Chapter 497
2016 -- H 8331
Enacted 07/15/2016

A N   A C T
RELATING TO PUBLIC UTILITIES -- PUBLIC UTILITIES COMMISSION

Introduced By: Representative Brian P. Kennedy
Date Introduced: June 13, 2016

It is enacted by the General Assembly as follows:
     SECTION 1. Section 39-1-27.1 of the General Laws in Chapter 39-1 entitled "Public
Utilities Commission" is hereby amended to read as follows:
     39-1-27.1. Retail electric licensing commission plan requirements and nonregulated
power producer registration requirements. -- (a) The retail electric-licensing commission
shall, by January 1, 1997, submit a plan to the legislature which that shall include, but not be
limited to, the following:
      (1) A recommendation for taxing and/or assessing electric-distribution companies,
electric-transmission companies and nonregulated power producers;
      (2) Recommendations regarding changes to the regional power pool that would facilitate
the creation of an independent-system operator and voluntary power exchange; and
      (3) Proposals for consumer protections, access to books and records, and other
requirements the retail electric licensing commission determines to be reasonable, necessary, and
in the public interest.
      (b) (1) On or before January 1, 1997, the public utilities commission shall establish
regulations applicable to nonregulated power producers that are selling electricity in this state that
are necessary to meet (directly or through contract) the operating and reliability standards of the
regional power pool.
      (2) In addition, the public utilities commission shall participate in all proceedings before
the fFederal eEnergy rRegulatory cCommission with respect to the modification and/or
termination of wholesale all requirements contracts in place as of January 1, 1996, between
electric-distribution companies operating in this state and their affiliated power suppliers. The
purpose of such participation is to ensure that termination fees payable by ultimate customers in
this state are determined in accordance with the provisions of § 39-1-27.4. To facilitate such
participation, the public utilities commission is authorized to assess electric-distribution
companies under its jurisdiction for its reasonable expenses incurred in connection with its
participation in those proceedings, up to a maximum of one hundred thousand dollars ($100,000)
per year, which assessments shall be in addition to all other assessments authorized by this title.
      (3) On January 1, 1998, and annually for the next four (4) years thereafter, the public
utilities commission shall transmit to the governor, the speaker of the house, and the president of
the senate, a report detailing: developments in the competitive power supply market in this state;
estimated savings realized by customers as a result of the introduction of retail competition in the
power supply market; progress towards implementation of a regional transmission agreement for
New England and other reforms implemented by the regional power pool; and the status of
electric industry restructuring activities in the other New England states and any
recommendations for statutory changes.
      (c) All nonregulated power producers seeking to do business in this state must file with
the division of public utilities and carriers a notarized registration application that includes the
information identified below and any additional information required by the division of public
utilities and carriers pursuant to regulations issued to protect the public interest in connection with
the registration of entities seeking to sell electricity at retail:
      (1) Legal name;
      (2) Business address;
      (3) The name of the state where organized; the date of organization; a copy of the
articles of incorporation, association, partnership agreement, or other similar document regarding
legal organization;
      (4) Name and business address of all officers and directors, partners;, or other similar
officials;
      (5) Name, title, and telephone number of customer-service contact person;
      (6) Name, title, and telephone number of regulatory contact person;
      (7) Name, title, and address of registered agent for service of process;
      (8) Brief description of the nature of business being conducted; and
      (9) Evidence of financial soundness, except those nonregulated power producers that
may be obligated entities under §39-26-2(16) shall provide security such as a surety bond bonds,
a recent financial statement, or other financial instrument showing evidence of liquid funds, such
as a certificate of deposit, an irrevocable letter of credit, a line of credit, a loan, or guarantees or
other mechanism as in an amount specified by the division, pursuant to rules and regulations
promulgated by the division on or before February 1, 2017, provided that the amount be not less
than twenty-five thousand dollars ($25,000), nor more than five hundred thousand dollars
($500,000). The financial instrument shall name the public utilities commission and division of
public utilities and carriers as obligees. Financial security shall be reviewed each year at the time
a nonregulated power producer makes its annual filing. The financial security shall be available to
satisfy penalties assessed by the division for violations of any consumer-protection rules or laws
related to nonregulated power producers; refunds ordered by the division; or failure to comply
with the provisions of chapter 26 of title 39, as determined by the public utilities commission.
Payments made pursuant to this subsection for violation of the provisions of §39-26-4 shall be
forfeited, and shall be remitted to the renewable energy development fund established in §39-26-
7, or any successor funds, and all other forfeitures will be remitted to the state's general fund.
      (d) Copies of all filings pursuant to subsection (c), shall be served upon the commission
and all electric-distribution companies. Updated information shall be filed within ten (10) days of
any change to the information included in a registration application, as filed or previously
updated. Registration applications filed pursuant to subsection (c), shall become effective thirty
(30) days after filing with the division, unless rejected during the thirty- (30) day (30) period. If
the division should reject a registration application, it shall specify the applicable reasons in
writing and, if practicable, identify alternative ways to overcome any deficiencies. After an
opportunity of a hearing, the division may rescind a nonregulated power producer's registration
for cause. Nonregulated power producers shall be authorized to do business in this state after their
registration becomes effective and while it remains in good standing.
      (e) A filing fee of one hundred dollars ($100) shall accompany all registration
applications filed pursuant to subsection (c). Nonregulated power producers shall thereafter renew
their registrations with the division on an annual basis. Applications for renewal shall be filed
before the close of business on December 31 of each calendar year. Applications for renewal shall
specify any changes in previously filed registration information. A filing fee of one hundred
dollars ($100) shall accompany all applications for renewal of nonregulated power producer
status.
     SECTION 2. This act shall take effect upon passage.
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LC006196
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