§ 39-2-1.4 - Reasonable backup or supplemental rates.
SECTION 39-2-1.4
§ 39-2-1.4 Reasonable backup orsupplemental rates. – (a) Electricity produced by cogeneration and small power production can be ofbenefit to the public as part of the total energy supply of the entire electricgrid of the state or consumed by a cogenerator or small power producer. Subjectto compliance with applicable rules governing such service, public utilitiesshall provide transmission or distribution service to enable a retail customerto transmit electrical power generated by the customer at one location to thecustomer's facilities at another location, if the commission finds that theprovision of this service, and the charges, terms, and other conditionsassociated with the provision of this service, are not likely to result inhigher cost electric service to the utility's general body of retail andwholesale customers or adversely affect the adequacy or reliability of electricservice to all customers.
(b) Each electric distribution company shall provide backupand supplemental service to any customer who is self-generating electricity andmeets reasonable interconnection requirements designed to protect thedistribution and transmission system. The commission shall ensure that backupand supplemental rates made, exacted, demanded or collected by any publicutility from a customer who is self-generating shall be just and reasonable andmay not be unduly discriminatory. Any backup and supplemental rate tariffs ineffect as of May 2002 may remain in effect as designed through December 31,2004. Commencing January 1, 2005, the backup and supplemental rates shall becost based but may be discounted as provided for in subsection (c) of thissection; provided, however, that the John O. Pastore Center power plant shallbe exempt from said backup or supplemental rates.
(c) Notwithstanding the rate design criteria set forth insubsection (b) of this section, the commission may permit or require discountedbackup distribution service rates in order to encourage economically efficientcogeneration or small power production projects if it finds these discounts tobe in the public interest and/or contribute to system reliability procurementor least-cost procurement; provided, however, that any revenue not recovered bythe electric distribution company as a result of these discounted distributionrates shall be accounted for and recovered in the rates assessed on allcustomers. The commission shall, in determining the public interest indistributed generating facilities, consider reduced environmental impacts,increased energy efficiency, reduced transmission losses and congestion,effects on electric system reliability and other factors the commission maydeem relevant.
(d) The provisions of this section shall be effective as ofJanuary 1, 2005.