State Codes and Statutes

Statutes > Rhode-island > Title-39 > Chapter-39-26-1 > 39-26-1-7

SECTION 39-26.1-7

   § 39-26.1-7  Town of New Shoreham Project.– (a) On or before August 15, 2009, the electric distribution company shallsolicit proposals for one newly developed renewable energy resources project often (10) megawatts or less that includes a proposal to enhance the electricreliability and environmental quality of the Town of New Shoreham. The electricdistribution company shall select a project for negotiating a contract thatshall be conditioned upon approval by the commission. Negotiations shallproceed in good faith to achieve a commercially reasonable contract. Should thedistribution company and the selected party agree to a contract, the contractshall be filed with the commission no later than October 15, 2009 forcommission approval. The commission shall review the contract and issue anorder approving or disapproving the contract on or before January 31, 2010. Ifthe parties are unable to reach agreement on a contract prior to October 15,2009, an unsigned copy shall be filed by the electric distribution companyprior to that same date, and the commission shall have the discretion to orderthe parties to arbitrate the dispute on an expedited basis. Notwithstandinganything in this section to the contrary, and notwithstanding any solicitationmade pursuant to this section, the distribution company and the selected partymay agree to a contract for a project that includes up to (but not exceeding)eight (8) wind turbines with aggregate nameplate capacity of no more thanthirty (30) megawatts, subject to and conditioned upon the approval of thecommission, even if the actual capacity factor of the project results in theproject technically exceeding ten (10) megawatts. Upon approval of thecontract, the provisions of § 39-26.1-4 and the provisions of paragraphs(a), (b), (c), (d), and (f) of § 39-26.1-5 shall apply, and all costsincurred in the negotiation, administration, enforcement, and implementation ofthe agreement shall be recovered annually by the electric distribution companyin electric distribution rates. To the extent that there are benefits forcustomers of the Block Island Power Company or its successor, the commissionshall determine an allocation of cost responsibility between customers of theelectric distribution company and customers of Block Island Power Company orits successor after the cost estimates are filed with the commission, but thecommission need not determine the final cost allocation at the time thecommission considers and/or approves the contract between the electricdistribution company and the project developer. The allocation of costs shallassure that individual customers in the Town of New Shoreham pay higher chargesrelated to the project on their individual bills than any charges for the sameproject that may be included in individual bills of customers of the electricdistribution company. The commission shall provide for an appropriate ratedesign and billing method between the electric distribution company and BlockIsland Power Company at the appropriate time.

   (b) The solicitation shall require that each proposal includeprovisions for a transmission cable between the Town of New Shoreham and themainland of the state. The electric distribution company, at its option, maypropose to own, operate, or otherwise participate in such transmission cableproject, subject to commission approval. The electric distribution company,however, has the option to decline to own, operate, or otherwise participate inthe transmission cable project, even if the commission approves sucharrangements. Should the electric distribution company own, operate, andmaintain the cable, the annual costs incurred by the electric distributioncompany shall be recovered annually through a fully reconciling rate adjustmentfrom customers of the electric distribution company and/or from the BlockIsland Power Company or its successor, subject to any federal approvals thatmay be required by law; provided, however, the parties shall use all reasonableefforts to obtain socialization of the costs of the cable in New Englandtransmission rates administered by the ISO New England, to the extentpermitted. The allocation of the cable costs shall be determined by thecommission and assure that individual customers in the Town of New Shoreham payhigher charges related to the cable on their individual bills than any chargesfor the same project that may be included in individual bills of customers ofthe electric distribution company.

   (c) Any charges incurred by the Block Island Power Company orits successor pursuant to this section shall be recovered annually in ratesthrough a fully reconciling rate adjustment, subject to approval by thecommission. If the electric distribution company owns, operates, or otherwiseparticipates in the transmission cable project, pursuant to subsection39-26.1-7(b) the provisions of § 39-26.1-4 shall not apply to the cablecost portion of the Town of New Shoreham Project.

   (d) Any contract entered into pursuant to this section shallcount as part of the minimum long-term contract capacity.

State Codes and Statutes

Statutes > Rhode-island > Title-39 > Chapter-39-26-1 > 39-26-1-7

SECTION 39-26.1-7

   § 39-26.1-7  Town of New Shoreham Project.– (a) On or before August 15, 2009, the electric distribution company shallsolicit proposals for one newly developed renewable energy resources project often (10) megawatts or less that includes a proposal to enhance the electricreliability and environmental quality of the Town of New Shoreham. The electricdistribution company shall select a project for negotiating a contract thatshall be conditioned upon approval by the commission. Negotiations shallproceed in good faith to achieve a commercially reasonable contract. Should thedistribution company and the selected party agree to a contract, the contractshall be filed with the commission no later than October 15, 2009 forcommission approval. The commission shall review the contract and issue anorder approving or disapproving the contract on or before January 31, 2010. Ifthe parties are unable to reach agreement on a contract prior to October 15,2009, an unsigned copy shall be filed by the electric distribution companyprior to that same date, and the commission shall have the discretion to orderthe parties to arbitrate the dispute on an expedited basis. Notwithstandinganything in this section to the contrary, and notwithstanding any solicitationmade pursuant to this section, the distribution company and the selected partymay agree to a contract for a project that includes up to (but not exceeding)eight (8) wind turbines with aggregate nameplate capacity of no more thanthirty (30) megawatts, subject to and conditioned upon the approval of thecommission, even if the actual capacity factor of the project results in theproject technically exceeding ten (10) megawatts. Upon approval of thecontract, the provisions of § 39-26.1-4 and the provisions of paragraphs(a), (b), (c), (d), and (f) of § 39-26.1-5 shall apply, and all costsincurred in the negotiation, administration, enforcement, and implementation ofthe agreement shall be recovered annually by the electric distribution companyin electric distribution rates. To the extent that there are benefits forcustomers of the Block Island Power Company or its successor, the commissionshall determine an allocation of cost responsibility between customers of theelectric distribution company and customers of Block Island Power Company orits successor after the cost estimates are filed with the commission, but thecommission need not determine the final cost allocation at the time thecommission considers and/or approves the contract between the electricdistribution company and the project developer. The allocation of costs shallassure that individual customers in the Town of New Shoreham pay higher chargesrelated to the project on their individual bills than any charges for the sameproject that may be included in individual bills of customers of the electricdistribution company. The commission shall provide for an appropriate ratedesign and billing method between the electric distribution company and BlockIsland Power Company at the appropriate time.

   (b) The solicitation shall require that each proposal includeprovisions for a transmission cable between the Town of New Shoreham and themainland of the state. The electric distribution company, at its option, maypropose to own, operate, or otherwise participate in such transmission cableproject, subject to commission approval. The electric distribution company,however, has the option to decline to own, operate, or otherwise participate inthe transmission cable project, even if the commission approves sucharrangements. Should the electric distribution company own, operate, andmaintain the cable, the annual costs incurred by the electric distributioncompany shall be recovered annually through a fully reconciling rate adjustmentfrom customers of the electric distribution company and/or from the BlockIsland Power Company or its successor, subject to any federal approvals thatmay be required by law; provided, however, the parties shall use all reasonableefforts to obtain socialization of the costs of the cable in New Englandtransmission rates administered by the ISO New England, to the extentpermitted. The allocation of the cable costs shall be determined by thecommission and assure that individual customers in the Town of New Shoreham payhigher charges related to the cable on their individual bills than any chargesfor the same project that may be included in individual bills of customers ofthe electric distribution company.

   (c) Any charges incurred by the Block Island Power Company orits successor pursuant to this section shall be recovered annually in ratesthrough a fully reconciling rate adjustment, subject to approval by thecommission. If the electric distribution company owns, operates, or otherwiseparticipates in the transmission cable project, pursuant to subsection39-26.1-7(b) the provisions of § 39-26.1-4 shall not apply to the cablecost portion of the Town of New Shoreham Project.

   (d) Any contract entered into pursuant to this section shallcount as part of the minimum long-term contract capacity.


State Codes and Statutes

State Codes and Statutes

Statutes > Rhode-island > Title-39 > Chapter-39-26-1 > 39-26-1-7

SECTION 39-26.1-7

   § 39-26.1-7  Town of New Shoreham Project.– (a) On or before August 15, 2009, the electric distribution company shallsolicit proposals for one newly developed renewable energy resources project often (10) megawatts or less that includes a proposal to enhance the electricreliability and environmental quality of the Town of New Shoreham. The electricdistribution company shall select a project for negotiating a contract thatshall be conditioned upon approval by the commission. Negotiations shallproceed in good faith to achieve a commercially reasonable contract. Should thedistribution company and the selected party agree to a contract, the contractshall be filed with the commission no later than October 15, 2009 forcommission approval. The commission shall review the contract and issue anorder approving or disapproving the contract on or before January 31, 2010. Ifthe parties are unable to reach agreement on a contract prior to October 15,2009, an unsigned copy shall be filed by the electric distribution companyprior to that same date, and the commission shall have the discretion to orderthe parties to arbitrate the dispute on an expedited basis. Notwithstandinganything in this section to the contrary, and notwithstanding any solicitationmade pursuant to this section, the distribution company and the selected partymay agree to a contract for a project that includes up to (but not exceeding)eight (8) wind turbines with aggregate nameplate capacity of no more thanthirty (30) megawatts, subject to and conditioned upon the approval of thecommission, even if the actual capacity factor of the project results in theproject technically exceeding ten (10) megawatts. Upon approval of thecontract, the provisions of § 39-26.1-4 and the provisions of paragraphs(a), (b), (c), (d), and (f) of § 39-26.1-5 shall apply, and all costsincurred in the negotiation, administration, enforcement, and implementation ofthe agreement shall be recovered annually by the electric distribution companyin electric distribution rates. To the extent that there are benefits forcustomers of the Block Island Power Company or its successor, the commissionshall determine an allocation of cost responsibility between customers of theelectric distribution company and customers of Block Island Power Company orits successor after the cost estimates are filed with the commission, but thecommission need not determine the final cost allocation at the time thecommission considers and/or approves the contract between the electricdistribution company and the project developer. The allocation of costs shallassure that individual customers in the Town of New Shoreham pay higher chargesrelated to the project on their individual bills than any charges for the sameproject that may be included in individual bills of customers of the electricdistribution company. The commission shall provide for an appropriate ratedesign and billing method between the electric distribution company and BlockIsland Power Company at the appropriate time.

   (b) The solicitation shall require that each proposal includeprovisions for a transmission cable between the Town of New Shoreham and themainland of the state. The electric distribution company, at its option, maypropose to own, operate, or otherwise participate in such transmission cableproject, subject to commission approval. The electric distribution company,however, has the option to decline to own, operate, or otherwise participate inthe transmission cable project, even if the commission approves sucharrangements. Should the electric distribution company own, operate, andmaintain the cable, the annual costs incurred by the electric distributioncompany shall be recovered annually through a fully reconciling rate adjustmentfrom customers of the electric distribution company and/or from the BlockIsland Power Company or its successor, subject to any federal approvals thatmay be required by law; provided, however, the parties shall use all reasonableefforts to obtain socialization of the costs of the cable in New Englandtransmission rates administered by the ISO New England, to the extentpermitted. The allocation of the cable costs shall be determined by thecommission and assure that individual customers in the Town of New Shoreham payhigher charges related to the cable on their individual bills than any chargesfor the same project that may be included in individual bills of customers ofthe electric distribution company.

   (c) Any charges incurred by the Block Island Power Company orits successor pursuant to this section shall be recovered annually in ratesthrough a fully reconciling rate adjustment, subject to approval by thecommission. If the electric distribution company owns, operates, or otherwiseparticipates in the transmission cable project, pursuant to subsection39-26.1-7(b) the provisions of § 39-26.1-4 shall not apply to the cablecost portion of the Town of New Shoreham Project.

   (d) Any contract entered into pursuant to this section shallcount as part of the minimum long-term contract capacity.