§ 42-140.2-1. Findings. It is hereby found and declared that:

(a) Distributed generation can if well implemented, contribute to electric system reliability and efficiency and have system benefits including, but not limited to, reduced congestion, improved management of system peak demands through demand response, and added capacity that mitigates the needs for additional central generating capacity in the region;

(b) Distributed generation from renewable resources diversifies the power sources for electrical generation, and having multiple, reliable sources of power for electrical generation reduces risks and can temper price volatility;

(c) Distributed generation from renewable resources and from combined heat and power systems can reduce the environmental impacts, including greenhouse gas emissions, of electrical generation;

(d) The system benefits of distributed generation are a function of the location of the distributed generation capacity, the reliability and the efficiency of distributed generation facilities individually and/or collectively, and the time of operation of the distributed generation facilities;

(e) The value of distributed generation can vary with changes in the wholesale and retail markets for electricity;

(f) Properly designed regulatory and financing programs for distributed generation can have both system benefits and economic benefits for entities.

(g) The independent system operator of New England has stated that mitigating peak demand should be a central strategy in reducing wholesale electricity and has established a demand response to accomplish this purpose.

(h) Established tariffs and embedded principals for rate setting and cost allocation may present substantial barriers to realizing the full potential of distributed generation in Rhode Island.

History of Section. (P.L. 2006, ch. 236, § 13; P.L. 2006, ch. 237, § 13.)