TITLE 39
Public Utilities and Carriers
CHAPTER 39-26.6
The Renewable Energy Growth Program
SECTION 39-26.6-12
§ 39-26.6-12 Annual bidding and
enrollments.
(a) With the exception of the first program year (2015), the
electric-distribution company, in consultation with the board and office, shall
conduct at least three (3) tariff enrollments for each distributed-generation
class each program year. For the first program year, the board may recommend
that either two (2) or three (3) enrollments be conducted.
(b) During each program year, the tariff enrollments shall
have both an annual targeted amount of nameplate megawatts ("annual MW target")
and a nameplate megawatt target for each separate enrollment event ("enrollment
MW target"). The enrollment MW target shall comprise the specific portion of
the annual MW target sought to be obtained in that enrollment. The enrollment
MW targets shall be recommended by the board each year, subject to commission
approval. The board shall also recommend a megawatt target for each class
("class MW target") that comprises a specified portion of the enrollment MW
target, subject to commission approval. If the electric-distribution company,
the office, and the board mutually agree, they may reallocate megawatts during
an enrollment from one class to another without commission approval if there is
an over-subscription in one class and an under-subscription in another,
provided that the annual MW Target is not being exceeded, except as provided in
§ 39-26.6-7.
(c) The annual MW targets shall be established as follows;
provided, however that at least three megawatts (3 MW) of nameplate capacity
shall be carved out exclusively for small-scale solar projects in each of the
first four (4) program years:
(1) For the first program year (2015), the annual MW target
shall be twenty-five (25) nameplate megawatts;
(2) For the second program year, the annual targets shall be
forty (40) nameplate megawatts;
(3) For the third and fourth program years, the annual target
shall be forty (40) nameplate megawatts, subject to the conditions set forth in
§ 39-26.6-12(f) having been met for the applicable prior program year as
determined in the manner specified in § 39-26.6-12(g); and
(4) For the fifth program year, the annual target shall be
set to obtain the balance of capacity needed to achieve one hundred sixty (160)
nameplate megawatts within the five-year (5) distributed-generation growth
program, subject to § 39-26.6-12(e) and the conditions set forth in §
39-26.6-12(f) having been met for the fourth program year as determined in the
manner specified in § 39-26.6-12(g).
(d) During the fifth year of the distributed-generation
growth program, the board may recommend to the commission an extension of time
in the event that additional time is required to achieve the full one hundred
sixty (160) nameplate megawatt target of the program. The commission shall
approve the recommendation of the board; provided, however, that the commission
may make any modifications to the board's recommendation that the commission
deems appropriate, consistent with the legislative purposes of this chapter as
set forth herein.
(e) To the extent there was a shortfall of capacity procured
under chapter 26.2 of title 39 from distributed generation procurements in
2014, such shortfall amount may be added to the one hundred sixty megawatt
(160MW) target for acquisition in the fifth program year under this chapter. In
no event shall the electric distribution company be required to exceed the
aggregate amount of one hundred sixty (160) nameplate capacity plus any such
shortfall amount over the five (5) years, but may do so voluntarily, in
consultation with the board and subject to commission approval.
(f) The conditions specified in subsections (c)(3) and (c)(4)
of this section are as follows: (1) That it is reasonable to conclude that the
bid prices submitted in the procurements for the large-scale solar and
commercial-scale solar classes were reasonably competitive in the immediately
preceding program year; (2) That it is reasonable to conclude that the annual
MW target specified for the next program year is reasonably achievable; and (3)
That the electric-distribution company was able to, or with reasonably prudent
efforts should have been able to, perform the studies and system upgrades on a
timely basis necessary to accommodate the number of applications associated
with the targets without materially adversely affecting other
electric-distribution construction projects needed to provide reliable and safe
electric-distribution service. To the extent the board or the commission
concludes that any of these conditions have not been met for the applicable
program year, the board may recommend, and/or the commission may adopt, a new
annual MW target, based on the factors set forth in § 39-26.6-12(h).
(g) Before the third, fourth, and fifth program years, each
year the board shall review the conditions specified in § 39-26.6-12(f)
and make a recommendation to the commission for findings as to whether they
have been met for the applicable year. The recommendation shall be filed with
the commission, with copies to the office and the electric distribution
company, and any person who has made a written request to the commission to be
included in such notification, such list which may be obtained from the
commission clerk, and a notice of such filing shall be posted by the commission
on its website. If no party files an objection to the recommended findings
within ten (10) business days of the posting, the commission may accept them
without hearings. If an objection is filed with a reasonable explanation for
its basis, the commission shall hold hearings and make the factual
determination of whether the conditions have been met.
(h) In the event that the conditions in § 39-26.6-12(f)
have not been met for any program year, then the board and the commission shall
take into account the factors set forth below in setting the annual MW target
for the following year. In addition, for every program year the board and the
commission shall take into account these factors in setting the class MW
targets, and the enrollment MW targets for the following year: (1) That the new
annual, class, and enrollment levels reasonably assure that competition among
projects for the applicable bidding classifications remains robust and likely
to yield reasonable and competitive program costs; (2) That, assuming prudent
management of the program, the electric-distribution company should be able to
perform the studies and system upgrades on a timely basis necessary to
accommodate the number of applications associated with the targets without
materially adversely affecting other electric-distribution construction
projects needed to provide reliable and safe electric-distribution service; and
(3) Any other reasonable factors that are consistent with the legislative
purpose of this chapter as set forth herein, including the program purpose to
facilitate the development of renewable distributed generation in the load zone
of the electric-distribution company at reasonable cost.
(i) The renewable energy growth program is intended to
achieve at least an aggregate amount of one hundred sixty (160) nameplate
megawatts over five (5) years, plus any shortfall amount added in pursuant to
§ 39-26.6-12(e). However, after the second program year, the board may,
based on market data and other information available to it, including pricing
received during previous program years, recommend changes to the annual target
for any program year above or below the specified targets in §
39-26.6-12(c) if the board concludes that market conditions are likely to
produce favorably low or unfavorably high target pricing during the upcoming
program year, provided that the recommendation may not result in the five-year
(5) one hundred sixty megawatt (160MW) nameplate target, plus any shortfall
added pursuant to § 39-26.6-12(e), being exceeded. Any megawatt reduction
in an annual target shall be added to the target in the fifth year of the
program (and any subsequent years if necessary) such that the overall program
target of one hundred sixty megawatt (160MW) nameplate capacity, plus any
shortfall added pursuant to § 39-26.6-12(e), is achieved. In considering
such issues, the board and the commission may take into account the
reasonableness of current pricing and its impact on all electric distribution
customers and the legislative purpose of this chapter as set forth herein,
including the program purpose to facilitate the development of renewable
distributed generation in the load zone of the electric-distribution company at
reasonable cost.
(j) The provisions of § 39-26.1-4 shall apply to the
annual value of performance-based incentives (actual payments plus the value of
net metering credits, as applicable) provided by the electric-distribution
company to all the distributed-generation projects under this chapter, subject
to the following conditions:
(1) The targets set for the applicable program year for the
applicable project classifications were met or, if not met, such failure was
due to factors beyond the reasonable control of the electric-distribution
company;
(2) The electric-distribution company has processed
applications for service and completed interconnections in a timely and prudent
manner for the projects under this chapter, taking into account factors within
the electric-distribution company's reasonable control. The commission is
authorized to establish more specific performance standards to implement the
provisions of this chapter; and
(3) The incentive shall be one and three-quarters percent
(1.75%) of the annual value of performance-based incentives. The commission is
authorized to establish more specific performance standards to implement the
provisions of this paragraph.
History of Section.
(P.L. 2014, ch. 200, § 1; P.L. 2014, ch. 216, § 1.)
