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 | |
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Introduced By: Senators Euer, DiPalma, Burke, Murray, Seveney, Miller, Coyne, | |
Date Introduced: March 17, 2022 | |
Referred To: Senate Environment & Agriculture | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Title 39 of the General Laws entitled "PUBLIC UTILITIES AND |
2 | CARRIERS" is hereby amended by adding thereto the following chapter: |
3 | CHAPTER 33 |
4 | 2022 ENERGY STORAGE ACT |
5 | 39-33-1. Energy storage target. |
6 | It shall be the policy of the State of Rhode Island to meet the following energy storage |
7 | deployment goals: |
8 | (1) Reducing the costs of electric generation, the transmission system, and the distribution |
9 | system to ratepayers; |
10 | (2) Facilitating the transition to a safe and reliable carbon-free electricity supply; and |
11 | (3) Reducing peak demand and achieving efficient management of the electric distribution |
12 | system. |
13 | 39-33-2. Energy storage compensation study. |
14 | (a) On or before July 1, 2022, the public utilities commission shall initiate a docket that |
15 | allows stakeholder participation to identify issues related to compensation mechanisms for electric |
16 | energy storage resources, and the ownership of storage services, and capacity connected to the |
17 | electric distribution or transmission system, including the incorporation of electric energy storage |
18 | into existing programs and tariffs. The public utilities commission shall consider the following: |
19 | (1) Identification of the costs and value streams of distributed energy resources; |
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1 | (2) Identification of the costs and value streams of storage and whether storage can |
2 | participate in existing programs as a standalone or paired resource; |
3 | (3) Identification of potential market inefficiencies related to any of the resources studied; |
4 | (4) Ownership of storage products, such as capacity and energy; |
5 | (5) Other resources that compete with storage for the services storage can provide; and |
6 | (6) Any other relevant issue identified by the public utilities commission. |
7 | (b) On or before March 1, 2023 the public utilities commission shall report to the legislature |
8 | on the status of the docket described in subsection (a) of this section. The public utilities |
9 | commission shall include in its report whether new tariffs and programs or changes to existing |
10 | tariffs and programs, are necessary to enable meeting the goals established in § 39-33-1; how the |
11 | commission intends to address those matters, the expected timeline, and whether any changes of |
12 | law are necessary. The public utilities commission will report what is known or needed to be known |
13 | for storage or competing technologies to achieve those objectives, including, but not limited to: |
14 | (1) Providing positive net present value to all ratepayers, or a subset of ratepayers paying |
15 | for the benefits, that accrue to that subset of ratepayers; |
16 | (2) Providing multiple types of benefits to the electric grid, including, but not limited to, |
17 | customer, local, or community resilience, ancillary services, leveling out peaks in electricity use or |
18 | that support the deployment of other distributed energy resources; |
19 | (3) Fostering the sustained, orderly development of a state-based energy storage industry; |
20 | and |
21 | (4) Maximizing the value from the participation of energy storage systems in capacity |
22 | markets. The public utilities commission shall include consideration of all energy storage |
23 | configurations that are connected to the distribution system, including systems connected in front |
24 | of the meter and not located at a customer premises. |
25 | 39-33-3. Energy storage rate design. |
26 | (a) On or before July 31, 2023, the public utilities commission shall conclude the docket |
27 | described in § 39-33-2, with the adoption of a framework for electric rate tariffs to apply to energy |
28 | storage systems interconnected and providing retail service to their distribution system and targets |
29 | for installed storage capacity by 2032. |
30 | (b) After adopting a framework, the electric distribution companies will include tariffs for |
31 | storage resources and/or the general services and products storage resources provide in its next |
32 | distribution rate case or at the direction of the public utilities commission, in a revenue neutral rate |
33 | case. Electric distribution companies with fewer than one hundred thousand (100,000) customers |
34 | may seek relief from the public utilities commission on the requirements of this subsection for good |
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1 | cause. The filing shall include at least one rate tariff that is applicable to front of the meter energy |
2 | storage. The tariff shall not include costs that are otherwise recouped via project sponsor-funded |
3 | interconnection upgrades or otherwise paid directly by the project sponsor, and shall include rates |
4 | designed to reflect cost causation and ensure that energy storage systems are incentivized to charge |
5 | and discharge at times that benefit the system. |
6 | 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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1 | This act would require the public utilities commission to initiate the process of evaluating |
2 | the barriers to and opportunities for electric energy storage resources to be connected to the electric |
3 | distribution system, including the filing by the electric distribution company of new tariffs to apply |
4 | to energy storage systems interconnected and providing retail service to the distribution system. |
5 | This act would take effect upon passage. |
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