220 Mass. Reg. 24.05

Current through Register 1523, June 7, 2024
Section 24.05 - General Criteria for Long-term Contracts and Clean Energy Generation Sources
(1) Long-term Contracts must be with Clean Energy Generation resources that:
(a) Are determined by the Department to:
1. Provide enhanced electricity reliability within Massachusetts;
2. Contribute to reducing winter electricity price spikes;
3. Be cost effective to Massachusetts electric ratepayers over the term of the contract, taking into consideration potential economic and environmental benefits to the ratepayers;
4. Avoid line loss and mitigate transmission costs to the extent possible and ensure that transmission cost overruns, if any, are not borne by ratepayers;
5. Allow Long-term Contracts for Clean Energy Generation resources to be paired with energy storage systems;
6. Guarantee energy delivery in winter months;
7. Adequately demonstrate project viability in a commercially reasonable timeframe; and
8. Create and foster employment and economic development in Massachusetts, where feasible.
(b) Are a cost-effective mechanism for procuring low cost renewable energy on a long-term basis taking into account the factors outlined in 220 CMR 24.00.
(2) In evaluating Long-term Contracts for Clean Energy Generation, the Department will consider the recommendations of the Attorney General, which shall be submitted to the Department within 45 days of the filing of Long-term Contracts.
(3) The Department shall consider the findings of the independent evaluator and may adopt recommendations made by the independent evaluator as a condition for Long-term Contract approval. If the independent evaluator concludes in the findings that the solicitation and bid selection of a Long-term Contract were not fair and objective and that the process was substantially prejudiced as a result, the Department shall reject the winning bid proposal.
(4) The market products of Clean Energy Generation sources procured through the Long-term Contract(s) shall be apportioned among the Distribution Companies. The apportioned share shall be calculated and based upon the total energy demand from all Customers in each service territory of the Distribution Companies.
(5) Proposals for Long-term Contracts shall include associated transmission costs; provided that, to the extent that transmission costs are included in a bid, the Department may authorize or require the contracting parties to seek recovery of such transmission costs of the project through federal transmission rates, consistent with policies and tariffs of the Federal Energy Regulatory Commission, to the extent the Department finds such recovery is in the public interest.

220 CMR 24.05

Adopted by Mass Register Issue 1335, eff. 3/24/2017.
Amended by Mass Register Issue 1336, eff. 3/24/2017.