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Question 1 of 30
1. Question
Consider a proposed solar photovoltaic project in Rhode Island, with a generating capacity of 500 kilowatts (kW), intended for commercial operation in the upcoming fiscal year. This project is seeking to participate in the state’s primary incentive program designed to encourage solar development. Under Rhode Island General Laws § 39-26.1-1 et seq., what is the typical duration and the general method by which the incentive rate for such a system would be established and maintained?
Correct
The Rhode Island Renewable Energy Growth Program, established under Rhode Island General Laws § 39-26.1-1 et seq., aims to promote the development of solar electric generating systems by providing financial incentives. The program’s structure involves a tiered approach to incentives, with rates determined by the size of the system and the date of application. For systems between 10 kW and 1 MW, the incentive rate is fixed for a period of 15 years from the system’s commercial operation date. The specific rate for this size category is determined by a competitive solicitation process managed by the Rhode Island Public Utilities Commission (RIPUC) or its designated administrator, often through a Renewable Energy Standard (RES) compliance mechanism. This mechanism ensures that the incentive rates reflect market conditions and the cost-effectiveness of solar development within the state. The program prioritizes projects that contribute to Rhode Island’s renewable energy goals and can demonstrate economic viability. The incentive is typically provided as a per-kilowatt-hour credit or payment, directly impacting the project’s revenue stream and financial feasibility. Understanding the regulatory framework and the specific incentive mechanisms is crucial for developers seeking to participate in Rhode Island’s solar market. The program’s design, including its tiered incentive structure and competitive procurement, is intended to foster a robust and sustainable renewable energy sector in Rhode Island, aligning with the state’s commitment to clean energy.
Incorrect
The Rhode Island Renewable Energy Growth Program, established under Rhode Island General Laws § 39-26.1-1 et seq., aims to promote the development of solar electric generating systems by providing financial incentives. The program’s structure involves a tiered approach to incentives, with rates determined by the size of the system and the date of application. For systems between 10 kW and 1 MW, the incentive rate is fixed for a period of 15 years from the system’s commercial operation date. The specific rate for this size category is determined by a competitive solicitation process managed by the Rhode Island Public Utilities Commission (RIPUC) or its designated administrator, often through a Renewable Energy Standard (RES) compliance mechanism. This mechanism ensures that the incentive rates reflect market conditions and the cost-effectiveness of solar development within the state. The program prioritizes projects that contribute to Rhode Island’s renewable energy goals and can demonstrate economic viability. The incentive is typically provided as a per-kilowatt-hour credit or payment, directly impacting the project’s revenue stream and financial feasibility. Understanding the regulatory framework and the specific incentive mechanisms is crucial for developers seeking to participate in Rhode Island’s solar market. The program’s design, including its tiered incentive structure and competitive procurement, is intended to foster a robust and sustainable renewable energy sector in Rhode Island, aligning with the state’s commitment to clean energy.
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Question 2 of 30
2. Question
In the context of Rhode Island’s Renewable Energy Growth Program (RIGrowth), as outlined in Rhode Island General Laws Chapter 39-26.1, what is the primary mechanism by which the per-kilowatt-hour incentive rate for solar installations is adjusted to ensure program sustainability and cost-effectiveness?
Correct
The Rhode Island Renewable Energy Growth Program (RIGrowth) established under Rhode Island General Laws § 39-26.1-1 et seq. aims to foster the development of solar energy projects within the state. The program is administered by the Rhode Island Office of Energy Resources (OER). A key component of RIGrowth is the establishment of a base per-kilowatt-hour (kWh) incentive rate for solar electric generation. This rate is subject to adjustments based on various factors, including the total capacity subscribed to the program and the overall cost of renewable energy credits (RECs) in the New England market. For a hypothetical 100 kW solar installation in Rhode Island, the base incentive rate is set by the OER. Let’s assume the initial base rate for a qualifying installation under RIGrowth is $0.03 per kWh. If the solar installation is projected to generate 150,000 kWh annually, the initial annual incentive would be calculated as: \(150,000 \text{ kWh} \times \$0.03/\text{kWh} = \$4,500\). However, RIGrowth also includes provisions for incentive rate adjustments. For instance, if the average REC price in the New England Power Pool (NEPOOL) market for the preceding compliance year exceeds a certain threshold, the incentive rate may be reduced to ensure program cost-effectiveness and to prevent over-subsidization. Conversely, if the program capacity remains significantly underutilized, the rate might be maintained or adjusted to encourage further development. The determination of the actual incentive rate for a specific project involves a review of the current RIGrowth program guidelines and any recent adjustments published by the OER, which are often tied to the program’s subscription levels and market conditions for renewable energy credits. The question asks for the mechanism by which the incentive rate is adjusted, not the specific calculation for a given year, which would require current market data. The RIGrowth program, as codified in Rhode Island law, explicitly allows for adjustments to the incentive rate based on program subscription levels and market conditions for renewable energy credits. This mechanism ensures that the program remains financially sustainable and effectively promotes solar development without creating undue burdens on ratepayers. The statute provides the framework for these adjustments, empowering the OER to implement them through administrative rules and regulations.
Incorrect
The Rhode Island Renewable Energy Growth Program (RIGrowth) established under Rhode Island General Laws § 39-26.1-1 et seq. aims to foster the development of solar energy projects within the state. The program is administered by the Rhode Island Office of Energy Resources (OER). A key component of RIGrowth is the establishment of a base per-kilowatt-hour (kWh) incentive rate for solar electric generation. This rate is subject to adjustments based on various factors, including the total capacity subscribed to the program and the overall cost of renewable energy credits (RECs) in the New England market. For a hypothetical 100 kW solar installation in Rhode Island, the base incentive rate is set by the OER. Let’s assume the initial base rate for a qualifying installation under RIGrowth is $0.03 per kWh. If the solar installation is projected to generate 150,000 kWh annually, the initial annual incentive would be calculated as: \(150,000 \text{ kWh} \times \$0.03/\text{kWh} = \$4,500\). However, RIGrowth also includes provisions for incentive rate adjustments. For instance, if the average REC price in the New England Power Pool (NEPOOL) market for the preceding compliance year exceeds a certain threshold, the incentive rate may be reduced to ensure program cost-effectiveness and to prevent over-subsidization. Conversely, if the program capacity remains significantly underutilized, the rate might be maintained or adjusted to encourage further development. The determination of the actual incentive rate for a specific project involves a review of the current RIGrowth program guidelines and any recent adjustments published by the OER, which are often tied to the program’s subscription levels and market conditions for renewable energy credits. The question asks for the mechanism by which the incentive rate is adjusted, not the specific calculation for a given year, which would require current market data. The RIGrowth program, as codified in Rhode Island law, explicitly allows for adjustments to the incentive rate based on program subscription levels and market conditions for renewable energy credits. This mechanism ensures that the program remains financially sustainable and effectively promotes solar development without creating undue burdens on ratepayers. The statute provides the framework for these adjustments, empowering the OER to implement them through administrative rules and regulations.
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Question 3 of 30
3. Question
In Rhode Island, what percentage of electricity sold to retail customers must be sourced from eligible renewable energy sources for the 2023 compliance year under the Renewable Energy Standard?
Correct
The Rhode Island Renewable Energy Standard (RES) mandates that electricity suppliers procure a certain percentage of their retail sales from renewable energy sources. This percentage increases over time. For 2023, the RES requires 21.5% of electricity sold to retail customers in Rhode Island to be from eligible renewable energy sources. This percentage is a cumulative requirement, meaning that if a supplier fails to meet the requirement in a given year, they can potentially carry forward credits or make alternative compliance payments. However, the core obligation is to demonstrate that the specified percentage of energy sales is sourced from renewables. The RES program is administered by the Rhode Island Office of Energy Resources (OER) and is designed to foster the development of renewable energy technologies within the state and region. Compliance can be achieved through various mechanisms, including the procurement of Renewable Energy Certificates (RECs) or direct investment in renewable energy projects that qualify under the RES guidelines. The specific types of renewable energy technologies that qualify are defined in Rhode Island General Laws § 39-26-1 et seq. and associated regulations, which are periodically updated. The 21.5% figure is a key compliance metric for the current compliance period.
Incorrect
The Rhode Island Renewable Energy Standard (RES) mandates that electricity suppliers procure a certain percentage of their retail sales from renewable energy sources. This percentage increases over time. For 2023, the RES requires 21.5% of electricity sold to retail customers in Rhode Island to be from eligible renewable energy sources. This percentage is a cumulative requirement, meaning that if a supplier fails to meet the requirement in a given year, they can potentially carry forward credits or make alternative compliance payments. However, the core obligation is to demonstrate that the specified percentage of energy sales is sourced from renewables. The RES program is administered by the Rhode Island Office of Energy Resources (OER) and is designed to foster the development of renewable energy technologies within the state and region. Compliance can be achieved through various mechanisms, including the procurement of Renewable Energy Certificates (RECs) or direct investment in renewable energy projects that qualify under the RES guidelines. The specific types of renewable energy technologies that qualify are defined in Rhode Island General Laws § 39-26-1 et seq. and associated regulations, which are periodically updated. The 21.5% figure is a key compliance metric for the current compliance period.
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Question 4 of 30
4. Question
Under Rhode Island General Laws Chapter 39-1-27, what is the primary regulatory mechanism through which electric distribution companies in Rhode Island are compelled to offer energy conservation programs, and what entity holds the ultimate authority for their approval?
Correct
Rhode Island General Laws Chapter 39-1-27 establishes the regulatory framework for energy conservation programs and mandates that electric distribution companies, such as those operating in Rhode Island, offer such programs. These programs are designed to promote energy efficiency and reduce overall energy consumption. The statute specifically grants the Public Utilities Commission (PUC) the authority to approve or disapprove these programs, ensuring they align with the state’s energy policy objectives, including environmental protection and economic development. The law emphasizes a collaborative approach, often involving stakeholder input in program design and implementation. The PUC’s oversight extends to reviewing the cost-effectiveness of proposed energy conservation measures and ensuring that the benefits to ratepayers outweigh the costs. This oversight is crucial for maintaining fair and reasonable energy rates while fostering sustainable energy practices. The statute aims to balance the financial interests of utilities with the public interest in efficient and environmentally sound energy use, reflecting Rhode Island’s commitment to clean energy initiatives.
Incorrect
Rhode Island General Laws Chapter 39-1-27 establishes the regulatory framework for energy conservation programs and mandates that electric distribution companies, such as those operating in Rhode Island, offer such programs. These programs are designed to promote energy efficiency and reduce overall energy consumption. The statute specifically grants the Public Utilities Commission (PUC) the authority to approve or disapprove these programs, ensuring they align with the state’s energy policy objectives, including environmental protection and economic development. The law emphasizes a collaborative approach, often involving stakeholder input in program design and implementation. The PUC’s oversight extends to reviewing the cost-effectiveness of proposed energy conservation measures and ensuring that the benefits to ratepayers outweigh the costs. This oversight is crucial for maintaining fair and reasonable energy rates while fostering sustainable energy practices. The statute aims to balance the financial interests of utilities with the public interest in efficient and environmentally sound energy use, reflecting Rhode Island’s commitment to clean energy initiatives.
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Question 5 of 30
5. Question
A regulated electric distribution utility in Rhode Island proposes a novel residential rate structure that includes a monthly demand charge based on the customer’s highest 30-minute peak usage during the billing period, in addition to a per-kilowatt-hour energy charge. What is the primary regulatory pathway this utility must follow to implement this proposed rate change, and what is the central principle guiding the Rhode Island Public Utilities Commission’s decision on such a proposal?
Correct
The Rhode Island Public Utilities Commission (PUC) has broad authority to oversee the state’s energy sector. When a utility proposes significant changes to its rate structure, such as implementing a new demand-charge component for residential customers, it must file a formal rate case. This process, governed by Rhode Island General Laws Chapter 39-3, requires the utility to demonstrate the reasonableness and necessity of the proposed changes to the PUC. The PUC then conducts a thorough review, which typically includes public hearings, expert testimony from the utility and intervenors (like consumer advocacy groups or environmental organizations), and the submission of detailed financial and operational data. Intervenors play a crucial role in presenting alternative proposals or challenging the utility’s assumptions. The PUC’s decision is based on whether the proposed rates are just and reasonable, ensuring that they cover the utility’s costs while not being unduly burdensome on consumers. This regulatory framework aims to balance the financial health of the utility with the public interest in affordable and reliable energy. The commission’s final order can approve, deny, or modify the proposed rate structure. The specific statutory provisions guiding such decisions include the requirement for the utility to prove the prudence of its expenditures and the appropriateness of its proposed revenue requirement.
Incorrect
The Rhode Island Public Utilities Commission (PUC) has broad authority to oversee the state’s energy sector. When a utility proposes significant changes to its rate structure, such as implementing a new demand-charge component for residential customers, it must file a formal rate case. This process, governed by Rhode Island General Laws Chapter 39-3, requires the utility to demonstrate the reasonableness and necessity of the proposed changes to the PUC. The PUC then conducts a thorough review, which typically includes public hearings, expert testimony from the utility and intervenors (like consumer advocacy groups or environmental organizations), and the submission of detailed financial and operational data. Intervenors play a crucial role in presenting alternative proposals or challenging the utility’s assumptions. The PUC’s decision is based on whether the proposed rates are just and reasonable, ensuring that they cover the utility’s costs while not being unduly burdensome on consumers. This regulatory framework aims to balance the financial health of the utility with the public interest in affordable and reliable energy. The commission’s final order can approve, deny, or modify the proposed rate structure. The specific statutory provisions guiding such decisions include the requirement for the utility to prove the prudence of its expenditures and the appropriateness of its proposed revenue requirement.
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Question 6 of 30
6. Question
A newly established solar photovoltaic project located in Westerly, Rhode Island, has commenced operations and is generating electricity for sale into the regional grid. The project developer seeks to ensure compliance with Rhode Island’s Renewable Energy Standard (RES) for an electric distribution company that purchases its output. According to Rhode Island General Laws Chapter 39-1, which mechanism is primarily utilized by the electric distribution company to demonstrate compliance with its Renewable Energy Standard obligations through the acquisition of attributes from this solar project?
Correct
Rhode Island General Laws Chapter 39-1, specifically section 39-1-27, establishes the framework for the Renewable Energy Standard (RES). This statute mandates that electric distribution companies and suppliers procure a certain percentage of their total electricity sales from eligible renewable energy sources. The percentage requirement increases over time. For instance, the law outlines specific annual targets, aiming for a significant portion of electricity to be derived from renewables by a future date. The eligible sources are defined within the statute and subsequent regulations, typically including solar, wind, hydropower, and certain biomass technologies that meet specific criteria. The compliance mechanism for electric distribution companies and suppliers often involves the acquisition of Renewable Energy Certificates (RECs) generated by eligible renewable energy facilities operating within or supplying power to Rhode Island. These RECs represent the environmental attributes of renewable energy generation. Failure to meet the RES obligations can result in penalties, which are also stipulated in the law, often tied to the market value of the required renewable energy or a fixed per-megawatt-hour penalty. The Rhode Island Public Utilities Commission (PUC) plays a crucial role in administering and enforcing the RES, including approving compliance plans and overseeing the REC market. The intent behind the RES is to promote the development and deployment of renewable energy technologies, reduce greenhouse gas emissions, and enhance the state’s energy independence and environmental quality. The specific percentage targets and compliance mechanisms are subject to periodic review and potential legislative amendments.
Incorrect
Rhode Island General Laws Chapter 39-1, specifically section 39-1-27, establishes the framework for the Renewable Energy Standard (RES). This statute mandates that electric distribution companies and suppliers procure a certain percentage of their total electricity sales from eligible renewable energy sources. The percentage requirement increases over time. For instance, the law outlines specific annual targets, aiming for a significant portion of electricity to be derived from renewables by a future date. The eligible sources are defined within the statute and subsequent regulations, typically including solar, wind, hydropower, and certain biomass technologies that meet specific criteria. The compliance mechanism for electric distribution companies and suppliers often involves the acquisition of Renewable Energy Certificates (RECs) generated by eligible renewable energy facilities operating within or supplying power to Rhode Island. These RECs represent the environmental attributes of renewable energy generation. Failure to meet the RES obligations can result in penalties, which are also stipulated in the law, often tied to the market value of the required renewable energy or a fixed per-megawatt-hour penalty. The Rhode Island Public Utilities Commission (PUC) plays a crucial role in administering and enforcing the RES, including approving compliance plans and overseeing the REC market. The intent behind the RES is to promote the development and deployment of renewable energy technologies, reduce greenhouse gas emissions, and enhance the state’s energy independence and environmental quality. The specific percentage targets and compliance mechanisms are subject to periodic review and potential legislative amendments.
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Question 7 of 30
7. Question
An electric distribution company operating within Rhode Island proposes a significant rate adjustment to its customers. The company claims these increased rates are necessary to fund extensive upgrades to its transmission and distribution infrastructure, citing the need to integrate projected increases in distributed solar generation and comply with emerging grid modernization standards mandated by the state’s climate action plan. According to Rhode Island General Laws Chapter 39-1 and related regulatory principles governing the Public Utilities Commission, under what primary condition would the Commission be most likely to approve such a rate adjustment?
Correct
The Rhode Island Public Utilities Commission (RIPUC) plays a pivotal role in regulating the state’s energy sector. Under Rhode Island General Laws Chapter 39-1, specifically sections concerning public utilities and their operations, the Commission is empowered to approve or deny rate adjustments proposed by electric distribution companies. When an electric distribution company seeks to recover costs associated with infrastructure upgrades, such as those mandated by state renewable energy mandates or grid modernization initiatives, it typically files a petition for a rate adjustment. The Commission then undertakes a thorough review process. This process involves analyzing the prudency and reasonableness of the proposed expenditures, assessing the impact on ratepayers, and ensuring compliance with all relevant state statutes and regulations. Public hearings are often held to allow for public comment and expert testimony. The Commission’s decision is based on whether the proposed costs are demonstrably necessary for reliable service, aligned with state energy policy objectives, and are not unduly burdensome on consumers. The Commission’s authority to approve such cost recovery is not absolute; it is circumscribed by statutory requirements for justification and public interest considerations, as outlined in Rhode Island’s energy regulatory framework. The core principle is that utilities can recover legitimate and prudently incurred costs necessary for providing safe, reliable, and increasingly sustainable energy services, but only after demonstrating this necessity and reasonableness to the Commission.
Incorrect
The Rhode Island Public Utilities Commission (RIPUC) plays a pivotal role in regulating the state’s energy sector. Under Rhode Island General Laws Chapter 39-1, specifically sections concerning public utilities and their operations, the Commission is empowered to approve or deny rate adjustments proposed by electric distribution companies. When an electric distribution company seeks to recover costs associated with infrastructure upgrades, such as those mandated by state renewable energy mandates or grid modernization initiatives, it typically files a petition for a rate adjustment. The Commission then undertakes a thorough review process. This process involves analyzing the prudency and reasonableness of the proposed expenditures, assessing the impact on ratepayers, and ensuring compliance with all relevant state statutes and regulations. Public hearings are often held to allow for public comment and expert testimony. The Commission’s decision is based on whether the proposed costs are demonstrably necessary for reliable service, aligned with state energy policy objectives, and are not unduly burdensome on consumers. The Commission’s authority to approve such cost recovery is not absolute; it is circumscribed by statutory requirements for justification and public interest considerations, as outlined in Rhode Island’s energy regulatory framework. The core principle is that utilities can recover legitimate and prudently incurred costs necessary for providing safe, reliable, and increasingly sustainable energy services, but only after demonstrating this necessity and reasonableness to the Commission.
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Question 8 of 30
8. Question
A hypothetical electric distribution company operating solely within Rhode Island proposes to enter into a long-term power purchase agreement for 70% of its annual electricity needs from a newly constructed offshore wind farm located in federal waters but designed to transmit power directly to Rhode Island’s grid. What state-level regulatory body in Rhode Island holds the ultimate authority to approve or reject this significant acquisition of renewable energy to ensure it aligns with the state’s energy policies and consumer interests?
Correct
The Rhode Island Public Utilities Commission (RIPUC) oversees the regulation of public utilities, including electric generation and distribution, within the state. When considering the acquisition of a significant portion of its electricity supply from a new renewable energy project, an electric distribution company in Rhode Island must navigate a specific regulatory framework to ensure the transaction aligns with state energy policy, consumer protection, and economic viability. This process typically involves seeking approval from the RIPUC. The commission’s review would assess various factors, including the project’s compliance with Rhode Island’s Renewable Energy Standard (RES), as established in Rhode Island General Laws § 39-26-1 et seq., which mandates a certain percentage of electricity sold in the state be from renewable sources. Furthermore, the RIPUC would scrutinize the terms of the power purchase agreement (PPA) to ensure it is just and reasonable, and that the costs are not unduly burdensome on ratepayers. This includes evaluating the project’s environmental impact, the financial stability of the developer, and the overall benefit to the state’s energy portfolio and its commitment to decarbonization. The commission’s decision-making authority ensures that such acquisitions serve the public interest. Therefore, the primary regulatory body responsible for approving such a transaction in Rhode Island is the Public Utilities Commission.
Incorrect
The Rhode Island Public Utilities Commission (RIPUC) oversees the regulation of public utilities, including electric generation and distribution, within the state. When considering the acquisition of a significant portion of its electricity supply from a new renewable energy project, an electric distribution company in Rhode Island must navigate a specific regulatory framework to ensure the transaction aligns with state energy policy, consumer protection, and economic viability. This process typically involves seeking approval from the RIPUC. The commission’s review would assess various factors, including the project’s compliance with Rhode Island’s Renewable Energy Standard (RES), as established in Rhode Island General Laws § 39-26-1 et seq., which mandates a certain percentage of electricity sold in the state be from renewable sources. Furthermore, the RIPUC would scrutinize the terms of the power purchase agreement (PPA) to ensure it is just and reasonable, and that the costs are not unduly burdensome on ratepayers. This includes evaluating the project’s environmental impact, the financial stability of the developer, and the overall benefit to the state’s energy portfolio and its commitment to decarbonization. The commission’s decision-making authority ensures that such acquisitions serve the public interest. Therefore, the primary regulatory body responsible for approving such a transaction in Rhode Island is the Public Utilities Commission.
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Question 9 of 30
9. Question
A homeowner in Providence, Rhode Island, installs a rooftop solar photovoltaic system. The system is designed to meet their household electricity needs and potentially export surplus energy to the grid. Considering the framework established by Rhode Island General Laws § 39-26-1 et seq. and subsequent regulatory interpretations by the Public Utilities Commission, what is the primary mechanism by which the homeowner will be compensated for any electricity generated by their system and exported to the electric distribution utility’s grid, assuming their system is eligible under the program’s capacity limits?
Correct
Rhode Island’s approach to renewable energy development, particularly concerning net metering, is guided by specific legislative frameworks designed to incentivize solar adoption while balancing grid stability and cost allocation. The Rhode Island Net Metering Law, codified primarily within Rhode Island General Laws § 39-26-1 et seq., establishes the foundational principles for how customer-owned renewable generation facilities are compensated. Under this law, eligible facilities, typically solar photovoltaic systems, are credited for the electricity they generate and send back to the grid. The core of the compensation mechanism involves crediting the customer’s account at the full retail rate for kilowatt-hours exported to the grid, up to the customer’s monthly energy consumption. Any excess generation beyond monthly consumption is typically rolled over as a credit to future bills. However, there are statutory caps on the total generating capacity that can participate in the net metering program, which are periodically reviewed and adjusted by the legislature and the Public Utilities Commission. The law also specifies interconnection standards and safety requirements. The Public Utilities Commission (PUC) plays a crucial role in implementing and refining these regulations through dockets and orders, ensuring compliance with legislative intent and addressing evolving market conditions. For instance, the PUC’s decisions can influence the specific methodologies for calculating credits, the definition of eligible facilities, and the process for interconnection. The statute aims to promote distributed generation by ensuring that customers receive fair compensation for the energy they contribute, thereby encouraging investment in renewable resources. The legislative intent is to foster a cleaner energy mix for Rhode Island while ensuring that the costs associated with grid infrastructure are equitably distributed among all ratepayers. The specific details of rate structures and program limitations are subject to ongoing regulatory review and potential legislative amendments to align with broader energy policy goals.
Incorrect
Rhode Island’s approach to renewable energy development, particularly concerning net metering, is guided by specific legislative frameworks designed to incentivize solar adoption while balancing grid stability and cost allocation. The Rhode Island Net Metering Law, codified primarily within Rhode Island General Laws § 39-26-1 et seq., establishes the foundational principles for how customer-owned renewable generation facilities are compensated. Under this law, eligible facilities, typically solar photovoltaic systems, are credited for the electricity they generate and send back to the grid. The core of the compensation mechanism involves crediting the customer’s account at the full retail rate for kilowatt-hours exported to the grid, up to the customer’s monthly energy consumption. Any excess generation beyond monthly consumption is typically rolled over as a credit to future bills. However, there are statutory caps on the total generating capacity that can participate in the net metering program, which are periodically reviewed and adjusted by the legislature and the Public Utilities Commission. The law also specifies interconnection standards and safety requirements. The Public Utilities Commission (PUC) plays a crucial role in implementing and refining these regulations through dockets and orders, ensuring compliance with legislative intent and addressing evolving market conditions. For instance, the PUC’s decisions can influence the specific methodologies for calculating credits, the definition of eligible facilities, and the process for interconnection. The statute aims to promote distributed generation by ensuring that customers receive fair compensation for the energy they contribute, thereby encouraging investment in renewable resources. The legislative intent is to foster a cleaner energy mix for Rhode Island while ensuring that the costs associated with grid infrastructure are equitably distributed among all ratepayers. The specific details of rate structures and program limitations are subject to ongoing regulatory review and potential legislative amendments to align with broader energy policy goals.
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Question 10 of 30
10. Question
In Rhode Island, an electricity supplier is determining its compliance strategy for the 2023 retail sales. The state’s Renewable Energy Standard (RES) dictates a specific percentage of electricity that must be sourced from eligible renewable energy facilities. What is the mandatory percentage of retail sales that electricity suppliers in Rhode Island must procure from renewable sources for the year 2023, as established by the Renewable Energy Standard?
Correct
The Rhode Island Renewable Energy Standard (RES) mandates that electricity suppliers procure a certain percentage of their retail sales from renewable energy sources. This percentage increases over time. For the year 2023, the RES requires that 17.5% of electricity sold by suppliers in Rhode Island be sourced from eligible renewable energy facilities. Suppliers can meet this obligation by purchasing Renewable Energy Certificates (RECs) generated by qualifying projects, directly investing in renewable energy projects, or paying a compliance penalty. The RES program is administered by the Rhode Island Office of Energy Resources (OER). The specific percentage for any given year is established through regulations and legislative updates, reflecting the state’s commitment to increasing renewable energy penetration. Understanding the annual percentage requirement is crucial for compliance and for evaluating the market for renewable energy credits within Rhode Island.
Incorrect
The Rhode Island Renewable Energy Standard (RES) mandates that electricity suppliers procure a certain percentage of their retail sales from renewable energy sources. This percentage increases over time. For the year 2023, the RES requires that 17.5% of electricity sold by suppliers in Rhode Island be sourced from eligible renewable energy facilities. Suppliers can meet this obligation by purchasing Renewable Energy Certificates (RECs) generated by qualifying projects, directly investing in renewable energy projects, or paying a compliance penalty. The RES program is administered by the Rhode Island Office of Energy Resources (OER). The specific percentage for any given year is established through regulations and legislative updates, reflecting the state’s commitment to increasing renewable energy penetration. Understanding the annual percentage requirement is crucial for compliance and for evaluating the market for renewable energy credits within Rhode Island.
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Question 11 of 30
11. Question
Ocean State Power, an electric distribution company operating within Rhode Island, was subject to the state’s Renewable Energy Standard (RES) for the 2023 compliance year. The RES mandated that 17% of electricity sold by such companies must originate from eligible renewable energy sources. Ocean State Power reported that its total electricity sales for 2023 were met by 15% eligible renewable sources. What percentage of its total electricity sales did Ocean State Power fail to cover with eligible renewable sources to meet the 2023 RES mandate?
Correct
The Rhode Island Renewable Energy Standard (RES) mandates that a certain percentage of electricity sold by electric distribution companies in Rhode Island must be from eligible renewable energy sources. The Public Utilities Commission (PUC) oversees the implementation and compliance with this standard. For the year 2023, the RES required 17% of electricity sales to be from eligible renewable sources. An electric distribution company, “Ocean State Power,” reported that 15% of its total electricity sales for 2023 were from eligible renewable sources. To determine the shortfall, we calculate the difference between the required percentage and the reported percentage: 17% – 15% = 2%. This 2% represents the amount of renewable energy that Ocean State Power failed to procure to meet the mandate. The penalty for failing to meet the RES is typically a monetary amount per megawatt-hour (MWh) of the shortfall, as established by Rhode Island law and PUC regulations. While the exact penalty amount per MWh is not provided in the scenario, the fundamental concept tested is the calculation of the shortfall against the mandated percentage. The question focuses on identifying the compliance gap, which is the direct result of this calculation. Understanding the RES percentages and the company’s reported compliance is key to identifying the deficiency.
Incorrect
The Rhode Island Renewable Energy Standard (RES) mandates that a certain percentage of electricity sold by electric distribution companies in Rhode Island must be from eligible renewable energy sources. The Public Utilities Commission (PUC) oversees the implementation and compliance with this standard. For the year 2023, the RES required 17% of electricity sales to be from eligible renewable sources. An electric distribution company, “Ocean State Power,” reported that 15% of its total electricity sales for 2023 were from eligible renewable sources. To determine the shortfall, we calculate the difference between the required percentage and the reported percentage: 17% – 15% = 2%. This 2% represents the amount of renewable energy that Ocean State Power failed to procure to meet the mandate. The penalty for failing to meet the RES is typically a monetary amount per megawatt-hour (MWh) of the shortfall, as established by Rhode Island law and PUC regulations. While the exact penalty amount per MWh is not provided in the scenario, the fundamental concept tested is the calculation of the shortfall against the mandated percentage. The question focuses on identifying the compliance gap, which is the direct result of this calculation. Understanding the RES percentages and the company’s reported compliance is key to identifying the deficiency.
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Question 12 of 30
12. Question
An electricity supplier operating in Rhode Island reported total retail electricity sales of \(1,500,000\) megawatt-hours (MWh) within the state during the 2022 calendar year. According to the Rhode Island Renewable Energy Standard (RES) as codified in Rhode Island General Laws Chapter 39-26, the compliance obligation for the year 2024 requires that \(24\%\) of retail sales be sourced from eligible renewable energy. Assuming the supplier’s sales remain constant for the purposes of this calculation, what is the minimum equivalent megawatt-hour quantity of renewable energy that this supplier must procure or retire through renewable energy credits (RECs) to meet its 2024 RES obligation in Rhode Island?
Correct
The Rhode Island Renewable Energy Standard (RES), established under Rhode Island General Laws § 39-26-1 et seq., mandates that electricity suppliers procure a certain percentage of their retail sales from eligible renewable energy sources. The law outlines a progressive increase in this percentage over time. For a given year, the total renewable energy requirement is calculated as a percentage of the supplier’s total retail electricity sales in the preceding year. This percentage is determined by the annual compliance schedule set forth in the RES legislation. The core concept is the volumetric obligation, meaning the requirement is tied to the actual amount of electricity sold. Therefore, to determine the quantity of renewable energy credits (RECs) a supplier must acquire, one multiplies their total retail sales for the previous year by the applicable RES percentage for the current compliance year. For instance, if a supplier sold \(1,000,000\) megawatt-hours (MWh) of electricity in Rhode Island in the year 2022, and the RES requirement for 2023 is \(20\%\), the supplier must acquire RECs equivalent to \(1,000,000 \text{ MWh} \times 0.20 = 200,000 \text{ MWh}\) of renewable energy. This obligation is met by acquiring RECs from eligible renewable energy facilities, which represent the environmental attributes of the electricity generated. The Public Utilities Commission oversees compliance and may impose penalties for failure to meet the standard.
Incorrect
The Rhode Island Renewable Energy Standard (RES), established under Rhode Island General Laws § 39-26-1 et seq., mandates that electricity suppliers procure a certain percentage of their retail sales from eligible renewable energy sources. The law outlines a progressive increase in this percentage over time. For a given year, the total renewable energy requirement is calculated as a percentage of the supplier’s total retail electricity sales in the preceding year. This percentage is determined by the annual compliance schedule set forth in the RES legislation. The core concept is the volumetric obligation, meaning the requirement is tied to the actual amount of electricity sold. Therefore, to determine the quantity of renewable energy credits (RECs) a supplier must acquire, one multiplies their total retail sales for the previous year by the applicable RES percentage for the current compliance year. For instance, if a supplier sold \(1,000,000\) megawatt-hours (MWh) of electricity in Rhode Island in the year 2022, and the RES requirement for 2023 is \(20\%\), the supplier must acquire RECs equivalent to \(1,000,000 \text{ MWh} \times 0.20 = 200,000 \text{ MWh}\) of renewable energy. This obligation is met by acquiring RECs from eligible renewable energy facilities, which represent the environmental attributes of the electricity generated. The Public Utilities Commission oversees compliance and may impose penalties for failure to meet the standard.
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Question 13 of 30
13. Question
Consider a scenario where Narragansett Electric Company, operating as an electric distribution utility in Rhode Island, submits a petition to the Rhode Island Public Utilities Commission (PUC) seeking to implement a new surcharge mechanism for distributed generation interconnection costs. The proposed surcharge aims to recover expenses associated with upgrading the grid to accommodate a significant increase in rooftop solar installations. Which of the following actions by the PUC would most accurately reflect the procedural requirements and regulatory principles governing such a petition under Rhode Island energy law?
Correct
The Rhode Island Public Utilities Commission (PUC) oversees the regulation of public utilities in the state, including energy providers. A key aspect of this regulation involves the approval of rate increases or changes to service terms. When a utility company proposes such changes, it must file a formal petition with the PUC. This petition is then subject to a thorough review process, which typically includes public notice, opportunities for public comment, and evidentiary hearings. The PUC’s decision-making authority is guided by specific statutory mandates, primarily focused on ensuring that rates are just and reasonable and that utility services are provided in a safe, reliable, and adequate manner. The commission must balance the financial needs of the utility with the interests of consumers. The process for approving or denying these changes is adversarial, involving the presentation of evidence and arguments by the utility, consumer advocates, and potentially other interested parties. The final decision is rendered in a formal order that details the commission’s findings of fact and conclusions of law, often requiring substantial justification for any deviation from the utility’s proposal. Rhode Island General Laws § 39-1-1 et seq. and associated regulations govern these proceedings.
Incorrect
The Rhode Island Public Utilities Commission (PUC) oversees the regulation of public utilities in the state, including energy providers. A key aspect of this regulation involves the approval of rate increases or changes to service terms. When a utility company proposes such changes, it must file a formal petition with the PUC. This petition is then subject to a thorough review process, which typically includes public notice, opportunities for public comment, and evidentiary hearings. The PUC’s decision-making authority is guided by specific statutory mandates, primarily focused on ensuring that rates are just and reasonable and that utility services are provided in a safe, reliable, and adequate manner. The commission must balance the financial needs of the utility with the interests of consumers. The process for approving or denying these changes is adversarial, involving the presentation of evidence and arguments by the utility, consumer advocates, and potentially other interested parties. The final decision is rendered in a formal order that details the commission’s findings of fact and conclusions of law, often requiring substantial justification for any deviation from the utility’s proposal. Rhode Island General Laws § 39-1-1 et seq. and associated regulations govern these proceedings.
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Question 14 of 30
14. Question
Consider a scenario where a major electricity distribution company operating exclusively within Rhode Island seeks to implement a significant upward adjustment to its customer service charges. This adjustment is primarily driven by substantial investments made in upgrading the grid infrastructure to enhance reliability and integrate distributed energy resources, as mandated by recent state energy policy initiatives. The company has submitted a formal petition to the Rhode Island Public Utilities Commission (PUC) requesting approval for these new charges. What is the primary legal and regulatory framework that governs the PUC’s evaluation and potential approval or denial of this proposed rate adjustment under Rhode Island law?
Correct
The Rhode Island Public Utilities Commission (PUC) oversees the regulation of public utilities within the state, including energy providers. A key aspect of this regulation involves ensuring that utility rates are just and reasonable, preventing monopolies from charging excessive prices. When a utility company proposes a rate increase, it must file a formal request with the PUC, known as a rate case. During a rate case, the PUC conducts a thorough review of the utility’s proposed rates, examining its operating expenses, capital investments, and revenue requirements. This process typically involves public hearings, expert testimony from both the utility and intervenors (such as consumer advocacy groups), and detailed financial analysis. The PUC’s decision is based on whether the proposed rates will allow the utility to earn a fair rate of return on its invested capital while also protecting consumers from unreasonable charges. Rhode Island General Laws Title 39, particularly Chapter 39-3, outlines the powers and duties of the PUC in setting and approving utility rates. The commission’s authority extends to approving tariffs, which are the official schedules of rates and charges for services. The objective is to balance the financial health of the utility with the affordability and accessibility of energy services for Rhode Island residents and businesses.
Incorrect
The Rhode Island Public Utilities Commission (PUC) oversees the regulation of public utilities within the state, including energy providers. A key aspect of this regulation involves ensuring that utility rates are just and reasonable, preventing monopolies from charging excessive prices. When a utility company proposes a rate increase, it must file a formal request with the PUC, known as a rate case. During a rate case, the PUC conducts a thorough review of the utility’s proposed rates, examining its operating expenses, capital investments, and revenue requirements. This process typically involves public hearings, expert testimony from both the utility and intervenors (such as consumer advocacy groups), and detailed financial analysis. The PUC’s decision is based on whether the proposed rates will allow the utility to earn a fair rate of return on its invested capital while also protecting consumers from unreasonable charges. Rhode Island General Laws Title 39, particularly Chapter 39-3, outlines the powers and duties of the PUC in setting and approving utility rates. The commission’s authority extends to approving tariffs, which are the official schedules of rates and charges for services. The objective is to balance the financial health of the utility with the affordability and accessibility of energy services for Rhode Island residents and businesses.
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Question 15 of 30
15. Question
When an electric distribution company in Rhode Island seeks to implement a revised rate structure that would increase the average monthly cost for residential customers, what is the primary regulatory body responsible for approving or denying this proposed change, and what is the general nature of the process involved?
Correct
The Rhode Island Public Utilities Commission (PUC) oversees the regulation of public utilities in Rhode Island, including energy providers. A key aspect of this regulation involves the establishment of rates and charges for services rendered to consumers. The process for approving new rate schedules, such as those proposed by an electric distribution company, is governed by specific statutory and regulatory frameworks. In Rhode Island, this process typically involves a formal rate case proceeding. During a rate case, the utility company must present evidence to justify its proposed rates, demonstrating that they are just and reasonable and will allow the company to recover its prudently incurred costs while earning a fair rate of return on its investment. The PUC then reviews this evidence, often with input from consumer advocates and other interested parties, to determine whether the proposed rates meet the legal standards. The final decision on rate approval rests with the PUC, which may approve the proposed rates, deny them, or approve them with modifications. The authority to approve or deny rate adjustments is a fundamental power of the PUC in its role as a regulator of essential public services in Rhode Island.
Incorrect
The Rhode Island Public Utilities Commission (PUC) oversees the regulation of public utilities in Rhode Island, including energy providers. A key aspect of this regulation involves the establishment of rates and charges for services rendered to consumers. The process for approving new rate schedules, such as those proposed by an electric distribution company, is governed by specific statutory and regulatory frameworks. In Rhode Island, this process typically involves a formal rate case proceeding. During a rate case, the utility company must present evidence to justify its proposed rates, demonstrating that they are just and reasonable and will allow the company to recover its prudently incurred costs while earning a fair rate of return on its investment. The PUC then reviews this evidence, often with input from consumer advocates and other interested parties, to determine whether the proposed rates meet the legal standards. The final decision on rate approval rests with the PUC, which may approve the proposed rates, deny them, or approve them with modifications. The authority to approve or deny rate adjustments is a fundamental power of the PUC in its role as a regulator of essential public services in Rhode Island.
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Question 16 of 30
16. Question
Consider a proposed community solar project in Rhode Island, aiming to serve multiple residential subscribers. The project utilizes a ground-mounted solar PV array and has secured all necessary local zoning and environmental permits. However, the project developer is seeking clarity on the specific criteria that would most strongly align it with the objectives of Rhode Island’s Renewable Energy Growth Program (REG) for maximizing incentive eligibility and ensuring a smoother approval process under the state’s energy regulations.
Correct
Rhode Island’s Renewable Energy Growth Program (REG) is a key initiative designed to foster the development of renewable energy projects within the state. The program, established under Rhode Island General Laws \(§ 39-26-1\) et seq., and further detailed in regulations promulgated by the Office of Energy Resources (OER), provides financial incentives for solar photovoltaic (PV) and other renewable energy systems. A critical aspect of REG eligibility is the project’s alignment with state-level policy objectives, including greenhouse gas emission reductions and energy independence. Specifically, the program prioritizes projects that demonstrate a clear pathway to integration with the state’s grid infrastructure and contribute to meeting the Renewable Energy Standard (RES), which mandates increasing percentages of electricity sales from renewable sources. The determination of a project’s eligibility and the allocation of incentives often involve a competitive application process, where factors such as project size, cost-effectiveness, environmental benefits, and adherence to specific program guidelines are evaluated. The program’s administration by the OER ensures that projects are consistent with Rhode Island’s broader energy and environmental goals.
Incorrect
Rhode Island’s Renewable Energy Growth Program (REG) is a key initiative designed to foster the development of renewable energy projects within the state. The program, established under Rhode Island General Laws \(§ 39-26-1\) et seq., and further detailed in regulations promulgated by the Office of Energy Resources (OER), provides financial incentives for solar photovoltaic (PV) and other renewable energy systems. A critical aspect of REG eligibility is the project’s alignment with state-level policy objectives, including greenhouse gas emission reductions and energy independence. Specifically, the program prioritizes projects that demonstrate a clear pathway to integration with the state’s grid infrastructure and contribute to meeting the Renewable Energy Standard (RES), which mandates increasing percentages of electricity sales from renewable sources. The determination of a project’s eligibility and the allocation of incentives often involve a competitive application process, where factors such as project size, cost-effectiveness, environmental benefits, and adherence to specific program guidelines are evaluated. The program’s administration by the OER ensures that projects are consistent with Rhode Island’s broader energy and environmental goals.
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Question 17 of 30
17. Question
Consider the scenario of Ocean State Power & Light, a regulated electric utility in Rhode Island, planning to construct a new natural gas-fired power plant. The utility has identified the need for this facility to meet projected demand increases and to replace aging infrastructure. Before entering into major construction contracts and incurring significant capital outlays for the plant, what is the primary procedural and legal prerequisite Ocean State Power & Light must fulfill under Rhode Island energy law to ensure the recovery of its investment in this new generation facility through customer rates?
Correct
The question revolves around the procedural requirements for a utility to recover costs associated with a new generation facility in Rhode Island. Specifically, it probes the understanding of the statutory framework governing such cost recovery, particularly concerning the initiation of the process and the role of the Public Utilities Commission (PUC). Rhode Island General Laws (RIGL) Chapter 39-1-27.1, enacted to streamline the approval of new energy generation facilities, outlines a process that requires a utility to seek a “certificate of public convenience and necessity” for such projects. Crucially, the law mandates that the PUC must approve the facility’s cost recovery mechanisms *prior* to the utility entering into significant construction contracts or incurring substantial capital expenditures. This ensures regulatory oversight and protects ratepayers from imprudent investments. The process involves filing an application with the PUC, which then conducts a review, including public hearings, to assess the necessity, cost-effectiveness, and environmental impact of the proposed facility. The PUC’s approval is a prerequisite for the utility to recover the costs of the facility through rates. Failure to obtain this prior approval can jeopardize the utility’s ability to recover those costs, even if the facility is ultimately built and operational. The intent is to foster responsible development of energy infrastructure while safeguarding consumer interests by ensuring that significant financial commitments are made only after regulatory scrutiny.
Incorrect
The question revolves around the procedural requirements for a utility to recover costs associated with a new generation facility in Rhode Island. Specifically, it probes the understanding of the statutory framework governing such cost recovery, particularly concerning the initiation of the process and the role of the Public Utilities Commission (PUC). Rhode Island General Laws (RIGL) Chapter 39-1-27.1, enacted to streamline the approval of new energy generation facilities, outlines a process that requires a utility to seek a “certificate of public convenience and necessity” for such projects. Crucially, the law mandates that the PUC must approve the facility’s cost recovery mechanisms *prior* to the utility entering into significant construction contracts or incurring substantial capital expenditures. This ensures regulatory oversight and protects ratepayers from imprudent investments. The process involves filing an application with the PUC, which then conducts a review, including public hearings, to assess the necessity, cost-effectiveness, and environmental impact of the proposed facility. The PUC’s approval is a prerequisite for the utility to recover the costs of the facility through rates. Failure to obtain this prior approval can jeopardize the utility’s ability to recover those costs, even if the facility is ultimately built and operational. The intent is to foster responsible development of energy infrastructure while safeguarding consumer interests by ensuring that significant financial commitments are made only after regulatory scrutiny.
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Question 18 of 30
18. Question
Ocean State Electric, a regulated electric distribution company in Rhode Island, proposes a $50 million capital investment in advanced metering infrastructure (AMI) to enhance grid efficiency and customer engagement. During the Public Utilities Commission’s (PUC) rate case review, it is determined that $10 million of this investment is allocated to a highly experimental, geographically limited pilot program that has not yet proven its scalability or cost-effectiveness for the majority of Rhode Island ratepayers. Under Rhode Island’s established regulatory principles for determining a utility’s rate base, what is the most likely outcome for the $10 million allocated to the pilot program?
Correct
Rhode Island General Laws Chapter 39-1, specifically the sections pertaining to the Public Utilities Commission (PUC) and its oversight of electric distribution companies, establishes the framework for rate-making. The “used and useful” standard, a core principle in utility regulation, dictates that only property currently employed in providing service to the public can be included in the rate base, upon which a utility is allowed to earn a reasonable return. This prevents the recovery of costs associated with abandoned projects or assets not serving customers. When an electric distribution company in Rhode Island proposes new capital investments, such as infrastructure upgrades for grid modernization or renewable energy integration, the PUC conducts a thorough review. This review assesses whether the proposed expenditures are prudent, necessary, and will ultimately benefit ratepayers through improved reliability, efficiency, or environmental performance. If a project is deemed not “used and useful” at the time of the rate determination, or if its cost is deemed excessive or imprudent, the PUC can disallow its inclusion in the rate base, meaning the company cannot recover those costs from its customers. Therefore, for the proposed $50 million investment in advanced metering infrastructure (AMI) by Ocean State Electric, if the PUC determines that a significant portion of this investment, say $10 million, is for a pilot program that has not yet demonstrated widespread applicability or cost-effectiveness for the majority of Rhode Island ratepayers, and thus is not yet “used and useful” for the broader customer base, that $10 million would be disallowed from the rate base. This means Ocean State Electric would have to absorb that $10 million cost itself, rather than passing it on to consumers through higher rates. The remaining $40 million, if deemed prudent and used and useful, could be included in the rate base.
Incorrect
Rhode Island General Laws Chapter 39-1, specifically the sections pertaining to the Public Utilities Commission (PUC) and its oversight of electric distribution companies, establishes the framework for rate-making. The “used and useful” standard, a core principle in utility regulation, dictates that only property currently employed in providing service to the public can be included in the rate base, upon which a utility is allowed to earn a reasonable return. This prevents the recovery of costs associated with abandoned projects or assets not serving customers. When an electric distribution company in Rhode Island proposes new capital investments, such as infrastructure upgrades for grid modernization or renewable energy integration, the PUC conducts a thorough review. This review assesses whether the proposed expenditures are prudent, necessary, and will ultimately benefit ratepayers through improved reliability, efficiency, or environmental performance. If a project is deemed not “used and useful” at the time of the rate determination, or if its cost is deemed excessive or imprudent, the PUC can disallow its inclusion in the rate base, meaning the company cannot recover those costs from its customers. Therefore, for the proposed $50 million investment in advanced metering infrastructure (AMI) by Ocean State Electric, if the PUC determines that a significant portion of this investment, say $10 million, is for a pilot program that has not yet demonstrated widespread applicability or cost-effectiveness for the majority of Rhode Island ratepayers, and thus is not yet “used and useful” for the broader customer base, that $10 million would be disallowed from the rate base. This means Ocean State Electric would have to absorb that $10 million cost itself, rather than passing it on to consumers through higher rates. The remaining $40 million, if deemed prudent and used and useful, could be included in the rate base.
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Question 19 of 30
19. Question
Under Rhode Island’s Renewable Energy Growth Program, how is the base compensation rate for electricity generated by eligible solar projects and sold to the electric distribution company primarily determined, reflecting the state’s commitment to fostering renewable energy development?
Correct
The Rhode Island Renewable Energy Growth Program, established under Rhode Island General Laws Chapter 39-26.1, aims to promote the development of solar electric generating systems. A key component of this program is the establishment of a base compensation rate for electricity generated by eligible systems and sold to the electric distribution company. This rate is determined through a process that considers various factors, including the wholesale market price of electricity, the cost of renewable energy credits (RECs) in the region, and the costs associated with interconnection and grid integration. While the specific methodology for calculating the base rate is detailed in regulations promulgated by the Public Utilities Commission (PUC), the overarching principle is to provide a predictable and fair compensation mechanism that incentivizes renewable energy deployment. The program’s success is measured by its ability to meet renewable energy targets and contribute to the state’s clean energy goals. The statute and subsequent regulations provide a framework for the electric distribution company to purchase electricity from eligible solar projects at this predetermined rate, ensuring a stable revenue stream for project developers. This approach contrasts with market-based mechanisms that might fluctuate more significantly.
Incorrect
The Rhode Island Renewable Energy Growth Program, established under Rhode Island General Laws Chapter 39-26.1, aims to promote the development of solar electric generating systems. A key component of this program is the establishment of a base compensation rate for electricity generated by eligible systems and sold to the electric distribution company. This rate is determined through a process that considers various factors, including the wholesale market price of electricity, the cost of renewable energy credits (RECs) in the region, and the costs associated with interconnection and grid integration. While the specific methodology for calculating the base rate is detailed in regulations promulgated by the Public Utilities Commission (PUC), the overarching principle is to provide a predictable and fair compensation mechanism that incentivizes renewable energy deployment. The program’s success is measured by its ability to meet renewable energy targets and contribute to the state’s clean energy goals. The statute and subsequent regulations provide a framework for the electric distribution company to purchase electricity from eligible solar projects at this predetermined rate, ensuring a stable revenue stream for project developers. This approach contrasts with market-based mechanisms that might fluctuate more significantly.
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Question 20 of 30
20. Question
Under Rhode Island law, what is the primary statutory framework that empowers the state to mandate and oversee the development of renewable energy generation, including the establishment of programs and funding mechanisms to achieve its clean energy goals?
Correct
Rhode Island General Laws Chapter 39-1-27.1 governs the establishment and operation of renewable energy growth programs. This statute mandates that the state’s energy efficiency and renewable energy programs must achieve specific targets for renewable energy generation. Specifically, it outlines a framework for integrating distributed generation sources and sets forth requirements for the investment in and deployment of renewable energy technologies. The law emphasizes the importance of cost-effectiveness and the potential for economic development within the state. Furthermore, it directs the Public Utilities Commission (PUC) to oversee the implementation of these programs, ensuring compliance with statutory mandates and the achievement of policy goals, including the reduction of greenhouse gas emissions and the enhancement of energy independence for Rhode Island residents and businesses. The law also provides for the establishment of a Renewable Energy Fund to support eligible projects. The question probes the understanding of the specific legal mechanism by which Rhode Island pursues its renewable energy objectives, focusing on the statutory authority and the body responsible for its execution.
Incorrect
Rhode Island General Laws Chapter 39-1-27.1 governs the establishment and operation of renewable energy growth programs. This statute mandates that the state’s energy efficiency and renewable energy programs must achieve specific targets for renewable energy generation. Specifically, it outlines a framework for integrating distributed generation sources and sets forth requirements for the investment in and deployment of renewable energy technologies. The law emphasizes the importance of cost-effectiveness and the potential for economic development within the state. Furthermore, it directs the Public Utilities Commission (PUC) to oversee the implementation of these programs, ensuring compliance with statutory mandates and the achievement of policy goals, including the reduction of greenhouse gas emissions and the enhancement of energy independence for Rhode Island residents and businesses. The law also provides for the establishment of a Renewable Energy Fund to support eligible projects. The question probes the understanding of the specific legal mechanism by which Rhode Island pursues its renewable energy objectives, focusing on the statutory authority and the body responsible for its execution.
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Question 21 of 30
21. Question
Consider a scenario where a cooperative of Rhode Island residents has established a new, small-scale solar photovoltaic installation within the state. This cooperative aims to contribute to Rhode Island’s renewable energy goals and requires a mechanism to monetize the renewable energy credits (RECs) generated by their facility to ensure financial viability and compliance with state mandates. Which specific Rhode Island program is designed to facilitate the development and integration of such in-state renewable energy projects by providing a structured pathway for REC sales or similar support mechanisms to meet the state’s Renewable Energy Standard obligations?
Correct
The Rhode Island Renewable Energy Standard (RES) mandates that electric distribution companies procure a certain percentage of their retail sales from renewable energy sources. The specific percentage increases over time, as outlined in Rhode Island General Laws § 39-26-1 et seq. The statute also establishes a Renewable Energy Growth Program, which is a mechanism to facilitate the development of new, in-state renewable energy projects. This program allows for the creation of Renewable Energy Certificates (RECs) generated by these projects, which can then be sold by developers to utilities to meet their RES obligations. The question centers on the process by which a new, small-scale solar photovoltaic project in Rhode Island, developed by a local entity, would secure financial support or market access for its generated renewable energy under the state’s regulatory framework. The Renewable Energy Growth Program is specifically designed to support such in-state projects that might otherwise struggle to compete in larger markets. The program involves a competitive bidding process or application system managed by the state or its designated administrator, where eligible projects propose to sell RECs or power purchase agreements. The objective is to ensure that a portion of the state’s renewable energy portfolio is sourced from projects that directly benefit Rhode Island’s economy and environment. Therefore, the most direct pathway for a small, new, in-state solar project to gain support and meet RES requirements is through participation in and selection under the Renewable Energy Growth Program. Other options are less direct or not applicable to the specific scenario of a new, small, in-state project seeking to meet RES obligations. For instance, the Renewable Energy Fund is primarily for grants and loans for energy efficiency and renewable energy projects, not the direct sale of RECs. Federal Investment Tax Credits are a separate federal incentive. Negotiating directly with retail customers for power purchase agreements is a possibility but does not directly address the state’s RES compliance mechanism for the project’s output.
Incorrect
The Rhode Island Renewable Energy Standard (RES) mandates that electric distribution companies procure a certain percentage of their retail sales from renewable energy sources. The specific percentage increases over time, as outlined in Rhode Island General Laws § 39-26-1 et seq. The statute also establishes a Renewable Energy Growth Program, which is a mechanism to facilitate the development of new, in-state renewable energy projects. This program allows for the creation of Renewable Energy Certificates (RECs) generated by these projects, which can then be sold by developers to utilities to meet their RES obligations. The question centers on the process by which a new, small-scale solar photovoltaic project in Rhode Island, developed by a local entity, would secure financial support or market access for its generated renewable energy under the state’s regulatory framework. The Renewable Energy Growth Program is specifically designed to support such in-state projects that might otherwise struggle to compete in larger markets. The program involves a competitive bidding process or application system managed by the state or its designated administrator, where eligible projects propose to sell RECs or power purchase agreements. The objective is to ensure that a portion of the state’s renewable energy portfolio is sourced from projects that directly benefit Rhode Island’s economy and environment. Therefore, the most direct pathway for a small, new, in-state solar project to gain support and meet RES requirements is through participation in and selection under the Renewable Energy Growth Program. Other options are less direct or not applicable to the specific scenario of a new, small, in-state project seeking to meet RES obligations. For instance, the Renewable Energy Fund is primarily for grants and loans for energy efficiency and renewable energy projects, not the direct sale of RECs. Federal Investment Tax Credits are a separate federal incentive. Negotiating directly with retail customers for power purchase agreements is a possibility but does not directly address the state’s RES compliance mechanism for the project’s output.
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Question 22 of 30
22. Question
A consortium proposes to construct a new offshore wind farm approximately 15 miles off the coast of Block Island, Rhode Island, with associated onshore transmission infrastructure connecting to the regional grid. Which of the following regulatory frameworks would be most critical for the consortium to navigate to secure approval for the onshore components and ensure compliance with state-level environmental and land-use planning for the coastal zone?
Correct
The Rhode Island Coastal Zone Management Program (CZMP), established under Chapter 46-23 of the Rhode Island General Laws, plays a crucial role in regulating development within the state’s coastal areas. This program requires a rigorous review process for projects that may impact coastal resources. Specifically, the siting of new energy generation facilities, especially those with potential offshore components or significant land-based infrastructure, necessitates adherence to the CZMP’s policies and procedures. The CZMP’s mandate includes protecting and enhancing coastal ecosystems, managing development to prevent erosion and storm damage, and ensuring public access to the shore. When considering a large-scale renewable energy project like an offshore wind farm with associated onshore substations and transmission lines, a comprehensive environmental impact assessment is mandatory. This assessment must evaluate potential impacts on marine life, coastal habitats, visual aesthetics, and existing land uses. The Rhode Island Energy Facility Siting Act (Chapter 39-1-31) further governs the siting of energy facilities, requiring a certificate of environmental compatibility and public need from the Energy Facility Siting Board (EFSB). The EFSB’s review process integrates considerations from various state agencies, including those responsible for environmental protection and coastal management. Therefore, a proposal for an offshore wind farm would be subject to both the CZMP’s review for coastal zone impacts and the EFSB’s broader siting authority. The CZMP’s specific requirements for energy projects are designed to balance energy development with the preservation of Rhode Island’s valuable coastal environment. The Rhode Island Department of Environmental Management (DEM) is the lead agency for CZMP implementation.
Incorrect
The Rhode Island Coastal Zone Management Program (CZMP), established under Chapter 46-23 of the Rhode Island General Laws, plays a crucial role in regulating development within the state’s coastal areas. This program requires a rigorous review process for projects that may impact coastal resources. Specifically, the siting of new energy generation facilities, especially those with potential offshore components or significant land-based infrastructure, necessitates adherence to the CZMP’s policies and procedures. The CZMP’s mandate includes protecting and enhancing coastal ecosystems, managing development to prevent erosion and storm damage, and ensuring public access to the shore. When considering a large-scale renewable energy project like an offshore wind farm with associated onshore substations and transmission lines, a comprehensive environmental impact assessment is mandatory. This assessment must evaluate potential impacts on marine life, coastal habitats, visual aesthetics, and existing land uses. The Rhode Island Energy Facility Siting Act (Chapter 39-1-31) further governs the siting of energy facilities, requiring a certificate of environmental compatibility and public need from the Energy Facility Siting Board (EFSB). The EFSB’s review process integrates considerations from various state agencies, including those responsible for environmental protection and coastal management. Therefore, a proposal for an offshore wind farm would be subject to both the CZMP’s review for coastal zone impacts and the EFSB’s broader siting authority. The CZMP’s specific requirements for energy projects are designed to balance energy development with the preservation of Rhode Island’s valuable coastal environment. The Rhode Island Department of Environmental Management (DEM) is the lead agency for CZMP implementation.
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Question 23 of 30
23. Question
Under Rhode Island General Laws Chapter 39-1-27, an electric distribution company operating within the state seeks to recover the expenses incurred in administering its newly implemented, PUC-approved residential energy efficiency retrofit program. The company’s filing includes costs for program design, marketing outreach, contractor training, and direct program administration salaries. What is the primary legal basis for the company to seek recovery of these prudently incurred costs from its ratepayers?
Correct
Rhode Island General Laws Chapter 39-1-27 establishes the regulatory framework for electric distribution companies to recover costs associated with energy efficiency programs through rate adjustments. Specifically, this statute allows for the recovery of prudently incurred costs, including reasonable administrative and overhead expenses, associated with implementing energy efficiency and demand-side management programs. The mechanism for recovery is typically through a specific rate component or rider, subject to review and approval by the Public Utilities Commission (PUC). The PUC’s role is to ensure that the costs recovered are directly related to the approved energy efficiency programs and are not excessive. This ensures that ratepayers are not burdened with imprudent expenditures, aligning with the principle of cost recovery for approved utility investments that benefit consumers and the state’s energy goals. The statute does not mandate a specific rate of return on these costs, but rather focuses on the prudency and direct relationship of the expenses to the programs themselves.
Incorrect
Rhode Island General Laws Chapter 39-1-27 establishes the regulatory framework for electric distribution companies to recover costs associated with energy efficiency programs through rate adjustments. Specifically, this statute allows for the recovery of prudently incurred costs, including reasonable administrative and overhead expenses, associated with implementing energy efficiency and demand-side management programs. The mechanism for recovery is typically through a specific rate component or rider, subject to review and approval by the Public Utilities Commission (PUC). The PUC’s role is to ensure that the costs recovered are directly related to the approved energy efficiency programs and are not excessive. This ensures that ratepayers are not burdened with imprudent expenditures, aligning with the principle of cost recovery for approved utility investments that benefit consumers and the state’s energy goals. The statute does not mandate a specific rate of return on these costs, but rather focuses on the prudency and direct relationship of the expenses to the programs themselves.
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Question 24 of 30
24. Question
A regulated electric distribution company in Rhode Island proposes a substantial capital investment to modernize its aging substation infrastructure across several service territories, citing enhanced reliability and the potential to integrate future renewable energy sources. Pursuant to Rhode Island General Laws Chapter 39-1, what is the primary regulatory mechanism the company must utilize to seek approval for this significant expenditure from the Rhode Island Public Utilities Commission?
Correct
The Rhode Island Public Utilities Commission (PUC) has broad authority over the regulation of public utilities within the state, including setting rates, approving mergers, and ensuring service quality. When a utility proposes a significant capital investment, such as the construction of a new transmission line or a major upgrade to the grid, the PUC must review and approve these expenditures. This approval process is typically initiated through a formal petition or application filed by the utility. The PUC then conducts a thorough review, which often involves public hearings, expert testimony, and the examination of detailed financial and engineering data. The primary legal framework governing these decisions is Rhode Island General Laws Chapter 39-1, which outlines the powers and duties of the PUC. Specifically, Section 39-1-16 grants the PUC the authority to approve or disapprove proposed capital expenditures by utilities. The standard for approval generally requires the utility to demonstrate that the proposed investment is prudent, necessary for reliable service, and in the public interest, often considering cost-effectiveness and environmental impact. The PUC’s decision is based on the evidence presented and its statutory mandate to protect consumer interests while ensuring the financial viability of the utility. The PUC’s decision is subject to judicial review in the Rhode Island Superior Court, and potentially further appeals.
Incorrect
The Rhode Island Public Utilities Commission (PUC) has broad authority over the regulation of public utilities within the state, including setting rates, approving mergers, and ensuring service quality. When a utility proposes a significant capital investment, such as the construction of a new transmission line or a major upgrade to the grid, the PUC must review and approve these expenditures. This approval process is typically initiated through a formal petition or application filed by the utility. The PUC then conducts a thorough review, which often involves public hearings, expert testimony, and the examination of detailed financial and engineering data. The primary legal framework governing these decisions is Rhode Island General Laws Chapter 39-1, which outlines the powers and duties of the PUC. Specifically, Section 39-1-16 grants the PUC the authority to approve or disapprove proposed capital expenditures by utilities. The standard for approval generally requires the utility to demonstrate that the proposed investment is prudent, necessary for reliable service, and in the public interest, often considering cost-effectiveness and environmental impact. The PUC’s decision is based on the evidence presented and its statutory mandate to protect consumer interests while ensuring the financial viability of the utility. The PUC’s decision is subject to judicial review in the Rhode Island Superior Court, and potentially further appeals.
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Question 25 of 30
25. Question
During a formal rate proceeding before the Rhode Island Public Utilities Commission (PUC), a regulated electric distribution utility in Rhode Island seeks to recover costs associated with upgrading its grid infrastructure to enhance resilience against extreme weather events, as mandated by recent federal energy security directives. The utility has presented detailed evidence of these capital expenditures and argues for a corresponding increase in its distribution rates. What is the primary legal standard the PUC must apply when evaluating the prudence and recoverability of these infrastructure upgrade costs to ensure rates remain just and reasonable for Rhode Island consumers?
Correct
The Rhode Island Public Utilities Commission (PUC) has a statutory mandate to ensure just and reasonable rates for public utilities, as outlined in Rhode Island General Laws (RIGL) § 39-3-11. When a utility proposes a rate increase, the PUC must conduct a formal rate case to evaluate the proposal. This process involves the utility submitting an application detailing its proposed rates, its cost of service, and its rate base. The PUC, often with the assistance of its staff and potentially intervenors such as consumer advocates or large industrial users, scrutinizes these submissions. Key considerations include the utility’s operating expenses, capital investments, and the authorized rate of return. The PUC’s decision must be supported by substantial evidence and adhere to established legal standards for rate-making. The commission’s authority extends to approving, denying, or modifying the proposed rates to ensure they are neither confiscatory nor unduly burdensome on consumers. The principle of a fair rate of return on invested capital, balanced against the public’s right to affordable service, is central to this regulatory function. The ultimate goal is to establish rates that allow the utility to maintain financial integrity and provide reliable service while protecting ratepayers from excessive charges. The PUC’s decision-making process is governed by administrative procedures and judicial review standards, ensuring accountability and adherence to the law.
Incorrect
The Rhode Island Public Utilities Commission (PUC) has a statutory mandate to ensure just and reasonable rates for public utilities, as outlined in Rhode Island General Laws (RIGL) § 39-3-11. When a utility proposes a rate increase, the PUC must conduct a formal rate case to evaluate the proposal. This process involves the utility submitting an application detailing its proposed rates, its cost of service, and its rate base. The PUC, often with the assistance of its staff and potentially intervenors such as consumer advocates or large industrial users, scrutinizes these submissions. Key considerations include the utility’s operating expenses, capital investments, and the authorized rate of return. The PUC’s decision must be supported by substantial evidence and adhere to established legal standards for rate-making. The commission’s authority extends to approving, denying, or modifying the proposed rates to ensure they are neither confiscatory nor unduly burdensome on consumers. The principle of a fair rate of return on invested capital, balanced against the public’s right to affordable service, is central to this regulatory function. The ultimate goal is to establish rates that allow the utility to maintain financial integrity and provide reliable service while protecting ratepayers from excessive charges. The PUC’s decision-making process is governed by administrative procedures and judicial review standards, ensuring accountability and adherence to the law.
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Question 26 of 30
26. Question
Consider a residential customer in Rhode Island who has installed a solar photovoltaic system. In a particular monthly billing cycle, the customer consumed 1,250 kilowatt-hours (kWh) from the utility grid and exported 950 kWh of electricity back to the grid. Under Rhode Island General Laws Chapter 39-26.1 and the Public Utilities Regulatory Authority’s (PURA) approved net metering tariff for this customer’s utility, the net energy exported to the grid is credited at a rate equivalent to the full retail rate per kWh, but the total monthly credit for exported energy cannot exceed the total charges for energy consumed from the grid in that same billing period. If the customer’s energy consumption charge from the grid for this month, prior to any net metering credits, is calculated at $0.18 per kWh, what is the final net energy charge for the customer for this billing cycle?
Correct
Rhode Island’s energy regulatory framework, particularly concerning the integration of distributed generation and renewable energy sources, is guided by statutes and Public Utilities Commission (PUC) dockets. The Public Utilities Regulatory Authority (PURA), formerly the Public Utilities Commission, oversees utility operations. Rhode Island General Laws Chapter 39-26, the Renewable Energy Standard (RES), mandates that electricity suppliers procure a certain percentage of their retail sales from renewable energy sources. This percentage increases over time. Furthermore, PURA’s dockets, such as those addressing net metering or advanced metering infrastructure, often establish specific rules for how distributed generation systems interact with the grid and how their output is compensated. When a customer installs a solar photovoltaic system, the net metering provisions, as detailed in regulations promulgated under Chapter 39-26.1, determine how excess generation is credited. These credits are typically applied to future bills at a rate that may differ from the full retail rate, depending on the specific tariff and the utility’s approved plan. The calculation of the net energy consumed or exported is fundamental to these credits. For instance, if a customer consumes 1000 kWh from the grid and exports 700 kWh to the grid in a billing period, their net consumption from the grid is 300 kWh. The credit for the exported energy is applied according to the net metering tariff, which is approved by PURA. These tariffs are designed to balance the costs and benefits of distributed generation for all ratepayers. The relevant statute governing net metering in Rhode Island is primarily found in Rhode Island General Laws Chapter 39-26.1. The authority to set the specific rates and terms for net metering lies with PURA through its rulemaking and adjudication processes, often involving utility-filed rate cases and public comment periods. The concept of “avoided cost” is often a component in determining compensation for exported energy, especially for larger systems or under specific programs, reflecting the costs the utility would have incurred had it generated that power itself. However, for standard residential net metering, the credit is typically based on the retail rate, subject to statutory caps and specific program rules established by PURA.
Incorrect
Rhode Island’s energy regulatory framework, particularly concerning the integration of distributed generation and renewable energy sources, is guided by statutes and Public Utilities Commission (PUC) dockets. The Public Utilities Regulatory Authority (PURA), formerly the Public Utilities Commission, oversees utility operations. Rhode Island General Laws Chapter 39-26, the Renewable Energy Standard (RES), mandates that electricity suppliers procure a certain percentage of their retail sales from renewable energy sources. This percentage increases over time. Furthermore, PURA’s dockets, such as those addressing net metering or advanced metering infrastructure, often establish specific rules for how distributed generation systems interact with the grid and how their output is compensated. When a customer installs a solar photovoltaic system, the net metering provisions, as detailed in regulations promulgated under Chapter 39-26.1, determine how excess generation is credited. These credits are typically applied to future bills at a rate that may differ from the full retail rate, depending on the specific tariff and the utility’s approved plan. The calculation of the net energy consumed or exported is fundamental to these credits. For instance, if a customer consumes 1000 kWh from the grid and exports 700 kWh to the grid in a billing period, their net consumption from the grid is 300 kWh. The credit for the exported energy is applied according to the net metering tariff, which is approved by PURA. These tariffs are designed to balance the costs and benefits of distributed generation for all ratepayers. The relevant statute governing net metering in Rhode Island is primarily found in Rhode Island General Laws Chapter 39-26.1. The authority to set the specific rates and terms for net metering lies with PURA through its rulemaking and adjudication processes, often involving utility-filed rate cases and public comment periods. The concept of “avoided cost” is often a component in determining compensation for exported energy, especially for larger systems or under specific programs, reflecting the costs the utility would have incurred had it generated that power itself. However, for standard residential net metering, the credit is typically based on the retail rate, subject to statutory caps and specific program rules established by PURA.
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Question 27 of 30
27. Question
Following the Rhode Island Energy Facility Siting Board’s approval of a large-scale solar photovoltaic project in a rural Rhode Island town, the town council, citing concerns about agricultural land preservation and aesthetic impacts, formally objects to the project’s construction. The town argues that the EFSB did not adequately consider the local zoning ordinances and the community’s character, which are not explicitly preempted by the state siting act for this specific type of facility. Which of the following legal actions represents the most appropriate next step for the town to formally contest the EFSB’s decision within the established Rhode Island administrative and judicial review framework?
Correct
The scenario involves a dispute over the siting of a new renewable energy facility in Rhode Island, specifically a solar farm. The key legal framework in Rhode Island for such disputes, particularly concerning the balance between local control and statewide energy policy, is the Rhode Island Energy Facility Siting Act, Rhode Island General Laws § 39-1-1 et seq. This act establishes the Energy Facility Siting Board (EFSB) as the primary regulatory body responsible for approving or denying applications for energy facilities. The Act aims to streamline the siting process while ensuring environmental protection and consideration of local concerns. When a municipality objects to a proposed facility, the EFSB must weigh the municipality’s concerns against the applicant’s proposal and the broader public interest in reliable, affordable, and clean energy, as articulated in Rhode Island’s energy policies. The EFSB’s decision-making process involves a thorough review of the application, including environmental impact assessments, economic benefits, and potential impacts on the host community. The Act provides for municipal participation and input, but ultimately grants the EFSB the authority to make the final determination, prioritizing statewide energy goals. Therefore, the most appropriate legal avenue for the town to challenge the proposed facility’s approval, after the EFSB has made its decision, would be through an appeal to the Rhode Island Superior Court, as is standard practice for administrative agency decisions in Rhode Island. The appeal would focus on whether the EFSB’s decision was supported by substantial evidence in the record and whether it correctly applied the provisions of the Energy Facility Siting Act and other relevant Rhode Island laws.
Incorrect
The scenario involves a dispute over the siting of a new renewable energy facility in Rhode Island, specifically a solar farm. The key legal framework in Rhode Island for such disputes, particularly concerning the balance between local control and statewide energy policy, is the Rhode Island Energy Facility Siting Act, Rhode Island General Laws § 39-1-1 et seq. This act establishes the Energy Facility Siting Board (EFSB) as the primary regulatory body responsible for approving or denying applications for energy facilities. The Act aims to streamline the siting process while ensuring environmental protection and consideration of local concerns. When a municipality objects to a proposed facility, the EFSB must weigh the municipality’s concerns against the applicant’s proposal and the broader public interest in reliable, affordable, and clean energy, as articulated in Rhode Island’s energy policies. The EFSB’s decision-making process involves a thorough review of the application, including environmental impact assessments, economic benefits, and potential impacts on the host community. The Act provides for municipal participation and input, but ultimately grants the EFSB the authority to make the final determination, prioritizing statewide energy goals. Therefore, the most appropriate legal avenue for the town to challenge the proposed facility’s approval, after the EFSB has made its decision, would be through an appeal to the Rhode Island Superior Court, as is standard practice for administrative agency decisions in Rhode Island. The appeal would focus on whether the EFSB’s decision was supported by substantial evidence in the record and whether it correctly applied the provisions of the Energy Facility Siting Act and other relevant Rhode Island laws.
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Question 28 of 30
28. Question
A renewable energy developer in Rhode Island proposes to construct a new offshore wind farm and seeks approval from the Public Utilities Commission (PUC) for a power purchase agreement (PPA) with the state’s primary electric distribution company. The proposed PPA includes terms that the developer argues are necessary to secure financing for the project, but consumer advocates contend will result in higher electricity costs for Rhode Island residents over the contract’s duration. What is the primary legal standard the Rhode Island PUC will apply when evaluating the proposed PPA to determine whether to approve it?
Correct
The Rhode Island Public Utilities Commission (PUC) has broad authority to regulate public utilities within the state, including setting rates, approving service standards, and overseeing utility operations. When a utility proposes a significant change, such as the acquisition of a new energy generation facility or a substantial infrastructure upgrade, the PUC conducts a formal review process. This process typically involves a public hearing where all interested parties, including consumer advocacy groups, environmental organizations, and the utility itself, can present evidence and arguments. The PUC’s decision must be based on the record developed during this proceeding and must consider factors such as the reasonableness of costs, the impact on ratepayers, the reliability of service, and compliance with state energy policies, such as those promoting renewable energy or energy efficiency. Specifically, under Rhode Island General Laws Chapter 39-1, the PUC is tasked with ensuring that rates are just and reasonable and that utilities provide adequate service. The acquisition of a new power plant would likely require a Certificate of Public Convenience and Necessity, demonstrating that the facility is in the public interest. The PUC’s decision-making framework emphasizes a thorough evaluation of the proposed action’s financial implications for consumers and its alignment with Rhode Island’s broader energy goals.
Incorrect
The Rhode Island Public Utilities Commission (PUC) has broad authority to regulate public utilities within the state, including setting rates, approving service standards, and overseeing utility operations. When a utility proposes a significant change, such as the acquisition of a new energy generation facility or a substantial infrastructure upgrade, the PUC conducts a formal review process. This process typically involves a public hearing where all interested parties, including consumer advocacy groups, environmental organizations, and the utility itself, can present evidence and arguments. The PUC’s decision must be based on the record developed during this proceeding and must consider factors such as the reasonableness of costs, the impact on ratepayers, the reliability of service, and compliance with state energy policies, such as those promoting renewable energy or energy efficiency. Specifically, under Rhode Island General Laws Chapter 39-1, the PUC is tasked with ensuring that rates are just and reasonable and that utilities provide adequate service. The acquisition of a new power plant would likely require a Certificate of Public Convenience and Necessity, demonstrating that the facility is in the public interest. The PUC’s decision-making framework emphasizes a thorough evaluation of the proposed action’s financial implications for consumers and its alignment with Rhode Island’s broader energy goals.
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Question 29 of 30
29. Question
Consider a scenario where Coastal Power & Light, a major electricity distributor operating within Rhode Island, proposes to acquire a newly constructed offshore wind farm located within Rhode Island’s territorial waters. This acquisition is intended to diversify its energy portfolio and meet state renewable energy mandates. Under Rhode Island energy law, what is the primary regulatory body and the fundamental legal basis that Coastal Power & Light must satisfy to proceed with this acquisition?
Correct
The Rhode Island Public Utilities Commission (RIPUC) oversees the regulation of public utilities in Rhode Island, including energy providers. When a utility proposes a significant change in its service territory, such as the acquisition of a new generation facility or a substantial expansion of its distribution network, it must seek approval from the RIPUC. This process is designed to ensure that such changes are in the public interest, are financially prudent, and do not negatively impact ratepayers or the reliability of service. The relevant statutory framework, primarily found within Rhode Island General Laws Title 39, outlines the procedural requirements and substantive criteria for such approvals. Specifically, R.I. Gen. Laws § 39-1-1 et seq. grants the Commission broad authority to supervise and regulate public utilities. The process typically involves a formal application by the utility, followed by public notice, opportunities for intervention by interested parties (such as consumer advocates, environmental groups, or other affected businesses), evidentiary hearings, and ultimately, a Commission order that either approves, denies, or modifies the proposed action. The standard for approval often involves demonstrating that the proposed action is necessary, cost-effective, and beneficial to the public. The Commission’s decisions are subject to judicial review.
Incorrect
The Rhode Island Public Utilities Commission (RIPUC) oversees the regulation of public utilities in Rhode Island, including energy providers. When a utility proposes a significant change in its service territory, such as the acquisition of a new generation facility or a substantial expansion of its distribution network, it must seek approval from the RIPUC. This process is designed to ensure that such changes are in the public interest, are financially prudent, and do not negatively impact ratepayers or the reliability of service. The relevant statutory framework, primarily found within Rhode Island General Laws Title 39, outlines the procedural requirements and substantive criteria for such approvals. Specifically, R.I. Gen. Laws § 39-1-1 et seq. grants the Commission broad authority to supervise and regulate public utilities. The process typically involves a formal application by the utility, followed by public notice, opportunities for intervention by interested parties (such as consumer advocates, environmental groups, or other affected businesses), evidentiary hearings, and ultimately, a Commission order that either approves, denies, or modifies the proposed action. The standard for approval often involves demonstrating that the proposed action is necessary, cost-effective, and beneficial to the public. The Commission’s decisions are subject to judicial review.
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Question 30 of 30
30. Question
Consider a scenario where Coastal Energy, a regulated electric distribution utility operating solely within Rhode Island, enters into a definitive agreement to acquire Seaside Power, another Rhode Island-based electric distribution utility. This proposed acquisition is intended to consolidate operations, enhance grid modernization efforts, and achieve cost efficiencies. Under Rhode Island energy law, what is the primary regulatory hurdle that Coastal Energy must overcome to legally complete this transaction?
Correct
The Rhode Island Public Utilities Commission (PUC) has broad authority to regulate public utilities, including setting rates and approving service standards. The Public Utilities Regulatory Act, specifically Rhode Island General Laws Chapter 39-1, establishes the framework for this oversight. When a utility proposes a significant change in its service territory, such as a merger or acquisition that could impact service delivery or rates for Rhode Island consumers, the PUC must review and approve such transactions. This approval process typically involves evaluating the potential benefits and detriments to the public interest, which includes considering factors like service reliability, affordability, environmental impact, and the financial stability of the combined entity. The PUC’s decision-making is guided by the principle of ensuring that utility operations serve the public good. Without PUC approval, a merger or acquisition that alters the operational structure or service territory of a Rhode Island-regulated utility would be considered an unlawful action, subject to penalties and potentially voided. This ensures that changes affecting essential services are scrutinized for compliance with state law and the public interest.
Incorrect
The Rhode Island Public Utilities Commission (PUC) has broad authority to regulate public utilities, including setting rates and approving service standards. The Public Utilities Regulatory Act, specifically Rhode Island General Laws Chapter 39-1, establishes the framework for this oversight. When a utility proposes a significant change in its service territory, such as a merger or acquisition that could impact service delivery or rates for Rhode Island consumers, the PUC must review and approve such transactions. This approval process typically involves evaluating the potential benefits and detriments to the public interest, which includes considering factors like service reliability, affordability, environmental impact, and the financial stability of the combined entity. The PUC’s decision-making is guided by the principle of ensuring that utility operations serve the public good. Without PUC approval, a merger or acquisition that alters the operational structure or service territory of a Rhode Island-regulated utility would be considered an unlawful action, subject to penalties and potentially voided. This ensures that changes affecting essential services are scrutinized for compliance with state law and the public interest.