Section 23.06 - Use of Renewable Energy and RECs Obtained through Long-term Contracts(1) After purchasing energy and RECs, a Distribution Company may: (a) Sell the energy to its basic service Customers, and retain RECs for the purpose of meeting the applicable annual RPS requirements; or(b) Sell the energy into the wholesale electricity spot market, and sell the purchased RECs to minimize costs to ratepayers, provided that DOER has not notified the Distribution Company that the RECs should be retained to facilitate reaching emission reduction targets.(2) If the Distribution Company sells the energy and RECs as provided in 220 CMR 23.06(1), it shall: (a) Calculate the net cost of payments made under the Long-term Contracts against the proceeds obtained from the sale of energy and RECs;(b) Credit or charge all Customers the difference between the contract payments and proceeds through a uniform, fully reconciling annual factor in distribution rates, subject to review and approval by the Department; and(c) Design a reconciliation process that allows the Distribution Company to recover all costs incurred under such contracts, subject to review and approval by the Department.Adopted by Mass Register Issue 1335, eff. 3/24/2017.