2021 -- H 5327

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LC000938

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- NET METERING

     Introduced By: Representatives Potter, Baginski, Felix, Batista, Ruggiero, Speakman,
Knight, Kislak, Shallcross Smith, and Fogarty

     Date Introduced: February 02, 2021

     Referred To: House Corporations

     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 Power Company and the Pascoag Utility

District shall not exceed three percent (3%) of peak load for each utility district; 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; and

     (iii) Commencing July 1, 2021, an additional sixty megawatts (60 MW) shall be added to

the existing community remote net-metering program, "community remote net metering

expansion", bringing the maximum aggregate amount of community remote net-metering systems

to ninety megawatts (90 MW). Projects shall be allocated program capacity on a first-come, first-

served basis based on the community net-metering waiting list. A minimum of one-third (⅓) of the

expansion shall be located on previously disturbed sites. Each community remote net-metering

system that receives an allocation in the expansion shall:

     (A) Allocate a minimum of twenty percent (20%) of the generated power to low- or

moderate-income households;

     (B) Provide proof of project maturity by providing a copy of a completed distribution level

impact study or a fully executed interconnection services agreement and evidence that applicable

municipal planning and zoning permits, and department of environmental management wetland

permits are in hand;

     (C) Be prohibited from co-locating multiple renewable energy resources under common

ownership on one or more contiguous parcels, unless the total capacity of the co-located projects

is less than ten megawatts (10 MW) in aggregate; and

     (D) Provide National Grid the wholesale market capacity rights to the community remote

net-metering systems.

     (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

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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.

     (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.

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     (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.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- NET METERING

***

     This act would increase the maximum aggregate amount of community remote net-

metering systems from thirty megawatts (30 MW) to ninety megawatts (90 MW), and would

require the allocation of a minimum of twenty percent (20%) of the generated power to low- or

moderate-income households commencing July 1, 2021. Projects would be allocated to the

programs on a first-come, first-served basis.

     This act would take effect upon passage.

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