1. Narragansett Rate Settlement
Sets T&D (DisCo) rates for next five years
Starting November 1, 2004
Parties to settlement included TEC-RI, PP&L, Attorney General, Division of PUC, US Navy, Narragansett Electric

2. Back-up rates generally more conducive to on-site generation
Moved more charges for larger C&I (G-62 and G-32) to demand charges, away from energy charges
While better for on-site generation, differences in demand charges between general service and back-up/supplemental service still penalize on-site generation, particularly non-dispatchable generation (e.g. wind)

3. Renewables exemption from back-up rates
Any RI Renewable Energy Standard (RPS) eligible technologies
Exemption only for first 3MW of renewables
Name plate capacity
Negotiated cap to address Narragansett’s concerns about lost revenues and other unforeseen consequences

4. Does not preclude additional changes to back-up rates…
Settlement agrees that the design of the rates is “not based on considerations of reduced environmental impacts, increased energy efficiency, reduced transmission losses and congestion, effects on electric system reliability, and other factors that the Commission may consider under G.L (c).”
Therefore, any Party is free to file to request a discounted rate or credit pursuant to G.L (c)

5. DG Working Group
Purpose: “to examine the effects of distributed generation on distribution system operations and reliability, Company costs and revenues, and other factors within the purview of [Narragansett Electric].”
Opportunity to increase 3MW renewables cap if no additional costs or unanticipated benefits are identified
Opportunity to assess costs/benefits of DG generally, so that data is available to make informed decision regarding G.L (c)

6. DG Working Group
Narragansett to “collect and report to the DG Working Group data necessary for the examination of such factors as may be determined by the DG Working Group, and [to] cooperate with other DG Working Group members with respect to the collection of such data.”
Working Group consists of PP&L, Narragansett’s “active participation”, and other “interested parties”.

7. Interconnect Issues PP&L did not attempt to address in settlement:
Not clear that this has been a stumbling block for on-site generation in Rhode Island.
Limited resources