§ 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 utility distributing or providing heat, electricity, or water to or for the public shall include as part of its base rate any expenses for advertising, either direct or indirect, which promotes the use of its product or service, or is designed to promote the public image of the industry. No public utility may furnish support of any kind, direct, or indirect, to any subsidiary, group, association, or individual for advertising and include the expense as part of its base rate. Nothing contained in this section shall be deemed as prohibiting the inclusion in the base rate of expenses incurred for advertising, informational or educational in nature, which is designed to promote public safety conservation of the public utility's product or service. The public utilities commission shall promulgate such rules and regulations as are necessary 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, 2008, and for a period of ten (10) years thereafter, each electric distribution company shall include charges per kilowatt-hour delivered to fund demand side management programs and 0.3 mills per kilowatt-hour delivered to fund renewable energy programs. The electric distribution company shall establish and after July 1, 2007, maintain two (2) separate accounts, one for demand side management programs, which shall be administered and implemented by the distribution company, subject to the regulatory reviewing authority of the commission, and one for renewable energy programs, which shall be administered by the economic development corporation pursuant to § 42-64-13.2 and, shall be held and disbursed by the distribution company as directed by the economic development corporation for the purposes of developing, promoting and supporting renewable energy programs.
During the ten (10) year period the commission may, in its discretion, after notice and public hearing, increase the sums for demand side management and renewable resources; thereafter, the commission shall, after notice and public hearing, determine the appropriate charge for these programs. The office of energy resources and/or the administrator of the renewable energy programs may seek to secure for the state an equitable and reasonable portion of renewable energy credits or certificates created by private projects funded through 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-grid generating technologies located in Rhode Island as a priority; (2) research and development activities in Rhode Island pertaining to eligible renewable energy resources and to other renewable energy technologies for electrical generation; or (3) projects and activities directly related to implementing eligible renewable energy resources projects in Rhode Island. Technologies for converting solar energy for space heating or generating domestic hot water may also be funded through the renewable energy programs, so long as these technologies are installed on housing projects that have been certified by the executive director of the Rhode Island housing and mortgage finance corporation as serving low-income Rhode Island residents. Fuel cells may be considered an energy efficiency technology to be included in demand sided management programs. Special rates for low-income customers in effect as of August 7, 1996 shall be continued, and the costs of all of these discounts shall be included in the distribution rates charged to all other customers. Nothing in this section shall be construed as prohibiting an electric distribution company from offering any special rates or programs for low-income customers which are not in effect as of August 7, 1996, subject to the approval by the commission.
(c) On or before November 15, 2008, the economic development corporation shall create the municipal renewable energy investment program utilizing 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 renewable energy programs, to fund qualified municipal renewable energy projects in accordance with this chapter and the following provisions:
(1) The municipal renewable energy investment programs shall be administered pursuant to rules established by the economic development corporation. Said rules shall provide transparent criteria to rank qualified municipal renewable energy projects, giving consideration to:
(i) the feasibility of project completion;
(ii) the anticipated amount of renewable energy the project will produce;
(iii) the potential of the project to mitigate energy costs over the life of the project; and
(iv) the estimated cost per kilo-watt hour (kwh) of the energy produced from the project. Municipalities that have not previously received financing from this program shall be given priority over those municipalities that have received funding under this program.
(2) Beginning on January 1, 2009, the economic development corporation shall solicit proposals from municipalities for eligible projects and shall award grants, in accordance with the rules and ranking criteria, of no more than five hundred thousand dollars ($500,000) to each eligible project.
(3) Any funds not expended from the municipal renewable energy investment programs in a given year shall remain in the fund and be added to the balance to be distributed in the next award cycle. For the purposes of this section, qualified municipal renewable energy projects means any project that produces renewable energy resources and whose output of power and other attributes is controlled in its entirety by at least one Rhode Island city or town.
(d) On or before November 15, 2008, the economic development corporation shall create the nonprofit affordable housing renewable energy investment program utilizing the lesser of ten percent (10%) or two hundred thousand dollars ($200,000) collected annually from the.3 mils per kilo-watt hour charge for renewable energy programs to fund qualified nonprofit affordable housing renewable energy projects in accordance with this chapter and the following provisions:
(1) The nonprofit affordable housing renewable energy investment programs shall be administered pursuant to rules established by the economic development corporation in consultation with the Rhode Island housing mortgage finance corporation. Said rules shall provide transparent criteria to rank qualified nonprofit affordable housing renewable energy projects, giving consideration to:
(i) the feasibility of project completion;
(ii) the anticipated amount of renewable energy the project will produce;
(iii) the potential of the project to mitigate energy costs over the life of the project; and
(iv) the estimated cost per kilo-watt hour (kwh) of the energy produced from the project. Nonprofit affordable housing agencies that have not previously received financing from this program shall be given priority over those agencies that have received funding under this program.
(2) Beginning on January 1, 2009, the economic development corporation, in consultation with the Rhode Island housing and mortgage finance corporation, shall solicit proposals from eligible nonprofit housing agencies for renewable energy projects and shall award grants, in accordance with the rules and ranking criteria. The economic development corporation shall consult with the Rhode Island housing and mortgage finance corporation in the grant-making process and shall notify the corporation of the awardees.
(3) Any funds not expended from the affordable housing renewable energy investment program in a given year shall remain in the fund and be added to the balance to be distributed in the next award cycle. For the purposes of this section, "qualified nonprofit affordable housing renewable energy projects" means any project that produces renewable energy resources and whose output of power and other attributes is controlled in its entirety by at least one nonprofit affordable housing development as defined in § 42-55-3 and is restricted to producing energy for the nonprofit affordable housing development.
(e) The executive director of the economic development corporation is authorized and may enter into a contract with a contractor for the cost effective administration of the renewable energy programs funded by this section. A competitive bid and contract award for administration of the renewable energy programs may occur every three (3) years and shall include as a condition that after July 1, 2008 the account for the renewable energy programs shall be maintained and administered by the economic development corporation as provided for in subdivision (b) above.
(f) Effective January 1, 2007, and for a period of eleven (11) years thereafter, each gas distribution company shall include, with the approval of the commission, a charge per deca therm delivered to demand side management programs, including, but not limited to, programs for cost-effective energy efficiency, energy conservation, combined heat and power systems, and weatherization services for low income households.
(g) The gas company shall establish a separate account for demand side management programs, which shall be administered and implemented by the distribution company, subject to the regulatory reviewing authority of the commission. The commission may establish administrative mechanisms and procedures that are similar to those for electric demand side management programs administered under the jurisdiction of the commissions and that are designed to achieve cost-effectiveness and high life-time savings of efficiency measures supported by the program.
(h) The commission may, if reasonable and feasible, except from this demand side management change:
(i) gas used for distribution generation; and
(ii) gas used for the manufacturing processes, where the customer has established a self-directed program to invest in and achieve best effective energy efficiency in accordance with a plan approved by the commission and subject to periodic review and approval by the commission, which plan shall require annual reporting of the amount invested and the return on investments in terms of gas savings.
(i) The commission may provide for the coordinated and/or integrated administration of electric and gas demand side management programs in order to enhance the effectiveness of the programs. Such coordinated and/or integrated administration may after March 1, 2009, upon the recommendation of the office of energy resources, be through one or more third-party entities designated by the commission pursuant to a competitive selection process.
(j) Effective January 1, 2007, the commission shall allocate
from 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 an
annual basis for the retention of expert consultants, and reasonable
administrations costs of the energy efficiency and resources management council
associated with planning, management, and evaluation of energy efficiency
programs, renewable energy programs and least-cost procurement, and with
regulatory proceedings, contested cases, and other actions pertaining to the
purposes, powers and duties of the council, which allocation may by mutual
agreement, be used in coordination with the office of energy resources to
support such activities.
(P.L. 1979, ch. 410, art. 6, § 1; P.L. 1996, ch. 316, § 1; P.L. 1997,
ch. 326, § 105; P.L. 2001, ch. 142, § 3; P.L. 2002, ch. 144, §
3; P.L. 2005, ch. 49, § 1; P.L. 2005, ch. 61, § 1; P.L. 2006, ch.
236, § 7; P.L. 2006, ch. 237, § 7; P.L. 2008, ch. 100, art. 28,
§ 6; P.L. 2008, ch. 228, § 3; P.L. 2008, ch. 422, § 3; P.L.
2011, ch. 19, § 1; P.L. 2011, ch. 28, § 1.)