2005 Rhode Island Code - § 39-2-1.2 — Utility base rate – Advertising, demand side management and renewables.

    (a) In addition to costs prohibited in § 39-1-27.4(b), no public utility distributing or providing heat, electricity, or water to or for the public shall include as part of its base rate any expenses for advertising, either direct or indirect, which promotes the use of its product or service, or is designed to promote the public image of the industry. No public utility may furnish support of any kind, direct, or indirect, to any subsidiary, group, association, or individual for advertising and include the expense as part of its base rate. Nothing contained in this section shall be deemed as prohibiting the inclusion in the base rate of expenses incurred for advertising, informational or educational in nature, which is designed to promote public safety conservation of the public utility's product or service. The public utilities commission shall promulgate such rules and regulations as are necessary to require public disclosure of all advertising expenses of any kind, direct or indirect, and to otherwise effectuate the provisions of this section.

   (b) Effective as of January 1, 2003, and for a period of ten (10) years thereafter, each electric distribution company shall include charges of 2.0 mills per kilowatt-hour delivered to fund demand side management programs and 0.3 mills per kilowatt-hour delivered to fund renewable energy programs. Existing charges for these purposes and their method of administration shall continue through December 31, 2002. Thereafter, the electric distribution company shall establish two (2) separate accounts, one for demand side management programs, which shall be administered and implemented by the distribution company, subject to the regulatory reviewing authority of the commission, and one for renewable energy programs, which shall be administered by the state energy office.

   During the ten (10) year period the commission may, in its discretion, after notice and public hearing, increase the sums for demand side management and renewable resources; thereafter, the commission shall, after notice and public hearing, determine the appropriate charge for these programs. The energy office and the administrator of the renewable energy programs shall seek to secure for the state an equitable and reasonable portion of renewable energy credits or certificates created by projects funded through those programs. As used in this section, "renewable energy resources" shall mean power generation technologies as defined in § 39-26-5, "eligible renewable energy resources". Technologies for converting solar energy for space heating or generating domestic hot water may also be funded through the renewable energy programs, so long as these technologies are installed on housing projects that have been certified by the executive director of the Rhode Island housing and mortgage finance corporation as serving low-income Rhode Island residents. Fuel cells may be considered an energy efficiency technology to be included in demand sided management programs. Special rates for low income customers in effect as of August 7, 1996 shall be continued, and the costs of all of these discounts shall be included in the distribution rates charged to all other customers. Nothing in this section shall be construed as prohibiting an electric distribution company from offering any special rates or programs for low income customers which are not in effect as of August 7, 1996, subject to the approval by the commission.

   (c) The director of the state energy office is authorized and shall enter into a contract with a contractor for the effective administration of the renewable energy programs funded by this section. The director shall initiate the competitive bid process by the issuance and advertisement of specifications and request for proposals, on or before September 1, 2002. The contract resulting from the competitive bid process shall be awarded to become effective for a three (3) year period commencing no later than January 1, 2003. A competitive bid and contract award for administration of the renewable energy programs shall occur every three (3) years thereafter.