§ 39-31-11. Financial remuneration and incentives.
In order to achieve the purposes of this chapter, electric distribution companies
shall be entitled to financial remuneration and incentives for long-term contracts
for newly developed renewable energy resources, which are over and above the base
rate revenue requirement established in its cost of service for distribution ratemaking.
Such remuneration and incentives shall compensate the electric distribution company
for accepting the financial obligation of the long-term contracts. For long-term contracts
approved pursuant to this chapter on or after January 1, 2022, the financial remuneration
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§ 39-31-11. Financial remuneration and incentives.
In order to achieve the purposes of this chapter, electric distribution companies
shall be entitled to financial remuneration and incentives for long-term contracts
for newly developed renewable energy resources, which are over and above the base
rate revenue requirement established in its cost of service for distribution ratemaking.
Such remuneration and incentives shall compensate the electric distribution company
for accepting the financial obligation of the long-term contracts. For long-term contracts
approved pursuant to this chapter on or after January 1, 2022, the financial remuneration
and incentives shall be in the form of annual compensation up to one percent (1.0%)
of the actual annual payments made under the contracts through December 31, 2026,
for those projects that are commercially operating. For long-term contracts approved
pursuant to this chapter on or after January 1, 2027, financial remuneration and incentives
shall not be applied, unless otherwise granted by the commission. For any calendar
year in which the electric distribution company's actual return on equity exceeds
the return on equity allowed by the commission in the electric distribution company's
last general rate case, the commission shall have the authority to adjust any or all
remuneration paid to the electric distribution company pursuant to this section in
order to assure that such remuneration does not result in or contribute toward the
electric distribution company earning above its allowed return for such calendar year.