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Rhode Island Energy’s Net Metering Application Is Unanimously Approved
As previously reported, Rhode Island Energy filed an application to amend its net metering provisions. The new provisions would allow Rhode Island Energy to (1) isolate the largest net-metered accounts for reconciliation on an annual basis; (2) provide for an annual reconciliation using a volumetric method approach; (3) include a cash-out provision for any remaining excess net metering credits; (4) credit the results of the reconciliation to all distribution customers through a uniform per kWh charge.
On January 12, 2024, a Public meeting was held regarding Rhode Island Energy’s application to amend its net metering provisions. The new provisions would allow Rhode Island Energy to (1) isolate the largest net-metered accounts for reconciliation on an annual basis; (2) provide for an annual reconciliation using a volumetric method approach; (3) include a cash-out provision for any remaining excess net metering credits; and (4) credit the results of the reconciliation to all distribution customers through a uniform per kWh charge. (1/12/24).
Among other things the following motions were unanimously approved by the Rhode Island Public Utilities Commission at Open Meeting on January 12, 2024:
(1) cancelling RIE’s current net metering tariff, effective 2/1/24, and requires new tariff “with terms and conditions consistent with the directives of the Commission that relate to the proposed amendments reflected in the proposed revised redlined tariff provided in” the revised proposal, including language: (i) “that expressly permits third-party offtakers to transfer unused net metering credits to other eligible offtakers”; and (ii) “expressly indicating that the billing charges will be assessed to the host account”;
(2) approving RIE’s proposal to provide for an annual reconciliation using a volumetric method approach, “but directs that tariff language be added that Annual Reconciliations commence for credits that were applied on bills rendered in billing cycles that reflect usage occurring only within calendar year 2024 and the years that follow”;
(3) directing RIE include a provision that “allows interconnection and commencement of operation to occur pursuant to the power purchase tariff for qualifying facilities (R.I.P.U.C. No. 2240) until the developer is able to reach the required 100% threshold, after which net metering treatment commences”;
(4) directing RIE “to include in the new Net Metering Tariff a definition that limits the proposed exemption from the Annual Reconciliation to single meter systems that are 25 kW or less”;
(5) directing RIE to include a revised provision that permits cash outs, with conditions including: (i) post-reconciliation amount shall be the lower of “the credit balance shown from the Annual Reconciliation of the applicable account” or “the credit balance on the applicable account on the date of the cash out”; (ii) “) For any accounts that had a positive balance of credits as of the end of 2023, those accounts shall be deemed eligible for cash out”; (iii) “For single meter net metering facilities that are 25 kW or less, an Annual Reconciliation is not required”;
(6) directing RIE to include a revised provision that permits credit transfers under the condition that: (i) when ownership of the host account is changing because of the sale of the unit and the credits are transferred from the old host account to the new host account; or (ii) the transfer of credits is between accounts owned by the same customer of record or accounts of affiliates of the same parent company/entity that holds 100% ownership interest in each affiliate”;
(7) approving RIE’s proposal providing “for any proceeds from billing charges arising out of the Annual Reconciliations to be credited to all ratepayers through the Net Metering Charge, which sentence shall be included in the new Net Metering Tarif”;
(8) rejecting RIE’s “proposal to apply a higher billing charge to single meter systems when generation is assumed to be greater than 125% of consumption and actual consumption is not known”;
(9) rejecting Revity’s argument that the Net-Metering Statute defines excess renewable net-metering credit to the exclusion of third-party off-takers in contract with stand-alone configuration host developers as inconsistent with the Net-Metering Statute”; and
(10) rejecting “Gridwealth’s argument that the last resort service rate used for determining the Excess Net Metering Credits be adjusted for purposes of the annual reconciliation to increase the value of the Excess Net Metering Credits as inconsistent with the Net-Metering Statute.”
RIE new tariff was due (1/22/24). No tariff has been made available as of this Update.
