810-RICR-00-00-3
810-RICR-00-00-3. Review of a Utility Scale Offshore Wind Project As Described In R.I. Gen. Law § 39-26.1-8 (version Technical Revision, 04/07/2010 to 01/04/2022)
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3.1 Authority
These regulations are
promulgated by the Rhode Island Public Utilities Commission pursuant
to R.I. Gen. Laws § 39-26.1-8 and R.I. Gen. Laws Chapter 42-35.
3.2 Purpose
A. The purpose of these
Regulations is to govern the proceedings before the Rhode Island
Public Utilities Commission to review an application by a Developer
certified by the State to develop a utility-scale offshore wind farm.
B. To the extent not
specifically addressed in these Regulations, the Commission’s Rules
of Practice and Procedure shall govern the proceedings before the
Commission.
3.3 Definitions
A. “Applicant” means a
Developer filing with the Commission for an Order requiring the
Electric Distribution Company to enter into a Long-term Contract with
the Developer.
B. “Commission” means the
Rhode Island Public Utilities Commission.
C. “Developer” means an
entity certified by the Department of Administration to develop
Utility-Scale Offshore Wind Farm.
D. “Division” means the
Rhode Island Division of Public Utilities and Carriers.
E. “Electric distribution
company” means a company defined in R.I. Gen. Laws § 39-1-2(12),
supplying standard offer service to end-use customers, but not
including the Block Island Power Company or Pascoag Utility District.
F. “Long-term contract”
means a contract of ten (10) to fifteen (15) years in duration, or of
a term greater than fifteen (15) years upon approval of the
Commission.
G. “OER” means the Rhode
Island Office of Energy Resources.
H. “Party" or "Parties”
includes the Applicant, the Electric Distribution Company, the
Division, OER and intervenors as defined by the Commission’s Rules
of Practice and Procedure.
I. “Utility-scale offshore
wind farm” means a wind power project located offshore in the
waters of Rhode Island or adjacent federal waters of at least one
hundred (100) megawatts but not more than one hundred fifty (150)
megawatts, as defined in R.I. Gen. Laws § 39-26.1-2(7).
3.4 Filing Requirements &
Service
A. Unless otherwise modified
in § 3.4 of this Part, the formal
requirements as to filings and service set forth in §§ 1.6
and 1.8 of this Subchapter, the Commission’s Rules of
Practice and Procedure shall apply.
B. All graphs, charts,
photographs, or other documents originally produced in color shall be
provided in hard copy to the Commission in color.
C. All filings, including
Discovery responses, made by any Party shall be provided in
electronic format, as a PDF, to all members of the official Service
List maintained by the Commission Clerk with no further requirement
that hard copies be provided to a Party unless requested by the
Party. However, an original and nine (9) hard copies shall be filed
with the Commission Clerk. All hard copies, except for color copies,
shall be double-sided.
D. The Application shall be
filed with the Commission with copies to the Electric Distribution
Company, the Division, OER, the Rhode Island Department of
Administration, the Economic Development Corporation, and the
Attorney General on the same day.
E. For purposes of determining
the timeliness of a filing with the Commission, a document is
received at the time the hard copy is date stamped with the
Commission.
F. In the event an attachment
to a Data Request exceeds fifty pages when double-sided, Counsel for
the Party shall contact Commission Legal Counsel to determine whether
nine (9) hard copies of the attachment will be required and if not,
the preferred format of delivery.
G. Any data request that
seeks worksheets with formulae intact shall be provided in Excel
format.
3.5 Intervention
A. The Electric Distribution
Company, Division and OER shall be mandatory Parties to the
proceedings covered by these Rules and shall simply notify the
Commission Clerk of their respective attorney’s contact
information.
B. State Agencies seeking
intervention may file a Notice of Intervention by the Intervention
Deadline setting forth the interest of the State Agency and the level
of involvement sought by the State Agency.
C. For all others seeking
intervention, § 1.14 of this
Subchapter, the Commission’s Rules of Practice and Procedure shall
apply.
3.6 Application
A. The application shall
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 on behalf of the
Applicant.
3. The proposed term of the
Long-Term Contract.
4. A list of each permit or
license that will be required and the identity of the agency
responsible for such permitting or licensing.
5. A time line for permitting,
licensing, and construction.
6. The status of application
for each permit or license.
7. A copy of all filings made
with state and federal regulatory agencies related to the proposed
project.
8. Evidence of material
progress toward obtaining real property rights (site control).
9. Details regarding a
proposed transmission line to the mainland.
10. All interconnection
filings made with any entity related to the proposed project.
11. Projected electrical
energy production profiles.
12. A proposed initial term
sheet for a long-term contract between the
Applicant and the
Electric Distribution Company, which shall consist of the essential
terms that the Applicant expects to be included in a draft Long-Term
Contract that would be subject to negotiation with the Electric
Distribution Company.
13. 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.
14. Economic justification for
the proposal, including projection of market prices over the term of
the proposed Long-Term Contract.
15. A description of the
economic benefits to Rhode Island, including the creation of jobs in
Rhode Island.
16. A description of the
potential risks of the project to ratepayers in the State of Rhode
Island.
17. A description of binding
legal commitments relative to the creation of jobs in Rhode Island
and any other economic benefits to Rhode Island.
18. The Applicant’s business
plan for the project including forecasts of all expenses and revenues
from the proposed project.
19. The Applicant’s plan to
finance the proposed project and any material progress made toward
financing the plan.
20. Pre-Filed Testimony from
an officer of the Applicant’s company sponsoring the Application
and explaining the specifics of the project, including the economic
benefits of the project to ratepayers and the State of Rhode Island,
and the potential risks of the project to the ratepayers. If the
officer of the Applicant’s company is not qualified to discuss
specific issues, the Application shall include Pre-Filed Testimony of
a witness so qualified.
3.7 Discovery
Discovery shall be governed
by the Commission’s Rules of Practice and Procedure.
3.8 Motions
The filing of Motions shall
be governed by the Commission’s Rules of Practice and Procedure
3.9 Public Records
A. All documents submitted by
the Parties will be considered public documents under the Access to
Public Records Act, R.I. Gen. Laws § 38-2-1 unless such documents
are protected from release by one of the exceptions set forth in R.I.
Gen. Laws § 38-2-2 and/or granted protection from disclosure by the
Commission.
B. All requests for
confidential treatment shall be made in accordance with § 1.3(H)
of this Subchapter, the Commission’s Rules of Practice and
Procedure.
3.10 Hearings & Briefs
A. Hearings shall be governed
by §§ 1.21, 1.22, 1.23, 1.24, and 1.26 of
this Subchapter, the Commission’s
Rules of Practice and Procedure (Part 1 of this Chapter).
B. Briefs
shall be governed by § 1.26 of
this Subchapter, the Commission’s Rules of Practice and Procedure.
3.11 Assessment of Expenses
Responsibility - An
Applicant shall be charged with and shall pay the reasonable costs of
consultants or counsel that may be hired by the Commission and the
Division for the proceeding, up to $100,000 for the Commission and
$100,000 for the Division, respectively.
3.12 Final Order On Application
A. The Commission shall
determine through issuance of a final order within eight (8) months
from the filing of the Application, whether the proposal is in the
best interests of the electric distribution customers in Rhode
Island.
B. 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.
C If the Commission determines
that the proposal is in the best interests of the electric
distribution customers in Rhode Island, the Commission shall require
the Electric Distribution Company to negotiate a commercially
reasonable Long-Term Contract with the Applicant wherein the Electric
Distribution Company agrees to purchase the entire output from the
proposed project, unless otherwise authorized by the Commission.
D. In determining whether the
proposal is in the best interests of electric distribution customers,
the Commission will consider the following factors:
1. The economic impact and
potential risks of the proposal on rates to be charged by the
Electric Distribution Company;
2. The potential benefits of
stabilizing long-term energy prices;
3. Any other factor the
Commission determines necessary to be in the best interest of the
ratepayers.
E. 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.
3.13 Filing of a Contract
A. Within three (3) months
from the issuance of the Commission’s written Order, the Applicant
and Electric Distribution Company shall file a proposed Long-Term
Contract for review by the Commission.
B. If the Parties are unable
to reach agreement on a Long-Term Contract within three (3) months,
the Applicant and Electric Distribution Company shall jointly file
with the Commission the terms upon which they can agree and the terms
upon which they cannot agree and their respective positions on
whether or not the terms upon which they cannot agree are appropriate
for arbitration. The Commission will then determine whether or not
to order arbitration.
C. Once the terms of the
Long-Term Contract are finalized between the Applicant and the
Electric Distribution Company, the Long-Term Contract shall be filed
with the Commission for its review.
D. The Commission shall review
the Long-Term Contract to determine whether or not it is in the best
interests of the electric distribution customers in Rhode Island.
3.14 Legal Ramifications of the
Application Process
A. The Application Process set
forth in §§ 3.1 through 3.12 of this Part does not convey a legal
entitlement to the Applicant to a Long-Term Contract.
B. The Commission will review
both the Application and the proposed Long-Term Contract to determine
whether or not each is in the best interests of the electric
distribution customers in Rhode Island.
3.15 Severability
If any part of these Rules is
found to be invalid by a court of competent jurisdiction or its
application to any person or circumstances is held invalid by a court
of competent jurisdiction or through a change in State law or Federal
preemption, the invalidity does not affect other provisions or
applications of the Rules which can be given effect without the
invalid provision or application, and to this end, the provisions.