§ 39-1-27. Electric distribution companies required to file restructuring plans.
(a) Each electric distribution company shall file with the commission a plan for transferring
ownership of generation facilities into a separate affiliate of the electric distribution
company. The transmission facilities owned by the electric distribution company also
may be transferred to an affiliated electric transmission company at a price that
shall equal the book value of the transmission facilities on the electric distribution
company's accounts net of depreciation and deferred taxes as the date of transfer,
but such a transfer is not required. The generation plant, equipment, and facilities
owned by an electric distribution company shall be transferred to an affiliate that
is a nonregulated power producer at a price that shall equal the book value of the
generation plant, equipment, and facilities on the electric distribution company's
accounts net of depreciation and deferred taxes as of the date of the transfer. Consistent
with the schedule for implementing retail access in § 39-1-27.3, each electric transmission company shall file tariffs with the Federal Energy Regulatory
Commission (FERC) and electric-distribution companies shall file tariffs with the
commission. The tariffs will provide the terms, conditions, and rates for nondiscriminatory
access to transmission and distribution facilities to wholesale and retail customers
and to nonregulated power producers. The tariffs shall: (1) Conform to the standards,
policies, and requirements of the Federal Energy Regulatory Commission or the commission
as appropriate with respect to nondiscriminatory access to transmission and distribution
services; (2) Fulfill such standards with respect to both transmission and distribution
services for the benefit of both wholesale and retail customers and their suppliers;
and (3) Provide retail access in accordance with the schedule set forth in § 39-1-27.3. For purposes of this section, "nondiscriminatory accessâ€� means access to transmission
and distribution services on rates, terms, and conditions found to be reasonable by
the FERC or the commission as appropriate and applied consistently to all customers
in a rate class regardless of their supplier. When establishing terms and conditions
for distribution service, the commission shall implement standards, policies, and
requirements consistent with those established by the Federal Energy Regulatory Commission
for transmission service unless it determines that alternative terms and conditions
are in the public interest.
(b) The commission shall review the plan within six (6) months of filing and if the plan
is in compliance with chapter 3 of this title, shall authorize the property transfers,
securities issuances, and affiliate transactions pursuant to this title and shall
grant all necessary regulatory approvals. All existing state and local rights, authorizations,
and approvals, including but not limited to, permits, licenses, locations, indentures,
leases, orders, or similar rights associated with the ownership and operation of plant
and equipment, shall be deemed transferred with the associated plant and equipment
upon the commission's authorization of the transfer effective as of the date of transfer.
Notwithstanding any provisions of this section, if the electric distribution company's
wholesale power supplier chooses to transfer its generation assets to a nonaffiliate
of the electric distribution company for purposes of carrying out the market valuation
required by § 39-1-27.4(g), and such transfer to a nonaffiliate is specified in the electric distribution company's
restructuring plan filed with the commission pursuant to subsection (a) of this section,
the transfer of the electric distribution company's interest in the generation facilities
may be made directly to the nonaffiliate. In the case of such a transfer directly
to a nonaffiliate, all of the state and local rights, authorizations, and approvals,
including those enumerated above, shall be deemed transferred with the associated
plant and equipment upon the commission's authorization of the transfer effective
as of the date of the transfer.
(c) The electric distribution company shall implement the corporate reorganizations and
property transfers specified in such restructuring plan; terminate its all-requirements
contract with its wholesale power supplier on the terms set forth in § 39-1-27.4; and provide retail access for all customers in Rhode Island with a standard offer,
as set forth in § 39-1-27.3, no later than three (3) months after retail access is available to forty percent
(40%) or more of the kilowatt-hour sales in New England. The commission may extend
this time if it determines that additional time is necessary to implement the transactions
on reasonable terms and in accordance with a reasonable schedule; provided, however,
that nothing in this section shall be construed to limit the effect of § 39-1-27.3 or permit the commission to unduly discriminate in providing retail access among
or within rate classes.
(d) Following the complete implementation of the restructuring plans, electric distribution
companies shall be prohibited from selling electricity at retail and from owning,
operating, or controlling generating facilities, although such facilities may be owned
by affiliates of electric distribution companies. For purposes of this subsection,
providing the standard-offer service and last-resort power supply in accordance with
subsections (d) and (f) of § 39-1-27.3 shall not be construed as selling electricity at retail.
(e) Following the termination of the electric distribution company's contracts with its
wholesale power supplier, the wholesale power supplier shall become a nonregulated
power producer, and shall be free, subject to the requirements of the standard offer
set forth in § 39-1-27.3(e) and retail electric licensing commission plan requirements pursuant to § 39-1-27.1, to sell electricity generated from each of its facilities on either the wholesale
or retail markets at market prices, either directly or through an affiliate, which
shall also become a nonregulated power producer. The former wholesale power supplier
and its affiliates shall be free to apply to become exempt wholesale generators pursuant
to § 32 of the Public Utility Holding Company Act of 1935, 15 U.S.C. § 79z-5a [repealed], and other federal law, rules, and regulations, and each and every generating
facility of the former wholesale power supplier shall become an eligible facility
pursuant to that statute. Accordingly, the legislature hereby finds and declares that
the division has sufficient regulatory authority, resources, access to books and records
to exercise its duties; and that the full participation of former wholesale power
suppliers and affiliated nonregulated power producers in the market and the designation
of each of the former wholesale power supplier's facilities as eligible facilities
will benefit consumers; is consistent with state law; will not provide any unfair
competitive advantage by virtue of their status as a former wholesale power supplier
or as affiliates of electric distribution companies; and is in the public interest.
(f) Although reducing air emissions from power plants is a goal of electricity industry
restructuring, power plants in Rhode Island already have low emissions relative to
their counterparts in other states. For this reason, it is unnecessary for the restructuring
plans required by this section to address in-state air emission reductions. However,
to the extent a wholesale power supplier receiving contract termination fees pursuant
to § 39-1-27.4(b)(4) owns and operates as of December 31, 1995, fossil-fired generation in another state
that does not meet air emission standards applicable as of that date to new electric-generating
facilities in that state, the wholesale power suppliers shall cooperate with the appropriate
environmental officials in the state or states where the generating facilities are
located to develop a plan for reducing the emissions of nitrogen oxides, sulfur dioxide,
and particulate matter from the plants on an overall basis through retirements, replacements,
controls, or offsets, or any combination of the above, toward the air emissions standards
applicable to new electric-generating facilities in effect in the state or states
where the plants are located as of January 1, 1996. The plans shall be implemented
in connection with electric-industry restructuring in the state or states where the
generating facilities are located.
(g) An electric distribution company, whether public, quasi-municipal, or investor owned,
that as of January 1, 1996, did not purchase power at wholesale from a wholesale power
supplier under an all-requirements contract, shall include proposals for recovering
transition costs consistent with the elements that would be comparable in nature to
the elements included in termination fees pursuant to § 39-1-27.4(b) through (g) and for providing a standard offer consistent with requirements of § 39-1-27.3(d) in its plan filed with the commission pursuant to this section. The filing by an
electric distribution company that is a quasi-municipal corporation shall also address
any unique circumstances affecting the electric distribution company, including special
contract requirements or charter restrictions and the conditions that the quasi-municipal
corporation must satisfy in order to participate in retail competition. In reviewing
the filing and determining the appropriate level of transition cost recovery, the
commission shall apply standards consistent with those contained in § 39-1-27.4(b) through (g) and with this subsection. The commission shall be authorized to take
any action or to grant any approval necessary to maintain hydroelectric power purchases
from the Niagara and St. Lawrence power projects by quasi-municipal corporations.
Notwithstanding any other provision of this section, quasi-municipal electric distribution
companies that purchase hydroelectric power from the Niagara and St. Lawrence power
projects shall be authorized to continue to resell that power to residential customers
within their service territories. After notice and public hearing, the commission
may exempt electric distribution companies subject to this subsection from: (1) The
requirement to transfer ownership of generation and transmission facilities to affiliated
companies pursuant to subsection (a) of this section; and (2) The prohibition against
selling electricity at retail pursuant to subsection (d) of this section with respect
to sales within the service territory of the electric distribution company, if it
determines that the exemptions are in the public interest.
(h) With the exception of the requirements of the standard offer set forth in § 39-1-27.3(e) and (f) and retail electric licensing commission plan requirements pursuant to § 39-1-27.1, nothing in this section shall be construed or interpreted to constrain the application
of antitrust laws to nonregulated power producers, whether affiliated or not with
an electric distribution company.