R.I. Supreme Court rules against Block Island Power over grid connection, transformer costs

PROVIDENCE – The R.I. Supreme Court on Friday affirmed a state ruling denying Block Island Power Co.’s request to have Rhode Island electric ratepayers pay for costs to connect to the electric grid and purchase a backup transformer.

Back in February 2017, Block Island Power Co. filed the petition with the R.I. Public Utilities Commission looking to connect to the undersea transmission cable, which is owned by Rhode Island Energy – previously known as National Grid Rhode Island. That cable also connects to the offshore wind turbines.

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At the time, Block Island Power Co. argued that state law provided “statutory basis” to require the costs for the island to connect to the electrical grid and the purchase of the backup generator be spread across all ratepayers. National Grid disagreed at the time, according to RIPUC documents, saying New Shoreham residents be responsible for those costs.

The RIPUC ruled in July 2017 against Block Island Wind Co., stating the interconnection facilities “are a facility separate from the transmission cable and related facilities,” RIPUC documents show. Additionally, the commission ruled that the company’s local service agreement is only between New England Power Co. and ISO New England Inc., and it does not include Block Island Wind or the transmission cable and other related facilities.

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On Friday, the R.I. Supreme Court agreed with the RIPUC’s ruling, also noting that the “related facilities” as it pertains to the transmission cable is separate from the interconnection and backup transformer Block Island Power Co. wants to build.

“We hold that ‘related facilities’ clearly and unambiguously excludes the costs of [Block Island Power Co.’s] interconnection facilities and backup transformer,” the court ruled.

James Bessette is the PBN special projects editor, and also covers the nonprofit and education sectors. You may reach him at Bessette@PBN.com. You may also follow him on Twitter at @James_Bessette.