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| 4 | 4 | | |
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| 5 | 5 | | 2025 -- S 0318 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC000979 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S T A T E O F R H O D E I S L A N D |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2025 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO PUBLIC UTILITIES AND CARRIERS -- LONG TERM CONTRA CTING |
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| 16 | 16 | | STANDARDS FOR RENEWA BLE ENERGY |
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| 17 | 17 | | Introduced By: Senators Tikoian, Lawson, Dimitri, Burke, Urso, Britto, Sosnowski, |
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| 18 | 18 | | Rogers, LaMountain, and de la Cruz |
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| 19 | 19 | | Date Introduced: February 21, 2025 |
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| 20 | 20 | | Referred To: Senate Commerce |
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| 21 | 21 | | |
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| 22 | 22 | | |
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| 23 | 23 | | It is enacted by the General Assembly as follows: |
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| 24 | 24 | | SECTION 1. Section 39-26.1-4 of the General Laws in Chapter 39-26.1 entitled "Long-1 |
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| 25 | 25 | | Term Contracting Standard for Renewable Energy" is hereby amended to read as follows: 2 |
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| 26 | 26 | | 39-26.1-4. Financial remuneration and incentives. 3 |
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| 27 | 27 | | In order to achieve the purposes of this chapter, electric distribution companies shall be 4 |
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| 28 | 28 | | entitled to financial remuneration and incentives for long-term contracts for newly developed 5 |
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| 29 | 29 | | renewable energy resources, which are over and above the base rate revenue requirement 6 |
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| 30 | 30 | | established in its cost of service for distribution ratemaking. Such remuneration and incentives shall 7 |
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| 31 | 31 | | compensate the electric distribution company for accepting the financial obligation of the long-8 |
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| 32 | 32 | | term contracts. The financial remuneration and incentives described in this section shall apply only 9 |
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| 33 | 33 | | to long-term contracts for newly developed renewable energy resources. For long-term contracts 10 |
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| 34 | 34 | | approved pursuant to this chapter before January 1, 2022, the financial remuneration and incentives 11 |
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| 35 | 35 | | shall be in the form of annual compensation, equal to two and three quarters percent (2.75%) of the 12 |
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| 36 | 36 | | actual annual payments made under the contracts for those projects that are commercially 13 |
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| 37 | 37 | | operating, unless determined otherwise by the commission at the time of approval. For long-term 14 |
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| 38 | 38 | | contracts approved pursuant to this chapter on or after January 1, 2022, including contracts above 15 |
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| 39 | 39 | | the minimum long-term contract capacity, the financial remuneration and incentives shall be in the 16 |
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| 40 | 40 | | form of annual compensation up to one percent (1.0%) of the actual annual payments made under 17 |
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| 41 | 41 | | the contracts through December 31, 2026, for those projects that are commercially operating. For 18 |
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| 42 | 42 | | |
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| 43 | 43 | | |
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| 44 | 44 | | LC000979 - Page 2 of 11 |
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| 45 | 45 | | all long-term contracts approved pursuant to this chapter on or after January 1, 2027, financial 1 |
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| 46 | 46 | | remuneration and incentives shall not may be applied, unless otherwise granted by the commission 2 |
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| 47 | 47 | | subject to commission approval upon demonstrating evidence of the additional risk the electric 3 |
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| 48 | 48 | | distribution company accepts under the contracts. For any calendar year in which the electric 4 |
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| 49 | 49 | | distribution company’s actual return on equity exceeds the return on equity allowed by the 5 |
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| 50 | 50 | | commission in the electric distribution company’s last general rate case, the commission shall have 6 |
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| 51 | 51 | | the authority to adjust any or all remuneration paid to the electric distribution company pursuant to 7 |
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| 52 | 52 | | this section in order to assure that such remuneration does not result in or contribute toward the 8 |
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| 53 | 53 | | electric distribution company earning above its allowed return for such calendar year. 9 |
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| 54 | 54 | | SECTION 2. Sections 39-31-4 39-31-5, 39-31-6, 39-31-7 and 39-31-11 of the General 10 |
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| 55 | 55 | | Laws in Chapter 39-31 entitled "Affordable Clean Energy Security Act" are hereby amended to 11 |
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| 56 | 56 | | read as follows: 12 |
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| 57 | 57 | | 39-31-4. Regional energy planning. 13 |
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| 58 | 58 | | (a) Consistent with the purposes of this chapter, and utilizing regional stakeholder 14 |
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| 59 | 59 | | processes where appropriate, the office of energy resources, in consultation and coordination with 15 |
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| 60 | 60 | | the division of public utilities and carriers and the public utility company that provides electric 16 |
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| 61 | 61 | | distribution as defined in § 39-1-2(a)(12) as well as natural gas as defined in § 39-1-2(a)(17), is 17 |
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| 62 | 62 | | authorized to: 18 |
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| 63 | 63 | | (1) Participate in the development and issuance of state, regional, or multistate competitive 19 |
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| 64 | 64 | | solicitation(s) for the development and construction of regional electric-transmission projects that 20 |
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| 65 | 65 | | would allow for the reliable transmission of nuclear power and/or large- or small-scale domestic or 21 |
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| 66 | 66 | | international hydroelectric power to New England load centers that will benefit the state of Rhode 22 |
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| 67 | 67 | | Island and its ratepayers, and such solicitations may be issued by the New England States 23 |
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| 68 | 68 | | Committee on Electricity or the electric or natural gas distribution company to further the purposes 24 |
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| 69 | 69 | | of this chapter; 25 |
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| 70 | 70 | | (2) Participate in the development and issuance of state, regional, or multistate competitive 26 |
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| 71 | 71 | | solicitation(s) for the development and construction of regional electric-transmission projects that 27 |
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| 72 | 72 | | would allow for the reliable transmission of eligible renewable energy resources, including offshore 28 |
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| 73 | 73 | | wind, as defined by § 39-26-5(a), to New England load centers that will benefit the state of Rhode 29 |
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| 74 | 74 | | Island and its ratepayers, and the solicitations may be issued by the New England States Committee 30 |
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| 75 | 75 | | on Electricity or the electric or natural gas distribution company to further the purposes of this 31 |
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| 76 | 76 | | chapter; and 32 |
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| 77 | 77 | | (3) Participate in the development and issuance of regional or multistate competitive 33 |
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| 78 | 78 | | solicitation(s) for the development and construction of regional natural-gas-pipeline infrastructure 34 |
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| 79 | 79 | | |
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| 80 | 80 | | |
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| 81 | 81 | | LC000979 - Page 3 of 11 |
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| 82 | 82 | | and capacity that will benefit the state of Rhode Island and its ratepayers by strengthening energy 1 |
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| 83 | 83 | | system reliability and security and, in doing so, potentially mitigate energy price volatility that 2 |
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| 84 | 84 | | threatens the economic vitality and competitiveness of Rhode Island residents and businesses. The 3 |
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| 85 | 85 | | solicitations may be issued by the New England States Committee on Electricity or the electric or 4 |
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| 86 | 86 | | natural gas distribution company to further the purposes of this chapter; and the solicitations may 5 |
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| 87 | 87 | | request proposals that are priced in increments to allow for the evaluation of project costs and 6 |
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| 88 | 88 | | benefits associated with adding various levels of additional, natural gas pipeline capacity into New 7 |
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| 89 | 89 | | England and assist with the optimization of energy system reliability, economic, and other benefits 8 |
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| 90 | 90 | | consistent with the purposes of this chapter. 9 |
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| 91 | 91 | | (4) As part of any such state, regional, or multistate competitive solicitation processes 10 |
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| 92 | 92 | | conducted pursuant to this chapter, the office of energy resources shall work jointly with the 11 |
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| 93 | 93 | | division of public utilities and carriers, and with the electric distribution company as appropriate, 12 |
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| 94 | 94 | | to identify incremental, natural-gas-pipeline infrastructure and capacity and/or electric-13 |
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| 95 | 95 | | transmission projects that optimize energy reliability, economic, environmental, and ratepayer 14 |
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| 96 | 96 | | impacts for Rhode Island, consistent with the legislative findings and purpose of this chapter. The 15 |
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| 97 | 97 | | office of energy resources and division of public utilities and carriers shall be authorized to utilize 16 |
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| 98 | 98 | | expert consultants, as needed, to assist in any state, regional, multistate, or state-level determination 17 |
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| 99 | 99 | | related to the procurement activities identified in § 39-31-5. 18 |
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| 100 | 100 | | (b) Prior to any binding commitments being made by any agencies of the state, the electric 19 |
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| 101 | 101 | | distribution company, or any other entity that would result in costs being incurred directly, or 20 |
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| 102 | 102 | | indirectly, by Rhode Island electric and/or gas consumers through distribution or commodity rates, 21 |
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| 103 | 103 | | the office of energy resources and division of public utilities and carriers shall jointly file any 22 |
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| 104 | 104 | | energy infrastructure project recommendation(s) with the public utilities commission and may 23 |
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| 105 | 105 | | make such filing jointly with the electric or natural gas distribution company as appropriate. The 24 |
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| 106 | 106 | | public utilities commission shall consider any such recommendation(s) as specified under § 39-31-25 |
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| 107 | 107 | | 7. 26 |
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| 108 | 108 | | (c) A copy of the filing made under subsection (b) of this section shall be provided to the 27 |
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| 109 | 109 | | governor, the president of the senate, the speaker of the house, the department of environmental 28 |
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| 110 | 110 | | management, and the commerce corporation. 29 |
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| 111 | 111 | | (d) The electric distribution company shall be provided with a copy of any filing made 30 |
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| 112 | 112 | | under this section at least ten (10) business days in advance of its filing with the public utilities 31 |
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| 113 | 113 | | commission and the electric or gas distribution utility may file separate comments when the filing 32 |
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| 114 | 114 | | is made. 33 |
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| 115 | 115 | | (e) As part of any office of energy resources and division of public utilities and carriers 34 |
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| 116 | 116 | | |
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| 117 | 117 | | |
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| 118 | 118 | | LC000979 - Page 4 of 11 |
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| 119 | 119 | | filing made pursuant to this chapter, the agencies shall identify the expected energy reliability, 1 |
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| 120 | 120 | | energy security, and ratepayer impacts that are expected to result from commitments being made 2 |
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| 121 | 121 | | in connection with the proposed project(s). 3 |
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| 122 | 122 | | (f) The office of energy resources and division of public utilities and carriers reserve the 4 |
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| 123 | 123 | | right to determine that energy infrastructure projects submitted in any state, regional, or multistate 5 |
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| 124 | 124 | | competitive solicitation process are not in Rhode Island’s energy reliability, energy security, and/or 6 |
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| 125 | 125 | | ratepayer interests, and shall make such findings available to the governor, the president of the 7 |
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| 126 | 126 | | senate, and the speaker of the house. The electric or gas distribution utility may attach a separate 8 |
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| 127 | 127 | | opinion to those findings, at its election. 9 |
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| 128 | 128 | | 39-31-5. State and regional energy procurement. 10 |
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| 129 | 129 | | (a) Consistent with the purposes of this chapter, the public utility company that provides 11 |
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| 130 | 130 | | electric distribution as defined in § 39-1-2(a)(12), as well as natural gas as defined in § 39-1-12 |
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| 131 | 131 | | 2(a)(17), in consultation with the office of energy resources and the division of public utilities and 13 |
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| 132 | 132 | | carriers is authorized to voluntarily participate in state, multistate, or regional efforts to: 14 |
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| 133 | 133 | | (1) Procure domestic or international large- or small-scale hydroelectric power, nuclear 15 |
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| 134 | 134 | | power, and eligible renewable energy resources, including wind, as defined by § 39-26-5(a), on 16 |
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| 135 | 135 | | behalf of electric ratepayers; provided, however, that large-scale hydroelectric power shall not be 17 |
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| 136 | 136 | | eligible under the renewable energy standard established by chapter 26 of this title; 18 |
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| 137 | 137 | | (2) Procure incremental, natural-gas-pipeline infrastructure and capacity into New England 19 |
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| 138 | 138 | | to help strengthen energy system reliability and facilitate the economic interests of the state and its 20 |
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| 139 | 139 | | ratepayers; 21 |
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| 140 | 140 | | (3) Support the development and filing of necessary tariffs and other appropriate cost-22 |
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| 141 | 141 | | recovery mechanisms, as proposed by the office of energy resources or the division of public 23 |
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| 142 | 142 | | utilities and carriers, that allocate the costs of new, electric-transmission and natural-gas-pipeline 24 |
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| 143 | 143 | | infrastructure and capacity projects selected pursuant to the provisions of this chapter to ratepayers, 25 |
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| 144 | 144 | | such that costs are shared among participating states in an equitable manner; and 26 |
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| 145 | 145 | | (4) To the extent that the public utility company that provides electric distribution as 27 |
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| 146 | 146 | | defined in § 39-1-2(a)(12), as well as natural gas as defined in § 39-1-2(a)(17), pursues the 28 |
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| 147 | 147 | | objectives identified above, the public utility company shall utilize all appropriate, competitive 29 |
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| 148 | 148 | | processes, and maintain compliance with applicable federal and state siting laws. 30 |
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| 149 | 149 | | (b) Any procurement authorized under this section shall be commercially reasonable. 31 |
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| 150 | 150 | | 39-31-6. Utility filings with the public utilities commission. 32 |
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| 151 | 151 | | (a) Pursuant to the procurement activities in § 39-31-5 or § 39-31-10, the public utility 33 |
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| 152 | 152 | | company that provides electric distribution as defined in § 39-1-2(a)(12), as well the public utilities 34 |
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| 153 | 153 | | |
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| 154 | 154 | | |
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| 155 | 155 | | LC000979 - Page 5 of 11 |
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| 156 | 156 | | that distribute natural gas as provided by § 39-1-2(a)(20), are authorized to voluntarily file 1 |
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| 157 | 157 | | proposals with the public utilities commission for approval to implement these policies and achieve 2 |
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| 158 | 158 | | the purposes of this chapter. The company’s proposals may include, but are not limited to the, 3 |
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| 159 | 159 | | following authorizations: 4 |
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| 160 | 160 | | (1) Subject to review and approval of the commission, to enter into long-term contracts 5 |
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| 161 | 161 | | through appropriate competitive processes for large- or small-scale hydroelectric power, nuclear 6 |
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| 162 | 162 | | power, and/or renewable energy resources, as defined by § 39-26-5(a); that are eligible under the 7 |
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| 163 | 163 | | renewable energy standard established by chapter 26 of this title; provided, however, that large-8 |
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| 164 | 164 | | scale hydroelectric power shall not be eligible under the renewable energy standard established by 9 |
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| 165 | 165 | | chapter 26 of this title, and provided that: 10 |
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| 166 | 166 | | (i) The electric distribution company may, subject to review and approval of the 11 |
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| 167 | 167 | | commission, select a reasonable, open, and competitive method of soliciting proposals from 12 |
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| 168 | 168 | | renewable energy developers, including domestic or international large- or small-scale 13 |
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| 169 | 169 | | hydroelectric power for the purchase of these power resources, that may include public solicitations 14 |
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| 170 | 170 | | and individual negotiations. 15 |
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| 171 | 171 | | (ii) The solicitation process shall permit a reasonable amount of negotiating discretion for 16 |
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| 172 | 172 | | the parties to engage in arms-length negotiations over final contract terms. 17 |
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| 173 | 173 | | (iii) Each long-term contract entered into pursuant to this section shall contain a condition 18 |
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| 174 | 174 | | that it shall not be effective without commission review and approval. 19 |
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| 175 | 175 | | (iv) The electric distribution company shall file the contract(s) or unsigned contract(s) 20 |
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| 176 | 176 | | pursuant to § 39-31-10(c), along with a justification for its decision, within a reasonable time after 21 |
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| 177 | 177 | | it has executed the contract following a solicitation or negotiation. 22 |
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| 178 | 178 | | (v) Subject to review and approval of the public utilities commission, to enter into long-23 |
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| 179 | 179 | | term contracts for natural-gas-pipeline infrastructure and capacity that are commercially reasonable 24 |
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| 180 | 180 | | and advance the purposes of this chapter at levels beyond those commitments necessary to serve 25 |
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| 181 | 181 | | local gas distribution customers, and may do so either directly, or in coordination with, other New 26 |
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| 182 | 182 | | England states and instrumentalities; utilities; generators; or other appropriate contracting parties. 27 |
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| 183 | 183 | | (vi) The commission shall accept public comment on any contracts filed by the distribution 28 |
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| 184 | 184 | | utility, as authorized under this section, for a period no less than thirty (30) days. 29 |
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| 185 | 185 | | (A) During this public comment period, the contracts shall be reviewed by the following 30 |
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| 186 | 186 | | state agencies, which shall provide advisory opinions to the public utilities commission on the 31 |
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| 187 | 187 | | topics specified, and the public utilities commission shall give due consideration to the advisory 32 |
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| 188 | 188 | | opinions filed: 33 |
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| 189 | 189 | | (I) The department of environmental management (DEM) shall provide an advisory 34 |
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| 190 | 190 | | |
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| 191 | 191 | | |
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| 192 | 192 | | LC000979 - Page 6 of 11 |
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| 193 | 193 | | opinion on the expected greenhouse gas emissions and statewide environmental impacts resulting 1 |
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| 194 | 194 | | from the proposed contract(s), including a determination as to whether the proposed project(s) 2 |
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| 195 | 195 | | advance the goals of chapter 6.2 of title 42 (the “2021 Act on Climate”). 3 |
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| 196 | 196 | | (II) The commerce corporation shall provide an advisory opinion on the expected statewide 4 |
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| 197 | 197 | | economic impacts resulting from the proposed contract(s). 5 |
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| 198 | 198 | | (III) The office of energy resources shall provide an advisory opinion on the expected 6 |
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| 199 | 199 | | energy security, reliability, environmental, and economic impacts resulting from the contract(s). 7 |
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| 200 | 200 | | (B) The commission shall notify the aforementioned agencies upon the filing of any 8 |
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| 201 | 201 | | contract filed by the distribution utility pursuant to this chapter, and notify them of any related 9 |
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| 202 | 202 | | hearings and/or proceedings. 10 |
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| 203 | 203 | | (C) Advisory opinions issued by agencies designated under subsection (a)(1)(vi)(A) of this 11 |
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| 204 | 204 | | section shall not be considered as final decisions of the agencies making the opinions, and shall not 12 |
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| 205 | 205 | | be subject to judicial review under § 42-35-15, or any other provision of the general laws. 13 |
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| 206 | 206 | | (vii) The commission shall approve the contract(s) if it determines that: 14 |
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| 207 | 207 | | (A) The contract is commercially reasonable; 15 |
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| 208 | 208 | | (B) The requirements for the solicitation have been met; 16 |
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| 209 | 209 | | (C) The contract is consistent with achievement of the state’s greenhouse gas reduction 17 |
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| 210 | 210 | | targets as specified in chapter 6.2 of title 42 (the “2021 Act on Climate”); and 18 |
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| 211 | 211 | | (D) The contract is consistent with the purposes of this chapter. 19 |
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| 212 | 212 | | (viii) Participate in a multistate or regional sharing of costs through the Federal Energy 20 |
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| 213 | 213 | | Regulatory Commission-approved tariffs for the costs of electric transmission and natural-gas-21 |
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| 214 | 214 | | pipeline infrastructure projects pursued under this chapter. 22 |
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| 215 | 215 | | (b) The commission shall hold evidentiary hearings and public hearings to review any 23 |
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| 216 | 216 | | contract filing that may be made pursuant to this section and issue a written order approving or 24 |
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| 217 | 217 | | rejecting the contract within one hundred twenty (120) days of the filing; in rejecting a contract, 25 |
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| 218 | 218 | | the commission may advise the parties of the reason for the contract being rejected and provide an 26 |
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| 219 | 219 | | option for the parties to attempt to address the reasons for rejection in a revised contract within a 27 |
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| 220 | 220 | | specified period not to exceed ninety (90) days. 28 |
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| 221 | 221 | | 39-31-7. Duties of the commission. 29 |
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| 222 | 222 | | (a) The commission shall approve any proposals made by the electric or and gas 30 |
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| 223 | 223 | | distribution company that are commercially reasonable and advance the purposes of this chapter. 31 |
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| 224 | 224 | | The commission’s authority shall include, without limitation, the authority to: 32 |
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| 225 | 225 | | (1) Approve long-term contracts entered into pursuant to the goals and provisions of this 33 |
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| 226 | 226 | | chapter for large- or small-scale hydroelectric power, nuclear power and renewable energy 34 |
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| 227 | 227 | | |
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| 228 | 228 | | |
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| 229 | 229 | | LC000979 - Page 7 of 11 |
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| 230 | 230 | | resources, as defined by § 39-26-5(a) that are eligible under the renewable energy standard 1 |
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| 231 | 231 | | established by chapter 26 of this title; provided, however, that large-scale hydroelectric power shall 2 |
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| 232 | 232 | | not be eligible under the renewable energy standard established by chapter 26 of this title; 3 |
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| 233 | 233 | | (2) Approve long-term contracts for natural-gas-pipeline infrastructure and capacity 4 |
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| 234 | 234 | | consistent with the purposes of this chapter; 5 |
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| 235 | 235 | | (3) Approve rate-recovery mechanisms proposed by the electric and gas distribution 6 |
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| 236 | 236 | | companies relating to costs incurred under this chapter by the electric and gas distribution company 7 |
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| 237 | 237 | | that facilitate the multistate or regional sharing of costs necessary to implement electric 8 |
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| 238 | 238 | | transmission and natural-gas-pipeline infrastructure projects pursued under this chapter, including 9 |
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| 239 | 239 | | any costs incurred through the Federal Energy Regulatory Commission approved tariffs related to 10 |
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| 240 | 240 | | such multistate or regional energy infrastructure procurements; 11 |
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| 241 | 241 | | (4) Address any proposed changes to standard-offer procurements, standard-offer pricing, 12 |
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| 242 | 242 | | and retail-choice rules; 13 |
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| 243 | 243 | | (5) Provide for the recovery of reasonable net costs from all distribution customers incurred 14 |
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| 244 | 244 | | by the electric and gas distribution company in furtherance of the purposes of this chapter that may 15 |
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| 245 | 245 | | include, but are not limited to, costs to solicit, evaluate, and seek approval of such contracts as well 16 |
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| 246 | 246 | | as net costs incurred under any contracts approved by the commission under this section and costs 17 |
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| 247 | 247 | | associated with the management of incremental capacity resulting from interstate gas-pipeline-18 |
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| 248 | 248 | | expansion projects pursued pursuant to this chapter and costs associated with investments in local 19 |
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| 249 | 249 | | gas-distribution-network assets necessary to implement such interstate gas-pipeline-expansion 20 |
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| 250 | 250 | | projects; 21 |
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| 251 | 251 | | (6) Nothing herein is intended to prohibit the commission from allowing the electric 22 |
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| 252 | 252 | | distribution company to use the energy, capacity, and other attributes purchased for resale to 23 |
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| 253 | 253 | | customers and approve tariffs that charge those customers for the energy, capacity, and other 24 |
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| 254 | 254 | | attributes from the resale to those customers; and/or to use the NE-GIS certificates for purposes of 25 |
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| 255 | 255 | | meeting the obligations set forth in chapter 26 of this title (“renewable energy standard”); 26 |
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| 256 | 256 | | (7) Approve cost allocation proposals filed by the gas distribution company and/or the 27 |
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| 257 | 257 | | electric distribution company that appropriately allocate offshore wind costs incurred under § 39-28 |
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| 258 | 258 | | 31-10, natural gas infrastructure and capacity costs incurred under § 39-31-6 between electric and 29 |
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| 259 | 259 | | gas distribution customers of the electric and gas distribution company in a manner proportional to 30 |
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| 260 | 260 | | the energy benefits accrued by Rhode Island’s gas and electric customers from making such 31 |
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| 261 | 261 | | investments. In making its determination, the commission shall consider projected reductions in 32 |
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| 262 | 262 | | regional, wholesale electric prices as a benefit that accrues to electric ratepayers. The allocation of 33 |
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| 263 | 263 | | costs shall include all distribution customers, regardless from whom they are purchasing their 34 |
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| 264 | 264 | | |
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| 265 | 265 | | |
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| 266 | 266 | | LC000979 - Page 8 of 11 |
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| 267 | 267 | | commodity service; and 1 |
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| 268 | 268 | | (8) Approve any other proposed regulatory or ratemaking changes that reasonably advance 2 |
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| 269 | 269 | | the goals set forth herein. 3 |
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| 270 | 270 | | (b) The grant of authorizations under this chapter shall not be construed as creating a 4 |
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| 271 | 271 | | mandate or obligation on the part of the electric and gas distribution company to enter into any 5 |
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| 272 | 272 | | contracts or file any proposals pursuant to this chapter. 6 |
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| 273 | 273 | | (c) The public utilities commission shall docket any proposals made by the office of energy 7 |
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| 274 | 274 | | resources and division of public utilities and carriers pursuant to § 39-31-4. Docket materials shall 8 |
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| 275 | 275 | | be posted and maintained on the commission’s website. The commission shall conduct 9 |
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| 276 | 276 | | proceedings, as provided below, solely for the purpose of determining whether the proposed 10 |
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| 277 | 277 | | infrastructure projects, if implemented, are in the public interest and no commitments shall be valid 11 |
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| 278 | 278 | | or authorized without such finding being made by the commission. The validity and approval of 12 |
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| 279 | 279 | | any commitments made by the electric or gas distribution company in furtherance of the purposes 13 |
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| 280 | 280 | | of this chapter shall be separate and subject to § 39-31-5. The docket opened pursuant to this 14 |
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| 281 | 281 | | subsection shall proceed as follows: 15 |
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| 282 | 282 | | (1) The following state agencies shall provide advisory opinions to the commission on the 16 |
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| 283 | 283 | | topics specified below within sixty (60) days from the docketing date: 17 |
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| 284 | 284 | | (i) The department of environmental management (DEM) shall provide an advisory 18 |
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| 285 | 285 | | opinion on the expected greenhouse gas emissions and statewide environmental impacts resulting 19 |
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| 286 | 286 | | from the proposed project(s), including a determination as to whether the proposed project(s) 20 |
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| 287 | 287 | | advance the goals of chapter 6.2 of title 42 (the “2021 Act on Climate”). 21 |
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| 288 | 288 | | (ii) The commerce corporation shall provide an advisory opinion on the expected statewide 22 |
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| 289 | 289 | | economic impacts resulting from the proposed project(s). 23 |
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| 290 | 290 | | (2) The commission shall notify the aforementioned agencies upon the filing of any 24 |
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| 291 | 291 | | proposal made under this section, and notify them of any related hearings and/or proceedings. 25 |
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| 292 | 292 | | (3) Advisory opinions issued by agencies designated under subsection (c)(1) of this section 26 |
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| 293 | 293 | | shall not be considered as final decisions of the agencies making the opinions and shall not be 27 |
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| 294 | 294 | | subject to judicial review under § 42-35-15 or any other provision of the general laws. 28 |
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| 295 | 295 | | (4) Upon completion of the sixty-day (60) advisory-opinion period, the commission shall 29 |
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| 296 | 296 | | provide for a thirty-day (30) public comment period on any energy infrastructure project(s) selected 30 |
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| 297 | 297 | | pursuant to this chapter and hold evidentiary hearings. In addition to evidentiary hearings, the 31 |
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| 298 | 298 | | commission shall also hold at least one public hearing to accept public comment on the proposal(s) 32 |
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| 299 | 299 | | prior to an open meeting held pursuant to this section. 33 |
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| 300 | 300 | | (5) The commission shall hold an open meeting no later than one hundred twenty (120) 34 |
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| 301 | 301 | | |
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| 302 | 302 | | |
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| 303 | 303 | | LC000979 - Page 9 of 11 |
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| 304 | 304 | | days from the date of filing by the office of energy resources and division of public utilities and 1 |
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| 305 | 305 | | carriers and shall certify that the proposed project(s) are in the public interest if, in the commission’s 2 |
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| 306 | 306 | | determination, and in consideration of filed advisory opinions and the opinion of the electric or gas 3 |
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| 307 | 307 | | distribution utility, the proposed infrastructure project(s): 4 |
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| 308 | 308 | | (i) Are consistent with the findings and purposes of this chapter; 5 |
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| 309 | 309 | | (ii) Will benefit Rhode Island by improving local and regional energy system reliability 6 |
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| 310 | 310 | | and security; 7 |
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| 311 | 311 | | (iii) Will benefit Rhode Island ratepayers by offering the potential for reduced energy price 8 |
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| 312 | 312 | | volatility and reduction of energy supply costs in the context of an integrated regional energy 9 |
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| 313 | 313 | | system; 10 |
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| 314 | 314 | | (iv) Will not cause unacceptable harm to the environment and are consistent with the 11 |
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| 315 | 315 | | greenhouse gas reduction goals established in chapter 6.2 of title 42 (the “2021 Act on Climate”); 12 |
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| 316 | 316 | | and 13 |
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| 317 | 317 | | (v) Will enhance the economic fabric of the state. 14 |
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| 318 | 318 | | (6) The commission shall issue a written determination of its findings within ten (10) 15 |
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| 319 | 319 | | business days of its open-meeting decision and provide copies of that determination, along with 16 |
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| 320 | 320 | | copies of all advisory opinions, public comment, and any other materials deemed relevant to the 17 |
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| 321 | 321 | | commission determination, to the governor, the president of the senate, the speaker of the house, 18 |
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| 322 | 322 | | the commissioner of the office of energy resources, and the administrator of the division of public 19 |
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| 323 | 323 | | utilities and carriers. 20 |
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| 324 | 324 | | (d) A determination issued by the commission shall constitute the sole, final, binding, and 21 |
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| 325 | 325 | | determinative regulatory decision within the state for the purpose of authorizing the state to support 22 |
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| 326 | 326 | | a proposed, regional energy-infrastructure project(s) that is funded through the Federal Energy 23 |
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| 327 | 327 | | Regulatory Commission approved tariffs on a regional and/or multistate basis pursuant to this 24 |
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| 328 | 328 | | chapter. Appeals shall be governed by § 39-5-1. 25 |
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| 329 | 329 | | (e) Upon issuance of a written determination by the commission finding that the proposed 26 |
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| 330 | 330 | | project(s) is in the public interest, the office of energy resources and division of public utilities and 27 |
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| 331 | 331 | | carriers shall, on behalf of the state, be authorized to support any state, regional, and/or multistate 28 |
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| 332 | 332 | | process necessary to implement the project(s), including, without limitation, supporting any 29 |
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| 333 | 333 | | necessary and related Federal Energy Regulatory Commission filings; provided, however, that any 30 |
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| 334 | 334 | | commitments made by the electric or gas distribution company to implement the proposals remain 31 |
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| 335 | 335 | | voluntary and subject to § 39-31-5. 32 |
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| 336 | 336 | | (f) Nothing in this section shall be construed to preclude the electric or gas distribution 33 |
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| 337 | 337 | | company from making a filing under § 39-31-6, simultaneous with a filing under this section by 34 |
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| 338 | 338 | | |
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| 339 | 339 | | |
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| 340 | 340 | | LC000979 - Page 10 of 11 |
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| 341 | 341 | | the office of energy resources and the division of public utilities and carriers, in which case the 1 |
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| 342 | 342 | | filings made under §§ 39-31-6 and 39-31-7 shall be consolidated. 2 |
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| 343 | 343 | | 39-31-11. Financial remuneration and incentives. 3 |
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| 344 | 344 | | In order to achieve the purposes of this chapter, electric distribution companies shall be 4 |
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| 345 | 345 | | entitled to financial remuneration and incentives for long-term contracts for newly developed 5 |
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| 346 | 346 | | renewable energy resources, which that are over and above the base rate revenue requirement 6 |
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| 347 | 347 | | established in its cost of service for distribution ratemaking. Such remuneration and incentives shall 7 |
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| 348 | 348 | | compensate the electric distribution company for accepting the financial obligation of the long-8 |
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| 349 | 349 | | term contracts. For long-term contracts approved pursuant to this chapter on or after January 1, 9 |
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| 350 | 350 | | 2022, the financial remuneration and incentives shall be in the form of annual compensation up to 10 |
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| 351 | 351 | | one percent (1.0%) of the actual annual payments made under the contracts through December 31, 11 |
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| 352 | 352 | | 2026, for those projects that are commercially operating. For long-term contracts approved 12 |
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| 353 | 353 | | pursuant to this chapter on or after January 1, 2027, financial remuneration and incentives shall not 13 |
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| 354 | 354 | | may be applied subject to commission approval upon demonstrating evidence of the additional risk 14 |
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| 355 | 355 | | the electric distribution company accepts under the contacts, unless otherwise granted by the 15 |
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| 356 | 356 | | commission. Any remuneration and incentives approved pursuant to this subsection shall be in 16 |
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| 357 | 357 | | addition to the electric distribution company's right to obtain recovery of costs incurred under this 17 |
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| 358 | 358 | | chapter, as provided under §§ 39-31-7(a)(3) and 39-31-7(a)(5). For any calendar year in which the 18 |
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| 359 | 359 | | electric distribution company’s actual return on equity exceeds the return on equity allowed by the 19 |
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| 360 | 360 | | commission in the electric distribution company’s last general rate case, the commission shall have 20 |
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| 361 | 361 | | the authority to adjust any or all remuneration paid to the electric distribution company pursuant to 21 |
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| 362 | 362 | | this section in order to assure that such remuneration does not result in or contribute toward the 22 |
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| 363 | 363 | | electric distribution company earning above its allowed return for such calendar year. 23 |
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| 364 | 364 | | SECTION 3. Chapter 39-31 of the General Laws entitled "Affordable Clean Energy 24 |
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| 365 | 365 | | Security Act" is hereby amended by adding thereto the following section: 25 |
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| 366 | 366 | | 39-31-13. Severability. 26 |
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| 367 | 367 | | If any provision of this chapter or the application thereof to any person or circumstances is 27 |
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| 368 | 368 | | held invalid, the invalidity shall not affect other provisions or applications of the chapter that can 28 |
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| 369 | 369 | | be given effect without the invalid provision or application, and to this end the provisions of this 29 |
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| 370 | 370 | | chapter are declared to be severable. 30 |
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| 371 | 371 | | SECTION 4. This act shall take effect upon passage. 31 |
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| 373 | 373 | | LC000979 |
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| 375 | 375 | | |
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| 376 | 376 | | |
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| 377 | 377 | | LC000979 - Page 11 of 11 |
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| 378 | 378 | | EXPLANATION |
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| 379 | 379 | | BY THE LEGISLATIVE COUNCIL |
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| 380 | 380 | | OF |
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| 381 | 381 | | A N A C T |
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| 382 | 382 | | RELATING TO PUBLIC UTILITIES AND CARRIERS -- LONG TERM CONTRACTING |
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| 383 | 383 | | STANDARDS FOR RENEWA BLE ENERGY |
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| 384 | 384 | | *** |
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| 385 | 385 | | This act would allow a public utility company that provides electric and gas distribution to 1 |
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| 386 | 386 | | participate in projects that would allow for the reliable transmission of nuclear power. It would 2 |
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| 387 | 387 | | allow the utility to procure nuclear power and enter into long-term contracts for nuclear power. 3 |
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| 388 | 388 | | This act would take effect upon passage. 4 |
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| 389 | 389 | | ======== |
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| 390 | 390 | | LC000979 |
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| 392 | 392 | | |
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