2024 -- H 7812

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LC005061

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- AFFORDABLE CLEAN ENERGY

SECURITY ACT

     Introduced By: Representative Brandon T. Voas

     Date Introduced: March 01, 2024

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 39-31 of the General Laws entitled "Affordable Clean Energy

Security Act" is hereby amended by adding thereto the following section:

     39-31-13. Consideration of agreements associated with United States Department of

Energy competitively selected transmission projects.

     (a) For any New England transmission project which has been awarded a grant from, or

selected for the award of a transmission capacity contract with, the United States Department of

Energy, including as a result of that department's competitive RFP under its Transmission

Facilitation Program, the electric distribution company, in consultation with the Rhode Island office

of energy resources and the Rhode Island division of public utilities and carriers, is hereby

authorized and required to consider and determine if long-term transmission service agreements

with the project, with or without associated long-term agreements for energy purchases or energy

storage services, appear commercially reasonable for Rhode Island and its electricity customers.

Such consideration and determination shall be completed within three (3) months of receiving a

proposal from any transmission project developer of such a project.

     (b) If such a positive determination is made, the distribution companies shall negotiate and

enter into long-term transmission service agreements with the transmission developer, and any

associated agreements, to support the financing of the project and the realization of the associated

benefits for Rhode Island and its electricity customers. Negotiations shall proceed in good faith to

achieve a commercially reasonable contract within five (5) months of the electric distribution

company receiving the United States Department of Energy competitively selected project for

consideration.

     (c) No later than one month after entering into such an agreement pursuant to this section,

the distribution companies shall petition the Rhode Island public utilities commission for

authorization to recover the related costs through retail rates. The electric distribution company

shall recover any prudently incurred costs related to the review and negotiation of such agreements

through retail rates. Costs associated with the administration of any agreements shall be recovered

if the commission finds such agreements to be just and reasonable and in the public interest. The

Rhode Island public utilities commission shall review and render a decision on any proposed

agreement no later than six (6) months after submission of the agreement to the commission.

     (d) Any contracts for transmission capacity, or other agreements subject to the jurisdiction

of the Federal Energy Regulatory Commission (FERC), entered into pursuant to this section shall

be filed with or reported to FERC, consistent with FERC regulations and Section 205 of the Federal

Power Act, 16 U.S.C. § 824d.

     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 -- AFFORDABLE CLEAN ENERGY

SECURITY ACT

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     This act would require a New England transmission project which has been awarded a

grant contract with, the United States Department of Energy to authorize and be required to consider

and determine if long-term transmission service agreements with the project, appear commercially

reasonable for Rhode Island and its electricity customers.

     This act would take effect upon passage.

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