810 R.I. Code R. 810-RICR-40-05-1.4

Current through November 7, 2024

Section 810-RICR-40-05-1.4 - Long Term Contract Standard

A. On or before July 1, 2010, each Electric Distribution Company is required to annually solicit proposals from Renewable Energy Developers and, provided Commercially Reasonable proposals have been received, enter into Long-Term Contracts for the purchase of capacity, energy and attributes from Newly Developed Renewable Energy Resources.

B. Each Electric Distribution Company shall file its proposed timetable and method for solicitation and execution of such contracts no less than one hundred twenty (120) days prior to the issuance of the first annual solicitation and execution of such contracts for review and approval by the Commission.

1. In its filing supporting the timetable and methods for solicitation, which shall include at least one annual public solicitation, the Electric Distribution Company shall:

a. Describe the methods reviewed or selected;

b. Explain the rationale for choosing the proposed method selected and for rejecting other methods;

c. Set forth a clear timetable for each event that will occur prior to filing a contract for Commission review;

d. Set forth the Electric Distribution Company's intent regarding the use of energy, capacity, NEPOOL GIS Certificates, and any other attributes procured, subject to the Electric Distribution Company's right to seek Commission approval of alternative uses under R.I. Gen. Laws § 39-26.1-5(d);

e. Set forth the criteria that will be used to evaluate responses to the solicitation, including the value of direct economic benefits to the State of Rhode Island when evaluating whether the pricing is consistent with what an experienced power market analyst would expect to see in transactions involving Newly Developed Renewable Energy Resources.

f. Address how the Electric Distribution Company will seek to fulfill its annual obligation in the event the annual solicitation does not result in the execution of Commercially Reasonable contracts to fulfill the annual obligation.

g. Address how the Electric Distribution Company may, at its option, seek to execute Long-Term Contracts in excess of the given year's annual obligation in the event the annual solicitation results in proposals that could reasonably result in the execution of Commercially Reasonable contracts in excess of the annual obligation.

2. Intervenors shall provide comments regarding the Electric Distribution Company's proposal within forty-five (45) days of the filing.

3. The Division shall file comments regarding the Electric Distribution Company's proposal within sixty (60) days of the filing.

4. The Electric Distribution Company and any intervenor may file Reply Comments following the Division's Comments and prior to a hearing on the matter.

5. In the event the Electric Distribution Company determines that any changes should be made to its timetable and/or method for solicitation and execution of Long-Term Contracts after the initial solicitation, it shall file such proposed changes no less than one hundred twenty (120) days prior to the issuance of the next annual solicitation for review by the Commission as set forth in §§ 1.4(B)(1) through 1.4(B)(4) of this Part.

C. An Electric Distribution Company shall not be required to enter into Long-Term Contracts for Newly Developed Renewable Energy Resources that exceed the following four (4) year phased schedule:

1. By December 30, 2010: Twenty-five percent (25%) of the Minimum Long-Term Contract Capacity;

2. By December 30, 2011: Fifty percent (50%) of the Minimum Long-Term Contract Capacity;

3. By December 30, 2012: Seventy-five percent (75%) of the Minimum Long-Term Contract Capacity;

4. By December 30, 2013: One-hundred percent (100%) of the Minimum Long-Term Contract Capacity.

D. Provided, however, that no Electric Distribution Company shall be obligated to enter into Long-Term Contracts for Newly Developed Renewable Energy Resources on terms which the electric distribution company reasonably believes to be commercially unreasonable. In the event no Commercially Reasonable responses are received pursuant to the solicitations, the Electric Distribution Company's annual obligation as set forth in § 1.4(B)(5) of this Part will roll forward to the next year and the Electric Distribution Company shall not be considered non-compliant with its obligation for that year.

E. Within five (5) days following the receipt of proposals resulting from the annual solicitation, the Electric Distribution Company shall consult with the Division.

F. Long-Term Contracts executed by the Electric Distribution Company shall be filed with and be reviewed and approved by the Commission within sixty (60) days before they become effective and shall contain a condition to that effect. The Electric Distribution Company shall cause to be published in the Providence Journal, or other newspaper of general circulation to the State of Rhode Island, a Notice of Filing on the date when any Long-Term Contract under these Rules is filed for Commission review and approval. The Commission will hold a hearing within forty-five (45) days of the filing. To the extent practical, the proceeding will be governed by the "Public Utilities Commission Rules of Practice and Procedure."

G. If there is a dispute about whether any terms or pricing of a proposal are Commercially Reasonable, the Commission will make a final determination after and evidentiary hearing.

H. Within thirty (30) days of the execution of final contracts, or upon a determination that no Commercially Reasonable contracts could be entered into, the Electric Distribution Company shall file with the Commission a report on each solicitation regarding the results of such solicitation, even if no contracts are executed following the solicitation. The report shall include:

1. Brief description of solicitation;

2. Number of proposals received;

3. Generation source of each proposal;

4. Total MW offered, broken out by generation source, and average capacity factor for each source;

5. Number of proposals accepted;

6. Number of proposals rejected and the reasons (i.e., why they were not considered Commercially Reasonable, etc.);

7. Total MW under contract; and

8. Lessons learned

810 R.I. Code R. 810-RICR-40-05-1.4