2024 -- S 2536 SUBSTITUTE A | |
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LC005433/SUB A | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
____________ | |
A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS -- NET METERING | |
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Introduced By: Senators Valverde, Lauria, Miller, DiMario, Gu, Euer, and LaMountain | |
Date Introduced: March 01, 2024 | |
Referred To: Senate Environment & Agriculture | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Sections 39-26.4-2 and 39-26.4-3 of the General Laws in Chapter 39-26.4 |
2 | entitled "Net Metering" are hereby amended to read as follows: |
3 | 39-26.4-2. Definitions. |
4 | Terms not defined in this section herein shall have the same meaning as contained in |
5 | chapter 26 of this title. When used in this chapter: |
6 | (1) “Community remote net-metering system” means a facility generating electricity using |
7 | an eligible net-metering resource that allocates net-metering credits to a minimum of one account |
8 | for a system associated with low- or moderate-income housing eligible credit recipients, or three |
9 | (3) eligible credit-recipient customer accounts, provided that no more than fifty percent (50%) of |
10 | the credits produced by the system are allocated to one eligible credit recipient, and provided further |
11 | at least fifty percent (50%) of the credits produced by the system are allocated to the remaining |
12 | eligible credit recipients in an amount not to exceed that which is produced annually by twenty- |
13 | five kilowatt (25 KW) AC capacity. The community remote net-metering system may transfer |
14 | credits to eligible credit recipients in an amount that is equal to or less than the sum of the usage of |
15 | the eligible credit recipient accounts measured by the three-year (3) average annual consumption |
16 | of energy over the previous three (3) years. A projected annual consumption of energy may be used |
17 | until the actual three-year (3) average annual consumption of energy over the previous three (3) |
18 | years at the eligible credit recipient accounts becomes available for use in determining eligibility |
19 | of the generating system. The community remote net-metering system may be owned by the same |
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1 | entity that is the customer of record on the net-metered account or may be owned by a third party. |
2 | (2) “Core forest” refers to unfragmented forest blocks of single or multiple parcels totaling |
3 | two hundred fifty (250) acres or greater unbroken by development and at least twenty-five (25) |
4 | yards from mapped roads, with eligibility questions to be resolved by the director of the department |
5 | of environmental management. Such determination shall constitute a contested case as defined in |
6 | § 42-35-1. |
7 | (3) “Electric distribution company” shall have the same meaning as § 39-1-2, but shall not |
8 | include Block Island Power Company or Pascoag Utility District, each of whom shall be required |
9 | to offer net metering to customers through a tariff approved by the public utilities commission after |
10 | a public hearing. Any tariff or policy on file with the public utilities commission on the date of |
11 | passage of this chapter shall remain in effect until the commission approves a new tariff. |
12 | (4) “Eligible credit recipient” means one of the following eligible recipients in the electric |
13 | distribution company’s service territory whose electric service account or accounts may receive |
14 | net-metering credits from a community remote net-metering system. Eligible credit recipients |
15 | include the following definitions: |
16 | (i) Residential accounts in good standing. |
17 | (ii) “Low- or moderate-income housing eligible credit recipient” means an electric service |
18 | account or accounts in good standing associated with any housing development or developments |
19 | owned or operated by a public agency, nonprofit organization, limited-equity housing cooperative, |
20 | or private developer that receives assistance under any federal, state, or municipal government |
21 | program to assist the construction or rehabilitation of housing affordable to low- or moderate- |
22 | income households, as defined in the applicable federal or state statute, or local ordinance, |
23 | encumbered by a deed restriction or other covenant recorded in the land records of the municipality |
24 | in which the housing is located, that: |
25 | (A) Restricts occupancy of no less than fifty percent (50%) of the housing to households |
26 | with a gross, annual income that does not exceed eighty percent (80%) of the area median income |
27 | as defined annually by the United States Department of Housing and Urban Development (HUD); |
28 | (B) Restricts the monthly rent, including a utility allowance, that may be charged to |
29 | residents, to an amount that does not exceed thirty percent (30%) of the gross, monthly income of |
30 | a household earning eighty percent (80%) of the area median income as defined annually by HUD; |
31 | (C) Has an original term of not less than thirty (30) years from initial occupancy. |
32 | Electric service account or accounts in good standing associated with housing |
33 | developments that are under common ownership or control may be considered a single low- or |
34 | moderate-income housing eligible credit recipient for purposes of this section. The value of the |
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1 | credits shall be used to provide benefits to tenants. |
2 | (iii) “Educational institutions” means public and private schools at the primary, secondary, |
3 | and postsecondary levels. |
4 | (iv) “Commercial or industrial customers” means any nonresidential customer of the |
5 | electric distribution company. |
6 | (5) “Eligible net-metering resource” means eligible renewable energy resource, as defined |
7 | in § 39-26-5 including biogas created as a result of anaerobic digestion, but, specifically excluding |
8 | all other listed eligible biomass fuels. |
9 | (6) “Eligible net-metering system” means a facility generating electricity using an eligible |
10 | net-metering resource that, for any system with a nameplate capacity in excess of twenty-five |
11 | kilowatts (25 kW), is reasonably designed and sized to annually produce electricity in an amount |
12 | that is equal to, or less than, the renewable self-generator’s usage at the eligible net-metering system |
13 | site measured by the three-year (3) average annual consumption of energy over the previous three |
14 | (3) years at the electric distribution account(s) located at the eligible net-metering system site. A |
15 | projected annual consumption of energy may be used until the actual three-year (3) average annual |
16 | consumption of energy over the previous three (3) years at the electric distribution account(s) |
17 | located at the eligible net-metering system site becomes available for use in determining eligibility |
18 | of the generating system. For any system with a nameplate capacity equal to or less than twenty- |
19 | five kilowatts (25 kW), eligibility shall not be restricted based on prior consumption. The eligible |
20 | net-metering system may be owned by the same entity that is the customer of record on the net- |
21 | metered accounts or may be owned by a third party that is not the customer of record at the eligible |
22 | net-metering system site and which may offer a third-party, net-metering financing arrangement or |
23 | net-metering financing arrangement, as applicable. Notwithstanding any other provisions of this |
24 | chapter, any eligible net-metering resource: (i) Owned by a public entity, educational institution, |
25 | hospital, nonprofit, multi-municipal collaborative; or (ii) Owned and operated by a renewable- |
26 | generation developer on behalf of a public entity, educational institution, hospital, nonprofit, multi- |
27 | municipal collaborative through a net-metering financing arrangement shall be treated as an eligible |
28 | net-metering system and all accounts designated by the public entity, educational institution, |
29 | hospital, nonprofit, multi-municipal collaborative for net metering shall be treated as accounts |
30 | eligible for net metering within an eligible net-metering system site; or (iii) Owned and operated |
31 | by a renewable-generation developer on behalf of one or more commercial or industrial customer(s) |
32 | through net-metering financing arrangement(s) shall be treated as an eligible net-metering system |
33 | within an eligible net-metering system site. Notwithstanding any other provision to the contrary, |
34 | effective July 1, 2060, an eligible net-metering system means a facility generating electricity using |
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1 | an eligible net-metering resource that is interconnected behind the same meter as the net-metering |
2 | customer’s load. |
3 | (7) “Eligible net-metering system site” means the site where the eligible net-metering |
4 | system or community remote net-metering system is located or is part of the same campus or |
5 | complex of sites contiguous to one another and the site where the eligible net-metering system or |
6 | community remote net-metering system is located or a farm on which the eligible net-metering |
7 | system or community remote net-metering system is located. Except for an eligible net-metering |
8 | system owned by or operated on behalf of a public entity, educational institution, hospital, |
9 | nonprofit, or multi-municipal collaborative or for a commercial or industrial customer through a |
10 | net-metering financing arrangement, the purpose of this definition is to reasonably assure that |
11 | energy generated by the eligible net-metering system is consumed by net-metered electric service |
12 | account(s) that are actually located in the same geographical location as the eligible net-metering |
13 | system. All energy generated from any eligible net-metering system is, and will be considered, |
14 | consumed at the meter where the renewable energy resource is interconnected for valuation |
15 | purposes. Except for an eligible net-metering system owned by, or operated on behalf of, a public |
16 | entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or for a |
17 | commercial or industrial customer through a net-metering financing arrangement, or except for a |
18 | community remote net-metering system, all of the net-metered accounts at the eligible net-metering |
19 | system site must be the accounts of the same customer of record and customers are not permitted |
20 | to enter into agreements or arrangements to change the name on accounts for the purpose of |
21 | artificially expanding the eligible net-metering system site to contiguous sites in an attempt to avoid |
22 | this restriction. However, a property owner may change the nature of the metered service at the |
23 | accounts at the site to be master metered in the owner’s name, or become the customer of record |
24 | for each of the accounts, provided that the owner becoming the customer of record actually owns |
25 | the property at which the account is located. As long as the net-metered accounts meet the |
26 | requirements set forth in this definition, there is no limit on the number of accounts that may be net |
27 | metered within the eligible net-metering system site. |
28 | (8) “Excess renewable net-metering credit” means a credit that applies to an eligible net- |
29 | metering system or community remote net-metering system for that portion of the production of |
30 | electrical energy beyond one hundred percent (100%) and no greater than one hundred twenty-five |
31 | percent (125%), except for any system with a nameplate capacity equal to or less than twenty-five |
32 | kilowatts (25 kW) for which excess renewable net metering credit applies to all production of |
33 | electrical energy beyond one hundred percent (100%) of the renewable self-generator’s own |
34 | consumption at the eligible net-metering system site or the sum of the usage of the eligible credit |
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1 | recipient accounts associated with the community remote net-metering system during the |
2 | applicable billing period. Such excess renewable net-metering credit shall be equal to the electric |
3 | distribution company’s avoided cost rate, which is hereby declared to be the electric distribution |
4 | company’s last resort service kilowatt hour (KWh) charge for the rate class and time-of-use billing |
5 | period (if applicable) applicable to the customer of record for the eligible net-metering system or |
6 | applicable to the customer of record for the community remote net-metering system. The |
7 | commission shall have the authority to make determinations as to the applicability of this credit to |
8 | specific generation facilities to the extent there is any uncertainty or disagreement. |
9 | For electrical energy produced greater than one hundred percent (100%) of the renewable |
10 | self-generator's own electricity consumption at the eligible net-metering system site or the sum of |
11 | the usage of the eligible credit recipient accounts associated with the community remote net- |
12 | metering system during the applicable billing period, excess renewable net-metering credits shall |
13 | be equal to the wholesale electricity rate, which is hereby declared to be the ISO-New England |
14 | energy clearing price. When applying the ISO-New England energy clearing price to calculate the |
15 | value of excess renewable net-metering credits, the electric distribution company, subject to |
16 | commission approval and subject to amendment from time to time, may use an annual average, |
17 | monthly average or other time increment and may use Rhode Island zone pricing or other applicable |
18 | locational pricing. The commission shall have the authority to make determinations as to the |
19 | applicability of this credit to specific generation facilities to the extent there is any uncertainty or |
20 | disagreement. |
21 | (9) “Farm” shall be defined in accordance with § 44-27-2, except that all buildings |
22 | associated with the farm shall be eligible for net-metering credits as long as: (i) The buildings are |
23 | owned by the same entity operating the farm or persons associated with operating the farm; and (ii) |
24 | The buildings are on the same farmland as the project on either a tract of land contiguous with, or |
25 | reasonably proximate to, such farmland or across a public way from such farmland. |
26 | (10) “Hospital” means and shall be defined and established as set forth in chapter 17 of |
27 | title 23. |
28 | (11) “Multi-municipal collaborative” means a group of towns and/or cities that enter into |
29 | an agreement for the purpose of co-owning a renewable-generation facility or entering into a |
30 | financing arrangement pursuant to subsection (15). |
31 | (12) “Municipality” means any Rhode Island town or city, including any agency or |
32 | instrumentality thereof, with the powers set forth in title 45. |
33 | (13) “Net metering” means using electrical energy generated by an eligible net-metering |
34 | system for the purpose of self-supplying electrical energy and power at the eligible net-metering |
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1 | system site, or with respect to a community remote net-metering system, for the purpose of |
2 | generating net-metering credits to be applied to the electric bills of the eligible credit recipients |
3 | associated with the community net-metering system. The amount so generated will thereby offset |
4 | consumption at the eligible net-metering system site through the netting process established in this |
5 | chapter, or with respect to a community remote net-metering system, the amounts generated in |
6 | excess of that amount will result in credits being applied to the eligible credit-recipient accounts |
7 | associated with the community remote net-metering system. |
8 | (14) “Net-metering customer” means a customer of the electric distribution company |
9 | receiving and being billed for distribution service whose distribution account(s) are being net |
10 | metered. |
11 | (15) “Net-metering financing arrangement” means arrangements entered into by a public |
12 | entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or a commercial |
13 | or industrial customer with a private entity to facilitate the financing and operation of a net-metering |
14 | resource, in which the private entity owns and operates an eligible net-metering resource on behalf |
15 | of a public entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or |
16 | commercial or industrial customer, where: (i) The eligible net-metering resource is located on |
17 | property owned or controlled by the public entity, educational institution, hospital, municipality, |
18 | multi-municipal collaborative, or commercial or industrial customer as applicable; and (ii) The |
19 | production from the eligible net-metering resource and primary compensation paid by the public |
20 | entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or commercial or |
21 | industrial customer to the private entity for such production is directly tied to the consumption of |
22 | electricity occurring at the designated net-metered accounts. |
23 | (16) “Nonprofit” means a nonprofit corporation as defined and established through chapter |
24 | 6 of title 7, and shall include religious organizations that are tax exempt pursuant to 26 U.S.C. § |
25 | 501(d). |
26 | (17) “Person” means an individual, firm, corporation, association, partnership, farm, town |
27 | or city of the state of Rhode Island, multi-municipal collaborative, or the state of Rhode Island or |
28 | any department of the state government, governmental agency, or public instrumentality of the |
29 | state. |
30 | (18) “Preferred site” means a location for a renewable energy system that has had prior |
31 | development, including, but not limited to: landfills, gravel pits and quarries, highway and major |
32 | road median strips, brownfields, superfund sites, parking lots or sites that are designated |
33 | appropriate for carports, and all rooftops including, but not limited to, residential, commercial, |
34 | industrial, and municipal buildings. |
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1 | (19) “Project” means a distinct installation of an eligible net-metering system or a |
2 | community remote net-metering system. An installation will be considered distinct if it is installed |
3 | in a different location, or at a different time, or involves a different type of renewable energy. |
4 | Subject to the safe-harbor provisions in § 39-26.4-3(a)(1), new and distinct projects cannot be |
5 | located on adjoining parcels of land within core forests, except for preferred sites. |
6 | (20) “Public entity” means the federal government, the state of Rhode Island, |
7 | municipalities, wastewater treatment facilities, public transit agencies, or any water distributing |
8 | plant or system employed for the distribution of water to the consuming public within this state |
9 | including the water supply board of the city of Providence. |
10 | (21) “Public entity net-metering system” means a system generating renewable energy at |
11 | a property owned or controlled by the public entity that is participating in a net-metering financing |
12 | arrangement where the public entity has designated accounts in its name to receive net-metering |
13 | credits. |
14 | (22) “Renewable net-metering credit” means a credit that applies to an eligible net- |
15 | metering system or a community remote net-metering system up to one hundred percent (100%) of |
16 | either the renewable self-generator’s usage at the eligible net-metering system site or the sum of |
17 | the usage of the eligible credit-recipient accounts associated with the community remote net- |
18 | metering system over the applicable billing period. This credit shall be equal to the total kilowatt |
19 | hours of electrical energy generated up to the amount consumed on-site, and/or generated up to the |
20 | sum of the eligible credit-recipient account usage during the billing period multiplied by the sum |
21 | of the distribution company’s: |
22 | (i) Last resort service kilowatt-hour charge for the rate class applicable to the net-metering |
23 | customer, except that for remote public entity and multi-municipality collaborative net-metering |
24 | systems that submit an application for an interconnection study on or after July 1, 2017, and |
25 | community remote net-metering systems, the last resort service kilowatt-hour charge shall be net |
26 | of the renewable energy standard charge or credit; |
27 | (ii) Distribution kilowatt-hour charge; |
28 | (iii) Transmission kilowatt-hour charge; and |
29 | (iv) Transition kilowatt-hour charge. |
30 | For projects after April 15, 2023, subject to the allowable two hundred seventy-five |
31 | megawatts alternating current (275 MWac), under § 39-26.4-3(a)(1)(vi), the credit shall be reduced |
32 | by twenty percent (20%). |
33 | Notwithstanding the foregoing, except for systems that have requested an interconnection |
34 | study for which payment has been received by the distribution company, or if an interconnection |
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1 | study is not required, a completed and paid interconnection application, by December 31, 2018, the |
2 | renewable net-metering credit for all remote public entity and multi-municipal collaborative net- |
3 | metering systems shall not include the distribution kilowatt-hour charge commencing on January |
4 | 1, 2050. |
5 | (23) “Renewable self-generator” means an electric distribution service customer of record |
6 | for the eligible net-metering system or community remote net-metering system at the eligible net- |
7 | metering system site which system is primarily designed to produce electrical energy for |
8 | consumption by that same customer at its distribution service account(s), and/or, with respect to |
9 | community remote net-metering systems, electrical energy which generates net-metering credits to |
10 | be applied to offset the eligible credit-recipient account usage. |
11 | (24) “Third party” means and includes any person or entity, other than the renewable self- |
12 | generator, who or that owns or operates the eligible net-metering system or community remote net- |
13 | metering system on the eligible net-metering system site for the benefit of the renewable self- |
14 | generator. |
15 | (25) “Third-party, net-metering financing arrangement” means the financing of eligible |
16 | net-metering systems or community remote net-metering systems through lease arrangements or |
17 | power/credit purchase agreements between a third party and renewable self-generator, except for |
18 | those entities under a public entity net-metering financing arrangement. A third party engaged in |
19 | providing financing arrangements related to such net-metering systems with a public or private |
20 | entity is not a public utility as defined in § 39-1-2. |
21 | 39-26.4-3. Net metering. |
22 | (a) The following policies regarding net metering of electricity from eligible net-metering |
23 | systems and community remote net-metering systems and regarding any person that is a renewable |
24 | self-generator shall apply: |
25 | (1)(i) The maximum allowable capacity for eligible net-metering systems, based on |
26 | nameplate capacity, shall be ten megawatts (10 MW). |
27 | (ii) Eligible net-metering systems shall be sited outside of core forests with the exception |
28 | of development on preferred sites in the core forest and the exception of systems that, as of April |
29 | 15, 2023, (A) Have submitted a complete application to the appropriate municipality for any |
30 | required permits and/or zoning changes, or (B) Have requested an interconnection study for which |
31 | payment has been received by the distribution company, or (C) If an interconnection study is not |
32 | required, systems that have a completed and paid interconnection application. |
33 | (iii) For systems developed in core forests on preferred sites, no more than one hundred |
34 | thousand square feet (100,000 sq. ft) of core forest shall be removed, including for work required |
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1 | for utility interconnection or development of a brownfield, in which case no more core forest than |
2 | necessary for interconnection or brownfield development shall be removed. |
3 | (iv) The aggregate amount of net metering in the Block Island Utility District doing |
4 | business as Block Island Power Company and the Pascoag Utility District shall not exceed a |
5 | maximum percentage of peak load for each utility district as set by the utility district based on its |
6 | operational characteristics, subject to commission approval. |
7 | (v) Through December 31, 2018, the maximum aggregate amount of community remote |
8 | net-metering systems built shall be thirty megawatts (30 MW). Any of the unused MW amount |
9 | after December 31, 2018, shall remain available to community remote net-metering systems until |
10 | the MW aggregate amount is interconnected. |
11 | (vi) The maximum aggregate capacity of remote net metering allowable for ground- |
12 | mounted eligible net-metering systems, as defined by § 39-26.4-2(6), with the exception of systems |
13 | that have, as of April 15, 2023, submitted a complete application to the appropriate municipality |
14 | for any required permits and/or zoning changes or have requested an interconnection study for |
15 | which payment has been received by the distribution company, or if an interconnection study is not |
16 | required, a completed and paid interconnection application by the distribution company date of |
17 | passage, shall be two hundred seventy-five megawatts, alternating current (275 MWac), excluding |
18 | off-shore wind. None of the systems to which this cap applies shall be in core forests unless on a |
19 | preferred site located within the core forest. A project counts against this maximum if it is in |
20 | operation or under construction by July 1, 2030, as determined by the local distribution company. |
21 | All eligible ground-mounted net-metering systems must be under construction or in operation by |
22 | July 1, 2030. This restriction shall not apply to the following: (A) The eligible net-metering system |
23 | is interconnected behind the same meter as the net-metering customer’s load; and/or (B) The |
24 | energy generated by the eligible net-metering system is consumed by net-metered electric service |
25 | account(s) of the same owner of record that are actually located on the same or contiguous parcels |
26 | as the eligible net-metering system. |
27 | (2) For ease of administering net-metered accounts and stabilizing net-metered account |
28 | bills, the electric distribution company may elect (but is not required) to estimate for any twelve- |
29 | month (12) period: |
30 | (i) The production from the eligible net-metering system or community remote net- |
31 | metering system; and |
32 | (ii) Aggregate consumption of the net-metered accounts at the eligible net-metering system |
33 | site or the sum of the consumption of the eligible credit-recipient accounts associated with the |
34 | community remote net-metering system, and establish a monthly billing plan that reflects the |
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1 | expected credits that would be applied to the net-metered accounts over twelve (12) months. The |
2 | billing plan would be designed to even out monthly billings over twelve (12) months, regardless of |
3 | actual production and usage. If such election is made by the electric distribution company, the |
4 | electric distribution company would reconcile payments and credits under the billing plan to actual |
5 | production and consumption at the end of the twelve-month (12) period and apply any credits or |
6 | charges to the net-metered accounts for any positive or negative difference, as applicable. Should |
7 | there be a material change in circumstances at the eligible net-metering system site or associated |
8 | accounts during the twelve-month (12) period, the estimates and credits may be adjusted by the |
9 | electric distribution company during the reconciliation period. The electric distribution company |
10 | also may elect (but is not required) to issue checks to any net-metering customer in lieu of billing |
11 | credits or carry-forward credits or charges to the next billing period. For residential-eligible net- |
12 | metering systems and community remote net-metering systems twenty-five kilowatts (25 KW) or |
13 | smaller, the electric distribution company, at its option, may administer renewable net-metering |
14 | credits month to month allowing unused credits to carry forward into the following billing period. |
15 | (3) If the electricity generated by an eligible net-metering system or community remote |
16 | net-metering system during a billing period is equal to, or less than, the net-metering customer’s |
17 | usage at the eligible net-metering system site or the sum of the usage of the eligible credit-recipient |
18 | accounts associated with the community remote net-metering system during the billing period, the |
19 | customer shall receive renewable net-metering credits, that shall be applied to offset the net- |
20 | metering customer’s usage on accounts at the eligible net-metering system site, or shall be used to |
21 | credit the eligible credit-recipient’s electric account. |
22 | (4) If the electricity generated by an eligible net-metering system or community remote |
23 | net-metering system during a billing period is greater than the net-metering customer’s usage on |
24 | accounts at the eligible net-metering system site or the sum of the usage of the eligible credit- |
25 | recipient accounts associated with the community remote net-metering system during the billing |
26 | period, the customer shall be paid by excess renewable net-metering credits for the excess |
27 | electricity generated; provided that, for any excess electricity generated by a system with a |
28 | nameplate capacity in excess of twenty-five kilowatts (25 kW), excess renewable net-metering |
29 | credits shall be limited to excess up to an additional twenty-five percent (25%) beyond the net- |
30 | metering customer’s usage at the eligible net-metering system site, or the sum of the usage of the |
31 | eligible credit-recipient accounts associated with the community remote net-metering system |
32 | during the billing period; unless the electric distribution company and net-metering customer have |
33 | agreed to a billing plan pursuant to subsection (a)(2). Subject to the completion of any applicable |
34 | annual reconciliation of renewable net-metering credits and excess renewable net metering credits, |
| LC005433/SUB A - Page 10 of 12 |
1 | customers shall have the option to cash out any credit balance remaining provided that the amount |
2 | of the cash out shall be the lower of: |
3 | (i) The credit balance shown from the annual reconciliation of the applicable account; or |
4 | (ii) The credit balance on the applicable account on the date the electric distribution |
5 | company processes the cash out. |
6 | (5) The rates applicable to any net-metered account shall be the same as those that apply |
7 | to the rate classification that would be applicable to such account in the absence of net metering, |
8 | including customer and demand charges, and no other charges may be imposed to offset net- |
9 | metering credits. |
10 | (b) The commission shall exempt electric distribution company customer accounts |
11 | associated with an eligible net-metering system from back-up or standby rates commensurate with |
12 | the size of the eligible net-metering system, provided that any revenue shortfall caused by any such |
13 | exemption shall be fully recovered by the electric distribution company through rates. |
14 | (c) Any prudent and reasonable costs incurred by the electric distribution company |
15 | pursuant to achieving compliance with subsection (a) and the annual amount of any renewable net- |
16 | metering credits or excess renewable net-metering credits provided to accounts associated with |
17 | eligible net-metering systems or community remote net-metering systems, shall be aggregated by |
18 | the distribution company and billed to all distribution customers on an annual basis through a |
19 | uniform, per-kilowatt-hour (KWh) surcharge embedded in the distribution component of the rates |
20 | reflected on customer bills. |
21 | (d) The billing process set out in this section shall be applicable to electric distribution |
22 | companies thirty (30) days after the enactment of this chapter. |
23 | (e) The Rhode Island office of energy resources shall redesign the community solar remote |
24 | net metering program to reflect the provisions of this chapter and to include a commercial or |
25 | industrial anchor tenant up to but not to exceed fifty percent (50%) of the project. The remaining |
26 | fifty percent (50%) must be allocated or subscribed to low- and moderate-income (LMI) residents |
27 | and/or those living in areas defined as disadvantaged and environmental justice communities. The |
28 | Rhode Island office of energy resources shall design the net metering credit rate and factor in |
29 | federal energy funding and tax credits to develop the most cost-effective rate for community solar |
30 | projects. It is expected that these projects will be operational for a twenty-year (20) period. The |
31 | Rhode Island office of energy resources shall file a benefit and cost analysis with any program |
32 | proposal filed to the Rhode Island public utilities commission. Once the Rhode Island office of |
33 | energy resources files a program proposal to the Rhode Island public utilities commission, a docket |
34 | shall be established, and the Rhode Island public utilities commission shall issue a ruling on the |
| LC005433/SUB A - Page 11 of 12 |
1 | program no later than one hundred and fifty (150) days. If a program is approved, it will be subject |
2 | to no greater than twenty megawatts (20 MW) per year for two years until the forty megawatts (40 |
3 | MW) cap is met. Eligible net-metering systems shall be sited outside of core forests with the |
4 | exception of development on preferred sites in the core forest. |
5 | SECTION 2. This act shall take effect upon passage. |
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LC005433/SUB A | |
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| LC005433/SUB A - Page 12 of 12 |
EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS -- NET METERING | |
*** | |
1 | This act would prohibit utility companies from limiting the eligibility of a net metering site |
2 | based on prior consumption and require excess energy not consumed under the net metering system |
3 | to be credited to the consumer. It would also amend the definition of excess renewable net-metering |
4 | credit. |
5 | This act would take effect upon passage. |
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LC005433/SUB A | |
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| LC005433/SUB A - Page 13 of 12 |