2015 -- H 5594

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LC001609

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - MUNICIPAL STREETLIGHT

INVESTMENT ACT

     

     Introduced By: Representatives Ruggiero, Handy, McKiernan, Marshall, and O`Grady

     Date Introduced: February 25, 2015

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 39-30-3 of the General Laws in Chapter 39-30 entitled "Municipal

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Streetlight Investment Act" is hereby amended to read as follows:

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     39-30-3. Streetlight investment. -- (a) Any city or town or other public entity receiving

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and managing public street lighting service from an electric distribution company pursuant to an

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electric rate tariff providing for the use by such municipality of lighting equipment owned by the

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electric distribution company, at its option, upon sixty (60) days notice to the electric company

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and to the department, and subject to the provisions of subsections (b) through (e), may:

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

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

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

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

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

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

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primarily for the mounting of the lighting equipment and for any other reasonable purpose at the

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municipality's discretion. The alternative tariff rate shall provide for monthly bills for street and

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area lighting that shall include a schedule of energy charges based on metering, if the

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municipality chooses to install municipally owned controls that include metering chips, or a

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

 

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

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new tariff shall use metering, if the municipality chooses to install municipally owned controls

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that include metering chips, or existing usage calculation methods and existing rates for any

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currently existing lighting equipment, only setting reasonable new rates for newly adopted

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lighting equipment. The new tariff shall be structured so as to allow options for various street

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lighting controls, including metering, if the municipality chooses to install municipally owned

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controls that include metering chips, or both conventional dusk/dawn operation using photocell or

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scheduling controls, as well as schedule-based dimming or on/off controls that dim or turn off

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street lights during periods of low activity. The electric distribution company, in consultation with

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the office, shall file the new tariff with the public utilities commission within sixty (60) days of

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the effective date of this chapter and the commission shall then issue a decision within sixty (60)

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days after the filing to effectuate the purposes and provisions of this chapter.

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

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

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      (3) After due diligence, including an analysis of the cost impact to the municipality,

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acquire all of the public street and area lighting equipment of the electric distribution company in

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the municipality, including all warranties and assigned access agreements pursuant to subsection

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(d) of this section, compensating the electric distribution company as necessary, in accordance

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with subsection (b).

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      (b) Any municipality exercising the option to convert its lighting equipment pursuant to

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subsection (a) must compensate the electric distribution company for the original cost, less

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depreciation and less amortization, of any active or inactive existing public lighting equipment

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owned by the electric distribution company and installed in the municipality as of the date the

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municipality exercises its right of acquisition pursuant to subsection (a), net of any salvage value.

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The electric distribution company shall produce an accurate lighting inventory and purchase price

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calculation within thirty (30) days of the municipality's notice of intent to acquire and the

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inventory and price shall be subject to negotiated agreement between the parties or subject to

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dispute resolution pursuant to subsection (e) of this section. Upon such payment, the municipality

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shall have the right to use, alter, remove, or replace such acquired lighting equipment in any way

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the municipality deems appropriate without any further agreements, restrictions, oversight,

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indemnification obligations or charges by the electric distribution company excepting only as

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specifically proposed to and approved by the public utilities commission as specifically necessary

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to prevent interference with the electric distribution company's provision of electric distribution

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services. The municipality shall have sixty (60) days after the purchase to verify the inventory

 

LC001609 - Page 2 of 5

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and if it finds discrepancies, the purchase price shall be adjusted pro rata. Any contract a

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municipality enters for such services must require appropriate levels of training and certification

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of personnel providing pole service for public and worker safety, evidence of twenty-four (24)

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hour call capacity and a committed timely response schedule for both emergency and routine

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outages. The municipality may also request that the electric company remove any part of such

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

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

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

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net of any salvage value.

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

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

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inventory within sixty (60) days of the alteration. The electric distribution company will then

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adjust its monthly billing determinations to reflect the alteration within sixty (60) days.

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

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

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

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

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

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agreement under which the electric distribution company used such space all of which

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agreements the electric distribution company shall assign and provide to the municipality;

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provided, however, that:

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      (i) The municipality is subject to the same terms and conditions that pole owners make to

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others that attach to the poles; and

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      (ii) In in the assumption of the rights and obligations of the electric distribution company

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

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universal access for the provision of electric and other services.

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

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

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

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

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division of public utilities and carriers commission within ninety (90) days of any request for

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such resolution by the municipality or any person involved in such dispute.

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

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

 

LC001609 - Page 3 of 5

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

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

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such as equipment maintenance in connection therewith.

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     SECTION 2. This act shall take effect upon passage.

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LC001609

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - MUNICIPAL STREETLIGHT

INVESTMENT ACT

***

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     This act would amend the provisions of the general laws related to conversion charges for

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municipality service, from a subject tariff rate to an alternative tariff rate, for delivery service of

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electric energy.

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     This act would take effect upon passage.

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LC001609

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