Rhode Island HB 5640: AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS - PUBLIC UTILITIES COMMISSION (Places an energy efficiency charge cap on the 2018 state energy efficiency program plan and require the office of energy resources to conduct a study to verify the energy savings measures from the state energy efficiency programs.)

Bill Text

2017 -- H 5640 SUBSTITUTE A
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LC001810/SUB A
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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. 2017
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A N A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS - PUBLIC UTILITIES COMMISSION
Introduced By: Representatives Corvese, McNamara, and Azzinaro
Date Introduced: March 01, 2017
Referred To: House Corporations

It is enacted by the General Assembly as follows:
SECTION 1. Section 39-1-27.7 of the General Laws in Chapter 39-1 entitled "Public 1
Utilities Commission" is hereby amended to read as follows: 2
39-1-27.7. System reliability and least-cost procurement. 3
Least-cost procurement shall comprise system reliability and energy efficiency and 4
conservation procurement as provided for in this section and supply procurement as provided for 5
in § 39-1-27.8, as complementary but distinct activities that have as common purpose meeting 6
electrical and natural gas energy needs in Rhode Island, in a manner that is optimally cost-7
effective, reliable, prudent and environmentally responsible. 8
(a) The commission shall establish not later than June 1, 2008, standards for system 9
reliability and energy efficiency and conservation procurement, which shall include standards and 10
guidelines for: 11
(1) System reliability procurement, including but not limited to: 12
(i) Procurement of energy supply from diverse sources, including, but not limited to, 13
renewable energy resources as defined in chapter 26 of this title; 14
(ii) Distributed generation, including, but not limited to, renewable energy resources and 15
thermally leading combined heat and power systems, which is reliable and is cost-effective, with 16
measurable, net system benefits; 17
(iii) Demand response, including, but not limited to, distributed generation, back-up 18
generation and on-demand usage reduction, which shall be designed to facilitate electric customer 19

LC001810/SUB A - Page 2 of 7
participation in regional demand response programs, including those administered by the 1
independent service operator of New England ("ISO-NE") and/or are designed to provide local 2
system reliability benefits through load control or using on-site generating capability; 3
(iv) To effectuate the purposes of this division, the commission may establish standards 4
and/or rates: 5
(A) For qualifying distributed generation, demand response, and renewable energy 6
resources; 7
(B) For net-metering; 8
(C) For back-up power and/or standby rates that reasonably facilitate the development of 9
distributed generation; and 10
(D) For such other matters as the commission may find necessary or appropriate. 11
(2) Least-cost procurement, which shall include procurement of energy efficiency and 12
energy conservation measures that are prudent, and reliable, and when such measures are lower 13
cost than acquisition of additional supply, including supply for periods of high demand. 14
(b) The standards and guidelines provided for by subsection (a) shall be subject to 15
periodic review and as appropriate amendment by the commission, which review will be 16
conducted not less frequently than every three (3) years after the adoption of the standards and 17
guidelines. 18
(c) To implement the provisions of this section: 19
(1) The commissioner of the office of energy resources and the energy efficiency and 20
resources management council, either or jointly or separately, shall provide the commission 21
findings and recommendations with regard to system reliability and energy efficiency and 22
conservation procurement on or before March 1, 2008, and triennially on or before March 1, 23
thereafter through March 1, 2024. The report shall be made public and be posted electronically on 24
the website to the office of energy resources. 25
(2) The commission shall issue standards not later than June 1, 2008, with regard to plans 26
for system reliability and energy efficiency and conservation procurement, which standards may 27
be amended or revised by the commission as necessary and/or appropriate. 28
(3) The energy efficiency and resources management council shall prepare by July 15, 29
2008, a reliability and efficiency procurement opportunity report which shall identify 30
opportunities to procure efficiency, distributed generation, demand response and renewables, 31
which report shall be submitted to the electrical distribution company, the commission, the office 32
of energy resources and the joint committee on energy. 33
(4) Each electrical and natural gas distribution company shall submit to the commission 34

LC001810/SUB A - Page 3 of 7
on or before September 1, 2008, and triennially on or before September 1, thereafter through 1
September 1, 2024, a plan for system reliability and energy efficiency and conservation 2
procurement. In developing the plan, the distribution company may seek the advice of the 3
commissioner and the council. The plan shall include measurable goals and target percentages for 4
each energy