TITLE 39
Public Utilities and Carriers
CHAPTER 39-26.2
Distributed Generation Standard Contracts
SECTION 39-26.2-6
§ 39-26.2-6 Standard contract enrollment
program.
(a) Each electric distribution company shall conduct at least three (3)
standard contract enrollments during each program year; however, during 2011
the electric distribution company need only conduct one enrollment. Each
enrollment shall be open for a two (2) week period during which the electric
distribution company is required to receive standard short-form applications
requesting standard contracts for distributed generation energy projects. The
short-form applications shall require the applicant to provide the project
owner's identity and the project's proposed location, nameplate capacity, and
renewable energy class and allow for additional information relative to the
permitting, financial feasibility, ability to build, and timing for deployment
of the proposed projects. For small distributed generation projects, the
applicant must submit an affidavit confirming that the project is not a segment
of a larger project being planned for enlargement over time. For large
distributed generation projects, the short-form application shall also require
the applicant to bid a bundled price for the sale of the energy, capacity,
renewable energy certificates, and all other environmental attributes and
market products that are available or may become available from the distributed
generation facility, on a per kilowatt-hour basis for the output of the
project. Subject to the provisions of subsections (b) and (c) below, the
electric distribution company shall not be required to enter into standard
contracts in excess of the annual target for the applicable program year and
shall not be required to enter into standard contracts in excess of any limit
set by the board and approved by the commission for a given enrollment.
However, the electric distribution company may voluntarily exceed an enrollment
period limit as long as it does not exceed an annual target for the applicable
program year.
(b) For small distributed generation projects, the electric
distribution company shall select projects for standard contracts based on the
lowest proposal prices received with any distributed generation project which
meets the requirements of all applicable tariffs and regulations, and meets the
criteria of a renewable energy class in effect, until the class target is met.
Enrollment periods will be governed by a solicitation and enrollment process
rules that shall be filed with the commission each October 15 by the electric
distribution company, and approved by the commission within sixty (60) days of
such filing.
(c) For large distributed generation projects, the electric
distribution company shall select projects for standard contracts based on the
lowest proposed prices received, but not to exceed the applicable standard
contract ceiling price, provided, that the selected projects meet the
requirements of all applicable tariffs and regulations and meet the criteria of
a renewable energy class in effect until the class target is met. Except for
2011, no enrollment period shall seek to enroll more than one-third (1/3) of
the annual goal for the distribution company for large distributed generation
projects.
(d) If there are more projects than what is specified for a
class target at the same price, the electric distribution company shall review
the applications submitted and select first those projects that appear to be
the furthest along in development and likely to be deployed in consultation
with the office. Those projects that are likely to be deployed on the earliest
timelines shall be selected. To the extent the electric distribution company is
unable to make a clear distinction on this basis, the electric company shall
report the results to the board and not enter into contracts with those
projects that are tied on pricing. In such case, the board may take such action
as it deems appropriate for the selection of projects, including seeking more
information from the projects. Alternatively, the board may consider
adjustments to the ceiling price and a rebid, or simply wait until the next
enrollment.
(e) Should an electric distribution company determine that it
has entered into sufficient standard contracts to achieve a program-year class
target, it shall immediately report this to the board, the office of energy
resources, and the commission, and cease entering into standard contracts for
that renewable energy class for the remainder of the program year. An electric
distribution company may exceed the renewable energy class target if the last
standard contract entered into may cause the total purchased to exceed the
target. The office and the electric distribution company shall enter into a
memorandum of understanding regarding the sharing of the information and data
related to the distributed generation program.
(f) The electric distribution company is authorized to enter
into standard contracts up to the applicable ceiling price. As long as the
terms of the standard contract are materially the same as the standard contract
terms approved by the commission and the pricing is no higher than the
applicable ceiling price, such contracts shall be deemed prudent and approved
by the commission for purposes of recovering the costs in rates.
(g) A distributed generation project that also is being
employed by a customer for net metering purposes may submit an application to
sell the excess output from its distributed generation project. In such case,
however, at the election of the self-generator all of the renewable energy
certificates and environmental attributes pertaining to the energy consumed on
site may be sold to the electric distribution company on a month-to-month basis
outside of the terms of the standard contract. In such case, the portion of the
renewable energy certificates that pertain to the energy consumed on site
during the net metering billing period shall be priced at the average market
price of renewable energy certificates, which may be determined by using the
price of renewable energy certificates purchased or sold by the electric
distribution company.
History of Section.
(P.L. 2011, ch. 129, § 1; P.L. 2011, ch. 143, § 1; P.L. 2013, ch.
167, § 2; P.L. 2013, ch. 202, § 2.)
