed at the whole 1
sale rate from the electric distribution company’s avoided cost rate, which is hereby declared to be 2
the electric distribution company’s last resort service kilowatt hour. 3
This act would take effect upon passage. 4
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