law17112

Chapter 112

2017 -- S 0637 SUBSTITUTE A
Enacted 06/30/2017

A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS

Introduced By: Senators DiPalma, Seveney, Miller, Satchell, and Kettle

Date Introduced: March 29, 2017

It is enacted by the General Assembly as follows:

SECTION 1. Section 39-26.3-2 of the General Laws in Chapter 39-26.3 entitled

"Distributed Generation Interconnection" is hereby amended to read as follows:

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)(4) "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)(5) "Impact study fee" means a fee that shall be charged to the applicant to obtain an

impact study as specified in § 39-26.2-4 39-26.3-4 of this chapter.

(4)(2) "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)(3) "Feasibility study fee" means a fee that shall be charged to the applicant to obtain a

feasibility study as specified in § 39-26.2-4 39-26.3-4 of this chapter.

(6) "Renewable energy resource" means those resources set forth in §39-26-5.

SECTION 2. Chapter 39-26.3 of the General Laws entitled "Distributed Generation

Interconnection" is hereby amended by adding thereto the following section:

39-26.3-4.1. Interconnection standards.

(a) The electric distribution company may only charge an interconnecting, renewable-

energy customer for any system modifications to its electric power system specifically necessary

for and directly related to the interconnection.

(b) If the public utilities commission determines that a specific system modification

benefiting other customers has been accelerated due to an interconnection request, it may order

the interconnecting customer to fund the modification subject to repayment of the depreciated

value of the modification as of the time the modification would have been necessary as

determined by the public utilities commission. Any system modifications benefiting other

customers shall be included in rates as determined by the public utilities commission.

modifications and a subsequent renewable-energy or commercial customer relies on those

modifications to connect to the distribution system within ten (10) years of the earlier

interconnecting, renewable-energy customer's payment, the subsequent customer will make a

prorated contribution toward the cost of the system modifications which that will be credited to

the earlier interconnecting, renewable-energy customer as determined by the public utilities

commission.

(d) An electric distribution company shall acknowledge to the interconnecting,

renewable-energy customer receipt of an application to initiate the interconnection process within

three (3) business days of receipt. The electric distribution company shall notify the

interconnecting, renewable-energy customer in writing within ten (10) business days of receipt

that the application is or is not complete and, if not, advise what is missing. Any disputes

regarding whether and when an application to initiate the interconnection process is complete

shall be resolved expeditiously at the public utilities commission. The maximum time allowed

between the date of the completed application and delivery of an executable interconnection

service agreement shall be one hundred seventy-five (175) calendar days or two hundred (200)

calendar days if a detailed study is required. All electric distribution company system

modifications must be completed by the date which is the later of: (1) No longer than two

hundred seventy (270) calendar days, or three hundred sixty (360) calendar days if substation

work is necessary, from the date of the electric distribution company's receipt of the

interconnecting, renewable-energy customer's executed interconnection services agreement; or

(2) The interconnecting, renewable-energy customer's agreed upon extension of the time between

the execution of the interconnection services agreement and interconnection as set forth in

writing. All deadlines herein are subject to all payments being made in accordance with the

distributed generation interconnection tariff on file with the public utilities commission and the

interconnection services agreement. These system modification deadlines cannot be extended due

to customer delays in providing required information, all of which must be requested and

obtained before completion of the impact study. The deadlines for completion of system

modifications will be extended only to the extent of events that are clearly not under the control

of the electric distribution company, such as extended prohibitive weather, union work stoppage

or force majeure, or third-party delays, including, without limitation, delays due to ISO-NE

requirements not attributable to electric distribution company actions, and which cannot be

resolved despite commercially reasonable efforts. The electric distribution company shall notify

the customer of the start of any claimed deadline extension as soon as practicable, its cause and

when it concludes, all in writing. Any actual damages that a court of competent jurisdiction

orders the electric distribution company to pay to an interconnecting, renewable-energy customer

as a direct result of the electric distribution company's failure to comply with the requirements of

this subsection shall be payable by its shareholders and may not be recovered from customers,

provided that the total amount of damages awarded for any and all such claims shall not exceed,

in the aggregate, an amount equal to the amount of the incentive the electric distribution company

would have earned as provided for in §§39-26.6-12(j)(3) and 39-26.1-4 in the year in which the

system modifications were required to be completed. In no event shall the electric distribution

company be liable to the interconnecting, renewable-energy customer for any indirect, incidental,

special, consequential, or punitive damages of any kind whatsoever as a result of the electric

distribution company's failure to comply with this section.

(e) On or before September 1, 2017, the public utilities commission shall initiate a docket

to establish metrics for the electric distribution company's performance in meeting the time

frames set forth herein and in the distributed generation interconnection standards approved by

the public utilities commission. The public utilities commission may include incentives and

penalties in the performance metrics.

(f) The proposed interconnection of any new renewable energy resource that replaces the

same existing renewable energy resource of the same or less nameplate capacity that has been in

operation in the twelve (12) months preceding notification of such replacement shall be subject to

a sixty-(60) day (60) review. The purpose of such sixty-(60) day (60) review is to allow the

electric distribution company to determine whether any system modifications are required to

support the interconnection of the replacement renewable energy resource. If there is a need for

system modifications because of an interconnection policy change implemented by the electric

distribution company, then the system modification may be included in rates as determined by the

public utilities commission. If there is a need for system modifications only because of a change

in the rating or utility disturbance response that adversely affects the impact of the facility on the

distribution system, then the interconnecting, renewable-energy customer shall be responsible for

the cost of the system modifications.

SECTION 3. This act shall take effect upon passage.

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LC001675/SUB A/2

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