Rhode Island 2025 Regular Session

Rhode Island House Bill H6203 Compare Versions

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

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5	5	2025 -- H 6203
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7	7	LC002551
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO PUBLIC UTILITIES AND CARRIERS -- THE RENEWABLE ENERGY
16	16	GROWTH PROGRAM
17	17	Introduced By: Representatives Chippendale, J. Brien, Paplauskas, Quattrocchi,
18	18	Santucci, Newberry, Place, Fascia, Nardone, and Hopkins
19	19	Date Introduced: April 09, 2025
20	20	Referred To: House Corporations
21	21
22	22
23	23	It is enacted by the General Assembly as follows:
24	24	SECTION 1. Chapter 39-26.6 of the General Laws entitled "The Renewable Energy 1
25	25	Growth Program" is hereby repealed in its entirety. 2
26	26	CHAPTER 39-26.6 3
27	27	The Renewable Energy Growth Program 4
28	28	39-26.6-1. Purpose. 5
29	29	The purpose of this chapter is to enable the state to meet its climate and resilience goals, 6
30	30	including those established in the act on climate. This includes the goals to facilitate and promote 7
31	31	installation of grid-connected generation of renewable energy; support and encourage development 8
32	32	of distributed renewable energy generation systems while protecting important core forest areas 9
33	33	essential to climate resilience and complying with Rhode Island’s climate change mandates; reduce 10
34	34	environmental impacts; reduce carbon emissions that contribute to climate change by encouraging 11
35	35	the siting of renewable energy projects in the load zone of the electric distribution company and in 12
36	36	preferred areas that have already been disturbed by industry or other uses; diversify the energy-13
37	37	generation sources within the load zone of the electric distribution company; stimulate economic 14
38	38	development; and improve distribution-system resilience and reliability within the load zone of the 15
39	39	electric distribution company. 16
40	40	39-26.6-2. Renewable energy growth program established. 17
41	41	To carry out these purposes, a tariff-based, renewable energy distributed-generation 18
42	42
43	43
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45	45	financing program, hereinafter referred to as the renewable energy growth program, is hereby 1
46	46	established with the intention of continuing the development of renewable energy distributed 2
47	47	generation in the load zone of the electric distribution company at reasonable cost. The program 3
48	48	shall be designed to finance the development, construction, and operation of renewable energy 4
49	49	distributed-generation projects over five (5) years through a performance-based incentive system 5
50	50	that is designed to achieve specified megawatt targets at reasonable cost through competitive 6
51	51	processes. The renewable energy growth program shall be implemented by the electric distribution 7
52	52	company, and guided by the distributed-generation board, in consultation with the office of energy 8
53	53	resources, subject to the review and supervision of the commission. 9
54	54	39-26.6-3. Definitions. 10
55	55	When used in this chapter, the following terms shall have the following meanings: 11
56	56	(1) “Board” shall mean the distributed-generation board as established pursuant to the 12
57	57	provisions of § 39-26.2-10 under the title distributed generation standard contract board, but shall 13
58	58	also fulfill the responsibilities set forth in this chapter. 14
59	59	(2) “Ceiling price” means the bidding price cap(s) applicable to each annual enrollment for 15
60	60	a given distributed-generation class, that shall be approved for each renewable energy class 16
61	61	pursuant to the procedure established in this chapter. The ceiling price(s) are not required to, but 17
62	62	may be, approved for up to three years. The ceiling price for each technology should be a price that 18
63	63	would allow a private owner to invest in a given project at a reasonable rate of return, based on 19
64	64	recently reported and forecast information on the cost of capital and the cost of generation 20
65	65	equipment. The calculation of the reasonable rate of return for a project shall include, where 21
66	66	applicable, any state or federal incentives, including, but not limited to, tax incentives. Nothing 22
67	67	shall prohibit the distributed-generation board from proposing revised ceiling prices prior to a 23
68	68	program year to account for changes to available federal or state tax incentives, trade tariffs, or 24
69	69	other federal or state incentives that would affect the calculation of the rate of return on a project. 25
70	70	(3) “Commercial-scale solar project” means a solar distributed-generation project with the 26
71	71	nameplate capacity specified in § 39-26.6-7. 27
72	72	(4) “Commission” means the Rhode Island public utilities commission. 28
73	73	(5) “Community remote distributed-generation system” means a distributed-generation 29
74	74	facility greater than two hundred fifty kilowatt (250 KW) nameplate direct current that allocates 30
75	75	bill credits for each kilowatt hour (KWh) generated to a minimum of three (3), eligible recipient-31
76	76	customer accounts, provided that no more than fifty percent (50%) of the credits produced by the 32
77	77	system are allocated to one eligible recipient-customer account, and provided further that at least 33
78	78	fifty percent (50%) of the credits produced by the system are allocated to eligible recipients in an 34
79	79
80	80
81	81	LC002551 - Page 3 of 24
82	82	amount not to exceed that which is produced annually by twenty-five kilowatt (25 KW) AC 1
83	83	capacity. The community remote distributed-generation system may transfer credits to eligible 2
84	84	recipient-customer accounts in an amount that is equal to, or less than, the sum of the usage of the 3
85	85	eligible recipient-customer accounts measured by the three-year-average (3) annual consumption 4
86	86	of energy over the previous three (3) years. A projected, annual consumption of energy may be 5
87	87	used until the actual three-year-average (3) annual consumption of energy over the previous three 6
88	88	(3) years at the eligible recipient-customer accounts becomes available for use in determining 7
89	89	eligibility of the generating system. The community remote distributed-generation system may be 8
90	90	owned by the same entity that is the customer of record on the net-metered account or may be 9
91	91	owned by a third party. 10
92	92	(6) “Core forest” refers to unfragmented forest blocks of single or multiple parcels totaling 11
93	93	two hundred fifty (250) acres or greater unbroken by development and at least twenty-five (25) 12
94	94	yards from mapped roads, with eligibility questions to be resolved by the director of the department 13
95	95	of environmental management. Such determination shall constitute a contested case as defined in 14
96	96	§ 42-35-1. Notwithstanding any other provisions of this chapter, no renewable-distributed-15
97	97	generation project that is located or planned to be located in or on a core forest, shall be considered 16
98	98	an eligible renewable-distributed-generation project or otherwise be eligible to participate in this 17
99	99	program, unless it is on a preferred site. 18
100	100	(7) “Distributed-generation facility” means an electrical-generation facility located in the 19
101	101	electric distribution company’s load zone with a nameplate capacity no greater than five megawatts 20
102	102	(5 MW), except for solar projects as described in § 39-26.6-7 that may exceed five megawatts (5 21
103	103	MW) but shall not be greater than fifteen megawatts (15 MW), unless located on preferred sites, in 22
104	104	which case they may be sized up to thirty-nine megawatts (39 MW), using eligible renewable 23
105	105	energy resources as defined by § 39-26-5, including biogas created as a result of anaerobic 24
106	106	digestion, but, specifically excluding all other listed eligible biomass fuels, and connected to an 25
107	107	electrical power system owned, controlled, or operated by the electric distribution company. For 26
108	108	facilities developed in core forests on preferred sites, no more than one hundred thousand square 27
109	109	feet (100,000 sq. ft.) of core forest shall be removed, except for work required for utility 28
110	110	interconnection or development of a brownfield, in which case no more core forest than necessary 29
111	111	for interconnection or brownfield development shall be removed. For purposes of this chapter, a 30
112	112	distributed-generation facility must be a new resource that: 31
113	113	(i) Has not begun operation; 32
114	114	(ii) Is not under construction, but excluding preparatory site work that is less than twenty-33
115	115	five percent (25%) of the estimated total project cost; and 34
116	116
117	117
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119	119	(iii) Except for small-scale solar projects, does not have in place investment or lending 1
120	120	agreements necessary to finance the construction of the facility prior to the submittal of an 2
121	121	application or bid for which the payment of performance-based incentives is sought under this 3
122	122	chapter except to the extent that such financing agreements are conditioned upon the project owner 4
123	123	being awarded performance-based incentives under the provisions of this chapter. For purposes of 5
124	124	this definition, preexisting hydro generation shall be exempt from the provisions of subsection 6
125	125	(7)(i) regarding operation, if the hydro-generation facility will need a material investment to restore 7
126	126	or maintain reliable and efficient operation and meet all regulatory, environmental, or operational 8
127	127	requirements. For purposes of this provision, “material investment” shall mean investment 9
128	128	necessary to allow the project to qualify as a new, renewable energy resource under § 39-26-2. To 10
129	129	be eligible for this exemption, the hydro-project developer at the time of submitting a bid in the 11
130	130	applicable procurement must provide reasonable evidence with its bid application showing the level 12
131	131	of investment needed, along with any other facts that support a finding that the investment is 13
132	132	material, the determination of which shall be a part of the bid review process set forth in § 39-26.6-14
133	133	16 for the award of bids. 15
134	134	(8) “Distributed-generation project” means a distinct installation of a distributed-16
135	135	generation facility. An installation will be considered distinct if it does not violate the segmentation 17
136	136	prohibition set forth in § 39-26.6-9. 18
137	137	(9) “Electric distribution company” means a company defined in § 39-1-2(a)(12), 19
138	138	supplying standard-offer service, last-resort service, or any successor service to end-use customers, 20
139	139	but not including the Block Island Power Company or the Pascoag Utility District. 21
140	140	(10) “ISO-NE” means Independent System Operator-New England, the Regional 22
141	141	Transmission Organization for New England designated by the Federal Energy Regulatory 23
142	142	Commission. 24
143	143	(11) “Large distributed-generation project” means a distributed-generation project that has 25
144	144	a nameplate capacity that exceeds the size of a small distributed-generation project in a given year, 26
145	145	but is no greater than five megawatts (5 MW) nameplate capacity. 27
146	146	(12) “Large-scale solar project” means a solar distributed-generation project with the 28
147	147	nameplate capacity specified in § 39-26.6-7. 29
148	148	(13) “Medium-scale solar project” means a solar distributed-generation project with the 30
149	149	nameplate capacity specified in § 39-26.6-7. 31
150	150	(14) “Office” means the Rhode Island office of energy resources. 32
151	151	(15) “Preferred sites” means a location for a renewable energy system that has had prior 33
152	152	development, including, but not limited to: landfills, gravel pits and quarries, highway and major 34
153	153
154	154
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156	156	road median strips, brownfields, superfund sites, parking lots or sites that are designated 1
157	157	appropriate for carports, and all rooftops including, but not limited to, residential, commercial, 2
158	158	industrial and municipal buildings. 3
159	159	(16) “Program year” means a year beginning April 1 and ending March 31, except for the 4
160	160	first program year, that may commence after April 1, 2015, subject to commission approval. 5
161	161	(17) “Renewable energy certificate” means a New England Generation Information System 6
162	162	renewable energy certificate as defined in § 39-26-2(14). 7
163	163	(18) “Renewable energy classes” means categories for different renewable energy 8
164	164	technologies using eligible renewable energy resources as defined by § 39-26-5, including biogas 9
165	165	created as a result of anaerobic digestion, but, specifically excluding all other listed eligible biomass 10
166	166	fuels specified in § 39-26-2(6). For each program year, in addition to the classes of solar distributed 11
167	167	generation specified in § 39-26.6-7, the board shall determine the renewable energy classes as are 12
168	168	reasonably feasible for use in meeting distributed-generation objectives from renewable energy 13
169	169	resources and are consistent with the goal of meeting the annual target for the program year. The 14
170	170	board may make recommendations to the commission to add, eliminate, or adjust renewable energy 15
171	171	classes for each program year, provided that the solar classifications set forth in § 39-26.6-7 shall 16
172	172	remain in effect for at least the first two (2) program years and no distributed-generation project 17
173	173	may exceed five megawatts (5 MW) of nameplate capacity except for solar projects as described 18
174	174	in § 39-26.6-7. 19
175	175	(19) “Shared solar facility” means a single small-scale or medium-scale solar facility that 20
176	176	must allocate bill credits to at least two (2), and no more than fifty (50), accounts in the same 21
177	177	customer class and on the same or adjacent parcels of land. Public entities may allocate such bill 22
178	178	credits to at least two (2), and up to fifty (50), accounts without regard to physical location so long 23
179	179	as the facility and accounts are within the same municipality. In no case will the annual allocated 24
180	180	credits in KWh exceed the prior three-year (3) annual average usage, less any reductions for verified 25
181	181	energy-efficiency measures installed at the customer premises, of the customer account to which 26
182	182	the bill credits are transferred. 27
183	183	(20) “Small distributed-generation project” means a distributed-generation renewable 28
184	184	energy project that has a nameplate capacity within the following: Wind: fifty kilowatts (50 KW) 29
185	185	to one and one-half megawatts (1.5 MW); small-scale solar projects and medium-scale solar 30
186	186	projects with the capacity limits as specified in § 39-26.6-7. For technologies other than solar and 31
187	187	wind, the board shall set the nameplate capacity-size limits, but such limits may not exceed one 32
188	188	megawatt (1 MW). 33
189	189	(21) “Small-scale solar project” means a solar distributed-generation project with the 34
190	190
191	191
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193	193	nameplate capacity specified in § 39-26.6-7. 1
194	194	39-26.6-4. Continuation of board. 2
195	195	(a) The distributed generation standard contract board shall remain fully constituted and 3
196	196	authorized as provided in chapter 26.2 of this title; provided, however, that the name shall be 4
197	197	changed to the “distributed-generation board.” Additional purposes of the board shall be to: 5
198	198	(1) Evaluate and make recommendations to the commission regarding ceiling prices and 6
199	199	annual targets, the make-up of renewable energy classifications eligible under the distributed-7
200	200	generation growth program, the terms of the tariffs, and other duties as set forth in this chapter; 8
201	201	(2) Provide consistent, comprehensive, informed, and publicly accountable involvement 9
202	202	by representatives of all interested stakeholders affected by, involved with, or knowledgeable about 10
203	203	the development of distributed-generation projects that are eligible for performance-based 11
204	204	incentives under the distributed-generation growth program; and 12
205	205	(3) Monitor and evaluate the effectiveness of the distributed-generation growth program. 13
206	206	(b) The office, in consultation with the board, shall be authorized to hire, or to request the 14
207	207	electric distribution company to hire, the services of qualified consultants to perform ceiling price 15
208	208	studies subject to commission approval that shall be granted or denied within sixty (60) days of 16
209	209	receipt of such request from the office. The cost of the studies shall be recoverable through the rate-17
210	210	reconciliation provisions of the electric distribution company set forth in § 39-26.6-25, subject to 18
211	211	commission approval. In addition, the office, in consultation with the board, may request the 19
212	212	commission to approve other costs incurred by the board, office, or the electric distribution 20
213	213	company to utilize consultants for annual programmatic services or to perform any other studies 21
214	214	and reports, subject to the review and approval of the commission, that shall be granted or denied 22
215	215	within one hundred twenty (120) days of receipt of the request from the office, and that shall be 23
216	216	recoverable through the same reconciliation provisions. 24
217	217	(c) Revenues generated through the rate reconciliation process to finance the expenses 25
218	218	incurred as outlined in subsection (b) shall be transferred to the office and deposited in a restricted-26
219	219	receipt account within the general fund. The restricted-receipt account shall be exempt from the 27
220	220	indirect cost recovery assessment under § 35-4-27. 28
221	221	39-26.6-5. Tariffs proposed and approved. 29
222	222	(a) Each year the electric distribution company shall file tariffs with the commission that 30
223	223	are designed to provide a multiyear stream of performance-based incentives to eligible renewable-31
224	224	distributed-generation projects for a term of years, under terms and conditions set forth in the tariffs 32
225	225	and approved by the commission. The tariffs shall set forth the rights and obligations of the owner 33
226	226	of the distributed-generation project and the conditions upon which payment of performance-based 34
227	227
228	228
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230	230	incentives by the electric distribution company will be paid. The tariffs shall include the non-price 1
231	231	conditions set forth in §§ 39-26.2-7(2)(i) — (vii) for small distributed-generation projects (other 2
232	232	than small- and medium-scale solar) and large distributed-generation projects; provided, however, 3
233	233	that the time periods for the projects to reach ninety percent (90%) of output shall be extended to 4
234	234	twenty-four (24) months (other than eligible anaerobic-digestion projects, which shall be thirty-six 5
235	235	(36) months, and eligible small-scale hydro, and large-scale solar projects which shall be forty-6
236	236	eight (48) months). The non-price conditions in the tariffs for small- and medium-scale solar shall 7
237	237	take into account the different circumstances for distributed-generation projects of the smaller sizes. 8
238	238	(b) In addition to the tariff(s), the filing shall include the rules governing the solicitation 9
239	239	and enrollment process. The solicitation rules will be designed to ensure the orderly functioning of 10
240	240	the distributed-generation growth program and shall be consistent with the legislative purposes of 11
241	241	this chapter. 12
242	242	(c) In proposing the tariff(s) and solicitation rules applicable to each year, the tariff(s) and 13
243	243	rules shall be developed by the electric distribution company and will be reviewed by the office 14
244	244	and the board before being sent to the commission for its approval. The proposed tariffs shall 15
245	245	include the ceiling prices and term lengths for each tariff that are recommended by the board. The 16
246	246	term lengths shall be from fifteen (15) to twenty (20) years; provided, however, that the board may 17
247	247	recommend shorter terms for small-scale solar projects. Whatever term lengths between fifteen 18
248	248	(15) and twenty (20) years are chosen for any given tariff, the evaluation of the bids for that tariff 19
249	249	shall be done on a consistent basis such that the same term lengths for competing bids are used to 20
250	250	determine the winning bids. 21
251	251	(d) In setting the ceiling prices, the board may specifically consider: 22
252	252	(1) Transactions for newly developed renewable energy resources, by technology and size, 23
253	253	in the ISO-NE control area and the northeast corridor; 24
254	254	(2) Pricing from bids received during the previous program year; 25
255	255	(3) Environmental benefits, including, but not limited to, reducing carbon emissions; 26
256	256	(4) For community remote distributed-generation systems, administrative costs and 27
257	257	financial benefits for participating customers; 28
258	258	(5) System benefits; 29
259	259	(6) Cost-effectiveness; 30
260	260	(7) Location of projects, including climate resilience and conservation benefits; and 31
261	261	(8) Labor standards pursuant to chapter 26.9 of this title. 32
262	262	(e) At least forty-five (45) days before filing the tariff(s) and solicitation rules, the electric 33
263	263	distribution company shall provide the tariff(s) and rules in draft form to the board for review. The 34
264	264
265	265
266	266	LC002551 - Page 8 of 24
267	267	commission shall have the authority to determine the final terms and conditions in the tariff and 1
268	268	rules. Once approved, the commission shall retain exclusive jurisdiction over the performance-2
269	269	based incentive payments, terms, conditions, rights, enforcement, and implementation of the tariffs 3
270	270	and rules, subject to appeals pursuant to chapter 5 of this title. 4
271	271	39-26.6-6. Permanence of tariff terms once set. 5
272	272	It is the intention of the general assembly in enacting this chapter that the developers, 6
273	273	owners, investors, customers, and lenders of the distributed-generation projects receiving 7
274	274	performance-based incentives under the tariffs be able to rely on the tariffs for the entire term of 8
275	275	the applicable tariff for purposes of obtaining financing. Consistent with that intention and 9
276	276	expectation, the terms under the tariffs for a given program year, once approved by the commission, 10
277	277	shall not be altered in any way that would undermine such reliance on those tariffs during the 11
278	278	applicable terms of the tariffs; and in no circumstance will the performance-based incentive rate 12
279	279	paid to a renewable energy project developer or owner be reduced during the term of the tariff once 13
280	280	a renewable energy project has qualified to receive a tariff under the terms of this chapter. 14
281	281	39-26.6-7. Solar project size categories. 15
282	282	(a) Tariff(s) shall be proposed for each of the following solar distributed-generation 16
283	283	classes: 17
284	284	(1) Small-scale solar projects; 18
285	285	(2) Medium-scale solar projects; 19
286	286	(3) Commercial-scale solar projects; and 20
287	287	(4) Large-scale solar projects. 21
288	288	(b) Such classes of solar distributed-generation projects shall be established based on 22
289	289	nameplate megawatt size as follows: 23
290	290	(1) Large-scale solar projects shall be comprised of four (4) classes as follows: 24
291	291	(i) One megawatt (1 MW) but less than five megawatts (5 MW), nameplate capacity; 25
292	292	(ii) Five megawatts (5 MW), but less than ten megawatts (10 MW), nameplate capacity; 26
293	293	(iii) Ten megawatts (10 MW), but less than fifteen megawatts (15 MW), nameplate 27
294	294	capacity; and 28
295	295	(iv) Fifteen megawatts (15 MW), but less than thirty-nine megawatts (39 MW), nameplate 29
296	296	capacity for projects located on preferred sites; 30
297	297	(2) Commercial scale shall be comprised of solar projects greater than two hundred fifty 31
298	298	kilowatts (250 KW), but less than one megawatt (1 MW) nameplate capacity; 32
299	299	(3) Medium scale shall be comprised of solar projects greater than twenty-five kilowatts 33
300	300	(25 KW), up to and including, two hundred fifty kilowatts (250 KW) nameplate capacity; and 34
301	301
302	302
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304	304	(4) Small scale shall be comprised of solar projects up to and including twenty-five 1
305	305	kilowatts (25 KW) nameplate capacity. 2
306	306	(c) Other classifications of solar projects may also be proposed by the board, subject to the 3
307	307	approval of the commission. After the second program year, the board may make recommendations 4
308	308	to the commission to adjust the size categories of the solar classes, provided that the medium-scale 5
309	309	solar projects may not exceed two hundred fifty kilowatts (250 KW); and/or allocated capacity to 6
310	310	community distributed-generation facilities, allowing them to compete or enroll under a distinct 7
311	311	ceiling price. 8
312	312	39-26.6-8. Renewable technologies other than solar. 9
313	313	Tariffs also shall be proposed for on-shore wind and any other distributed-generation 10
314	314	technologies permissible under this chapter that the board, in its discretion, recommends; provided, 11
315	315	however, that no project shall exceed five megawatts (5 MW) nameplate capacity. The electric 12
316	316	distribution company shall file tariffs for each technology and size categories recommended by the 13
317	317	board pursuant to the procedures set forth in this chapter. 14
318	318	39-26.6-9. Project segmentation prohibition. 15
319	319	In no case may a project developer be allowed to segment a distributed-generation project 16
320	320	on the same parcel or contiguous parcels into smaller-sized projects in order to fall under a smaller-17
321	321	size project classification. Notwithstanding this prohibition, a project developer may designate a 18
322	322	generation unit on the same parcel or contiguous parcel for net metering or other means of 19
323	323	participating in electricity markets, provided that the unit, or portion of the unit, designated for net 20
324	324	metering or other market participation is not receiving performance-based incentives under this 21
325	325	chapter; is capable of being segregated electrically; is configured with the electrical segregation; 22
326	326	and is separately metered. Further, a project shall not be considered to have been segmented if: 23
327	327	(1) There is a lapse of at least twenty-four (24) months between: (i) The commencement 24
328	328	of construction of new distributed-generation units on a parcel that is the same as, or is contiguous 25
329	329	with, a parcel upon which a distributed-generation project has already been constructed; and (ii) 26
330	330	The operation date of the preexisting project; or 27
331	331	(2) The new project is a different renewable technology. 28
332	332	39-26.6-10. Timing and schedule of tariff filings. 29
333	333	(a) The electric distribution company shall file with the commission the first set of tariffs 30
334	334	and solicitation rules pursuant to this chapter no later than November 15, 2014. Thereafter, the 31
335	335	electric distribution company shall make tariff and solicitation rules filings with the commission 32
336	336	no later than November 15 prior to the beginning of the applicable program year when necessary, 33
337	337	which tariffs and rules shall be applicable for the next program year(s). 34
338	338
339	339
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341	341	(b) Upon receiving the filing from the electric distribution company, the commission shall 1
342	342	open a docket to consider the filing. The commission shall issue an order approving the proposed 2
343	343	tariffs and solicitation rules; provided, however, that the commission may make any modifications 3
344	344	that it deems appropriate consistent with the legislative purposes of this chapter as set forth herein. 4
345	345	(c) The commission shall approve tariff(s) and solicitation rules prior to the 5
346	346	commencement of the applicable year(s). 6
347	347	(d) During the course of any program year, the electric distribution company may, at any 7
348	348	time, in consultation with the office and the board, propose tariff or solicitation rules modifications. 8
349	349	The commission shall consider the proposed modifications through an already open or new docket, 9
350	350	and shall issue its order within one hundred five (105) days of the filing of the proposed 10
351	351	modification. If approved, the proposed modification shall take effect for the next enrollment event 11
352	352	following the issuance of the commission’s order. 12
353	353	39-26.6-11. Power purchase agreements not required. 13
354	354	The distributed-generation growth program shall be implemented and administered 14
355	355	exclusively through the tariff structure and procedures set forth in this chapter, and the electric 15
356	356	distribution company shall not be required to execute power purchase agreements for the 16
357	357	procurement of the renewable energy distributed-generation capacity requirements set forth in this 17
358	358	chapter. 18
359	359	39-26.6-12. Annual bidding and enrollments. 19
360	360	(a) The electric distribution company, in consultation with the board and office, shall 20
361	361	conduct at least three (3) tariff enrollments for each distributed-generation class each program year. 21
362	362	(b) During each program year, the tariff enrollments shall have both an annual targeted 22
363	363	amount of nameplate megawatts (“annual MW target”) and a nameplate megawatt target for each 23
364	364	separate enrollment event (“enrollment MW target”). The enrollment MW target shall comprise the 24
365	365	specific portion of the annual MW target sought to be obtained in that enrollment. The annual MW 25
366	366	target(s) and enrollment MW targets shall be recommended by the board no less frequently than 26
367	367	every three (3) years, subject to commission approval. The board shall also recommend a megawatt 27
368	368	target for each class (“class MW target”) that comprises a specified portion of the enrollment MW 28
369	369	target, subject to commission approval. If the electric distribution company, the office, and the 29
370	370	board mutually agree, they may reallocate megawatts during an enrollment from one class to 30
371	371	another without commission approval if there is an over-subscription in one class and an under-31
372	372	subscription in another, provided that the annual MW target is not being exceeded, except as 32
373	373	provided in § 39-26.6-17. No reallocation of megawatts from a competitive pricing class to a non-33
374	374	competitive pricing class shall be made until after the completion of the three (3) enrollment periods 34
375	375
376	376
377	377	LC002551 - Page 11 of 24
378	378	in the program year and in no case may the annual MW target be exceeded as a result of a 1
379	379	reallocation of megawatts. 2
380	380	(c) The annual MW targets shall be established from the year 2023 through the year 2033. 3
381	381	The annual target for each program year shall be up to three hundred megawatts (300 MW); 4
382	382	provided that, thirty megawatts (30 MW) shall be reserved for projects less than one megawatt (1 5
383	383	MW). The board may petition the commission for approval of multi-year annual targets and 6
384	384	associated-ceiling prices. 7
385	385	(d) – (j) [Deleted by P.L. 2023, ch. 300, § 2 and P.L. 2023, ch. 301, § 2.] 8
386	386	39-26.6-13. Cost reconciliation. 9
387	387	To the extent the electric distribution company incurs incremental costs to meet the 10
388	388	program objectives or make billing system improvements that are required to facilitate payments 11
389	389	of performance-based incentives and administering net metering, the electric distribution company 12
390	390	may elect to recover those incremental costs through the annual charge set forth in § 39-26.6-25, 13
391	391	subject to commission review and approval that assures such costs were properly and prudently 14
392	392	incurred. 15
393	393	39-26.6-14. Existing powers of agencies and advocacy rights of parties unchanged. 16
394	394	Nothing in this chapter shall be construed to derogate from the statutory authority of the 17
395	395	commission or the division of public utilities and carriers, including, but not limited to, the authority 18
396	396	to protect ratepayers from unreasonable rates. Nothing in this chapter shall be construed to preclude 19
397	397	any party from advocating a position in commission proceedings that differs from the 20
398	398	recommendations made by the board to the commission or in any filing with the commission 21
399	399	relating to this chapter, including, without limitation: (1) Individual or organizational members of 22
400	400	the board; (2) Participants in board deliberations; (3) The office; and (4) The electric distribution 23
401	401	company, unless the party has consented by vote to the execution or executed a settlement 24
402	402	agreement agreeing to the terms, policy proposals, or any other matter proposed to the commission. 25
403	403	39-26.6-15. Bidding and incentive award processes for solar DG projects. 26
404	404	(a) Large-scale and commercial-scale solar projects and distributed-generation projects for 27
405	405	other eligible technologies shall bid a price-per-kilowatt-hour for the entire output of the facility 28
406	406	(net of any station service) that shall not exceed the applicable ceiling price. Small-scale and 29
407	407	medium-scale solar projects will submit an enrollment application to receive a standard 30
408	408	performance-based incentive for the period of years in the applicable tariff, that shall be a price-31
409	409	per-kilowatt-hour for the entire output of the facility. Except for megawatts that may be allocated 32
410	410	to the energy-efficiency program pursuant to § 39-26.6-19, small- and medium-scale projects shall 33
411	411	be selected on a first-come, first-served basis, or by means of a commission-approved lottery 34
412	412
413	413
414	414	LC002551 - Page 12 of 24
415	415	system, or such other method as may be recommended by the board and approved by the 1
416	416	commission. 2
417	417	(b) Except for the first program year, the board shall determine, subject to commission 3
418	418	approval, the standard performance-based incentive for small- and medium-sized solar projects 4
419	419	from the average bid price from the last two (2) procurement enrollments conducted in the 5
420	420	commercial-scale and/or large-scale solar projects class. The standard performance incentive may 6
421	421	be set at a higher rate than payments for commercial-scale and large-scale solar projects in order to 7
422	422	take into account the potentially higher per-unit cost of smaller projects. The standard performance 8
423	423	incentive also shall be adjusted upward or downward, as needed, in order to take into account the 9
424	424	term length over which the incentive shall be paid for the small- and medium-scale solar projects 10
425	425	if such terms are different than the terms applicable to the classes from which the standard 11
426	426	performance incentive was derived. 12
427	427	(c) For each program year, the board shall recommend to the commission a standard 13
428	428	performance incentive for each of the small-scale and medium-scale solar project classifications, 14
429	429	which performance incentives may span up to three program years. Upon receiving the 15
430	430	recommendations from the board, the commission shall open a docket to consider the 16
431	431	recommendations or address the recommendations in its approval process for the applicable 17
432	432	program year(s) in a consolidated docket as provided in § 39-26.6-10. The commission shall issue 18
433	433	its order approving the recommendations no later than concurrently with approval of the entire 19
434	434	program and tariffs applicable to the program year; provided, however, that the commission may 20
435	435	make modifications or changes to the board’s recommendations consistent with the legislative 21
436	436	purposes of this chapter. 22
437	437	(d) If after the first program year, the applications for the medium-scale solar projects are 23
438	438	significantly over-subscribed, then the board and the electric distribution company, in consultation 24
439	439	with the office, may propose to the commission a bidding process for medium-scale projects or a 25
440	440	subset of the medium-scale projects under which project selections would be made based on the 26
441	441	lowest bids, rather than first-come, first-served or such other method previously approved by the 27
442	442	commission. The commission shall approve the proposal from the board and electric company 28
443	443	within ninety (90) days; provided, however, that the commission may make changes to the proposal 29
444	444	consistent with the legislative purposes of this chapter. 30
445	445	(e) The commission shall approve the bidding process for medium-scale solar projects 31
446	446	recommended by the board only if the commission finds that such bidding process is in a 32
447	447	sufficiently simple form that is not administratively burdensome to bidders, and will not have the 33
448	448	effect of discouraging participation in the distributed-generation growth program by developers of 34
449	449
450	450
451	451	LC002551 - Page 13 of 24
452	452	medium-scale solar projects that may be unrepresented by counsel. 1
453	453	39-26.6-16. Enrollment program. 2
454	454	(a) Each enrollment shall be open for a two-week (2) period during which the electric 3
455	455	distribution company is required to receive standard short-form applications. The standard short-4
456	456	form application shall require the applicant to provide the following information: the project 5
457	457	owner’s identity; the location of the proposed project; the nameplate capacity of the proposed 6
458	458	project; and renewable energy class of the proposed project. The standard short-form application 7
459	459	shall allow project owners to provide additional information relative to the permitting, financial 8
460	460	feasibility, ability to build, and timing for deployment of the proposed projects. The applicant must 9
461	461	submit an affidavit with the standard short-form application confirming that the project is not in 10
462	462	violation of the rules that prohibit project segmentation, as set forth in § 39-26.6-9. 11
463	463	(b) For large distributed-generation projects only, the standard short-form application shall 12
464	464	also require the applicant to bid a bundled price that applies to the energy, renewable energy 13
465	465	certificates, and all other environmental attributes and market products that are available, or may 14
466	466	become available, from the distributed-generation facility on a per-kilowatt-hour basis measured 15
467	467	from the output of the project. At the election of the electric distribution company, and subject to 16
468	468	the approval of the commission, the bid may be required to include the sale of capacity. 17
469	469	(c) For (i) Small distributed-generation projects other than small-scale and medium-scale 18
470	470	solar projects; and (ii) Large distributed-generation projects, the electric distribution company shall 19
471	471	select projects based on the lowest proposed prices received that do not exceed the ceiling price 20
472	472	from the distributed-generation projects that meet the requirements of all applicable tariffs and 21
473	473	regulations, and meet the criteria of the renewable energy class in effect, until the class target is 22
474	474	met. Performance-based incentives shall be awarded to the winning bidders based on their bids 23
475	475	submitted. 24
476	476	(d) For small-scale and medium-scale solar projects, awards shall be made in the manner 25
477	477	set forth in §§ 39-26.6-15 and 39-26.6-19. 26
478	478	(e) If there are more projects bidding at the same price than the capacity that is specified 27
479	479	for a class target, the electric distribution company shall, in consultation with the board and the 28
480	480	office, select first those projects that appear to be the furthest along in development and that are 29
481	481	most likely to be deployed. Those projects that are likely to be deployed at the earliest time shall 30
482	482	be selected first. To the extent the electric distribution company is unable to make a clear distinction 31
483	483	on this basis, the electric distribution company shall report its findings to the board and not award 32
484	484	bids for those projects that are tied on pricing. In that case, the board may take such action as it 33
485	485	deems appropriate for the selection of projects, including seeking more information from the 34
486	486
487	487
488	488	LC002551 - Page 14 of 24
489	489	projects. 1
490	490	(f) Should the electric distribution company determine that it has made sufficient awards 2
491	491	to achieve a program-year class target, it shall immediately report this fact to the board, the office, 3
492	492	and the commission, and may cease making awards for that renewable energy class for the 4
493	493	remainder of the program year. In any event, the electric distribution company may exceed the 5
494	494	renewable energy class target if the last award may cause the total purchased to exceed the target. 6
495	495	(g) The board, the office, and the electric distribution company shall enter into a 7
496	496	memorandum of understanding regarding the sharing of the information and data related to the 8
497	497	renewable energy growth program, including, without limitation, information on bids received, 9
498	498	details regarding project ownership, and pricing. At the request of the board, the office, or the 10
499	499	electric distribution company, the commission shall have the authority to protect from public 11
500	500	disclosure individual bid information for any projects that have not been awarded performance-12
501	501	based incentives. 13
502	502	(h) The electric distribution company is authorized to award bids up to the applicable 14
503	503	ceiling price. As long as the terms of the tariff are met, and the pricing is no higher than the 15
504	504	applicable ceiling price, such awards shall be deemed prudent and approved by the commission for 16
505	505	purposes of recovering the costs in rates. 17
506	506	(i) With respect to any procurement that includes bids from pre-existing, hydroelectric 18
507	507	generation, the electric distribution company, in consultation with the office, shall have the 19
508	508	authority to accept the applicant’s representation that its investment is material, within the meaning 20
509	509	of § 39-26.6-3(7). However, if the electric distribution company or the office questions whether the 21
510	510	material investment standard has been met or the application is otherwise rejected, the application 22
511	511	shall be submitted to the board for review and the board shall draw its own conclusion and make a 23
512	512	recommendation to the commission at the time the commission is approving awards from the 24
513	513	procurement to which the application pertains. The commission shall have the final authority to 25
514	514	make the determination as to whether the material investment standard has been met. Nothing in 26
515	515	this subsection shall preclude a project developer from seeking a preliminary confirmation of 27
516	516	eligibility for the material-investment exemption from the electric distribution company, the office, 28
517	517	and the board prior to the submittal of a bid. In such case, if there is any disagreement, the final 29
518	518	determination shall be submitted to the commission. 30
519	519	39-26.6-17. Excess enrollment not required. 31
520	520	The electric distribution company shall not be required to award bids in excess of the 32
521	521	annual target for the applicable program year and shall not be required to procure projects in excess 33
522	522	of any limit set by the board and approved by the commission for a given enrollment. However, 34
523	523
524	524
525	525	LC002551 - Page 15 of 24
526	526	the electric distribution company, in consultation with the board and the office, may voluntarily 1
527	527	exceed an enrollment period limit as long as it does not exceed an annual target for the applicable 2
528	528	program year. At its election, the electric distribution company may exceed an annual target for the 3
529	529	applicable program year after review by the board and approval by the commission. 4
530	530	39-26.6-18. Utility right to separately meter. 5
531	531	Owners of medium-scale, commercial-scale, and large-scale solar projects and other 6
532	532	distributed-generation technologies shall be required to provide, at their cost, a revenue-quality 7
533	533	meter to standards approved by the division of public utilities and carriers and provide access to 8
534	534	the information from the meter to the electric distribution company to measure the output of the 9
535	535	generation. The electric distribution company shall have the discretion to install the second meter 10
536	536	in a parallel configuration to the retail meter or behind the meter, provided that a parallel installation 11
537	537	shall have no effect on the right of the customer to net meter using the net of the two meters. The 12
538	538	electric distribution company also shall have the right to install its own revenue-quality meter for 13
539	539	small-scale solar projects if not being supplied by the owner. The electric distribution company 14
540	540	shall recover the installation and capital cost of the separate meters it installs for small-scale solar 15
541	541	projects in the annual reconciliation of solar costs under § 39-26.6-25. 16
542	542	39-26.6-19. Coordination with energy-efficiency programs. 17
543	543	(a) In consultation with the office, the electric distribution company may make a request to 18
544	544	the commission that up to half of the megawatts for the small- and medium-scale solar project 19
545	545	enrollments be allocated by the commission for selection through a process coordinated with the 20
546	546	energy-efficiency program in order that specified solar incentives may be tied with energy-21
547	547	efficiency program incentives in order to allow the electric distribution company to implement a 22
548	548	coordinated, energy efficiency and solar program offering. In this case, the electric distribution 23
549	549	company will propose criteria for eligibility for performance-based incentives for solar that require 24
550	550	certain energy-efficiency standards be met at the customer location in order to be eligible for 25
551	551	performance-based incentives for a small-scale and/or medium-scale solar installation. 26
552	552	(b) The electric distribution company must also include program parameters that do not 27
553	553	disrupt competition among small-scale and/or medium-scale solar developers, including, without 28
554	554	limitation, safeguards against any one, or subset of, developers in this market being given exclusive 29
555	555	rights or other market advantages over competitors. In approving the proposal, the commission 30
556	556	must find that there is no such small- and medium-solar-market disruption. 31
557	557	(c) The commission shall approve the request of the distribution company within ninety 32
558	558	(90) days, making such modifications as it deems reasonable, provided the modifications are 33
559	559	consistent with the legislative purposes of this chapter and the state’s energy-efficiency goals. 34
560	560
561	561
562	562	LC002551 - Page 16 of 24
563	563	(d) The allocation of megawatts is for implementation purposes only and shall not authorize 1
564	564	funds to be shifted from the distributed-generation growth program to energy-efficiency programs, 2
565	565	nor will implementation of the electric distribution company’s request cause a reduction of the 3
566	566	annual or cumulative capacity goals established for the distributed-generation growth program. To 4
567	567	the extent that the megawatts allocated to the energy-efficiency program pursuant to this section 5
568	568	are not committed during a program year, such uncommitted megawatts shall be allocated back to 6
569	569	the distributed-generation growth program in the following year or such year the board 7
570	570	recommends to the commission. Funding for the energy-efficiency measures that are tied to the 8
571	571	solar installations must be obtained separately from the energy-efficiency program budget funded 9
572	572	through applicable energy-efficiency charges. 10
573	573	(e) Should the small-scale and medium-scale project classes in the renewable energy 11
574	574	growth program be oversubscribed in two (2) consecutive enrollments and there are megawatts that 12
575	575	have not been committed through the process coordinated with the energy-efficiency program after 13
576	576	the second enrollment, the board, after consultation with the office and the electric distribution 14
577	577	company, shall have the authority to move all, or a portion of, the uncommitted megawatts out of 15
578	578	the coordinated program back to the renewable energy growth program to meet the demand of the 16
579	579	oversubscription, subject to commission approval. If, in such case, the board does not exercise the 17
580	580	authority, any party may file a petition to the commission requesting action to be taken. 18
581	581	39-26.6-20. Issuance of certificates and right to incentive payments. 19
582	582	(a) For small-scale and medium-scale solar projects, the electric distribution company shall 20
583	583	provide certificates of eligibility to the selected projects without commission confirmation of 21
584	584	approval (“distribution company awarded certificates”), subject to the review and consent of the 22
585	585	office. The electric distribution company shall file with the commission a list of all these 23
586	586	distribution-company-awarded certificates. 24
587	587	(b) For commercial-scale and large-scale solar, and all other distributed-generation 25
588	588	projects, the electric distribution company shall file with the commission a list of the distributed-26
589	589	generation projects selected together with the corresponding pricing information. Within sixty (60) 27
590	590	days of receipt of the list, the commission shall issue an order awarding certificates of eligibility to 28
591	591	the distributed-generation projects (“PUC awarded certificates”). 29
592	592	(c) Upon receipt of a PUC-awarded certificate or a distribution-company certificate, a 30
593	593	distributed-generation project shall be entitled to receive, and the electric distribution company 31
594	594	shall pay and/or credit (as applicable), the performance-based incentives for the specified term, and 32
595	595	under the terms and conditions of the applicable tariff in the manner set forth below. 33
596	596	(d) The performance-based incentive shall be the price-per-kilowatt-hour that was bid and 34
597	597
598	598
599	599	LC002551 - Page 17 of 24
600	600	awarded, or established as a standard incentive, as applicable. The performance-based incentive 1
601	601	shall be applied as a price-per-kilowatt-hour for all kilowatt-hours actually produced from the 2
602	602	distributed generation (net of station service, if any) for the term of years specified in the applicable 3
603	603	tariff, less the value of any kilowatt-hour charges that were offset by any net metering (if applicable) 4
604	604	for the host customer associated with the distributed generation for the billing month; provided, 5
605	605	however, if the value of kilowatt-hour charges that otherwise would be offset by net metering in a 6
606	606	given month exceeds the total value of the performance-based incentive for the month, the customer 7
607	607	shall not be subject to any additional charge, nor receive any additional net-metering credit, for the 8
608	608	difference between the performance-based incentive value and net-metering value for the month. 9
609	609	(e) Except as provided herein for residential small-scale solar projects, in every case where 10
610	610	a distributed-generation project can be configured for net metering, it shall be the election of the 11
611	611	owner of the generation to choose one of two (2) separate methods through which the owner will 12
612	612	be compensated for the performance-based incentive: 13
613	613	(1) The owner is compensated solely through direct payments under the performance-based 14
614	614	incentive provisions of this chapter for the life of the tariff term with no net metering implemented; 15
615	615	or 16
616	616	(2) The owner is compensated through a combination of direct payments and the bill credit 17
617	617	value of net metering for the life of the term of the tariff under the provisions of this chapter. 18
618	618	(3) In the case of residential small-scale solar projects, only option (2) shall be available. 19
619	619	(4) In either option, the total value of the performance-based incentive per-kilowatt-hour 20
620	620	is the same. An owner shall have a one-time right to switch the compensation methods after the 21
621	621	generation commences operation, provided that at least sixty (60) days’ notice is given to the 22
622	622	electric distribution company. Thereafter, any further compensation method switches shall be at 23
623	623	the sole discretion of the electric distribution company if requested again by the owner. 24
624	624	(f) Every owner who elects the compensation method shall: 25
625	625	(1) Receive compensation solely in the form of a check from the electric distribution 26
626	626	company, or other payment method that is mutually agreed between the electric distribution 27
627	627	company and the owner; and 28
628	628	(2) Shall receive compensation in the form of offsets against its electricity bill from the 29
629	629	electric distribution company from net metering and the balance in the form of a check from the 30
630	630	electric distribution company, or other payment method that is mutually agreed upon between the 31
631	631	electric distribution company and the owner; provided, however, that no owner of a distributed-32
632	632	generation project may be compensated twice for the same kilowatt hour of electricity, and that 33
633	633	every self-generator shall receive the full pecuniary benefit of its election to participate in the 34
634	634
635	635
636	636	LC002551 - Page 18 of 24
637	637	performance-based incentive program. 1
638	638	(g) Every owner of a distributed-generation project that can be configured for net metering 2
639	639	that elects the first option for compensation under the provisions of subsection (e) shall become 3
640	640	eligible to net meter its output in conformity with the provisions of existing law upon the 4
641	641	completion of the full term of the applicable tariff. Nothing in this section shall preclude a customer 5
642	642	from electing not to participate in the performance-based program and electing simply to net meter 6
643	643	under the provisions of existing law; provided, however, once an election is made to participate, 7
644	644	the customer will remain subject to the performance-based tariff conditions and may not terminate 8
645	645	the arrangement without the consent of the electric distribution company. 9
646	646	(h) As provided in § 39-26.6-9, any project developer may designate a generation unit on 10
647	647	the same parcel or contiguous parcel for net metering, provided that such unit or portion of such 11
648	648	unit designated for net metering is not receiving performance-based incentives under this chapter, 12
649	649	is capable of being segregated electrically, is configured with such electrical segregation, and is 13
650	650	separately metered. 14
651	651	(i) All distributed-generation projects accepting certificates shall be obligated to abide by 15
652	652	all the terms and conditions of the approved, applicable tariff. 16
653	653	39-26.6-21. Ownership of output, other attributes, and renewable energy certificates. 17
654	654	(a) Except as provided herein for residential small-scale solar projects, distributed-18
655	655	generation projects participating in the renewable energy growth program shall transfer to the 19
656	656	electric distribution company the rights and title to: 20
657	657	(1) Those renewable energy certificates generated by the project during the term of the 21
658	658	applicable, performance-based incentive tariff; 22
659	659	(2) All energy produced by the generation that is not otherwise consumed on site under a 23
660	660	net-metering arrangement; and 24
661	661	(3) Rights to any other environmental attributes or market products that are created or 25
662	662	produced by the project; provided, however, that it shall be the election of the electric distribution 26
663	663	company whether it chooses to acquire the capacity of the distributed-generation projects under the 27
664	664	tariffs set forth in this chapter and no ceiling prices recommended by the board and approved by 28
665	665	the commission will be adjusted downward in light of the electric distribution company’s election. 29
666	666	The electric distribution company shall: (1) Sell any products acquired and credit them to the 30
667	667	reconciliation account specified in § 39-26.6-25; and/or (2) Use the products to serve customers 31
668	668	and establish a price to be credited by customers using the products based on recent and near-term 32
669	669	projections of market prices. When a generator reverts to net metering after the end of the tariff 33
670	670	term under the renewable energy growth program, the net-metering generator shall retain title to 34
671	671
672	672
673	673	LC002551 - Page 19 of 24
674	674	the renewable energy certificates generated by the project. In the case of residential small-scale 1
675	675	projects, title to all energy and capacity produced from the solar generation shall remain with the 2
676	676	residential customer; shall not be transferred to the electric distribution company; and shall be 3
677	677	deemed consumed by the residential customer on-site during the applicable, distribution-service 4
678	678	billing period with no sale or purchase between the residential customer and the electric distribution 5
679	679	company. 6
680	680	(b) For the accounting purposes of the electric distribution company in treating the 7
681	681	performance-based incentives, the cost of the energy that is procured shall be the real-time market 8
682	682	price of energy and the balance of the performance-based incentive shall be attributable to the 9
683	683	purchase of environmental and any other attributes acquired. This accounting shall have no effect 10
684	684	on the total, bundled performance-based incentive to which the distributed-generation project is 11
685	685	entitled under the provisions of this chapter. 12
686	686	39-26.6-22. Zonal and other incentive payments. 13
687	687	In order to provide the electric distribution company and the board with the flexibility to 14
688	688	encourage distributed-generation projects to be located in designated geographical areas within its 15
689	689	load zone where there is an identifiable system benefit, reliability benefit, or cost savings to the 16
690	690	distribution system in that geographical area, or conservation benefit, or climate resilience benefit 17
691	691	in that geographical area, the electric distribution company, the board, or the office, shall propose 18
692	692	to include an incentive-payment adder to the bid price of any winning bidder that proposes a 19
693	693	distributed-generation project in the preferred sites that require remediation. The company, board, 20
694	694	or office can also propose disincentive subtractors for projects outside of preferred sites. The 21
695	695	electric distribution company also may propose other incentive payments to achieve other technical 22
696	696	or public policy objectives that provide identifiable benefits to customers. Any incentive-payment 23
697	697	adders must be approved by the commission, and shall not be counted as part of the bid price when 24
698	698	the bids are selected at an enrollment event. 25
699	699	39-26.6-23. Intersection of distributed generation and net metering. 26
700	700	(a) Net-metering credits for excess generation shall not be credited during the term of the 27
701	701	tariff when the distributed-generation project is receiving performance-based incentive payments 28
702	702	under the tariff. After the end of the term of the performance-based incentive tariff applicable to a 29
703	703	distributed-generation project, net-metering credits for excess generation in any given month shall 30
704	704	be credited to the net-metered account at the applicable rate allowed under the law. 31
705	705	(b) All distributed-generation projects that had begun development prior to the date the 32
706	706	commission approves the first set of ceiling price recommendations from the board and that are in 33
707	707	operation by no later than July 1, 2016, shall be eligible to continue operation under the net-34
708	708
709	709
710	710	LC002551 - Page 20 of 24
711	711	metering rules that would have been applicable to that self-generation project absent the change in 1
712	712	law set forth in this section, provided that the project does not otherwise participate in the 2
713	713	performance-based incentive program set forth in this chapter. 3
714	714	39-26.6-24. Rate design review by the commission. 4
715	715	(a) On or after July 1, 2015, the commission shall open a docket to consider rate design 5
716	716	and distribution cost allocation among rate classes in light of net metering and the changing 6
717	717	distribution system that is expected to include more distributed-energy resources, including, but 7
718	718	not limited to, distributed generation. The commission will determine the appropriate cost 8
719	719	responsibility and contributions to the operation, maintenance, and investment in the distribution 9
720	720	system that is relied upon by all customers, including, without limitation, non-net-metered and net-10
721	721	metered customers. In that docket, the commission shall require the electric distribution company 11
722	722	to file a revenue-neutral allocated-cost-of-service study for all rate classes and a proposal for new 12
723	723	rates for all customers in each rate class. The electric distribution company shall use the 13
724	724	distribution-revenue requirement upon which the then-current distribution rates were set. The 14
725	725	electric distribution company may use the allocated cost of service that was filed with the 15
726	726	compliance filing from the rate case when the then-current distribution rates were set. The 16
727	727	commission may also address the rate design for the equitable recovery of costs associated with 17
728	728	energy efficiency and any renewable energy programs that are recovered in rates. 18
729	729	(b) In establishing any new rates the commission may deem appropriate, the commission 19
730	730	shall take into account and balance the following factors: 20
731	731	(1) The benefits of distributed-energy resources; 21
732	732	(2) The distribution services being provided to net-metered customers when the distributed 22
733	733	generation is not producing electricity; 23
734	734	(3) Simplicity, understandability, and transparency of rates to all customers, including non-24
735	735	net-metered and net-metered customers; 25
736	736	(4) Equitable ratemaking principles regarding the allocation of the costs of the distribution 26
737	737	system; 27
738	738	(5) Cost causation principles; 28
739	739	(6) The general assembly’s legislative purposes in creating the distributed-generation 29
740	740	growth program; and 30
741	741	(7) Any other factors the commission deems relevant and appropriate in establishing a fair 31
742	742	rate structure. The rates shall be designed for each proposed rate class in accordance with industry-32
743	743	standard, cost-allocation principles. The commission may consider any reasonable rate design 33
744	744	options, including without limitation, fixed charges, minimum-monthly charges, demand charges, 34
745	745
746	746
747	747	LC002551 - Page 21 of 24
748	748	volumetric charges, or any combination thereof, with the purpose of assuring recovery of costs 1
749	749	fairly across all rate classes. 2
750	750	(c) The commission shall issue an order in the docket by no later than March 1, 2016. Any 3
751	751	new rates shall take effect for usage on and after April 1, 2016; provided, however, that the electric 4
752	752	distribution company may seek an extension if necessary to make the billing system changes 5
753	753	necessary to implement a new rate structure. After new, revenue-neutral rates are set in the docket 6
754	754	specified above, the commission may approve changes to the rate design in any future distribution-7
755	755	base-rate cases when a fully allocated embedded cost-of-service study is being reviewed in the rate 8
756	756	case, subject to the principles set forth in subsection (b) of this section. 9
757	757	39-26.6-25. Forecasted rate and reconciliation. 10
758	758	(a) On or before November 15 of each year, the electric distribution company shall file a 11
759	759	forecast of the total amount of payments that is likely to be paid out to distributed-generation 12
760	760	projects in the coming program year within the electric distribution company’s load zone, along 13
761	761	with any costs permitted for recovery pursuant to §§ 39-26.6-4, 39-26.6-13, and 39-26.6-18. The 14
762	762	total of all forecasted payments and costs shall be aggregated, net of forecasted revenues from the 15
763	763	sale of the energy, renewable energy certificates, and any other market products from the 16
764	764	distributed-generation projects participating in the performance-based incentive program. The 17
765	765	forecasted net-aggregate amount shall be used to design a fixed monthly charge per customer to 18
766	766	recover the net forecast in rates charged to all distribution customers during the prospective 19
767	767	calendar year, which fixed charge may be different by rate class in order to reasonably and equitably 20
768	768	spread the program costs across all customer classes. The fixed rate shall stay in effect until changed 21
769	769	after the first reconciliation filing set forth below and the rate reconciliation process shall be 22
770	770	repeated annually, as set forth below. The commission, in its discretion, may move the 23
771	771	reconciliation of costs and credits under § 39-26.1-5(f) into this reconciliation in order to have one 24
772	772	reconciliation of all program costs and credits from the long-term contracting standard, distributed-25
773	773	generation standard contracting, and renewable energy growth program. 26
774	774	(b) Within three (3) months after the end of each program year, the electric distribution 27
775	775	company shall file a report with the public utilities commission that reconciles the total amount 28
776	776	recovered from distribution customers against the total of net payments and costs for the prior 29
777	777	program year for review and approval. 30
778	778	39-26.6-26. Shared solar facilities. 31
779	779	(a) In order to facilitate the adoption of solar by customers in multifamily structures, 32
780	780	campuses, multi-structure business parks, multi-tenant or multi-owner commercial facilities, and 33
781	781	public entities with multiple accounts, the electric distribution company may establish rules and 34
782	782
783	783
784	784	LC002551 - Page 22 of 24
785	785	tariffs for program years starting on or after April 1, 2016. The rules and tariffs will set forth the 1
786	786	requirements for eligible recipients, credit transfers, consumer protection, and other considerations 2
787	787	and terms, with input from the office, for the commission’s review and approval. 3
788	788	(b) Shared solar facilities will receive the same ceiling price and enroll from the same 4
789	789	classes of other projects of the same size and ownership as established by the board for a given 5
790	790	program year. 6
791	791	(c) All customer accounts receiving bill credits shall be in the same customer class and the 7
792	792	bill credit value from the shared solar facility shall be determined by the recipients’ rate class and 8
793	793	not that of the facility owner. The credit value shall be the distribution, transition, transmission, and 9
794	794	standard-offer supply rates of the bill credit recipients. 10
795	795	(d) Any value of bill credits not transferred from the shared solar facility shall be included 11
796	796	in the total performance-based incentive, which shall be paid in accordance with the tariffs 12
797	797	established by the electric distribution company. 13
798	798	39-26.6-27. Community remote distributed generation system. 14
799	799	(a) In order to facilitate the adoption of participation in renewable energy projects by 15
800	800	eligible customers, the board may allocate a portion of the annual MW goal to a separate class, or 16
801	801	classes, of community remote distributed-generation systems, which may compete under separate 17
802	802	ceiling prices from non-community remote distributed-generation systems, for program years 18
803	803	starting on or after April 1, 2016. 19
804	804	(b) Upon such allocation by the board, the electric distribution company shall establish 20
805	805	rules and tariffs for program years starting on or after April 1, 2016, which rules and tariffs will set 21
806	806	forth the requirements for eligible recipients, credit transfers, consumer protection, and other 22
807	807	considerations and terms, with input from the office, for the commission’s review and approval. 23
808	808	(c) The value of credits to be allocated to credit recipients may be a fixed rate provided by 24
809	809	the system owner, but shall not be greater than the sum of the standard-offer service, less the 25
810	810	renewable energy standard charge or credit, and the transmission and transition rates, of the credit 26
811	811	recipient as offered by the electric distribution company in effect at the time of establishing the 27
812	812	transfer. If a fixed credit rate is not provided, the default credit will be the sum of the standard-offer 28
813	813	service, less the renewable energy standard charge or credit, and the transmission and transition 29
814	814	rates, of the credit recipient as offered by the electric distribution company in effect at the time of 30
815	815	the transfer. 31
816	816	(d) Any credits not allocated in any month will be valued at the then-current default credit 32
817	817	rate, and deducted from the total performance-based incentive of the enrolled system. 33
818	818	(e) Community remote distributed-generation systems shall not: 34
819	819
820	820
821	821	LC002551 - Page 23 of 24
822	822	(1) Comprise more than thirty percent (30%) of the annual total of capacity available under 1
823	823	the renewable energy growth program in each year; 2
824	824	(2) Be subject to a ceiling price that is more than fifteen percent (15%) higher than the 3
825	825	then-in-effect ceiling price for the same technology of the same size as recommended by the board 4
826	826	and approved by the commission; or 5
827	827	(3) Transfer credits to any account in an amount that in KWh exceeds the prior three-year 6
828	828	(3) annual average usage. 7
829	829	SECTION 2. This act shall take effect on January 1, 2026. 8
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833	833
834	834
835	835	LC002551 - Page 24 of 24
836	836	EXPLANATION
837	837	BY THE LEGISLATIVE COUNCIL
838	838	OF
839	839	A N A C T
840	840	RELATING TO PUBLIC UTILITIES AND CARRIERS -- THE RENEWABLE ENERGY
841	841	GROWTH PROGRAM
842	842	***
843	843	This act would repeal the Renewable Energy Growth Program. 1
844	844	This act would take effect on January 1, 2026. 2
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846	846	LC002551
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