July 2009

Theodore B. Howell, Esq.

On June 26, 2009, Governor Donald Carcieri of the State of Rhode Island signed into law 2009 Public Law Chapter 51 (the “Act”). The Act effectively requires National Grid to solicit proposals and enter into contracts for at least 90 megawatts of capacity from renewable energy resources by December 30, 2013, thus increasing the market for renewable energy developers.

On or before July 1, 2010, National Grid will be required to annually solicit proposals from renewable energy developers and, if it receives commercially reasonable proposals, enter into long-term contracts for the purchase capacity, energy and attributes from newly developed renewable energy resources from such developers. The long-term contracts must be 10 to 15 years in duration.

National Grid will be required to propose to the Rhode Island Public Utilities Commission a timetable and method of solicitation and execution for solicitations and purchases from renewable energy developers pursuant to the long-term contracts. The Act specifies a 4- year phased schedule for capacity from renewable energy resources based on a “minimum long-term contract capacity.” The “minimum long-term contract capacity” is 90 megawatts of which 3 megawatts must be solar or photovoltaic projects located in the state of Rhode Island, and is adjusted by the capacity factor of each renewable generator. The capacity factor is determined in accordance with ISO-NE Rules. As an example, a contract with a one hundred (100) megawatt facility with a thirty percent (30%) capacity factor would be counted as providing thirty (30) megawatts to the minimum long-term contract capacity requirement. The 4-year phased schedule is as follows:.

• by December 30, 2010: Twenty-five percent (25%) of the minimum long-term contract capacity;


• by December 30, 2011: Fifty percent (50%) of the minimum long-term contract capacity;


• by December 30, 2012: Seventy-five percent (75%) of the minimum long-term contract capacity;


• by December 30, 2013: One hundred percent (100%) of the minimum long-term contract capacity.