§ 39-26.1-8 Utility-scale offshore windproject – Separate proceedings. – (a) Upon certification by the department of administration identifying thedeveloper selected by the state to develop a utility-scale offshore wind farm,such developer may file an application under this section within one hundredeighty (180) days of such certification by the department. For the purposes ofthis section, "utility-scale offshore wind farm" shall mean a wind powerproject located offshore in the waters of Rhode Island or adjacent federalwaters of at least one hundred (100) megawatts but not more than one hundredfifty (150) megawatts. The purpose of the application shall be for theapplicant to request that the commission require a long term contract with theelectric distribution company. Should the commission approve a contractpursuant to this § 39-26.1-8, it shall not be counted towards the minimumlong-term contract capacity specified in § 39-26.1-2(7).
(b) The commission shall hold proceedings to review theproposal contained in the application. In reviewing the application, thecommission shall determine whether the proposal is in the best interests ofelectric distribution customers in Rhode Island. In making this determination,the commission shall consider the following factors: (i) The economic impactand potential risks, if any, of the proposal on rates to be charged by theelectric distribution company; (ii) The potential benefits of stabilizinglong-term energy prices; (iii) Any other factor the commission determinesnecessary to be in the best interest of the rate payers.
(c) The application will contain the following information:
(i) A complete description of the proposed project,
(ii) A description of the legal entity that will enter into along term contract,
(iii) A time line for permitting, licensing, and construction,
(iv) Pricing projected under the long term contract beingsought, including prices for all market products that would be sold under theproposed long term contract, subject to any contract negotiations between theapplicant and the electric distribution company,
(v) Projected electrical energy production profiles,
(vi) The proposed term for the long term contract,
(vii) Economic justification for the proposal, includingprojection of market prices,
(viii) A description of the economic benefits to RhodeIsland, including the creation of jobs in Rhode Island,
(ix) All filings with state and federal regulatory agenciesrelated to the proposal,
(x) All interconnection filings related to the proposal,
(xi) A proposed initial term sheet for a long-term contractbetween the applicant and the electric distribution company.
The information submitted in the application shall be subjectto modification as a result of any negotiation of a contract ordered by thecommission.
(d) The commission shall promulgate rules and regulationsgoverning the proceedings outlined in this section by April 30, 2010.
(e) The applicant must serve copies of the application to theelectric distribution company with whom the applicant is seeking a long termcontract, the division of public utilities and carriers, the office of energyresources, the department of administration, the economic developmentcorporation and the attorney general. Prior to the filing of any information,the applicant may seek a protective order to protect the confidentiality ofinformation for good cause shown, to the extent that such information isproprietary or confidential business information, but unredacted copies of theentire filing must be provided to the parties identified in this paragraph, whoshall be bound by any protective order that may be issued regarding furtherdisclosure.
(f) The electric distribution company, the division of publicutilities and carriers and the office of energy resources shall be mandatoryparties to the proceeding. The applicant must pay for the reasonable costs ofconsultants or counsel that may be hired by the commission and the division forthe proceeding, but in no case shall the applicant be liable for the costs inexcess of $100,000 for the division and $100,000 for the commission,respectively.
(g) The commission shall issue a final order in theproceedings required by § 39-26.1-8(b) within eight (8) months of thefiling of the application. If the commission determines that the proposal meetsthe standard outlined in § 39-26.1-8(b), the commission shall require theelectric distribution company to negotiate a long-term contract with theapplicant. The applicant, however, may decline to continue with the project forany reason at any time during the process outlined in this section. Thecommission may require changes to the applicant's proposal as a condition to along-term contract, as the commission determines are just and reasonable. Thecontract shall contain terms that are commercially reasonable. The contractalso shall require that the electric distribution company purchase all of theoutput of the entire project, unless otherwise authorized by the commission.The parties shall present a proposed contract for review by the commissionwithin three (3) months of the order requiring negotiations. If the parties areunable to reach agreement on a contract within three (3) months of the orderrequiring negotiations the commission shall have the discretion to order theparties to arbitrate the dispute on an expedited basis. Once the contract termsare finalized by negotiation or arbitration, the contract shall be filed withthe commission for review and approval. The commission shall approve thecontract upon a finding that the contract is consistent with the purposes ofthis chapter and the standards set forth in § 39-26.1-1.8(b). Thecommission shall issue its final decision on the proposed contract within sixty(60) days of receiving the proposed contract. Upon execution of the contract,the provisions of §§ 39-26.1-4 and 39-26.1-5 shall apply, and allcosts incurred in the negotiation, administration, enforcement, andimplementation of the agreement shall be recovered annually by the electricdistribution company in electric distribution rates. To the extent theapplication cites significant economic benefits to Rhode Island that requirecommitments from the applicant outside of the long term contract to achievesuch benefits, and those economic benefits are ultimately relied upon by thecommission in authorizing a long term contract to be negotiated, the commissionmay require that appropriate legally binding commitments be made by theapplicant as a condition to a long term contract, unless the commission findsthat such commitments are not necessary.
(h) Notwithstanding any other provision of this section, theapplication process does not convey a legal entitlement to the applicant to along term contract. Rather, the purpose of the proceeding is to leave the finaldecision as to whether a long term contract should be required to thediscretion of the commission, subject to the standards outlined in this sectionand the purposes of this chapter.
(i) An applicant under this section shall not be permitted tosubmit a proposal under the solicitations required in § 39-26.1-3, exceptthat such applicant shall be permitted to submit a proposal under §39-26.1-7.
(j) Should a proceeding pursuant to this section result inthe commission not ordering the distribution company to enter into a long-termcontract for a utility-scale offshore wind project, or should the certifieddeveloper fail to file an application with the commission within one hundredeighty (180) days of certification, the certification shall be deemed void. Insuch case, if the commission determines it is in the interest of electricdistribution customers to have another utility-scale project considered for along term contract, the commission has the discretion to request the departmentof administration to certify a different developer to make another proposal fora utility-scale offshore wind project per this section, provided that thecommission makes such request within ninety (90) days of the certificationbecoming void. If the commission makes such request, the department ofadministration may, but is not required to, certify another project and shallhave ninety days to submit another certification. If such certification is notmade within the time allowed, no further action shall be taken by thecommission pursuant to this section. Under no circumstances is a distributioncompany required to enter into more than one contract under this §39-26.1-8.
(k) Approval of a contract under this section shall not beinterpreted to prevent, hinder or diminish the ability of any offshore windproject or developer to pursue, finance, seek the development of, or securepermits or electrical interconnection for offshore wind projects in or adjacentto the state, or whose output may be utilized in the state.
§ 39-26.1-8 Utility-scale offshore windproject – Separate proceedings. – (a) Upon certification by the department of administration identifying thedeveloper selected by the state to develop a utility-scale offshore wind farm,such developer may file an application under this section within one hundredeighty (180) days of such certification by the department. For the purposes ofthis section, "utility-scale offshore wind farm" shall mean a wind powerproject located offshore in the waters of Rhode Island or adjacent federalwaters of at least one hundred (100) megawatts but not more than one hundredfifty (150) megawatts. The purpose of the application shall be for theapplicant to request that the commission require a long term contract with theelectric distribution company. Should the commission approve a contractpursuant to this § 39-26.1-8, it shall not be counted towards the minimumlong-term contract capacity specified in § 39-26.1-2(7).
(b) The commission shall hold proceedings to review theproposal contained in the application. In reviewing the application, thecommission shall determine whether the proposal is in the best interests ofelectric distribution customers in Rhode Island. In making this determination,the commission shall consider the following factors: (i) The economic impactand potential risks, if any, of the proposal on rates to be charged by theelectric distribution company; (ii) The potential benefits of stabilizinglong-term energy prices; (iii) Any other factor the commission determinesnecessary to be in the best interest of the rate payers.
(c) The application will contain the following information:
(i) A complete description of the proposed project,
(ii) A description of the legal entity that will enter into along term contract,
(iii) A time line for permitting, licensing, and construction,
(iv) Pricing projected under the long term contract beingsought, including prices for all market products that would be sold under theproposed long term contract, subject to any contract negotiations between theapplicant and the electric distribution company,
(v) Projected electrical energy production profiles,
(vi) The proposed term for the long term contract,
(vii) Economic justification for the proposal, includingprojection of market prices,
(viii) A description of the economic benefits to RhodeIsland, including the creation of jobs in Rhode Island,
(ix) All filings with state and federal regulatory agenciesrelated to the proposal,
(x) All interconnection filings related to the proposal,
(xi) A proposed initial term sheet for a long-term contractbetween the applicant and the electric distribution company.
The information submitted in the application shall be subjectto modification as a result of any negotiation of a contract ordered by thecommission.
(d) The commission shall promulgate rules and regulationsgoverning the proceedings outlined in this section by April 30, 2010.
(e) The applicant must serve copies of the application to theelectric distribution company with whom the applicant is seeking a long termcontract, the division of public utilities and carriers, the office of energyresources, the department of administration, the economic developmentcorporation and the attorney general. Prior to the filing of any information,the applicant may seek a protective order to protect the confidentiality ofinformation for good cause shown, to the extent that such information isproprietary or confidential business information, but unredacted copies of theentire filing must be provided to the parties identified in this paragraph, whoshall be bound by any protective order that may be issued regarding furtherdisclosure.
(f) The electric distribution company, the division of publicutilities and carriers and the office of energy resources shall be mandatoryparties to the proceeding. The applicant must pay for the reasonable costs ofconsultants or counsel that may be hired by the commission and the division forthe proceeding, but in no case shall the applicant be liable for the costs inexcess of $100,000 for the division and $100,000 for the commission,respectively.
(g) The commission shall issue a final order in theproceedings required by § 39-26.1-8(b) within eight (8) months of thefiling of the application. If the commission determines that the proposal meetsthe standard outlined in § 39-26.1-8(b), the commission shall require theelectric distribution company to negotiate a long-term contract with theapplicant. The applicant, however, may decline to continue with the project forany reason at any time during the process outlined in this section. Thecommission may require changes to the applicant's proposal as a condition to along-term contract, as the commission determines are just and reasonable. Thecontract shall contain terms that are commercially reasonable. The contractalso shall require that the electric distribution company purchase all of theoutput of the entire project, unless otherwise authorized by the commission.The parties shall present a proposed contract for review by the commissionwithin three (3) months of the order requiring negotiations. If the parties areunable to reach agreement on a contract within three (3) months of the orderrequiring negotiations the commission shall have the discretion to order theparties to arbitrate the dispute on an expedited basis. Once the contract termsare finalized by negotiation or arbitration, the contract shall be filed withthe commission for review and approval. The commission shall approve thecontract upon a finding that the contract is consistent with the purposes ofthis chapter and the standards set forth in § 39-26.1-1.8(b). Thecommission shall issue its final decision on the proposed contract within sixty(60) days of receiving the proposed contract. Upon execution of the contract,the provisions of §§ 39-26.1-4 and 39-26.1-5 shall apply, and allcosts incurred in the negotiation, administration, enforcement, andimplementation of the agreement shall be recovered annually by the electricdistribution company in electric distribution rates. To the extent theapplication cites significant economic benefits to Rhode Island that requirecommitments from the applicant outside of the long term contract to achievesuch benefits, and those economic benefits are ultimately relied upon by thecommission in authorizing a long term contract to be negotiated, the commissionmay require that appropriate legally binding commitments be made by theapplicant as a condition to a long term contract, unless the commission findsthat such commitments are not necessary.
(h) Notwithstanding any other provision of this section, theapplication process does not convey a legal entitlement to the applicant to along term contract. Rather, the purpose of the proceeding is to leave the finaldecision as to whether a long term contract should be required to thediscretion of the commission, subject to the standards outlined in this sectionand the purposes of this chapter.
(i) An applicant under this section shall not be permitted tosubmit a proposal under the solicitations required in § 39-26.1-3, exceptthat such applicant shall be permitted to submit a proposal under §39-26.1-7.
(j) Should a proceeding pursuant to this section result inthe commission not ordering the distribution company to enter into a long-termcontract for a utility-scale offshore wind project, or should the certifieddeveloper fail to file an application with the commission within one hundredeighty (180) days of certification, the certification shall be deemed void. Insuch case, if the commission determines it is in the interest of electricdistribution customers to have another utility-scale project considered for along term contract, the commission has the discretion to request the departmentof administration to certify a different developer to make another proposal fora utility-scale offshore wind project per this section, provided that thecommission makes such request within ninety (90) days of the certificationbecoming void. If the commission makes such request, the department ofadministration may, but is not required to, certify another project and shallhave ninety days to submit another certification. If such certification is notmade within the time allowed, no further action shall be taken by thecommission pursuant to this section. Under no circumstances is a distributioncompany required to enter into more than one contract under this §39-26.1-8.
(k) Approval of a contract under this section shall not beinterpreted to prevent, hinder or diminish the ability of any offshore windproject or developer to pursue, finance, seek the development of, or securepermits or electrical interconnection for offshore wind projects in or adjacentto the state, or whose output may be utilized in the state.
§ 39-26.1-8 Utility-scale offshore windproject – Separate proceedings. – (a) Upon certification by the department of administration identifying thedeveloper selected by the state to develop a utility-scale offshore wind farm,such developer may file an application under this section within one hundredeighty (180) days of such certification by the department. For the purposes ofthis section, "utility-scale offshore wind farm" shall mean a wind powerproject located offshore in the waters of Rhode Island or adjacent federalwaters of at least one hundred (100) megawatts but not more than one hundredfifty (150) megawatts. The purpose of the application shall be for theapplicant to request that the commission require a long term contract with theelectric distribution company. Should the commission approve a contractpursuant to this § 39-26.1-8, it shall not be counted towards the minimumlong-term contract capacity specified in § 39-26.1-2(7).
(b) The commission shall hold proceedings to review theproposal contained in the application. In reviewing the application, thecommission shall determine whether the proposal is in the best interests ofelectric distribution customers in Rhode Island. In making this determination,the commission shall consider the following factors: (i) The economic impactand potential risks, if any, of the proposal on rates to be charged by theelectric distribution company; (ii) The potential benefits of stabilizinglong-term energy prices; (iii) Any other factor the commission determinesnecessary to be in the best interest of the rate payers.
(c) The application will contain the following information:
(i) A complete description of the proposed project,
(ii) A description of the legal entity that will enter into along term contract,
(iii) A time line for permitting, licensing, and construction,
(iv) Pricing projected under the long term contract beingsought, including prices for all market products that would be sold under theproposed long term contract, subject to any contract negotiations between theapplicant and the electric distribution company,
(v) Projected electrical energy production profiles,
(vi) The proposed term for the long term contract,
(vii) Economic justification for the proposal, includingprojection of market prices,
(viii) A description of the economic benefits to RhodeIsland, including the creation of jobs in Rhode Island,
(ix) All filings with state and federal regulatory agenciesrelated to the proposal,
(x) All interconnection filings related to the proposal,
(xi) A proposed initial term sheet for a long-term contractbetween the applicant and the electric distribution company.
The information submitted in the application shall be subjectto modification as a result of any negotiation of a contract ordered by thecommission.
(d) The commission shall promulgate rules and regulationsgoverning the proceedings outlined in this section by April 30, 2010.
(e) The applicant must serve copies of the application to theelectric distribution company with whom the applicant is seeking a long termcontract, the division of public utilities and carriers, the office of energyresources, the department of administration, the economic developmentcorporation and the attorney general. Prior to the filing of any information,the applicant may seek a protective order to protect the confidentiality ofinformation for good cause shown, to the extent that such information isproprietary or confidential business information, but unredacted copies of theentire filing must be provided to the parties identified in this paragraph, whoshall be bound by any protective order that may be issued regarding furtherdisclosure.
(f) The electric distribution company, the division of publicutilities and carriers and the office of energy resources shall be mandatoryparties to the proceeding. The applicant must pay for the reasonable costs ofconsultants or counsel that may be hired by the commission and the division forthe proceeding, but in no case shall the applicant be liable for the costs inexcess of $100,000 for the division and $100,000 for the commission,respectively.
(g) The commission shall issue a final order in theproceedings required by § 39-26.1-8(b) within eight (8) months of thefiling of the application. If the commission determines that the proposal meetsthe standard outlined in § 39-26.1-8(b), the commission shall require theelectric distribution company to negotiate a long-term contract with theapplicant. The applicant, however, may decline to continue with the project forany reason at any time during the process outlined in this section. Thecommission may require changes to the applicant's proposal as a condition to along-term contract, as the commission determines are just and reasonable. Thecontract shall contain terms that are commercially reasonable. The contractalso shall require that the electric distribution company purchase all of theoutput of the entire project, unless otherwise authorized by the commission.The parties shall present a proposed contract for review by the commissionwithin three (3) months of the order requiring negotiations. If the parties areunable to reach agreement on a contract within three (3) months of the orderrequiring negotiations the commission shall have the discretion to order theparties to arbitrate the dispute on an expedited basis. Once the contract termsare finalized by negotiation or arbitration, the contract shall be filed withthe commission for review and approval. The commission shall approve thecontract upon a finding that the contract is consistent with the purposes ofthis chapter and the standards set forth in § 39-26.1-1.8(b). Thecommission shall issue its final decision on the proposed contract within sixty(60) days of receiving the proposed contract. Upon execution of the contract,the provisions of §§ 39-26.1-4 and 39-26.1-5 shall apply, and allcosts incurred in the negotiation, administration, enforcement, andimplementation of the agreement shall be recovered annually by the electricdistribution company in electric distribution rates. To the extent theapplication cites significant economic benefits to Rhode Island that requirecommitments from the applicant outside of the long term contract to achievesuch benefits, and those economic benefits are ultimately relied upon by thecommission in authorizing a long term contract to be negotiated, the commissionmay require that appropriate legally binding commitments be made by theapplicant as a condition to a long term contract, unless the commission findsthat such commitments are not necessary.
(h) Notwithstanding any other provision of this section, theapplication process does not convey a legal entitlement to the applicant to along term contract. Rather, the purpose of the proceeding is to leave the finaldecision as to whether a long term contract should be required to thediscretion of the commission, subject to the standards outlined in this sectionand the purposes of this chapter.
(i) An applicant under this section shall not be permitted tosubmit a proposal under the solicitations required in § 39-26.1-3, exceptthat such applicant shall be permitted to submit a proposal under §39-26.1-7.
(j) Should a proceeding pursuant to this section result inthe commission not ordering the distribution company to enter into a long-termcontract for a utility-scale offshore wind project, or should the certifieddeveloper fail to file an application with the commission within one hundredeighty (180) days of certification, the certification shall be deemed void. Insuch case, if the commission determines it is in the interest of electricdistribution customers to have another utility-scale project considered for along term contract, the commission has the discretion to request the departmentof administration to certify a different developer to make another proposal fora utility-scale offshore wind project per this section, provided that thecommission makes such request within ninety (90) days of the certificationbecoming void. If the commission makes such request, the department ofadministration may, but is not required to, certify another project and shallhave ninety days to submit another certification. If such certification is notmade within the time allowed, no further action shall be taken by thecommission pursuant to this section. Under no circumstances is a distributioncompany required to enter into more than one contract under this §39-26.1-8.
(k) Approval of a contract under this section shall not beinterpreted to prevent, hinder or diminish the ability of any offshore windproject or developer to pursue, finance, seek the development of, or securepermits or electrical interconnection for offshore wind projects in or adjacentto the state, or whose output may be utilized in the state.
