Chapter 216
2009 -- H 6458
Enacted 11/09/09
A N A C T
RELATING TO
PUBLIC UTILITIES AND CARRIERS
Introduced By: Representatives Fox, Ehrhardt, Walsh, Ruggiero, and A Rice
Date Introduced: October 29, 2009
It is enacted by the General
Assembly as follows:
SECTION 1. Section 39-26.1-7 of the General Laws in chapter
26.1 entitled "Long-Term
Contracting Standard For Renewable Energy" is hereby amended to read as
follows:
39-26.1-7. Town of
New Shoreham Project.-- (a) On or before
August 15, 2009, the
electric distribution company shall solicit proposals for one
newly developed renewable energy
resources project of ten (10) megawatts or less that includes a
proposal to enhance the electric
reliability and environmental quality of the Town of
company shall select a project for negotiating a contract
that shall be conditioned upon approval
by the commission. Negotiations shall proceed in good
faith to achieve a commercially
reasonable contract. Should the distribution company and the
selected party agree to a contract,
the contract shall be filed with the commission no later
than October 15, 2009 for commission
approval. The commission shall review the contract and issue
an order approving or disapproving
the contract on or before December 31, 2009 January
31, 2010. If the parties are unable to reach
agreement on a contract prior to October 15, 2009, an unsigned
copy shall be filed by the electric
distribution company prior to that same date, and the commission
shall have the discretion to
order the parties to arbitrate the dispute on an expedited
basis. Notwithstanding anything in this
section to the contrary, and notwithstanding any solicitation
made pursuant to this section, the
distribution company and the selected party may agree to a
contract for a project that includes up
to (but not exceeding) eight (8) wind turbines with
aggregate nameplate capacity of no more than
thirty (30) megawatts, subject to and conditioned upon the
approval of the commission, even if
the actual capacity factor of the project results in the
project technically exceeding ten (10)
megawatts. Upon
approval of the contract, the provisions of section 39-26.1-4 and the
provisions
of paragraphs (a), (b), (c), (d), and (f) of section
39-26.1-5 shall apply, and all costs incurred in
the negotiation, administration, enforcement, and
implementation of the agreement shall be
recovered annually by the electric distribution company in electric
distribution rates. To the
extent that there are benefits for customers of the Block
Island Power Company or its successor,
the commission shall determine an allocation of cost
responsibility between customers of the
electric distribution company and customers of Block Island
Power Company or its successor
after the cost estimates are filed with the commission, but
the commission need not determine the
final cost allocation at the time the commission considers
and/or approves the contract between
the electric distribution company and the project
developer. The allocation of costs shall assure
that individual customers in the Town of
on their individual bills than any charges for the same
project that may be included in individual
bills of customers of the electric distribution company.
The commission shall provide for an
appropriate rate design and billing method between the electric
distribution company and Block
Island Power Company at the
appropriate time.
(b) The solicitation
shall require that each proposal include provisions for a transmission
cable between the Town of
company, at its option, may propose to own, operate, or
otherwise participate in such
transmission cable project, subject to commission approval. The
electric distribution company,
however, has the option to decline to own, operate, or
otherwise participate in the transmission
cable project, even if the commission approves such
arrangements. Should the electric
distribution company own, operate, and maintain the cable, the
annual costs incurred by the
electric distribution company shall be recovered annually
through a fully reconciling rate
adjustment from customers of the electric distribution company
and/or from the
Power Company or its successor, subject to any federal
approvals that may be required by law;
provided, however, the parties shall use all reasonable efforts
to obtain socialization of the costs
of the cable in
extent permitted. The allocation of the cable costs shall be
determined by the commission and
assure that individual customers in the Town of
cable on their individual bills than any charges for the
same project that may be included in
individual bills of customers of the electric distribution
company.
(c) Any charges incurred
by the Block Island Power Company or its successor pursuant
to this section shall be recovered annually in rates
through a fully reconciling rate adjustment,
subject to approval by the commission. If the electric
distribution company owns, operates, or
otherwise participates in the transmission cable project,
pursuant to subsection 39-26.1-7(b) the
provisions of section 39-26.1-4 shall not apply to the cable
cost portion of the Town of
Shoreham Project.
(d) Any contract entered
into pursuant to this section shall count as part of the minimum
long-term contract capacity.
SECTION 2. This act shall take effect upon passage.
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LC03037
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