The Distributed Generation Standard Contracts Program (DG Program) supports the development of new, locally-based renewable energy projects. Enacted in 2011, the program requires electric distribution companies to enter into long-term contracts at a fixed price (with terms of up to 20 years) for 40 MW of newly developed distributed generation projects in the Rhode Island load zone by December 30, 2014. The 40 MW DG program is “carved-out” of the 90 MW Long-Term Contracting Standard for Renewable Energy (LTC) capacity obligation. Although the LTC obligation is “adjusted by capacity factor,” the DG program is not. Therefore, a 10 MW facility with a 30 percent capacity factor would be counted as providing 10 MW to the minimum DG capacity obligation. As with the LTC projects, the electric distribution company is required to purchase capacity, energy, and attributes, not simply RECs. Unlike the LTC projects, DG projects must be interconnected to the Rhode Island distribution system, so that contracted resources physically meet Rhode Island loads through direct delivery to the Rhode Island distribution system. The DG program created a simple, standard contract for project developers to obviate the need for negotiating complex contracts with the utility. The Distributed Generation Standard Contracts Board sets annual ceiling prices for categories of different renewable energy technologies.