810 R.I. Code R. 810-RICR-40-05-2.9

Current through November 7, 2024

Section 810-RICR-40-05-2.9 - Contracting Standards and Procurement Plans

A. Standards for Contracts: Contracts for renewable energy certificate transactions by Obligated Entities to meet the Renewable Energy Standard shall contain provisions and terms to address the features and risks that are unique to the purchase of Eligible Renewable Energy Resources. Such terms may include the following:

1. Definitions particular to renewable energy certificate transactions;

2. Specialized financial instruments and warranties thereof;

3. Purchase and sale of renewable energy certificates;

4. Quantities;

5. Representations and warranties of the parties;

6. Obligations of the parties;

7. Relationship of the parties;

8. Non-performance and Remedies;

9. Default;

10. Term, termination and waiver;

11. Binding milestones, if any;

12. Credit and Collateral, if any; and

13. Additional agreements conforming to the nature of the transaction.

B. Procurement Plans. All obligated electric utility distribution companies ("Obligated Distribution Companies") must submit annual plans for procurement of NEPOOL GIS Certificates from Eligible Renewable Energy Resources for compliance with these regulations to the Commission ("Renewable Energy Procurement Plan"). Obligated Distribution Companies shall demonstrate to the Commission that, in preparation of the Renewable Energy Procurement Plan, such companies have:

1. Determined their needs, including the demand for renewable energy certificates from Eligible Renewable Energy Resources under the range of anticipated future conditions;

2. Developed a schedule of planned purchases of NEPOOL GIS Certificates from Eligible Renewable Energy Resources to supply the identified needs;

3. Developed key criteria to evaluate the providers and product options;

4. Identified the major risk factors and how mitigated;

5. Developed a process to implement the filed Renewable Energy Procurement Plan; and

6. Provided the means of monitoring the procurement over time to make sure it performs as planned, to hold counter parties accountable, and to identify areas where improvement is needed;

C. The Renewable Energy Procurement Plan shall contain the Obligated Distribution Company's procedure for procuring its target percentage of Eligible Renewable Energy Resources for each Electrical Energy Product offered to End-use Customers, including long-term contracts which shall be made a part of the Obligated Distribution Company's portfolio for procuring its target percentage of Eligible Renewable Energy Resources for each Electrical Energy Product offered to End-use Customers. The Renewable Energy Procurement Plan shall provide for, at a minimum, separate Annual Request for Proposals (each, an "Annual RFP") to meet its requirement for purchases of NEPOOL GIS Certificates from Eligible Renewable Energy Resources from existing and new renewable energy sources and the conditions under which it may contract with Eligible Renewable Energy Resources between Annual RFPs. The Renewable Energy Procurement Plan shall be filed with the Commission annually. All the components of the Renewable Energy Procurement Plan shall be subject to Commission review and approval. Once a Renewable Energy Procurement Plan is approved by the Commission, the Obligated Distribution Company shall be authorized to acquire NEPOOL GIS Certificates from Eligible Renewable Energy Resources consistent with the approved plan and recover its costs incurred from procuring NEPOOL GIS Certificates from Eligible Renewable Energy Resources pursuant to the approved Renewable Energy Procurement Plan. The Commission may periodically review the Renewable Energy Procurement Plan to determine whether it should be prospectively modified due to changed market or other conditions.

D. Subject to review by the Commission, Obligated Distribution Companies are entitled by R.I. Gen. Laws § 39-26-6(4)(b), to recovery of all prudent incremental costs arising from the implementation of these regulations and its approval of a Renewable Energy Procurement Plan, including, without limitation, the purchases of NEPOOL GIS Certificates from Eligible Renewable Energy Resources, the payment of Alternative Compliance Payments, and required payments to support the NEPOOL GIS; except for those costs arising from sanctions for non-compliance.

E. Procurement During Standard Offer Period

1. During the period in which Standard Offer service is provided to customers, the Annual RFP shall request bids for NEPOOL GIS Certificates from Eligible Renewable Energy Resources for the following Periods:

(I) the subsequent Standard Offer calendar year (and to satisfy any outstanding Standard Offer renewable obligations in the current calendar year),

(II) the remaining Standard Offer period, and

(III) the years 2010 and beyond. For the period 2010 and beyond the Annual RFP will request proposals for NEPOOL GIS Certificates that may also include bundled energy. Such bids will be solicited for periods individually as well as for long term offers spanning Periods I, II and III.

2. The Obligated Distribution Company shall share the bids received under the Annual RFP for Periods II and III above, initially with the Office of Energy Resources ("OER") in its role as administrator of the Rhode Island Renewable Energy Fund and the Commerce Corporation as administrator of the REDF and the Division of Public Utilities and Carriers (the "Division"). The OER (and/or Commerce Corporation) at their discretion and after executing a confidentiality agreement, may collaborate with the electric distribution company throughout the remainder of the procurement process, and implement complementary programs.

3. The Obligated Distribution Company may purchase NEPOOL GIS Certificates from Eligible Renewable Energy Resources for Periods I and II above from the bids provided in the annual RFPs if such bids meet the established criteria of the Renewable Energy Procurement Plan. The Obligated Distribution Company may purchase NEPOOL GIS Certificates from Eligible Renewable Energy Resources for Periods I and II above from the bids provided in the Annual RFPs if such bids do not meet the established criteria of the Renewable Energy Procurement Plan provided such purchase is reviewed and approved by the Commission. The Obligated Distribution Company shall file the results of its Annual Procurement Plan with the Commission, and

4. The Obligated Distribution Company will also request expressions of interest to purchase NEPOOL GIS Certificates from Eligible Renewable Energy Resources from any qualified interested party that executes a non-disclosure agreement with the Obligated Distribution Company ("Participating Purchaser"). A Participating Purchaser may purchase the remaining Eligible Renewable Energy Resources for Periods II or III above from the bids provided in response to the Annual RFPs. The Obligated Distribution Company shall share the bids with any Participating Purchaser, and shall delineate the process by which it will initiate negotiations between the bidders of Eligible Renewable Energy Resources and Participating Purchasers whereby the Eligible Renewable Energy Resources may be procured for Periods II and III, above. Both the Obligated Distribution Company and the Participating Purchaser shall have the right to decline to enter into a purchase commitment for any period or portion thereof.

810 R.I. Code R. 810-RICR-40-05-2.9

Amended effective 5/28/2024