Legislation passed last week requires electric companies to enter into long-term contracts with renewable energy developers, directing companies like National Grid to solicit proposals from renewable energy developers annually.

Sen. Joshua Miller (D-Dist. 28), who represents parts of Cranston and Warwick, says this legislation – which he sponsored with House Majority Leader Gordon Fox (D- Providence) – coupled with other efforts, will provide cities and towns with opportunities for growth, as well as set a standard for long-term renewable energy contracts in Rhode Island.

“That’s the whole idea of it,” said Miller, “looking long-term.”

The legislation was signed by the governor at the Green Economy Roundtable last week.

Miller talked about legislation passed subsequent to the roundtable; it deals with “net metering,” which allows organizations that create renewable energy projects to get credit for the energy they do not use. That creates an incentive for cities and towns to bolster their renewable energies – wind, solar and others – and be rewarded.

The “net-metering” legislation was signed into law last week, following the signing of the renewable energy contract standards legislation, which passed on the heels of similar legislation vetoed by Gov. Donald Carcieri last year.

Miller cited interest in an offshore wind project – one that addresses energy concerns on Block Island – as what he thought solidified successful passage of the legislation this year. However, he said the legislation moves beyond this single project, setting a standard for commitment to renewable energies across the state.

According to a press release distributed by the General Assembly regarding the renewable energy contracts, “National Grid will issue requests for proposals for 10- to 15-year contracts to purchase electricity from renewable energy production for at least 90 megawatts of its load, plus a utility scale project of offshore wind of up to 150 megawatts.”

In other words, the company will invest a portion of itself into renewable energy projects, with the aim of setting a standard for the state’s commitment to developing renewable energy through these long-term contracts.

The legislation leaves approval of these contracts to the Public Utilities Commission, asking only that National Grid solicit proposals annually from renewable energy projects and enter into contracts that are “commercially reasonable.”

In attempting to alleviate the financial burden of renewable energy development from the taxpayer, the legislation gives responsibility of bolstering renewable energy to a company, raising some questions as to what effect the undertaking will have on National Grid ratepayers, who could incur some initial costs for the projects.

When asked about the potential cost of projects, Miller referenced recent demonstrations on the topic, some of which, he said, projected a cost of less than $1 a year per customer. The projects, though, will range in scale.

He said the benefits of the legislation could be seen in a “return after the fact,” referring to the state’s potential to curb reliance on non-renewable sources.

“It’s a real commitment to all renewables,” he said.