Clean Energy Program News

Coalition of Big Energy Users, Residential Consumers and Environmental Groups Applaud Action, Release Bill Summaries and Comments

As the new home of RIPIRG's environmental work, Environment Rhode Island can be contacted regarding this news release.

S 2903 Rhode Island Energy Resources Act (Senator Walaska) (unanimously passed Wed.)

· Creates a new Office of Energy Resources (OER) to succeed the State Energy Office, which was originally established only through executive order. The OER Commissioner will be appointed by the Governor with the advice and consent of the Senate. OER will be responsible for:

o Energy planning & forecasting

o Increasing energy efficiency and associated cost savings

o Developing more renewable energy resources

• Creates a new Energy Resources Council appointed by the Governor with the advice and consent of the Senate to advise the new Office of Energy Resources.

o 7-member council will advise the OER Commissioner on energy efficiency and conservation, least-cost energy procurement, and renewable energy.

o The council will represent a variety of energy customers and stakeholders including small and large businesses, residential and low-income customers, environmental groups, and building energy experts (energy companies will be ex-officio members of the council without voting power).

o The Council may intervene independently in least-cost procurement rulemakings at the PUC and submit recommendations on the PUC’s least-cost procurement rules.

o The Council may hire independent experts and consultants to enable quality recommendations, but does not have direct access to any independent financial resources.

POWER Coalition Comments: The Office of Energy Resources should fill a critical energy planning void by creating a legislatively mandated energy office with defined duties and functions. It is critical the OER receive the monies necessary to allow it to complete the tasks it is required to do.

The Energy Resources Council will allow ratepayers of various classes and interests to participate more directly in energy planning and decisions made in Rhode Island. However, it does not have enough independence from the OER and does not have, yet needs, a clearly identified funding source it can use to achieve its objective of ensuring lower energy costs for all R.I. consumers.

S 2904 Renewable Energy Implementation Act (Senator Sosnowski) (unanimously passed Wed.)

· Allows the State Property Committee to lease state property for up to 40 years for eligible renewable energy resources.

· Moves the Rhode Island Renewable Energy Fund account, which is .2 mills collected from the bills of electric ratepayers, from the state to the electric utility, which shall hold the account and disburse it as directed by the OER Commissioner and as approved by the trustees of the renewable energy development fund.

o Sets a goal for this account to be self-sustaining by 2013.

· Directs Statewide Planning to develop guidelines and standards by July 1, 2007 for the location of renewable energy projects in Rhode Island.

POWER Coalition Comments: Overall this bill will help to harmonize local laws and make the siting of renewable energy projects within Rhode Island easier. It should also help insulate the ratepayer funded Renewable Energy Fund from being raided for other purposes. The bill will create mechanisms and remove barriers so the state to obtain more of its energy from renewable sources, like wind, located within the state, while providing for better coordination of the state’s programs to utilize renewable energy sources.

S 2905 Gas & Electric System Reliability & Least-Cost Pricing Act (Senator Walaska) (scheduled for Senate vote Thurs.)

· Instructs the PUC to issue standards and guidelines for “Least-Cost Procurement” to ensure all cost-effective energy efficiency and distributed generation is utilized before more expensive traditional energy sources are purchased by the utility.

· Creates opportunity for a Natural Gas Conservation program to be created for demand-side management at a charge between 0 and 3 cents per therm to support efficiency, combined heat & power systems, and weatherization for low income households to save all R.I. consumers money. This program would be similar to the existing electric demand-side management program.

· Extends “Standard Offer” Through 2020

· Establishes “System Reliability Procurement” measures to ensure a greater diversity of energy sources, including renewable energy and combined heat and power, and that demand response is procured.

· Establishes a Utility Restructuring Oversight Commission made up of four House members and four Senate members appointed by the House Speaker and Senate President. The Commission is charged with studying all aspects of:

o The extension of standard offer service through 2020, system reliability procurement, least cost procurement, time of use pricing, load management, & low income assistance programs

o Monitoring the establishment and development of the Office of Energy Resources

o Recommending any changes in the law that may be needed or desirable on energy matters

Power Coalition Comments: The extension of standard offer coupled with the new least cost procurement mandate of buying our cheapest energy resources first, including efficiency and distributed generation is crucial to controlling costs for energy consumers and will have positive environmental benefits. However, there are still barriers to distributed generation that need to be removed in order to take full advantage of this cost effective resource. The new Energy Resources Council should be given a larger role in helping to develop standards for least-cost procurement and utilities’ procurement plans to ensure cost savings. The gas conservation program is not hard-wired, so there is no guarantee that a program will be created. A hard-wired program at 1.5 cents per therm is a preferred approach.

POWER Coalition Summary Comments: The POWER Coalition strongly supports the Senate’s energy package. Overall the Senate’s package of energy bills will help to control energy costs across all ratepayer classes in Rhode Island by ensuring least-cost procurement, the purchase of efficiency when it is cheaper than traditional supply, and extending the standard offer through 2020. The bills will make Rhode Island more energy independent, will facilitate the development of renewable and distributed generation and will allow the state to engage in better long-term energy planning. It will give ratepayers an increased role in the state’s energy decisions to ensure cost savings and improved reliability.

The Senate’s energy package would have an even greater positive impact if the Energy Resources Council was given more independence from the Office of Energy Resources, if the Council had direct access to the funding it needs to carry out its mission, if there were a guaranteed natural gas efficiency program at 1.5 cent per therm by next winter, and if additional barriers to distributed generation were removed.

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TEC-RI is a membership organization consisting of the largest users of energy in Rhode Island. These universities, manufacturers, hospitals, and other major employers provide well-paying jobs for over 60,000 Rhode Islanders.

People’s Power & Light is a non-profit energy company that serves 3,000 consumers and is dedicated to energy that is affordable, safe, and clean for our families and the environment.

RIPIRG is a non-profit, non-partisan public interest advocacy organization that represents 3,000 active citizen members and is dedicated to protecting our environment and encouraging a fair, sustainable economy.

Environment Northeast is a non-profit research and advocacy organization that addresses large-scale environmental problems that threaten ecosystems, human health or the management of regionally significant natural resources.