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2008 -- H 7806 2008 -- H 7806
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LC01582
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2008
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A N A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS -- DUTIES OF UTILITIES AND
CARRIERS
Introduced By: Representatives Rice, Kennedy, Fox, Segal, and Ajello
Date Introduced: February 26, 2008
Referred To: House Environment and Natural Resources


It is enacted by the General Assembly as follows:
SECTION 1. Section 39-2-1.2 of the General Laws in Chapter 39-2 entitled "Duties of
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Utilities and Carriers" is hereby amended to read as follows:
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39-2-1.2. Utility base rate -- Advertising, demand side management and renewables.
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-- (a) In addition to costs prohibited in section 39-1-27.4(b), no public utility distributing or
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providing heat, electricity, or water to or for the public shall include as part of its base rate any
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expenses for advertising, either direct or indirect, which promotes the use of its product or
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service, or is designed to promote the public image of the industry. No public utility may furnish
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support of any kind, direct, or indirect, to any subsidiary, group, association, or individual for
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advertising and include the expense as part of its base rate. Nothing contained in this section shall
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be deemed as prohibiting the inclusion in the base rate of expenses incurred for advertising,
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informational or educational in nature, which is designed to promote public safety conservation of
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the public utility's product or service. The public utilities commission shall promulgate such rules
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and regulations as are necessary to require public disclosure of all advertising expenses of any
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kind, direct or indirect, and to otherwise effectuate the provisions of this section.
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(b) Effective as of January 1, 2003, and for a period of ten (10) years thereafter, each
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electric distribution company shall include charges of 2.0 mills per kilowatt-hour delivered to
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fund demand side management programs and 0.3 mills per kilowatt-hour delivered to fund
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renewable energy programs. Existing charges for these purposes and their method of
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2
administration shall continue through December 31, 2002. Thereafter, the electric distribution
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company shall establish and after July 1, 2007, maintain two (2) separate accounts, one for
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demand side management programs, which shall be administered and implemented by the
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distribution company, subject to the regulatory reviewing authority of the commission, and one
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for renewable energy programs, which shall be administered by the office of energy resources
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through June 30, 2007, and effective July 1, 2007, shall be held and disbursed by the distribution
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company as directed by the commissioner of the office of energy resources, with the approval, if
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appropriate, of the trustees of the renewable energy development fund, for the purposes of
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developing, promoting and supporting renewable energy programs.
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During the ten (10) year period the commission may, in its discretion, after notice and
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public hearing, increase the sums for demand side management and renewable resources;
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thereafter, the commission shall, after notice and public hearing, determine the appropriate charge
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for these programs. The office of energy resources and/or the administrator of the renewable
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energy programs shall seek to secure for the state an equitable and reasonable portion of
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renewable energy credits or certificates created by
private
projects funded through those
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programs
,
.

and shall develop and execute by July 1, 2007, a plan to make the program self-
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sustaining as of January 1, 2013.

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Not later than November 15, 2008, the commissioner of the office of energy resources
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shall, in the manner set forth in section 42-140-9, establish the municipal renewable energy fund,
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and adopt transparent criteria to score qualifying projects. In adopting criteria for the municipal
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renewable energy fund to score qualifying projects, the office of energy resources shall give due
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consideration to the following factors:
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(1) The probability that a project will get built if it receives a grant from the municipal
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renewable energy fund;
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(2) The amount of renewable energy that the project will produce;
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(3) The potential of the project to mitigate municipal energy costs over the life of the
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project; and
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(4) The estimated cost per kilo-watt hour (kwh) of the energy produced from the project.
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Annually, beginning January 1, 2009, the municipal renewable energy fund shall solicit
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proposals from Rhode Island cities and towns for projects that may be eligible for support from
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the municipal renewable energy fund. The municipal renewable energy fund shall annually award
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grants of not more than five hundred thousand dollars ($500,000) to the most competitive and
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qualified municipal renewable energy projects based on the established scoring criteria. No city
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or town that receives funding from the municipal renewable energy fund shall be eligible for
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additional funding for a period of five (5) years.
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Between January 1, 2009, and January 1, 2013, at least the lesser of fifty percent (50%)
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or one million dollars ($1,000,000) of demand side management money collected to fund
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renewable energy projects shall be dedicated annually to the municipal renewable energy fund by
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the office of energy resources. Any monies not expended at the end of an annual grant cycle shall
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remain in the municipal renewable energy fund and be added to the available funds for the next
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annual grant cycle.
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For the purposes of this chapter "qualified municipal renewable energy project" means
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any renewable energy project that produces renewable energy resources and whose output of
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power and other attributes is owned in its entirety by at least one Rhode Island city or town.
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As used in this section, "renewable energy resources" shall mean: (1) power generation
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technologies as defined in section 39-26-5, "eligible renewable energy resources", including off-
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grid and on-grid generating technologies located in Rhode Island as a priority; (2) research and
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development activities in Rhode Island pertaining to eligible renewable energy resources and to
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other renewable energy technologies for electrical generation; or (3) projects and activities
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directly related to implementing eligible renewable energy resources projects in Rhode Island.
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Technologies for converting solar energy for space heating or generating domestic hot water may
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also be funded through the renewable energy programs, so long as these technologies are installed
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on housing projects that have been certified by the executive director of the Rhode Island housing
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and mortgage finance corporation as serving low-income Rhode Island residents. Fuel cells may
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be considered an energy efficiency technology to be included in demand sided management
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programs. Special rates for low-income customers in effect as of August 7, 1996 shall be
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continued, and the costs of all of these discounts shall be included in the distribution rates
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charged to all other customers. Nothing in this section shall be construed as prohibiting an electric
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distribution company from offering any special rates or programs for low-income customers
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which are not in effect as of August 7, 1996, subject to the approval by the commission.
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(c) The commissioner of the office of energy resources is authorized and may enter into
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a contract with a contractor for the cost effective administration of the renewable energy
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programs funded by this section. The director shall initiate the competitive bid process by the
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issuance and advertisement of specifications and request for proposals, on or before September 1,
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2002. The contract resulting from the competitive bid process shall be awarded to become
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effective for a three (3) year period commencing no later than January 1, 2003. A competitive bid
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and contract award for administration of the renewable energy programs may occur every three
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(3) years thereafter, and shall include as a condition that after July 1, 2007 the account for the
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renewable energy programs shall be maintained by the distribution company as provided for in
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subdivision (b) above and, with the approval of the commissioner of the office of energy
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resources and the trustees of the renewable energy fund, may be administered by the economic
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development corporation.
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(d) Effective January 1, 2007, and for a period of seven (7) years thereafter, each gas
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distribution company shall inc lude, with the approval of the commission, a charge of up to fifteen
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cents ($0.15) per deca therm delivered to demand side management programs, including, but not
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limited to, programs for cost-effective energy efficiency, energy conservation, combined heat and
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power systems, and weatherization services for low income households.
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(e) The gas company shall establish a separate account for demand side management
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