§ 39-26-6 - Duties of the commission.
SECTION 39-26-6
§ 39-26-6 Duties of the commission. –The commission shall:
(a) Develop and adopt regulations on or before December 31,2005, for implementing a renewable energy standard, which regulations shallinclude, but be limited to, provisions for:
(1) Verifying the eligibility of renewable energy generatorsand the production of energy from such generators, including requirements tonotify the commission in the event of a change in a generator's eligibilitystatus.
(2) Standards for contracts and procurement plans forrenewable energy resources, to achieve the purposes of this chapter.
(3) Flexibility mechanisms for the purposes of easingcompliance burdens, facilitating bringing new renewable resources on-line, andavoiding and/or mitigating conflicts with state level source disclosurerequirements and green marketing claims throughout the region; whichflexibility mechanisms shall allow obligated entities to: (i) demonstratecompliance over a compliance year; (ii) bank excess compliance for two (2)subsequent compliance years, capped at thirty percent (30%) of the currentyear's obligation; and (iii) allow renewable energy generated during 2006 to bebanked by an obligated entity as early compliance, usable towards meeting anobligated entity's 2007 requirement. Generation used for early compliance mustresult in the retirement of NE-GIS certificate in a reserved certificateaccount designated for such purposes.
(4) Annual compliance filings to be made by all obligatedentities within one month after NE-GIS reports are available for the fourth(4th) quarter of each calendar year. All electric utility distributioncompanies shall cooperate with the commission in providing data necessary toassess the magnitude of obligation and verify the compliance of all obligatedentities.
(b) Authorize rate recovery by electric utility distributioncompanies of all prudent incremental costs arising from the implementation ofthis chapter, including, without limitation, the purchase of NE-GIScertificates, the payment of alternative compliance payments, required paymentsto support the NE-GIS, assessments made pursuant to § 39-26-7(c) and theincremental costs of complying with energy source disclosure requirements.
(c) Certify eligible renewable energy resources by issuingstatements of qualification within ninety (90) days of application. Thecommission shall provide prospective reviews for applicants seeking todetermine whether a facility would be eligible.
(d) Determine, on or before January 1, 2010, the adequacy, orpotential adequacy, of renewable energy supplies to meet the increase in thepercentage requirement of energy from renewable energy resources to go intoeffect in 2011 and determine on or before January 1, 2014, the adequacy orpotential adequacy, of renewable energy supplies to meet the increase in thepercentage requirement of energy from renewable energy resources to go intoeffect in 2015. In making such determinations the commission shall consideramong other factors the historical use of alternative compliance payments inRhode Island and other states in the NEPOOL region. In the event that thecommission determines an inadequacy or potential inadequacy of supplies forscheduled percentage increases, the commission shall delay the implementationof the scheduled percentage increase for a period of one year or recommend tothe general assembly a revised schedule of percentage increases, if any, toachieve the purposes of this chapter.
(e) Establish sanctions for those obligated entities thatafter investigation have been found to fail to reasonably comply with thecommission's regulations. No sanction or penalty shall relieve or diminish anobligated entity from liability for fulfilling any shortfall in its complianceobligation; provided, however, that no sanction shall be imposed if complianceis achieved through alternative compliance payments. The commission may suspendor revoke the certification of generation units, certified in accordance withsubsection (c) above, that are found to provide false information, or that failto notify the commission in the event of a change in eligibility status orotherwise comply with its rules. Financial penalties resulting from sanctionsfrom obligated entities shall not be recoverable in rates.
(f) Report, by February 15, 2006, and by February 15 eachyear thereafter, to the governor, the speaker of the house and the president ofthe senate on the status of the implementation of the renewable energystandards in Rhode Island and other states, and which report shall include in2009, and each year thereafter, the level of use of renewable energycertificates by eligible renewable energy resources and the portion ofrenewable energy standards met through alternative compliance payments, and theamount of rate increases authorized pursuant to subsection (b) above.
(g) Implement the following changes regarding distributedgeneration from renewable energy systems by June 1, 2009.
(1) Increase the maximum allowable distributed generationcapacity for eligible net-metered energy systems to 1.65 megawatts (MW); exceptthat for eligible net-metered renewable energy systems developed but not ownedby cities and towns, located on city or town owned land, and providing powersolely to the city or town that the project is located in, increase saidmaximum to 2.25 megawatts; and except that for eligible net-metered renewableenergy systems owned by cities and towns of Rhode Island, the Narragansett BayCommission and state agencies, increase said maximum to 3.5 megawatts (MW).
(2) Increase the aggregate amount of net metering to amaximum of two percent (2%) of peak load, provided that at least one megawattis reserved for projects less than twenty-five (25) kW.
(3) With the exception of those customers described insubsection (ii), if the electricity generated by the renewable generationfacility during a billing period exceeds the customer's kilowatt-hour usageduring the billing period, the customer shall upon a request of the customer bebilled for zero kilowatt-hour usage and the excess renewable generation creditsshall be credited to the customer's account for the following billing period.Unless otherwise requested by the customer, the customer shall be compensatedmonthly by a check from the electric distribution company for the excessrenewable generation credits pursuant to the rate specified in subdivision39-26-2(22).
(ii) If the electricity generated by the renewable generationfacility owned by a Rhode Island city or town, educational institution,nonprofit affordable housing, farm, the state or the Narragansett BayCommission, during a billing period exceeds the customer's kilowatt-hour usageduring the billing period, the customer shall be billed for zero-kilowatt-hourusage, and:
(A) Upon request of the customer, the excess renewablegeneration credits shall be credited to the customer's account for thefollowing billing period; or
(B) Upon request of the customer, the excess renewablegeneration credits shall be applied to no more than ten (10) other accountsowned by the customer during the billing period; or
(C) Unless otherwise requested by the customer, the customershall be compensated monthly by a check from the distribution company for theexcess renewable generation credits pursuant to the rates specified insubdivisions 39-26-2(19) and 39-26-2(22).
(iii) Nonprofit affordable housing shall use saidcompensation, pursuant to paragraph (ii), to benefit the residents of thehousing development.
(4) If the customer's kilowatt-hour usage exceeds theelectricity generated by the renewable generation facility during the billingperiod, the customer shall be billed for the net kilowatt-hour usage at theapplicable rate. Any excess credits may be carried forward month to month fortwelve (12) month periods as established by the commission. At the end of theapplicable twelve (12) month period, if there are unused excess credits on thenet metering customer accounts, such credits shall be used to offsetrecoverable utility costs. Where compensation has been provided for excessrenewable generation credits, no further charge may be made to the customeragainst said credits.
(h) Any prudent and reasonable costs incurred by the electricdistribution company pursuant to achieving compliance with subsection (g) andthe annual amount of the distribution component of any renewable generationcredits provided to net metering customers shall be aggregated by thedistribution company and billed to all customers on an annual basis through auniform per kilowatt-hour surcharge embedded in the distribution component ofthe rates reflected on customer bills.
(i) Report, by July 1, 2010 to the governor, the speaker ofthe house and the president of the senate on the status of the implementationof subsection (g) and (h), including if said provisions are optimallycost-effective, reliable, prudent and environmentally responsible.
(j) Consistent with the public policy objective of developingrenewable generation as an option in Rhode Island, the electric distributioncompany is authorized to propose and implement pilot programs to own andoperate no more than fifteen megawatts (15MW) of renewable generationdemonstration projects in Rhode Island and include the costs and benefits inrates to distribution customers. At least two (2) demonstration projects shallinclude renewable generation installed at or in the vicinity of nonprofitaffordable housing projects where energy savings benefits are provided toreduce electric bills of the customers at the nonprofit affordable housingprojects. Any renewable generation proposals shall be subject to the review andapproval of the commission. The commission shall annually make an adjustment tothe minimum amounts required under the renewable energy standard under chapter39-26 in an amount equal to the kilowatt hours generated by such units owned bythe electric distribution company. The electric and gas distribution companyshall also be authorized to propose and implement smart metering and smart griddemonstration projects in Rhode Island, subject to the review and approval ofthe commission, in order to determine the effectiveness of such newtechnologies for reducing and managing energy consumption, and include thecosts of such demonstration projects in distribution rates to electriccustomers to the extent the project pertains to electricity usage and indistribution rates to gas customers to the extent the project pertains to gasusage.