2022 -- S 2691 SUBSTITUTE A

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LC004954/SUB 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 -- 2022 ENERGY STORAGE ACT

     

     Introduced By: Senators Euer, DiPalma, Burke, Murray, Seveney, Miller, Coyne,
Kallman, Ruggerio, and Quezada

     Date Introduced: March 17, 2022

     Referred To: Senate Environment & Agriculture

     It is enacted by the General Assembly as follows:

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

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

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CHAPTER 33

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2022 ENERGY STORAGE ACT

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     39-33-1. Energy storage target.

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     It shall be the policy of the State of Rhode Island to meet the following energy storage

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deployment goals:

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     (1) Reducing the costs of electric generation, the transmission system, and the distribution

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system to ratepayers;

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     (2) Facilitating the transition to a safe and reliable carbon-free electricity supply; and

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     (3) Reducing peak demand and achieving efficient management of the electric distribution

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system.

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     39-33-2. Energy storage compensation study.

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     (a) On or before July 1, 2022, the public utilities commission shall initiate a docket that

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allows stakeholder participation to identify issues related to compensation mechanisms for electric

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energy storage resources, and the ownership of storage services, and capacity connected to the

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electric distribution or transmission system, including the incorporation of electric energy storage

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into existing programs and tariffs. The public utilities commission shall consider the following:

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     (1) Identification of the costs and value streams of distributed energy resources;

 

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     (2) Identification of the costs and value streams of storage and whether storage can

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participate in existing programs as a standalone or paired resource;

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     (3) Identification of potential market inefficiencies related to any of the resources studied;

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     (4) Ownership of storage products, such as capacity and energy;

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     (5) Other resources that compete with storage for the services storage can provide; and

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     (6) Any other relevant issue identified by the public utilities commission.

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     (b) On or before March 1, 2023 the public utilities commission shall report to the legislature

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on the status of the docket described in subsection (a) of this section. The public utilities

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commission shall include in its report whether new tariffs and programs or changes to existing

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tariffs and programs, are necessary to enable meeting the goals established in § 39-33-1; how the

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commission intends to address those matters, the expected timeline, and whether any changes of

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law are necessary. The public utilities commission will report what is known or needed to be known

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for storage or competing technologies to achieve those objectives, including, but not limited to:

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     (1) Providing positive net present value to all ratepayers, or a subset of ratepayers paying

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for the benefits, that accrue to that subset of ratepayers;

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     (2) Providing multiple types of benefits to the electric grid, including, but not limited to,

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customer, local, or community resilience, ancillary services, leveling out peaks in electricity use or

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that support the deployment of other distributed energy resources;

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     (3) Fostering the sustained, orderly development of a state-based energy storage industry;

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and

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     (4) Maximizing the value from the participation of energy storage systems in capacity

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markets. The public utilities commission shall include consideration of all energy storage

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configurations that are connected to the distribution system, including systems connected in front

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of the meter and not located at a customer premises.

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     39-33-3. Energy storage rate design.

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     (a) On or before July 31, 2023, the public utilities commission shall conclude the docket

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described in § 39-33-2, with the adoption of a framework for electric rate tariffs to apply to energy

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storage systems interconnected and providing retail service to their distribution system and targets

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for installed storage capacity by 2032.

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     (b) After adopting a framework, the electric distribution companies will include tariffs for

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storage resources and/or the general services and products storage resources provide in its next

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distribution rate case or at the direction of the public utilities commission, in a revenue neutral rate

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case. Electric distribution companies with fewer than one hundred thousand (100,000) customers

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may seek relief from the public utilities commission on the requirements of this subsection for good

 

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cause. The filing shall include at least one rate tariff that is applicable to front of the meter energy

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storage. The tariff shall not include costs that are otherwise recouped via project sponsor-funded

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interconnection upgrades or otherwise paid directly by the project sponsor, and shall include rates

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designed to reflect cost causation and ensure that energy storage systems are incentivized to charge

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and discharge at times that benefit the system.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- 2022 ENERGY STORAGE ACT

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     This act would require the public utilities commission to initiate the process of evaluating

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the barriers to and opportunities for electric energy storage resources to be connected to the electric

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distribution system, including the filing by the electric distribution company of new tariffs to apply

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to energy storage systems interconnected and providing retail service to the distribution system.

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     This act would take effect upon passage.

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