§ 39-2-1.2 - Utility base rate – Advertising, demand side management and renewables.
SECTION 39-2-1.2
§ 39-2-1.2 Utility base rate –Advertising, demand side management and renewables. – (a) In addition to costs prohibited in § 39-1-27.4(b), no public utilitydistributing or providing heat, electricity, or water to or for the publicshall include as part of its base rate any expenses for advertising, eitherdirect or indirect, which promotes the use of its product or service, or isdesigned to promote the public image of the industry. No public utility mayfurnish support of any kind, direct, or indirect, to any subsidiary, group,association, or individual for advertising and include the expense as part ofits base rate. Nothing contained in this section shall be deemed as prohibitingthe inclusion in the base rate of expenses incurred for advertising,informational or educational in nature, which is designed to promote publicsafety conservation of the public utility's product or service. The publicutilities commission shall promulgate such rules and regulations as arenecessary to require public disclosure of all advertising expenses of any kind,direct or indirect, and to otherwise effectuate the provisions of this section.
(b) Effective as of January 1, 2003, and for a period of ten(10) years thereafter, each electric distribution company shall include chargesof 2.0 mills per kilowatt-hour delivered to fund demand side managementprograms and 0.3 mills per kilowatt-hour delivered to fund renewable energyprograms. Existing charges for these purposes and their method ofadministration shall continue through December 31, 2002. Thereafter, theelectric distribution company shall establish and after July 1, 2007, maintaintwo (2) separate accounts, one for demand side management programs, which shallbe administered and implemented by the distribution company, subject to theregulatory reviewing authority of the commission, and one for renewable energyprograms, which shall be administered by the economic development corporationpursuant to § 42-64-13.2 and, shall be held and disbursed by thedistribution company as directed by the economic development corporation forthe purposes of developing, promoting and supporting renewable energy programs.
During the ten (10) year period the commission may, in itsdiscretion, after notice and public hearing, increase the sums for demand sidemanagement and renewable resources; thereafter, the commission shall, afternotice and public hearing, determine the appropriate charge for these programs.The office of energy resources and/or the administrator of the renewable energyprograms may seek to secure for the state an equitable and reasonable portionof renewable energy credits or certificates created by private projects fundedthrough those programs. As used in this section, "renewable energy resources"shall mean: (1) power generation technologies as defined in § 39-26-5,"eligible renewable energy resources", including off-grid and on-gridgenerating technologies located in Rhode Island as a priority; (2) research anddevelopment activities in Rhode Island pertaining to eligible renewable energyresources and to other renewable energy technologies for electrical generation;or (3) projects and activities directly related to implementing eligiblerenewable energy resources projects in Rhode Island. Technologies forconverting solar energy for space heating or generating domestic hot water mayalso be funded through the renewable energy programs, so long as thesetechnologies are installed on housing projects that have been certified by theexecutive director of the Rhode Island housing and mortgage finance corporationas serving low-income Rhode Island residents. Fuel cells may be considered anenergy efficiency technology to be included in demand sided managementprograms. Special rates for low-income customers in effect as of August 7, 1996shall be continued, and the costs of all of these discounts shall be includedin the distribution rates charged to all other customers. Nothing in thissection shall be construed as prohibiting an electric distribution company fromoffering any special rates or programs for low-income customers which are notin effect as of August 7, 1996, subject to the approval by the commission.
(c) On or before November 15, 2008, the economic developmentcorporation shall create the municipal renewable energy investment programutilizing the lesser of fifty percent (50%) or one million dollars ($1,000,000)collected annually from the .3 mils per kilo-watt hour charge for renewableenergy programs, to fund qualified municipal renewable energy projects inaccordance with this chapter and the following provisions:
(1) The municipal renewable energy investment programs shallbe administered pursuant to rules established by the economic developmentcorporation. Said rules shall provide transparent criteria to rank qualifiedmunicipal renewable energy projects, giving consideration to:
(i) the feasibility of project completion;
(ii) the anticipated amount of renewable energy the projectwill produce;
(iii) the potential of the project to mitigate energy costsover the life of the project; and
(iv) the estimated cost per kilo-watt hour (kwh) of theenergy produced from the project. Municipalities that have not previouslyreceived financing from this program shall be given priority over thosemunicipalities that have received funding under this program.
(2) Beginning on January 1, 2009, the economic developmentcorporation shall solicit proposals from municipalities for eligible projectsand shall award grants, in accordance with the rules and ranking criteria, ofno more than five hundred thousand dollars ($500,000) to each eligible project.
(3) Any funds not expended from the municipal renewableenergy investment programs in a given year shall remain in the fund and beadded to the balance to be distributed in the next award cycle. For thepurposes of this section, qualified municipal renewable energy projects meansany project that produces renewable energy resources and whose output of powerand other attributes is controlled in its entirety by at least one Rhode Islandcity or town.
(d) On or before November 15, 2008, the economic developmentcorporation shall create the nonprofit affordable housing renewable energyinvestment program utilizing the lesser of ten percent (10%) or two hundredthousand dollars ($200,000) collected annually from the.3 mils per kilo-watthour charge for renewable energy programs to fund qualified nonprofitaffordable housing renewable energy projects in accordance with this chapterand the following provisions:
(1) The nonprofit affordable housing renewable energyinvestment programs shall be administered pursuant to rules established by theeconomic development corporation in consultation with the Rhode Island housingmortgage finance corporation. Said rules shall provide transparent criteria torank qualified nonprofit affordable housing renewable energy projects, givingconsideration to:
(i) the feasibility of project completion;
(ii) the anticipated amount of renewable energy the projectwill produce;
(iii) the potential of the project to mitigate energy costsover the life of the project; and
(iv) the estimated cost per kilo-watt hour (kwh) of theenergy produced from the project. Nonprofit affordable housing agencies thathave not previously received financing from this program shall be givenpriority over those agencies that have received funding under this program.
(2) Beginning on January 1, 2009, the economic developmentcorporation, in consultation with the Rhode Island housing and mortgage financecorporation, shall solicit proposals from eligible nonprofit housing agenciesfor renewable energy projects and shall award grants, in accordance with therules and ranking criteria. The economic development corporation shall consultwith the Rhode Island housing and mortgage finance corporation in thegrant-making process and shall notify the corporation of the awardees.
(3) Any funds not expended from the affordable housingrenewable energy investment program in a given year shall remain in the fundand be added to the balance to be distributed in the next award cycle. For thepurposes of this section, "qualified nonprofit affordable housing renewableenergy projects" means any project that produces renewable energy resources andwhose output of power and other attributes is controlled in its entirety by atleast one nonprofit affordable housing development as defined in § 42-55-3and is restricted to producing energy for the nonprofit affordable housingdevelopment.
(e) The executive director of the economic developmentcorporation is authorized and may enter into a contract with a contractor forthe cost effective administration of the renewable energy programs funded bythis section. A competitive bid and contract award for administration of therenewable energy programs may occur every three (3) years and shall include asa condition that after July 1, 2008 the account for the renewable energyprograms shall be maintained and administered by the economic developmentcorporation as provided for in subdivision (b) above.
(f) Effective January 1, 2007, and for a period of seven (7)years thereafter, each gas distribution company shall include, with theapproval of the commission, a charge of up to fifteen cents ($0.15) per decatherm delivered to demand side management programs, including, but not limitedto, programs for cost-effective energy efficiency, energy conservation,combined heat and power systems, and weatherization services for low incomehouseholds.
(g) The gas company shall establish a separate account fordemand side management programs, which shall be administered and implemented bythe distribution company, subject to the regulatory reviewing authority of thecommission. The commission may establish administrative mechanisms andprocedures that are similar to those for electric demand side managementprograms administered under the jurisdiction of the commissions and that aredesigned to achieve cost-effectiveness and high life-time savings of efficiencymeasures supported by the program.
(h) The commission may, if reasonable and feasible, exceptfrom this demand side management change:
(i) gas used for distribution generation; and
(ii) gas used for the manufacturing processes, where thecustomer has established a self-directed program to invest in and achieve besteffective energy efficiency in accordance with a plan approved by thecommission and subject to periodic review and approval by the commission, whichplan shall require annual reporting of the amount invested and the return oninvestments in terms of gas savings.
(i) The commission may provide for the coordinated and/orintegrated administration of electric and gas demand side management programsin order to enhance the effectiveness of the programs. Such coordinated and/orintegrated administration may after March 1, 2009, upon the recommendation ofthe office of energy resources, be through one or more third-party entitiesdesignated by the commission pursuant to a competitive selection process.
(j) Effective January 1, 2007, the commission shall allocatefrom demand-side management gas and electric funds authorized pursuant to this§ 39-2-1.2, an amount not to exceed two percent (2%) of such funds on anannual basis for the retention of expert consultants, and reasonableadministrations costs of the energy efficiency and resources management councilassociated with planning, management, and evaluation of energy efficiencyprograms, renewable energy programs and least-cost procurement, and withregulatory proceedings, contested cases, and other actions pertaining to thepurposes, powers and duties of the council, which allocation may by mutualagreement, be used in coordination with the office of energy resources tosupport such activities.