independent system operator.

On and after the effective date of this section, no electric distribution company, as defined

in § 39-1-2, shall own, operate, or control a transmission facility, as defined in § 39-1-2, located in

the state unless such company joins or is a member of ISO New England, Inc. or its successor

organization as approved by the federal energy regulatory commission.

SECTION 4. Section 39-26.1-4 of the General Laws in Chapter 39-26.1 entitled "Long-

Term Contracting Standard for Renewable Energy" is hereby repealed.

39-26.1-4. Financial remuneration and incentives.

In order to achieve the purposes of this chapter, electric distribution companies shall be

entitled to financial remuneration and incentives for long-term contracts for newly developed

renewable energy resources, which are over and above the base rate revenue requirement

established in its cost of service for distribution ratemaking. Such remuneration and incentives shall

compensate the electric distribution company for accepting the financial obligation of the long-

term contracts. The financial remuneration and incentives described in this section shall apply only

to long-term contracts for newly developed renewable energy resources. For long-term contracts

approved pursuant to this chapter before January 1, 2022, the financial remuneration and incentives

shall be in the form of annual compensation, equal to two and three quarters percent (2.75%) of the

actual annual payments made under the contracts for those projects that are commercially

operating, unless determined otherwise by the commission at the time of approval. For long-term

contracts approved pursuant to this chapter on or after January 1, 2022, including contracts above

the minimum long-term contract capacity, the financial remuneration and incentives shall be in the

form of annual compensation up to one percent (1.0%) of the actual annual payments made under

the contracts through December 31, 2026, for those projects that are commercially operating. For

all long-term contracts approved pursuant to this chapter on or after January 1, 2027, financial

remuneration and incentives shall not be applied, unless otherwise granted by the commission. For

any calendar year in which the electric distribution company’s actual return on equity exceeds the

return on equity allowed by the commission in the electric distribution company’s last general rate

case, the commission shall have the authority to adjust any or all remuneration paid to the electric

distribution company pursuant to this section in order to assure that such remuneration does not

result in or contribute toward the electric distribution company earning above its allowed return for

such calendar year.

SECTION 5. Sections 39-26.4-2 and 39-26.4-3 of the General Laws in Chapter 39-26.4

entitled "Net Metering" are hereby amended to read as follows: