2022 -- S 3025

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LC006151

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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

     Introduced By: Senators Lombardo, Ciccone, and DiMario

     Date Introduced: June 16, 2022

     Referred To: Senate Housing & Municipal Government

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 39-26.4-3 of the General Laws in Chapter 39-26.4 entitled "Net

Metering" is hereby amended to read as follows:

     39-26.4-3. Net metering.

     (a) The following policies regarding net metering of electricity from eligible net-metering

systems and community remote net-metering systems and regarding any person that is a renewable

self-generator shall apply:

     (1)(i) The maximum allowable capacity for eligible net-metering systems, based on

nameplate capacity, shall be ten megawatts (10 MW), effective sixty (60) days after passage. The

aggregate amount of net metering in the Block Island Utility District doing business as Block Island

Power Company and the Pascoag Utility District shall not exceed a maximum percentage of peak

load for each utility district as set by the utility district based on its operational characteristics,

subject to commission approval; and

     (ii) Through December 31, 2018, the maximum aggregate amount of community remote

net-metering systems built shall be thirty megawatts (30 MW). Any of the unused MW amount

after December 31, 2018, shall remain available to community remote net-metering systems until

the MW aggregate amount is interconnected. After December 31, 2018, the commission may

expand or modify the aggregate amount after a public hearing upon petition by the office of energy

resources. The commission shall determine within six (6) months of such petition being docketed

by the commission whether the benefits of the proposed expansion exceed the cost. This aggregate

amount shall not apply to any net-metering financing arrangement involving public entity facilities,

multi-municipal collaborative facilities, educational institutions, the federal government, hospitals,

or nonprofits. By June 30, 2018, the commission shall conduct a study examining the cost and

benefit to all customers of the inclusion of the distribution charge as a part of the net-metering

calculation.

     (2) For ease of administering net-metered accounts and stabilizing net-metered account

bills, the electric distribution company may elect (but is not required) to estimate for any twelve-

month (12) period:

     (i) The production from the eligible net-metering system or community remote net-

metering system; and

     (ii) Aggregate consumption of the net-metered accounts at the eligible net-metering system

site or the sum of the consumption of the eligible credit-recipient accounts associated with the

community remote net-metering system, and establish a monthly billing plan that reflects the

expected credits that would be applied to the net-metered accounts over twelve (12) months. The

billing plan would be designed to even out monthly billings over twelve (12) months, regardless of

actual production and usage. If such election is made by the electric distribution company, the

electric distribution company would reconcile payments and credits under the billing plan to actual

production and consumption at the end of the twelve-month (12) period and apply any credits or

charges to the net-metered accounts for any positive or negative difference, as applicable. Should

there be a material change in circumstances at the eligible net-metering system site or associated

accounts during the twelve-month (12) period, the estimates and credits may be adjusted by the

electric distribution company during the reconciliation period. The electric distribution company

also may elect (but is not required) to issue checks to any net-metering customer in lieu of billing

credits or carry-forward credits or charges to the next billing period. For residential-eligible net-

metering systems and community remote net-metering systems twenty-five kilowatts (25 KW) or

smaller, the electric distribution company, at its option, may administer renewable net-metering

credits month to month allowing unused credits to carry forward into the following billing period.

     (3) If the electricity generated by an eligible net-metering system or community remote

net-metering system during a billing period is equal to, or less than, the net-metering customer's

usage at the eligible net-metering system site or the sum of the usage of the eligible credit-recipient

accounts associated with the community remote net-metering system during the billing period, the

customer shall receive renewable net-metering credits, that shall be applied to offset the net-

metering customer's usage on accounts at the eligible net-metering system site, or shall be used to

credit the eligible credit-recipient's electric account.

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     (4) If the electricity generated by an eligible net-metering system or community remote

net-metering system during a billing period is greater than the net-metering customer's usage on

accounts at the eligible net-metering system site or the sum of the usage of the eligible credit-

recipient accounts associated with the community remote net-metering system during the billing

period, the customer shall be paid by excess renewable net-metering credits for the excess

electricity generated up to an additional twenty-five percent (25%) beyond the net-metering

customer's usage at the eligible net-metering system site, or the sum of the usage of the eligible

credit-recipient accounts associated with the community remote net-metering system during the

billing period; unless the electric distribution company and net-metering customer have agreed to

a billing plan pursuant to subsection (a)(2).

     (5) The rates applicable to any net-metered account shall be the same as those that apply

to the rate classification that would be applicable to such account in the absence of net metering,

including customer and demand charges, and no other charges may be imposed to offset net-

metering credits.

     (b) The commission shall exempt electric distribution company customer accounts

associated with an eligible net-metering system from back-up or standby rates commensurate with

the size of the eligible net-metering system, provided that any revenue shortfall caused by any such

exemption shall be fully recovered by the electric distribution company through rates.

     (c) Any prudent and reasonable costs incurred by the electric distribution company

pursuant to achieving compliance with subsection (a) and the annual amount of any renewable net-

metering credits or excess renewable net-metering credits provided to accounts associated with

eligible net-metering systems or community remote net-metering systems, shall be aggregated by

the distribution company and billed to all distribution customers on an annual basis through a

uniform, per-kilowatt-hour (KWh) surcharge embedded in the distribution component of the rates

reflected on customer bills.

     (d) The billing process set out in this section shall be applicable to electric distribution

companies thirty (30) days after the enactment of this chapter.

     (e) Eligible net-metering systems or community remote net-metering systems shall not be

located within a residential zone or abut a residential property.

     SECTION 2. Sections 39-26.6-7, 39-26.6-9 and 39-26.6-27 of the General Laws in Chapter

39-26.6 entitled "The Renewable Energy Growth Program" are hereby amended to read as follows:

     39-26.6-7. Solar project size categories.

     (a) Tariff(s) shall be proposed for each of the following solar distributed- generation

classes:

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     (1) Small-scale solar projects;

     (2) Medium-scale solar projects;

     (3) Commercial-scale solar projects; and

     (4) Large-scale solar projects.

     (b) Such classes of solar distributed-generation projects shall be established based on

nameplate megawatt size as follows:

     (1) Large scale: solar projects from one megawatt (1 MW), up to and including, five

megawatts (5 MW) nameplate capacity;

     (2) Commercial scale: solar projects greater than two hundred fifty kilowatts (250 KW),

but less than one megawatt (1 MW) nameplate capacity;

     (3) Medium scale: solar projects greater than twenty-five kilowatts (25 KW), up to and

including, two hundred fifty kilowatts (250 KW) nameplate capacity; and

     (4) Small scale: solar projects, up to and including, twenty-five kilowatts (25 KW)

nameplate capacity.

     (c) Other classifications of solar projects may also be proposed by the board, subject to the

approval of the commission. After the second program year, the board may make recommendations

to the commission to adjust the size categories of the solar classes, provided that the medium-scale

solar projects may not exceed two hundred fifty kilowatts (250 KW); and/or allocated capacity to

community distributed-generation facilities, allowing them to compete or enroll under a distinct

ceiling price.

     (5) Solar projects greater than twenty-five kilowatts (25 KW), except for residential

rooftops solar projects, shall not be located within a residential zone or abut a residential property.

     39-26.6-9. Project segmentation prohibition.

     In no case may a project developer be allowed to segment a distributed-generation project

on the same parcel or contiguous parcels into smaller-sized projects in order to fall under a smaller-

size project classification. Segmented distributed-generation projects shall not be located within a

residential zone or about a residential property. Notwithstanding this prohibition, a project

developer may designate a generation unit on the same parcel or contiguous parcel for net metering

or other means of participating in electricity markets, provided that the unit, or portion of the unit,

designated for net metering or other market participation is not receiving performance-based

incentives under this chapter; is capable of being segregated electrically; is configured with the

electrical segregation; and is separately metered. Further, a project shall not be considered to have

been segmented if:

     (1) There is a lapse of at least twenty-four (24) months between: (i) The commencement

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of construction of new distributed-generation units on a parcel that is the same as, or is contiguous

with, a parcel upon which a distributed-generation project has already been constructed; and (ii)

The operation date of the preexisting project; or

     (2) The new project is a different renewable technology.

     39-26.6-27. Community remote distributed generation system.

     (a) In order to facilitate the adoption of participation in renewable energy projects by

eligible customers, the board may allocate a portion of the annual MW goal to a separate class, or

classes, of community remote distributed-generation systems, which may compete under separate

ceiling prices from non-community remote distributed-generation systems, for program years

starting on or after April 1, 2016.

     (b) Upon such allocation by the board, the electric distribution company shall establish

rules and tariffs for program years starting on or after April 1, 2016, which rules and tariffs will set

forth the requirements for eligible recipients, credit transfers, consumer protection, and other

considerations and terms, with input from the office, for the commission's review and approval.

     (c) The value of credits to be allocated to credit recipients may be a fixed rate provided by

the system owner, but shall not be greater than the sum of the standard-offer service, less the

renewable energy standard charge or credit, and the transmission and transition rates, of the credit

recipient as offered by the electric distribution company in effect at the time of establishing the

transfer. If a fixed credit rate is not provided, the default credit will be the sum of the standard-offer

service, less the renewable energy standard charge or credit, and the transmission and transition

rates, of the credit recipient as offered by the electric distribution company in effect at the time of

the transfer.

     (d) Any credits not allocated in any month will be valued at the then-current default credit

rate, and deducted from the total performance-based incentive of the enrolled system.

     (e) Community remote distributed-generation systems shall not:

     (1) Comprise more than thirty percent (30%) of the annual total of capacity available under

the renewable energy growth program in each year;

     (2) Be subject to a ceiling price that is more than fifteen percent (15%) higher than the

then-in-effect ceiling price for the same technology of the same size as recommended by the board

and approved by the commission; or

     (3) Transfer credits to any account in an amount that in KWh exceeds the prior three-year

(3) annual average usage.

     (4) Be located within a residential zone or abut a residential property.

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     SECTION 3. This act shall take effect upon passage.

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LC006151

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS

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     This act would exclude net-metering systems, solar projects, segmented distribution-

generation projects and community remote distributed-generation systems from location within a

residential zone or from abutting a residential property.

     This act would take effect upon passage.

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LC006151

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