2013 -- S 0836

=======

LC02291

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

____________

A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - MUNICIPAL STREETLIGHT

INVESTMENT ACT

     Introduced By: Senators Sheehan, Sosnowski, Cote, Lombardo, and Ciccone

     Date Introduced: April 04, 2013

     Referred To: Senate Housing & Municipal Government

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Title 39 of the General Laws entitled "PUBLIC UTILITIES AND

1-2

CARRIERS" is hereby amended by adding thereto the following chapter:

1-3

     CHAPTER 29

1-4

MUNICIPAL STREETLIGHT INVESTMENT ACT

1-5

     39-29-1. Findings and purposes – (a) The Rhode Island general assembly finds and

1-6

declares that:

1-7

     (1) Taxpayers are mandated to pay the electric distribution company large sums every

1-8

year to light municipal and many state-owned streets;

1-9

     (2) Municipalities are limited in how they can manage this public safety resource because

1-10

they do not own or control the light fixtures within their borders;

1-11

     (3) There is no incentive in the applicable electric rate tariff for installing energy efficient

1-12

lighting technologies that may reduce both power and maintenance expenses;

1-13

     (4) There is no provision in the applicable electric rate tariff for municipalities to work

1-14

collectively to manage the maintenance of the street lighting system; and

1-15

     (5) Municipalities around the country have saved considerable resources by purchasing

1-16

their streetlight systems from electric distribution companies and contracting for the maintenance

1-17

independently.

1-18

     (b) Now, therefore, the purpose of this chapter is to reduce municipal street lighting costs

1-19

and improve service to citizens by:

2-1

     (1) Improving public safety with street lights that provide better illumination;

2-2

     (2) Reducing maintenance costs by allowing municipalities to own the street and area

2-3

lighting within their borders and to enter into regional maintenance service contracts;

2-4

     (3) Reducing whole-system cost through municipal ownership and regional management

2-5

and by eliminating the current "facilities charge;"

2-6

     (4) Providing innovative and proven technologies for more efficient lighting; and

2-7

     (5) Providing more responsive service for lighting repairs.

2-8

     39-29-2. Definitions. -- When used in this chapter, the following terms shall have the

2-9

following meanings:

2-10

     (1) "Office" means the Office of Energy Resources.

2-11

     (2) "Electric distribution company" means a company defined in subdivision 39-1-2(12),

2-12

supplying standard offer service, last resort service, or any successor service to end-use

2-13

customers, but not including the Block Island Power Company or the Pascoag Utility District.

2-14

     (3) "Lighting equipment" means all equipment used to light streets including lighting

2-15

ballasts, fixtures, and other equipment necessary for the conversion of electric energy into street

2-16

lighting service, but excluding the utility poles upon which the lighting equipment is fixed.

2-17

Lighting equipment shall include, but not be limited to, decorative street and area lighting

2-18

equipment and solid-state (LED) lighting technologies.

2-19

     39-29-3. Streetlight investment. -- (a) Any city or town receiving street lighting service

2-20

from an electric distribution company pursuant to an electric rate tariff providing for the use by

2-21

such municipality of lighting equipment owned by the electric distribution company, at its option,

2-22

upon sixty (60) days notice to the electric company and to the department, and subject to the

2-23

provisions of subsections (b) through (e), may:

2-24

     (1) Convert its street lighting service from the subject tariff rate to an alternative tariff

2-25

rate providing for delivery service by the electric distribution company of electric energy,

2-26

whether or not supplied by the electric distribution company, over distribution facilities and wires

2-27

owned by the electric distribution company to lighting equipment owned or leased by the

2-28

municipality, and further providing for the use by such municipality of the space on any pole,

2-29

lamp post, or other mounting surface previously used by the electric distribution company for the

2-30

mounting of the lighting equipment. The alternative tariff rate shall provide for monthly bills for

2-31

street and area lighting that shall include a schedule of energy charges based on a determination

2-32

annual kilowatt-hour usage per lumen rating or nominal wattage of all types of lighting

2-33

equipment, but shall not include facility, support, maintenance, or accessory charges. The new

2-34

tariff shall use existing usage calculation methods and existing rates for any currently existing

3-1

lighting equipment, only setting reasonable new rates for newly adopted lighting equipment. The

3-2

new tariff shall be structured so as to allow options for various street lighting controls, including

3-3

both conventional dusk/dawn operation using photocell or scheduling controls, as well as

3-4

schedule-based dimming or on/off controls that dim or turn off street lights during periods of low

3-5

activity. The electric distribution company, in consultation with the office, shall file the new tariff

3-6

with the public utilities commission within sixty (60) days of the effective date of this chapter and

3-7

the commission shall then issue a decision within sixty (60) days after the filing to effectuate the

3-8

purposes and provisions of this chapter.

3-9

     (2) Purchase electric energy for use in such municipal lighting equipment from the

3-10

electric distribution company or any other person allowed by law to provide electric energy; and

3-11

     (3) Acquire some or all of the public street and area lighting equipment of the electric

3-12

distribution company in the municipality, compensating the electric distribution company as

3-13

necessary, in accordance with subsection (b).

3-14

     (b) Any municipality exercising the option to convert some or all of its street lighting

3-15

service pursuant to subsection (a) must compensate the electric distribution company for the

3-16

original cost, less depreciation and less amortization, of any active or inactive existing public

3-17

lighting equipment owned by the electric distribution company and installed in the municipality

3-18

as of the date the municipality exercises its right of acquisition pursuant to subsection (a), net of

3-19

any salvage value. Upon such payment, the municipality shall have the right to use, alter, remove,

3-20

or replace such acquired lighting equipment in any way the municipality deems appropriate. The

3-21

municipality may also request that the electric company remove any part of such lighting

3-22

equipment that it does not acquire from the electric distribution company in which case the

3-23

municipality shall reimburse the electric distribution company the cost of removal by the electric

3-24

distribution company, along with the original cost, less depreciation, of the removed part, net of

3-25

any salvage value.

3-26

     (c) When a municipality exercises its option pursuant to this subsection, the municipality

3-27

will notify the electric distribution company of any alterations to street and area lighting

3-28

inventory within thirty (30) days of the alteration. The electric distribution company will then

3-29

adjust its monthly billing determinations to reflect the alteration within thirty (30) days.

3-30

     (d) When a municipality exercises its option pursuant to subsection (a), anyone other than

3-31

the electric distribution company controlling the right to use space on any pole, lamp post, or

3-32

other mounting surface previously used by the electric distribution company in such municipality

3-33

shall allow the municipality to assume the rights and obligations of the electric distribution

3-34

company with respect to such space for the unexpired term of any lease, easement, or other

4-1

agreement under which the electric distribution company used such space; provided, however,

4-2

that in the assumption of the rights and obligations of the electric distribution company by such a

4-3

municipality, such municipality shall in no way or form restrict, impede, or prohibit universal

4-4

access for the provision of electric and other services.

4-5

     (e) Any dispute regarding the terms of the alternative tariff, the compensation to be paid

4-6

the electric distribution company, or any other matter arising in connection with the exercise of

4-7

the option provided in subsection (a), including, but not limited to, the terms on which space is to

4-8

be provided to the municipality in accordance with subsection (c), shall be resolved by the

4-9

division of public utilities and carriers within sixty (60) days of any request for such resolution by

4-10

the municipality or any person involved in such dispute.

4-11

     (f) Notwithstanding any general or special law, rule, or regulation to the contrary, any

4-12

affiliate of any electric distribution company whose street lighting service is converted by any

4-13

municipality in accordance with the provisions of this section may solicit and compete for the

4-14

business of any such municipality for the provision of lighting equipment or any other service

4-15

such as equipment maintenance in connection therewith.

4-16

     39-29-4. Liberal construction. -- The provisions of this chapter shall be liberally

4-17

construed to give effect to the purposes thereof.

4-18

     39-29-5. Severability. -- If any provision of this chapter or the application thereof to any

4-19

person or circumstances is held invalid, such invalidity shall not affect other provisions or

4-20

applications of the chapter, which can be given effect without the invalid provision or application,

4-21

and to this end the provisions of this chapter are declared to be severable.

4-22

     SECTION 2. This act shall take effect upon passage.

=======

LC02291

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - MUNICIPAL STREETLIGHT

INVESTMENT ACT

***

5-1

     This act would establish a procedure to allow municipalities to purchase, rather than rent,

5-2

their street lights for the purpose of reducing municipal street lighting costs.

5-3

     This act would take effect upon passage.

=======

LC02291

=======