2021 -- H 6066

========

LC002139

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

____________

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS --DISTRIBUTED GENERATION

INTERCONNECTION

     Introduced By: Representative Edward T. Cardillo

     Date Introduced: March 03, 2021

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 39-26.3-4 and 39-26.3-4.1 of the General Laws in Chapter 39-26.3

entitled "Distributed Generation Interconnection" are hereby amended to read as follows:

     39-26.3-4. Study cost fees.

     (a) After thirty (30) days from the enactment of this chapter until the end of calendar year

2012, the feasibility study fee shall be in accordance with the schedule set forth below:

     (1) Residential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is twenty-five kilowatts (25 KW) or less: zero dollars ($0).

     (2) Residential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is greater than twenty-five kilowatts (25 KW): fifty dollars ($50.00).

     (3) Nonresidential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is one hundred kilowatts (100 KW) or less: one hundred dollars ($100).

     (4) Nonresidential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is two hundred fifty kilowatts (250 KW) or less: three hundred dollars

($300).

     (5) Nonresidential applicants for interconnections of renewable distributed generation that

is greater than two hundred fifty kilowatts (250 KW), up to one megawatt (1 MW): one thousand

dollars ($1,000).

     (6) Nonresidential applicants for interconnections of renewable distributed generation

greater than one megawatt (1 MW): two thousand five hundred dollars ($2,500).

     Beginning January 1, 2013, and for every year thereafter, the commission shall set a new

fee schedule that is no less than what is specified herein. The purpose of the fee schedule is to

provide a disincentive to applicants contemplating a renewable distributed-generation project from

requesting order of magnitude estimates unless they are serious about pursuing such projects, and

to prevent the electric distribution company from charging more than it actually costs to conduct

such studies, with all due efficiency.

     (b) After thirty (30) days from the enactment of this chapter until the end of calendar year

2012, the impact study fee shall be in accordance with the schedule set forth below:

     (1) Residential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is twenty-five kilowatts (25 KW) or less: zero dollars ($0).

     (2) Residential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is greater than twenty-five kilowatts (25 KW): one hundred dollars

($100).

     (3) Nonresidential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is one hundred kilowatts (100 KW) or less: five hundred dollars ($500)

     (4) Nonresidential applicants for interconnections of UL 1741.1 approved renewable

distributed generation that is two hundred fifty kilowatts (250 KW) or less: one thousand five

hundred dollars ($1,500).

     (5) Nonresidential applicants for interconnections of renewable distributed generation that

is greater than two hundred fifty kilowatts (250 KW), up to one megawatt (1 MW): five thousand

dollars ($5,000).

     (6) Nonresidential applicants for interconnections of renewable distributed generation

greater than one megawatt (1 MW): actual cost or ten thousand dollars ($10,000), whichever is

less.

     Beginning January 1, 2013, and for every year thereafter, the commission shall set a new

fee schedule that is no less than what is specified herein. The purpose of the impact study fee

schedule is to assure that an applicant is responsible for paying a reasonable amount of the cost of

the study in advance of installing the distributed generation, but that the advance cost is justified

and is not so high as to discourage an applicant from pursuing a project.

     (c) To the extent that an impact study fee established under this section does not cover the

reasonable cost of an impact study for a given nonresidential project that commences operation,

the balance of these costs shall be recovered from such applicant through billings after the project

is online. The electric distribution company may, at its sole election, offset net-metering credits or

LC002139 - Page 2 of 8

any standard contract payments until the full fee(s) is reimbursed, if it finds it administratively

convenient to use that means of billing for the balance of the fee for a given project.

     (d) The electric distribution company shall report the total number of interconnection

studies and its total charges to conduct feasibility and impact studies on each individual circuit in

Rhode Island, to the independent interconnection ombudsman, the division of public utilities and

carriers, and the public utilities commission, no later than October 30, 2021, and update that report

every six (6) months. The electric distribution company shall not charge more than it cost to conduct

any interconnection studies, or for time spent studying feasibility or impact, that can be assessed

based on prior studies, nor shall an electric distribution company charge a customer for any time

spent responding to disputes related to those studies.

     39-26.3-4.1. Interconnection standards.

     (a) The electric distribution company may only charge an interconnecting, renewable

energy customer for any system modifications to its electric power distribution system specifically

necessary for and directly related to the interconnection. Transmission system improvements are

administered by ISO-NE, pursuant to Federal Energy Regulatory Commission requirements, as

applicable to renewable energy customers, subject to federal jurisdiction. The commission shall not

impose transmission system costs on distribution system interconnections, unless any such specific

charges have been authorized by order of ISO-NE, concluding that the charges are consistent with

ISO-NE's tariffs. The company will provide an industry standard estimate-level detailed audit and

line item budget account of its actual cost to the interconnecting customer, with every cost estimate

it issues and within ninety (90) days of completing any system modifications, always including any

and all supporting records and documentation.

     (b) If the public utilities commission determines that a specific system modification

benefiting other customers has been accelerated due to an interconnection request, it may order the

interconnecting customer to fund the modification subject to repayment of the depreciated value of

the modification as of the time the modification would have been necessary as determined by the

public utilities commission. Any system modifications benefiting other customers shall be included

in rates as determined by the public utilities commission.

     (c) If an interconnecting, renewable energy customer is required to pay for system

modifications and a subsequent renewable energy or commercial customer relies on those

modifications to connect to the distribution system within ten (10) years of the earlier

interconnecting, renewable energy customer's payment, the subsequent customer will make a

prorated contribution toward the cost of the system modifications that will be credited to the earlier

interconnecting, renewable energy customer as determined by the public utilities commission.

LC002139 - Page 3 of 8

     (d) An electric distribution company shall acknowledge to the interconnecting, renewable

energy customer receipt of an application to initiate the interconnection process within three (3)

business days of receipt. The electric distribution company shall notify the interconnecting,

renewable energy customer in writing within ten (10) business days of receipt that the application

is or is not complete and, if not, advise what is missing. of any and all elements of the application

that are materially incomplete within the ten (10) business days. Once the incomplete items that are

material to the interconnection process are addressed, the electric distribution company shall

conduct a supplemental completeness review and application screens, within no more than five (5)

days, notifying the applicant which interconnection process will be followed and whether their

application is still materially incomplete or deficient and providing a complete and specific list of

any and all incomplete items or deficiencies and provide specific detailed instructions or

recommendations, on why items are deficient and how to correct any remaining deficiencies, in a

form that enables the applicant to fully address them. Once all materially deficient items are then

addressed, the electric distribution company shall issue a final decision on all screens and on which

interconnection process shall be followed within two (2) days. As long as the interconnecting

customer provides all requested information within ten (10) days of the request, the interconnection

deadlines in this section will not be extended. The electric distribution company shall maintain an

example of a complete and current model interconnection application, with all required attachments

and supplemental information, in an easily accessible location on its website for ease of reference,

which shall be updated within five (5) calendar days of any update to any of the electric distribution

company’s technical standards or specifications for interconnection, as addressed in subsection (h)

of this section. Any disputes regarding whether and when an application to initiate the

interconnection process is complete shall be resolved expeditiously at the public utilities

commission. The maximum time allowed between the date of the completed application and

delivery of an executable interconnection service agreement shall be one hundred seventy-five

(175) calendar days or two hundred (200) calendar days if a detailed study is required. All electric

distribution company system modifications must be completed by the date which is the later of: (1)

No longer than two hundred seventy (270) calendar days, or three hundred sixty (360) calendar

days if substation work is necessary, from the date of the electric distribution company's receipt of

the interconnecting, renewable energy customer's executed interconnection service agreement; or

(2) The interconnecting, renewable energy customer's agreed-upon requested in writing extension

of the time between the execution of the interconnection service agreement and interconnection as

set forth in writing as agreed to by the electric distribution company in writing. All deadlines herein

are subject to all payments being made in accordance with the distributed-generation

LC002139 - Page 4 of 8

interconnection tariff on file with the public utilities commission and the interconnection service

agreement. These system modification deadlines cannot be extended due to customer delays in

providing required information, all of which must be requested and obtained before completion of

the impact study. The deadlines for completion of system modifications will be extended only to

the extent of events that are clearly not under the control of the electric distribution company, such

as extended prohibitive weather, union work stoppage or force majeure, or delays directly

attributable to third-party delays, including, without limitation, delays due to parties other than

ISO-NE requirements documented in writing, that are not attributable to electric distribution

company actions, and that cannot be resolved despite commercially reasonable efforts.

Transmission system studies may only be a cause of delay if directly related to potential

transmission system improvement costs authorized by ISO-NE pursuant to § 39-26.3-4.1(a). The

electric distribution company shall notify the customer in writing of the start of any claimed

deadline extension as soon as practicable, its cause and when it concludes, all in writing. and within

five (5) calendar days of occurrence, to allow for customer intervention and involvement, shall

inform the customer of the cause and expected length of the delay, and shall provide a detailed

written explanation and documentation of such cause. The electric distribution company shall

respond within five (5) calendar days, in writing to a customer’s request for additional information

and documents, relating to the cause of the delay and the expected length of the delay. Any actual

or consequential, indirect, incidental special, or punitive damages that a court of competent

jurisdiction orders the electric distribution company to pay to incurred by an interconnecting,

renewable energy customer as a direct result of the electric distribution company's failure to comply

with the requirements of this subsection shall be payable to the customer by its the electric

distribution company shareholders and may not be recovered from customers, provided that the

total amount of damages awarded for any and all such claims shall not exceed, in the aggregate, an

amount equal to the amount of the incentive the electric distribution company would have earned

as provided for in §§ 39-26.6-12(j)(3) and 39-26.1-4 in the year in which the system modifications

were required to be completed. In no event shall the electric distribution company be liable to the

interconnecting, renewable energy customer for any indirect, incidental, special, consequential, or

punitive damages of any kind whatsoever as a result of the electric distribution company's failure

to comply with this section.

     (e) On or before September 1, 2017, the public utilities commission shall initiate a docket

to establish metrics for the electric distribution company's performance in meeting the time frames

set forth herein and in the distributed-generation interconnection standards approved by the public

utilities commission. The public utilities commission may include incentives and penalties in the

LC002139 - Page 5 of 8

performance metrics.

     (f) The proposed interconnection of any new renewable energy resource that replaces the

same existing renewable energy resource of the same or less nameplate capacity that has been in

operation in the twelve (12) months preceding notification of the replacement shall be subject to a

sixty-day (60) review. The purpose of such sixty-day (60) review is to allow the electric distribution

company to determine whether any system modifications are required to support the

interconnection of the replacement renewable energy resource. If there is a need for system

modifications because of an interconnection policy change implemented by the electric distribution

company, then the system modification may be included in rates as determined by the public

utilities commission. If there is a need for system modifications only because of a change in the

rating or utility disturbance response that adversely affects the impact of the facility on the

distribution system, then the interconnecting, renewable energy customer shall be responsible for

the cost of the system modifications.

     (g) The public utilities commission, in consultation with the office of energy resources,

shall appoint an independently qualified ombudsman to oversee the distribution company’s

administration of interconnection, to ensure that the interconnection process works efficiently to

serve the purposes of Rhode Island’s energy plan and policy. The appointed ombudsman shall

oversee and supervise any and all elements of the interconnection process including, but not limited

to: providing dispute resolution assistance upon written request by a party to a dispute, under the

interconnection tariff, planning and management of infrastructure safety and reliability investments

and all other investments to ensure and facilitate access to the distribution system; processing of

applications; management of queue position; interactions with ISO-NE; implementation of system

modifications; and administration and exemptions to the interconnection tax. This position shall be

funded out of the electric distribution company’s interconnection study fees, assessed to

interconnecting customers.

     (h) The electric distribution company may not change its technical standards or

specifications for interconnection, as addressed in the company’s ESB 756 where applicable, to

Rhode Island “Requirements for Parallel Generation Connected to a National Grid owned EPS” or

otherwise, without approval of the public utilities commission and without properly publishing any

such changes to customers no less than thirty (30) days before implementation. Any changed

interconnection standards will not apply to interconnecting customers with complete

interconnection applications.

     (i) The electric distribution company shall ensure that its interconnection application

process adequately informs its customers of the procedure to certify qualification and pursue the

LC002139 - Page 6 of 8

internal revenue service’s safe-harbor against the contribution in aid of construction tax, exempting

interconnections designed to send electricity to the electric distribution company.

     SECTION 2. This act shall take effect thirty (30) days after passage.

========

LC002139

========

LC002139 - Page 7 of 8

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS --DISTRIBUTED GENERATION

INTERCONNECTION

***

     This act would require the electric distribution company to properly account and charge

for their interconnection studies. It also requires the electric distribution company to provide

evidence of its actual cost of interconnection within ninety (90) days of completion. It would clarify

jurisdictional issues related to transmission system studies and impacts. Finally it would establish

an independent ombudsman to oversee the electric distribution company's interconnection

practices.

     This act would take effect thirty (30) days after passage.

========

LC002139

========

LC002139 - Page 8 of 8