Chapter 144
2011 -- S 0721 SUBSTITUTE A
Enacted 06/29/11
A N A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS - STATEWIDE INTERCONNECTION STANDARDS
Introduced By: Senators Walaska, Bates, Sosnowski, Miller, and DiPalma
Date Introduced: March 23, 2011
It is enacted by the
General Assembly as follows:
SECTION 1. Title 39 of the General Laws entitled
"PUBLIC UTILITIES AND
CARRIERS" is hereby
amended by adding thereto the following chapter:
CHAPTER
26.3
DISTRIBUTED
GENERATION INTERCONNECTION
39-26.3-1. Policy objective.
– The general assembly hereby finds and declares that the
expeditious completion of the application process for renewable
distributed generation is in the
public interest. For this reason, certain standards and
other provisions for the processing of
applications are hereby set forth to assure that the application
process assists in the development
of renewable generation resources in a timely manner.
39-26.3-2. Definitions.
– The following terms shall have the meanings given below for
purposes of this chapter:
(1) “Applicant” means
an electric distribution customer or distributed generation
developer who submits an application to the electric
distribution company for the installation of a
renewable distributed generation interconnection to the
distribution system for a renewable
distributed generation project that, as contemplated, meets the
eligibility requirements for net
metering contained within title 39 or the eligibility requirements
for a standard contract contained
within title 39.
(2) “Impact study”
means an engineering study that includes an estimate of the cost of
interconnecting to the distribution system that would be assessed on
the applicant for an
interconnection that is based on an engineering study of the details
of the proposed generation
project. Such estimate generally will have a probability of
accuracy of plus or minus twenty five
percent (25%). Such an estimate may be relied upon by the
applicant for purposes of determining
the expected cost of interconnection, but the
distribution company may not be held liable or
responsible if the actual costs exceed the estimate as long as
the estimate was provided in good
faith and the interconnection was implemented prudently by
the electric distribution company.
(3) "Impact
study fee" means a fee that shall be charged to the applicant to obtain an
impact study as specified in section 39-26.2-4 of this
chapter.
(4) “Feasibility
study” means a high-level project assessment that includes an estimate of
the cost of interconnecting to the distribution system
that would be assessed on the applicant for
an interconnection. Such estimate is not based on any
engineering study, but is based on past
experience and judgment of the electric distribution company,
taking into account the information
in the application, the location of the interconnection,
and general knowledge of the distribution
and transmission system. Such estimate cannot be relied
upon by the applicant for purposes of
holding the electric distribution company liable or
responsible for its accuracy as long as the
electric distribution company has provided the estimate in
good faith. The feasibility study
estimate shall be a range within which the electric
distribution company believes the
interconnection costs are likely to be and shall include a disclaimer
that explains the nature of the
estimate.
(5) “Feasibility
study fee” means a fee that shall be charged to the applicant to obtain a
feasibility study as specified in section 39-26.2-4 of this
chapter.
39-26.3-3. Application process.
– (a) The application process set out in
this section shall
be applicable to electric distribution companies thirty
(30) days after the enactment of this
chapter.
(b) An applicant for
a renewable distributed generation interconnection must submit an
application to the electric distribution company for an impact
study, including a request for an
estimate of the cost of interconnecting the renewable
distributed generation resource to the
distribution system. The applicant may request a feasibility study
prior to requesting an impact
study, but the applicant is not required to do so and may
submit an application for an impact
study without having obtained a feasibility study. The
distribution company shall follow the
schedule below for all applications.
(c) Upon receipt of a
completed application requesting a feasibility study and receipt of
the applicable feasibility study fee, the electric
distribution company shall provide a feasibility
study to the applicant within thirty (30) days.
(d) Upon receipt of a
completed application requesting an impact study and receipt of the
applicable impact study fee, the electric distribution company
shall provide an impact study
within ninety (90) days.
(e) In
anticipation of the electric distribution company needing to add resources that
are
not currently in
aggressive goals and objectives set forth in title 39, the
electric distribution company shall be
authorized to add up to two (2) incremental employee resources
located in
be primarily dedicated to servicing
metering and the development of distributed generation
resources, including the requisite
resources to
perform impact and feasibility studies for distributed generation
interconnections and
to assure that feasibility studies and impact studies,
as well as other engineering activity
necessary to facilitate the completion of distributed
generation projects in
implemented and delivered on a timely basis. Prior to new
rates going into effect following the
company’s next general rate case filing, the cost of such
incremental employee resources shall be
recovered through rates on an annual basis through an annual
reconciliation mechanism, provided
that the total amount of fees collected from impact
studies and feasibility studies shall be netted
against such costs. Only the cost of time and work actually
spent on
energy project matters shall be included in such annual
reconciliation. The commission shall have
the authority to review these positions in the electric
distribution company’s next general rate
case as a cost of service in the same manner as it reviews
all other expenses in a rate case to
determine whether they should continue. Nothing contained
in this section shall preclude the
electric distribution company from adding additional
resources, subject to commission approval.
(f) Notwithstanding
any other provision of this chapter, the application process and fees
set forth in this chapter apply only to interconnections
to the distribution system by renewable
distributed generation resources. To the extent that a renewable
generation resource seeks an
interconnection to the transmission system and such interconnection
request is governed by rules
and regulations under the exclusive jurisdiction of the
federal energy regulatory commission, the
provisions of this chapter shall not apply.
(g) The rules and
fees established in this chapter shall be incorporated within the
applicable “Standards for Interconnection of Distributed
Generation” approved by the
commission.
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) Non-residential
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) Non-residential
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) Non-residential
applicants for interconnections of renewable distributed generation
that is greater than two hundred fifty kilowatts (250 kw), up to one megawatt: one thousand
dollars ($1,000).
(6) Non-residential
applicants for interconnections of renewable distributed generation
greater than one megawatt: 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.
(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) Non-residential
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) Non-residential
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) Non-residential
applicants for interconnections of renewable distributed generation
that is greater than two hundred fifty kilowatts (250 kw), up to one megawatt: five thousand
dollars ($5,000).
(6) Non-residential
applicants for interconnections of renewable distributed generation
greater than one megawatt: 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 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 non-residential
project that commences operation,
the balance of such 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
convenient to use that means of billing for the balance of the
fee for a given project.
39-26.3-5. Liberal construction of chapter
required. – This chapter shall be construed
liberally in aid of its policy objective.
39-26.3-6. Severability.
– If any provision of this chapter or the application thereof to
any person or circumstances is held invalid, such invalidity
shall not affect other provisions or
application of the chapter, which can be given effect without the
invalid provision or application,
and to this end the provisions of this chapter are
declared to be severable.
SECTION 2. This act shall take effect upon passage.
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LC02159/SUB A/3
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