In order to achieve the purposes of this chapter, electric distribution companies shall be entitled to financial remuneration and incentives for long-term contracts for newly developed renewable energy resources, which are over and above the base rate revenue requirement established in its cost of service for distribution ratemaking. Such remuneration and incentives shall compensate the electric distribution company for accepting the financial obligation of the long-term contracts. For long-term contracts approved pursuant to this chapter on or after January 1, 2022, the financial remuneration and incentives shall be in the form of annual compensation up to one percent (1.0%) of the actual annual payments made under the contracts through December 31, 2026, for those projects that are commercially operating. For long-term contracts approved pursuant to this chapter on or after January 1, 2027, financial remuneration and incentives shall not be applied, unless otherwise granted by the commission. For any calendar year in which the electric distribution company’s actual return on equity exceeds the return on equity allowed by the hall not be applied, unless otherwise granted by the commission. For any calendar year in which the electric distribution company’s actual return on equity exceeds the return on equity allowed by the commission in the electric distribution company’s last general rate case, the commission shall have the authority to adjust any or all remuneration paid to the electric distribution company pursuant to this section in order to assure that such remuneration does not result in or contribute toward the electric distribution company earning above its allowed return for such calendar year. History of Section.P.L. 2022, ch. 372, § 3; P.L. 2022, ch. 373, § 3.
Rhode Island Legal Code