2022 -- S 2689 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- DISTRIBUTED GENERATION

INTERCONNECTION

     Introduced By: Senators Ciccone, Lombardo, F Lombardi, Rogers, and Burke

     Date Introduced: March 17, 2022

     Referred To: Senate Commerce

     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): ten thousand dollars ($10,000).

     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

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

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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 appointed under § 39-26.3-4.1(h),

the division of public utilities and carriers, and the public utilities commission, no later than October

30, 2022, and update that report every six (6) months. The electric distribution company shall not

charge more than it costs to conduct any interconnection studies, or for time spent studying

feasibility or impact, that can be assessed based on prior 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 system specifically necessary

for and directly related to the interconnection. The electric distribution company shall provide an

industry standard line-item budget as an attachment to the interconnection services agreement.

Within ninety (90) days of completing any system modifications, the electric distribution company

shall provide a final accounting so that the actual costs can be tracked against the initially estimated

cost. Upon request, the electric distribution company shall provide supporting 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.

     (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. Any disputes regarding whether and when

an application to initiate the interconnection process is complete shall be resolved expeditiously at

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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 extension of the

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

forth in writing. All deadlines herein are subject to all payments being made in accordance with the

distributed-generation 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 third-party delays, including, without limitation, delays due to ISO-NE requirements not

attributable to electric distribution company actions, and that cannot be resolved despite

commercially reasonable efforts. The electric distribution company shall notify the customer of the

start of any claimed deadline extension as soon as practicable, its cause and when it concludes, all

in writing. 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 interconnecting,

renewable energy customer by its the electric distribution company's 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

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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

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) If the electric distribution company's impact study estimate for system modifications

exceeds one hundred thousand dollars ($100,000), the interconnecting, renewable energy customer

shall have the option to either self-perform or third-party contract for the system modification

subject to the following conditions:

     (1) The engineering, procurement and construction of the system modifications shall

comply with all requirements of law and regulation to which the electric distribution company

would be subject in the engineering, procurement and construction of electric power system

facilities;

     (2) The modifications shall be implemented and tested in accordance with the electric

power system's company documented design standards;

     (3) The interconnecting, renewable energy customer is able to self-perform the system

modifications, either on its own or in conjunction with third-party service providers, in the most

cost-effective manner (considering all qualified proposals by other interconnecting, renewable

energy customers at the time); and

     (4) The electric distribution company shall respond to requests for any information made

to it by the interconnecting, renewable energy customer related to the system modifications. Upon

receiving reasonable prior notice from the electric distribution company, the interconnecting,

renewable energy customer shall provide reasonable physical access to the system modifications

during construction. The self-performing interconnecting customer shall provide an industry

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standard line item budget as an attachment to the interconnection services agreement. Within ninety

(90) days of completing any system modifications, the self-performing interconnecting customer

shall provide a final accounting so that the actual costs can be tracked against the initially estimated

costs, providing supporting documentation.

     (h) On or before September 1, 2022, the public utilities commission, in consultation with

the office of energy resources, shall appoint and oversee a neutral, qualified third-party 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; processing of applications;

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

modifications; and administration and exemptions to the interconnection tax. The commission may

contract for an engineering and professional services to support the work of the ombudsperson and

the commission in addressing interconnection and related issues. The annual cost incurred by the

commission for the ombudsperson position and the contracted support services shall be recovered

in rates in a manner determined by the commission.

     (i) The electric distribution company may not prohibit the occupation of a public way by

the interconnecting customer's equipment as proposed to develop microgrids or battery storage

projects.

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

prospectively to all phases of the interconnection process that have yet to commence as of the

effective date.

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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 for and

implement interconnection study fees and interconnection charges. It would establish an

independent ombudsperson to oversee the electric distribution company's interconnection practices

and would provide for the recovery of actual, consequential and punitive damages incurred by an

interconnecting, renewable energy customer against an electric distribution company's share holder

for failure of an electric distribution company to comply with interconnection standards.

     This act would take effect thirty (30) days after passage and would apply prospectively to

all phases of the interconnection process that have yet to commence as of the effective date.

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