2026 -- H 7878

========

LC005687

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

____________

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- ENERGY STORAGE SYSTEMS

ACT

     Introduced By: Representatives Speakman, and Boylan

     Date Introduced: February 27, 2026

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 39-33-1, 39-33-2 and 39-33-3 of the General Laws in Chapter 39-

33 entitled "Energy Storage Systems Act" are hereby amended to read as follows:

     39-33-1. Definitions.

     As used in this chapter:

     (1) "Constrained feeder" means a distribution feeder owned and/or operated by an electric

distribution company as defined in § 39-1-2 which feeder is eighty percent (80%) or higher load

constrained.

     (2) “Commission” means the public utilities commission.

     (2)(3) “Energy storage system” means any technology capable of converting electrical

energy to some form of stored energy for reconversion to electrical energy at a later time.

     (3)(4) “Long-duration energy storage system” means energy storage systems that are

capable of permanently displacing fossil fuel energy systems designed to store energy or necessary

for balancing intermittent renewable energy resources.

     39-33-2. Storage tariff.

     (a) No later than September 1, 2024, the public utilities commission shall engage

stakeholders to adopt a framework for an energy storage system tariff for energy storage systems

connected to the electric distribution system.

     (1) The tariff framework should, at a minimum, address the ability of energy storage

systems to charge from and discharge to the electric distribution system.

     (2) The commission shall set a schedule that is designed to result in a model tariff no later

than May 1, 2025, consistent with the tariff framework.

     (3) Following that date, if the commission finds that the energy storage system tariff can

be implemented without inequitable cross subsidization between customers, each electric

distribution company as defined in § 39-1-2 that has greater than one hundred thousand (100,000)

customers shall file the model tariff for review and approval by the public utilities commission in

a contested proceeding. Otherwise, the model tariff shall be included as part of the electric

distribution company’s next general rate filing.

     (b) Notwithstanding subsection (a) of this section, no later than September 30, 2026, each

electric distribution company as defined in § 39-1-2 that has greater than one hundred thousand

(100,000) customers shall file an energy storage system tariff for review and approval by the

commission in a contested proceeding which tariff shall contain the following provisions:

     (1) The owner/operator of an energy storage system shall be compensated one hundred and

eighty-five dollars per nameplate kilowatt capacity ($185/kW) per year for a system no greater than

five megawatts (5 MW) in size and connected to a constrained feeder. This tariff shall be effective

until one hundred megawatts (100 MW) of energy storage systems have been connected to

constrained feeders at which point the commission may extend the tariff, revise the tariff or

discontinue the tariff. The tariff shall provide for this compensation for ten (10) years following the

energy storage system’s receipt of authorization to interconnect.

     (2) The tariff may require that the energy storage system discharge at certain times during

the day and at certain times during the year to maximize the benefits to the grid. The tariff may not

require systems to discharge more than seventy (70) times per year. The owners/operators of the

energy storage system shall pay the G-32 rate (or, if the G-32 rate is discontinued, the most

comparable rate class then existing) when charging. The tariff may provide for financial penalties

for energy storage systems failing to comply with the discharging requirements.

     (3) The tariff shall provide that the determination of whether an energy storage system is

proposed to be connected to a constrained feeder shall be made when the owner/operator of the

energy storage system files its interconnection application with the electric distribution company

and the energy storage system shall not lose eligibility for this tariff program following the

eligibility determination and for ten (10) years after the receipt of authorization to interconnect.

     (4) The tariff shall provide for the execution of a contract between the owner/operator of

the energy storage system and the electric distribution company reflecting the operational and

compensation terms of the energy storage system.

LC005687 - Page 2 of 4

     (5) The tariff may contain any other provisions which are reasonable and necessary to

facilitate a tariff program on the terms set forth in subsections (2)(b)(1) through (2)(b)(4) of this

section.

     39-33-3. Interconnection.

     (a) No later than September 1, 2024, the commission shall commence a process, which

includes stakeholder engagement, to adopt a framework for an interconnection tariff for energy

storage systems connected to the electric distribution system that recognizes the flexible operating

characteristics of energy storage systems.

     (b) Following the public utilities commission’s adoption of a framework, which shall be

completed no later than May 1, 2025, each electric distribution company as defined in § 39-1-2 that

has greater than one hundred thousand (100,000) customers shall file a proposed energy storage

system interconnection tariff for review and approval in a contested proceeding.

     No later than September 30, 2026, each electric distribution company as defined in § 39-

1-2 that has greater than one hundred thousand (100,000) customers shall file a proposed energy

storage system interconnection tariff for review and approval by the commission in a contested

proceeding. The tariff shall regulate the interconnection of energy storage systems in a manner

commensurate with the manner in which the Narragansett Electric Company Standards for

Connecting Distributed Generation (R.I.P.U.C. No. 2258) regulates distributed generation. The

tariff may contain provisions which are reasonable and necessary to regulate interconnection of

energy storage systems and, more specifically, the tariff may address concepts such as

import/export capacity and operating profiles and schedules.

     SECTION 2. Chapter 39-33 of the General Laws entitled "Energy Storage Systems Act" is

hereby amended by adding thereto the following section:

     39-33-6. Legislative purpose.

     The purpose of this chapter is to facilitate and promote the installation of energy storage

systems in the State of Rhode Island. Energy storage systems are capable of delivering significant

benefits to the electric power system. Energy storage systems can reduce the market price for

electricity, improve power quality by charging and discharging as needed, avoid the need for new

capacity investments, and supply backup power during grid outages.

     SECTION 3. This act shall take effect upon passage.

========

LC005687

========

LC005687 - Page 3 of 4

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- ENERGY STORAGE SYSTEMS

ACT

***

     This act would amend the Energy Storage Act of 2024 to require that the electric

distribution company and the public utilities commission promulgate tariffs to address

interconnection of energy storage systems and to provide compensation for at least one hundred

megawatts (100 MW) of energy storage systems sited in the state.

     This act would take effect upon passage.

========

LC005687

========

LC005687 - Page 4 of 4