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§39-1-27.3.1  Option to return to standard offer. –


Published: 2015

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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.)