§ 39-26.1-8. Utility-scale offshore wind project — Separate proceedings.
(a) Upon certification by the department of administration identifying the developer selected
by the state to develop a utility-scale offshore wind farm, the developer may file
an application under this section within one hundred eighty (180) days of the certification
by the department. For the purposes of this section, "utility-scale offshore wind
farm� shall mean a wind power project located offshore in the waters of Rhode Island
or adjacent federal waters of at least 100 megawatts (100 MW) but not more than one
hundred fifty megawatts (150 MW). The purpose of the application shall be for the
applicant to request that the commission require a long-term contract with the electric
distribution company. Should the commission approve a contract pursuant to this section,
it shall not be counted towards the minimum long-term contract capacity specified
in §â€‚39-26.1-2(6).
(b) The commission shall hold proceedings to review the proposal contained in the application.
In reviewing the application, the commission shall determine whether the proposal
is in the best interests of electric distribution customers in Rhode Island. In making
this determination, the commission shall consider the following factors: (i) The economic
impact and potential risks, if any, of the proposal on rates to be charged by the
electric distribution company; (ii) The potential benefits of stabilizing long-term
energy prices; (iii) Any other factor the commission determines necessary to be in
the best interest of the ratepayers.
(c) The application will contain the following information:
(1) A complete description of the proposed project;
(2) A description of the legal entity that will enter into a long-term contract;
(3) A time line for permitting, licensing, and construction;
(4) Pricing projected under the long-term contract being sought, including prices for
all market products that would be sold under the proposed long-term contract, subject
to any contract negotiations between the applicant and the electric distribution company;
(5) Projected electrical energy production profiles;
(6) The proposed term for the long-term contract;
(7) Economic justification for the proposal, including projection of market prices;
(8) A description of the economic benefits to Rhode Island, including the creation of
jobs in Rhode Island;
(9) All filings with state and federal regulatory agencies related to the proposal;
(10) All interconnection filings related to the proposal;
(11) A proposed initial term sheet for a long-term contract between the applicant and the
electric distribution company.
The information submitted in the application shall be subject to modification as a
result of any negotiation of a contract ordered by the commission.
(d) The commission shall promulgate rules and regulations governing the proceedings outlined
in this section by April 30, 2010.
(e) The applicant must serve copies of the application to the electric distribution company
with whom the applicant is seeking a long-term contract, the division of public utilities
and carriers, the office of energy resources, the department of administration, the
economic development corporation, and the attorney general. Prior to the filing of
any information, the applicant may seek a protective order to protect the confidentiality
of information for good cause shown, to the extent that such information is proprietary
or confidential business information, but unredacted copies of the entire filing must
be provided to the parties identified in this subsection, who shall be bound by any
protective order that may be issued regarding further disclosure.
(f) The electric distribution company, the division of public utilities and carriers,
and the office of energy resources shall be mandatory parties to the proceeding. The
applicant must pay for the reasonable costs of consultants or counsel that may be
hired by the commission and the division for the proceeding, but in no case shall
the applicant be liable for the costs in excess of $100,000 for the division and $100,000
for the commission, respectively.
(g) The commission shall issue a final order in the proceedings required by subsection
(b) within eight (8) months of the filing of the application. If the commission determines
that the proposal meets the standard outlined in subsection (b), the commission shall
require the electric distribution company to negotiate a long-term contract with the
applicant. The applicant, however, may decline to continue with the project for any
reason at any time during the process outlined in this section. The commission may
require changes to the applicant's proposal as a condition to a long-term contract,
as the commission determines are just and reasonable. The contract shall contain terms
that are commercially reasonable. The contract also shall require that the electric
distribution company purchase all of the output of the entire project, unless otherwise
authorized by the commission. The parties shall present a proposed contract for review
by the commission within three (3) months of the order requiring negotiations. If
the parties are unable to reach agreement on a contract within three (3) months of
the order requiring negotiations, the commission shall have the discretion to order
the parties to arbitrate the dispute on an expedited basis. Once the contract terms
are finalized by negotiation or arbitration, the contract shall be filed with the
commission for review and approval. The commission shall approve the contract upon
a finding that the contract is consistent with the purposes of this chapter and the
standards set forth in subsection (b). The commission shall issue its final decision
on the proposed contract within sixty (60) days of receiving the proposed contract.
Upon execution of the contract, the provisions of §§â€‚39-26.1-4 and 39-26.1-5 shall apply, and all costs incurred in the negotiation, administration, enforcement,
and implementation of the agreement shall be recovered annually by the electric distribution
company in electric distribution rates. To the extent the application cites significant
economic benefits to Rhode Island that require commitments from the applicant outside
of the long-term contract to achieve such benefits, and those economic benefits are
ultimately relied upon by the commission in authorizing a long-term contract to be
negotiated, the commission may require that appropriate legally binding commitments
be made by the applicant as a condition to a long-term contract, unless the commission
finds that such commitments are not necessary.
(h) Notwithstanding any other provision of this section, the application process does
not convey a legal entitlement to the applicant to a long-term contract. Rather, the
purpose of the proceeding is to leave the final decision as to whether a long-term
contract should be required to the discretion of the commission, subject to the standards
outlined in this section and the purposes of this chapter.
(i) An applicant under this section shall not be permitted to submit a proposal under
the solicitations required in §â€‚39-26.1-3, except that such applicant shall be permitted to submit a proposal under §â€‚39-26.1-7.
(j) Should a proceeding pursuant to this section result in the commission not ordering
the distribution company to enter into a long-term contract for a utility-scale offshore
wind project, or should the certified developer fail to file an application with the
commission within one hundred eighty (180) days of certification, the certification
shall be deemed void. In such case, if the commission determines it is in the interest
of electric distribution customers to have another utility-scale project considered
for a long-term contract, the commission has the discretion to request the department
of administration to certify a different developer to make another proposal for a
utility-scale offshore wind project per this section, provided that the commission
makes such request within ninety (90) days of the certification becoming void. If
the commission makes the request, the department of administration may, but is not
required to, certify another project and shall have ninety days to submit another
certification. If the certification is not made within the time allowed, no further
action shall be taken by the commission pursuant to this section. Under no circumstances
is a distribution company required to enter into more than one contract under this
section.
(k) Approval of a contract under this section shall not be interpreted to prevent, hinder,
or diminish the ability of any offshore wind project or developer to pursue, finance,
seek the development of, or secure permits or electrical interconnection for offshore
wind projects in or adjacent to the state, or whose output may be utilized in the
state.