2021 -- H 6066 | |
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LC002139 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2021 | |
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A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS --DISTRIBUTED GENERATION | |
INTERCONNECTION | |
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Introduced By: Representative Edward T. Cardillo | |
Date Introduced: March 03, 2021 | |
Referred To: House Corporations | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Sections 39-26.3-4 and 39-26.3-4.1 of the General Laws in Chapter 39-26.3 |
2 | entitled "Distributed Generation Interconnection" are hereby amended to read as follows: |
3 | 39-26.3-4. Study cost fees. |
4 | (a) After thirty (30) days from the enactment of this chapter until the end of calendar year |
5 | 2012, the feasibility study fee shall be in accordance with the schedule set forth below: |
6 | (1) Residential applicants for interconnections of UL 1741.1 approved renewable |
7 | distributed generation that is twenty-five kilowatts (25 KW) or less: zero dollars ($0). |
8 | (2) Residential applicants for interconnections of UL 1741.1 approved renewable |
9 | distributed generation that is greater than twenty-five kilowatts (25 KW): fifty dollars ($50.00). |
10 | (3) Nonresidential applicants for interconnections of UL 1741.1 approved renewable |
11 | distributed generation that is one hundred kilowatts (100 KW) or less: one hundred dollars ($100). |
12 | (4) Nonresidential applicants for interconnections of UL 1741.1 approved renewable |
13 | distributed generation that is two hundred fifty kilowatts (250 KW) or less: three hundred dollars |
14 | ($300). |
15 | (5) Nonresidential applicants for interconnections of renewable distributed generation that |
16 | is greater than two hundred fifty kilowatts (250 KW), up to one megawatt (1 MW): one thousand |
17 | dollars ($1,000). |
18 | (6) Nonresidential applicants for interconnections of renewable distributed generation |
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1 | greater than one megawatt (1 MW): two thousand five hundred dollars ($2,500). |
2 | Beginning January 1, 2013, and for every year thereafter, the commission shall set a new |
3 | fee schedule that is no less than what is specified herein. The purpose of the fee schedule is to |
4 | provide a disincentive to applicants contemplating a renewable distributed-generation project from |
5 | requesting order of magnitude estimates unless they are serious about pursuing such projects, and |
6 | to prevent the electric distribution company from charging more than it actually costs to conduct |
7 | such studies, with all due efficiency. |
8 | (b) After thirty (30) days from the enactment of this chapter until the end of calendar year |
9 | 2012, the impact study fee shall be in accordance with the schedule set forth below: |
10 | (1) Residential applicants for interconnections of UL 1741.1 approved renewable |
11 | distributed generation that is twenty-five kilowatts (25 KW) or less: zero dollars ($0). |
12 | (2) Residential applicants for interconnections of UL 1741.1 approved renewable |
13 | distributed generation that is greater than twenty-five kilowatts (25 KW): one hundred dollars |
14 | ($100). |
15 | (3) Nonresidential applicants for interconnections of UL 1741.1 approved renewable |
16 | distributed generation that is one hundred kilowatts (100 KW) or less: five hundred dollars ($500) |
17 | (4) Nonresidential applicants for interconnections of UL 1741.1 approved renewable |
18 | distributed generation that is two hundred fifty kilowatts (250 KW) or less: one thousand five |
19 | hundred dollars ($1,500). |
20 | (5) Nonresidential applicants for interconnections of renewable distributed generation that |
21 | is greater than two hundred fifty kilowatts (250 KW), up to one megawatt (1 MW): five thousand |
22 | dollars ($5,000). |
23 | (6) Nonresidential applicants for interconnections of renewable distributed generation |
24 | greater than one megawatt (1 MW): actual cost or ten thousand dollars ($10,000), whichever is |
25 | less. |
26 | Beginning January 1, 2013, and for every year thereafter, the commission shall set a new |
27 | fee schedule that is no less than what is specified herein. The purpose of the impact study fee |
28 | schedule is to assure that an applicant is responsible for paying a reasonable amount of the cost of |
29 | the study in advance of installing the distributed generation, but that the advance cost is justified |
30 | and is not so high as to discourage an applicant from pursuing a project. |
31 | (c) To the extent that an impact study fee established under this section does not cover the |
32 | reasonable cost of an impact study for a given nonresidential project that commences operation, |
33 | the balance of these costs shall be recovered from such applicant through billings after the project |
34 | is online. The electric distribution company may, at its sole election, offset net-metering credits or |
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1 | any standard contract payments until the full fee(s) is reimbursed, if it finds it administratively |
2 | convenient to use that means of billing for the balance of the fee for a given project. |
3 | (d) The electric distribution company shall report the total number of interconnection |
4 | studies and its total charges to conduct feasibility and impact studies on each individual circuit in |
5 | Rhode Island, to the independent interconnection ombudsman, the division of public utilities and |
6 | carriers, and the public utilities commission, no later than October 30, 2021, and update that report |
7 | every six (6) months. The electric distribution company shall not charge more than it cost to conduct |
8 | any interconnection studies, or for time spent studying feasibility or impact, that can be assessed |
9 | based on prior studies, nor shall an electric distribution company charge a customer for any time |
10 | spent responding to disputes related to those studies. |
11 | 39-26.3-4.1. Interconnection standards. |
12 | (a) The electric distribution company may only charge an interconnecting, renewable |
13 | energy customer for any system modifications to its electric power distribution system specifically |
14 | necessary for and directly related to the interconnection. Transmission system improvements are |
15 | administered by ISO-NE, pursuant to Federal Energy Regulatory Commission requirements, as |
16 | applicable to renewable energy customers, subject to federal jurisdiction. The commission shall not |
17 | impose transmission system costs on distribution system interconnections, unless any such specific |
18 | charges have been authorized by order of ISO-NE, concluding that the charges are consistent with |
19 | ISO-NE's tariffs. The company will provide an industry standard estimate-level detailed audit and |
20 | line item budget account of its actual cost to the interconnecting customer, with every cost estimate |
21 | it issues and within ninety (90) days of completing any system modifications, always including any |
22 | and all supporting records and documentation. |
23 | (b) If the public utilities commission determines that a specific system modification |
24 | benefiting other customers has been accelerated due to an interconnection request, it may order the |
25 | interconnecting customer to fund the modification subject to repayment of the depreciated value of |
26 | the modification as of the time the modification would have been necessary as determined by the |
27 | public utilities commission. Any system modifications benefiting other customers shall be included |
28 | in rates as determined by the public utilities commission. |
29 | (c) If an interconnecting, renewable energy customer is required to pay for system |
30 | modifications and a subsequent renewable energy or commercial customer relies on those |
31 | modifications to connect to the distribution system within ten (10) years of the earlier |
32 | interconnecting, renewable energy customer's payment, the subsequent customer will make a |
33 | prorated contribution toward the cost of the system modifications that will be credited to the earlier |
34 | interconnecting, renewable energy customer as determined by the public utilities commission. |
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1 | (d) An electric distribution company shall acknowledge to the interconnecting, renewable |
2 | energy customer receipt of an application to initiate the interconnection process within three (3) |
3 | business days of receipt. The electric distribution company shall notify the interconnecting, |
4 | renewable energy customer in writing within ten (10) business days of receipt that the application |
5 | is or is not complete and, if not, advise what is missing. of any and all elements of the application |
6 | that are materially incomplete within the ten (10) business days. Once the incomplete items that are |
7 | material to the interconnection process are addressed, the electric distribution company shall |
8 | conduct a supplemental completeness review and application screens, within no more than five (5) |
9 | days, notifying the applicant which interconnection process will be followed and whether their |
10 | application is still materially incomplete or deficient and providing a complete and specific list of |
11 | any and all incomplete items or deficiencies and provide specific detailed instructions or |
12 | recommendations, on why items are deficient and how to correct any remaining deficiencies, in a |
13 | form that enables the applicant to fully address them. Once all materially deficient items are then |
14 | addressed, the electric distribution company shall issue a final decision on all screens and on which |
15 | interconnection process shall be followed within two (2) days. As long as the interconnecting |
16 | customer provides all requested information within ten (10) days of the request, the interconnection |
17 | deadlines in this section will not be extended. The electric distribution company shall maintain an |
18 | example of a complete and current model interconnection application, with all required attachments |
19 | and supplemental information, in an easily accessible location on its website for ease of reference, |
20 | which shall be updated within five (5) calendar days of any update to any of the electric distribution |
21 | company’s technical standards or specifications for interconnection, as addressed in subsection (h) |
22 | of this section. Any disputes regarding whether and when an application to initiate the |
23 | interconnection process is complete shall be resolved expeditiously at the public utilities |
24 | commission. The maximum time allowed between the date of the completed application and |
25 | delivery of an executable interconnection service agreement shall be one hundred seventy-five |
26 | (175) calendar days or two hundred (200) calendar days if a detailed study is required. All electric |
27 | distribution company system modifications must be completed by the date which is the later of: (1) |
28 | No longer than two hundred seventy (270) calendar days, or three hundred sixty (360) calendar |
29 | days if substation work is necessary, from the date of the electric distribution company's receipt of |
30 | the interconnecting, renewable energy customer's executed interconnection service agreement; or |
31 | (2) The interconnecting, renewable energy customer's agreed-upon requested in writing extension |
32 | of the time between the execution of the interconnection service agreement and interconnection as |
33 | set forth in writing as agreed to by the electric distribution company in writing. All deadlines herein |
34 | are subject to all payments being made in accordance with the distributed-generation |
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1 | interconnection tariff on file with the public utilities commission and the interconnection service |
2 | agreement. These system modification deadlines cannot be extended due to customer delays in |
3 | providing required information, all of which must be requested and obtained before completion of |
4 | the impact study. The deadlines for completion of system modifications will be extended only to |
5 | the extent of events that are clearly not under the control of the electric distribution company, such |
6 | as extended prohibitive weather, union work stoppage or force majeure, or delays directly |
7 | attributable to third-party delays, including, without limitation, delays due to parties other than |
8 | ISO-NE requirements documented in writing, that are not attributable to electric distribution |
9 | company actions, and that cannot be resolved despite commercially reasonable efforts. |
10 | Transmission system studies may only be a cause of delay if directly related to potential |
11 | transmission system improvement costs authorized by ISO-NE pursuant to § 39-26.3-4.1(a). The |
12 | electric distribution company shall notify the customer in writing of the start of any claimed |
13 | deadline extension as soon as practicable, its cause and when it concludes, all in writing. and within |
14 | five (5) calendar days of occurrence, to allow for customer intervention and involvement, shall |
15 | inform the customer of the cause and expected length of the delay, and shall provide a detailed |
16 | written explanation and documentation of such cause. The electric distribution company shall |
17 | respond within five (5) calendar days, in writing to a customer’s request for additional information |
18 | and documents, relating to the cause of the delay and the expected length of the delay. Any actual |
19 | or consequential, indirect, incidental special, or punitive damages that a court of competent |
20 | jurisdiction orders the electric distribution company to pay to incurred by an interconnecting, |
21 | renewable energy customer as a direct result of the electric distribution company's failure to comply |
22 | with the requirements of this subsection shall be payable to the customer by its the electric |
23 | distribution company shareholders and may not be recovered from customers, provided that the |
24 | total amount of damages awarded for any and all such claims shall not exceed, in the aggregate, an |
25 | amount equal to the amount of the incentive the electric distribution company would have earned |
26 | as provided for in §§ 39-26.6-12(j)(3) and 39-26.1-4 in the year in which the system modifications |
27 | were required to be completed. In no event shall the electric distribution company be liable to the |
28 | interconnecting, renewable energy customer for any indirect, incidental, special, consequential, or |
29 | punitive damages of any kind whatsoever as a result of the electric distribution company's failure |
30 | to comply with this section. |
31 | (e) On or before September 1, 2017, the public utilities commission shall initiate a docket |
32 | to establish metrics for the electric distribution company's performance in meeting the time frames |
33 | set forth herein and in the distributed-generation interconnection standards approved by the public |
34 | utilities commission. The public utilities commission may include incentives and penalties in the |
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1 | performance metrics. |
2 | (f) The proposed interconnection of any new renewable energy resource that replaces the |
3 | same existing renewable energy resource of the same or less nameplate capacity that has been in |
4 | operation in the twelve (12) months preceding notification of the replacement shall be subject to a |
5 | sixty-day (60) review. The purpose of such sixty-day (60) review is to allow the electric distribution |
6 | company to determine whether any system modifications are required to support the |
7 | interconnection of the replacement renewable energy resource. If there is a need for system |
8 | modifications because of an interconnection policy change implemented by the electric distribution |
9 | company, then the system modification may be included in rates as determined by the public |
10 | utilities commission. If there is a need for system modifications only because of a change in the |
11 | rating or utility disturbance response that adversely affects the impact of the facility on the |
12 | distribution system, then the interconnecting, renewable energy customer shall be responsible for |
13 | the cost of the system modifications. |
14 | (g) The public utilities commission, in consultation with the office of energy resources, |
15 | shall appoint an independently qualified ombudsman to oversee the distribution company’s |
16 | administration of interconnection, to ensure that the interconnection process works efficiently to |
17 | serve the purposes of Rhode Island’s energy plan and policy. The appointed ombudsman shall |
18 | oversee and supervise any and all elements of the interconnection process including, but not limited |
19 | to: providing dispute resolution assistance upon written request by a party to a dispute, under the |
20 | interconnection tariff, planning and management of infrastructure safety and reliability investments |
21 | and all other investments to ensure and facilitate access to the distribution system; processing of |
22 | applications; management of queue position; interactions with ISO-NE; implementation of system |
23 | modifications; and administration and exemptions to the interconnection tax. This position shall be |
24 | funded out of the electric distribution company’s interconnection study fees, assessed to |
25 | interconnecting customers. |
26 | (h) The electric distribution company may not change its technical standards or |
27 | specifications for interconnection, as addressed in the company’s ESB 756 where applicable, to |
28 | Rhode Island “Requirements for Parallel Generation Connected to a National Grid owned EPS” or |
29 | otherwise, without approval of the public utilities commission and without properly publishing any |
30 | such changes to customers no less than thirty (30) days before implementation. Any changed |
31 | interconnection standards will not apply to interconnecting customers with complete |
32 | interconnection applications. |
33 | (i) The electric distribution company shall ensure that its interconnection application |
34 | process adequately informs its customers of the procedure to certify qualification and pursue the |
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1 | internal revenue service’s safe-harbor against the contribution in aid of construction tax, exempting |
2 | interconnections designed to send electricity to the electric distribution company. |
3 | SECTION 2. This act shall take effect thirty (30) days after passage. |
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LC002139 | |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS --DISTRIBUTED GENERATION | |
INTERCONNECTION | |
*** | |
1 | This act would require the electric distribution company to properly account and charge |
2 | for their interconnection studies. It also requires the electric distribution company to provide |
3 | evidence of its actual cost of interconnection within ninety (90) days of completion. It would clarify |
4 | jurisdictional issues related to transmission system studies and impacts. Finally it would establish |
5 | an independent ombudsman to oversee the electric distribution company's interconnection |
6 | practices. |
7 | This act would take effect thirty (30) days after passage. |
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LC002139 | |
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