TITLE 39
Public Utilities and Carriers
CHAPTER 39-1
Public Utilities Commission
SECTION 39-1-27.3.1
§ 39-1-27.3.1 Option to return to standard
offer.
(a) The commission may, notwithstanding the provisions of § 39-1-27.3,
allow customers no longer eligible for standard offer service to return to
standard offer service, subject to the process set forth in this section. The
process shall be as follows: the commission shall hold hearings to determine
whether there is a sufficient presence of nonregulated power producers offering
reasonably priced power supply service to customers in Rhode Island. If the
commission determines that these market conditions are not present, the
commission shall direct the electric distribution company to prepare and file a
plan that creates an option for customers to return to the standard offer
including terms and conditions for customers returning and the manner in which
the power supply will be procured. This plan may include term commitments or
notice provisions before nonresidential customers are permitted to leave
standard offer service once they return. The commission shall conduct a hearing
to review the electric distribution company's plan and issue an order approving
the plan, including any modifications the commission deems appropriate.
(b) Once the plan is approved by the commission, the electric
distribution company and the division shall jointly prepare a request for power
supply proposals ("RFP") consistent with the commission's order, develop
reasonable bidder qualification, issue the RFP, review the bids, and jointly
select a winning bidder or bidders to supply power. If the electric
distribution company and the division mutually agree that the bids are
unreasonably high, they shall have the discretion to reject all bids and
re-issue an RFP at a later date that they deem appropriate. If the electric
distribution company and the division cannot agree on any matter, the dispute
shall be submitted to the commission for resolution. Once the winning bidder or
bidders are selected, a supply contract or contracts on terms reasonably
acceptable to the distribution company and the division will be executed by the
electric distribution company and no further regulatory approval shall be
required. However, the results of the bidding process shall be filed with the
commission.
(c) All of the costs associated with the new supply
contract(s) will be recovered through standard offer rates and the electric
distribution company's fully reconciling adjustment provision.
(d) The standard offer rates for the residential customers
returning to the standard offer shall be the same as the standard offer rate
paid by all other standard offer customers. The standard offer rates for the
nonresidential customers returning to the standard offer shall be determined by
the commission after the commission reviews the costs of the power supply
resulting from the bid process. The rate for nonresidential customers returning
to the standard offer may differ from those of other customers, if the
commission deems the rate differential to be appropriate.
(e) Any customer returning to the standard offer may not
enter into any agreement to use standard offer service to arbitrage the market
with any supplier while the customer is on the standard offer and it shall be
unlawful for any nonregulated power producer to enter into such an agreement.
(f) Nothing in this section shall be construed to create a
legally enforceable entitlement for any supplier to require the electric
distribution company to select any particular bid and/or sign a contract with
the supplier.
(g) The requirements set forth in this section shall not
apply to Pascoag Fire District or Block Island Power Company.
History of Section.
(P.L. 2002, ch. 144, § 2.)