65- 407 C.M.R. ch. 301, § 10

Current through 2024-25, June 19, 2024

Section 407-301-10 - consumer-owned utility load aggregation

A.Standard Offer Aggregation

Notwithstanding any other provision of this Chapter, a consumer-owned transmission and distribution utility may aggregate load within its service territory for the purpose of providing standard offer service as specified in this section. The standard offer load aggregation must contain provisions for service to all customers within the service territory that are not taking service from competitive electricity providers.

B.Service Provider

The consumer-owned transmission and distribution utility may arrange for a retail standard offer load aggregation provider or may be the retail provider of the standard offer load aggregation service. The consumer-owned transmission and distribution utility must choose either a wholesale or retail provider through a competitive bid process. The consumer-owned transmission and distribution utility may serve all or a portion of the standard offer load aggregation service through its own generation resources or through a purchase power contract with a generator without conducting a competitive process.

C.Establishment

A consumer-owned transmission and distribution utility may establish a standard offer load aggregation only through a vote of its governing board.

D.Maximum Term

Unless otherwise authorized by order of the Commission, a standard offer load aggregation may be no longer than five years.

E.Customer Opt-Out

All customers shall have the opportunity to opt-out of the standard offer load aggregation and take service from a competitive electricity provider by providing notice to the consumer-owned transmission and distribution utility at least 30 days prior to the initiation of load aggregation service. The standard offer load aggregation must provide for service to customers that have chosen to opt-out of the load aggregation and have subsequently defaulted to standard offer service. The standard offer load aggregation may contain alternative pricing for customers that have chosen to opt-out of the load aggregation. The alternative pricing may be based on current electricity market prices at the time the customer takes service as part of the load aggregation.

F.Migration Restriction

Customers that do not opt-out of the standard offer load aggregation pursuant to subsection E may be required to take standard offer service at specified load aggregation prices for a pre-specified term.

G.Pre-Existing Contracts

Customers taking service from a competitive electricity provider under a pre-existing contract that terminates after the initiation of the standard offer load aggregation service and do not opt-out by providing notice pursuant to subsection E will become part of the aggregation when the contract expires. The standard offer load aggregation may contain alternative pricing for customers who do not provide notice of the expiration of the pre-existing contract pursuant to this subsection. The alternative pricing may be based on current electricity market prices at the time the customer takes service as part of the load aggregation.

H.New Customers and Load Expansions

New customers in the utility service territory will become part of the standard offer load aggregation unless the customer receives service from a competitive electricity provider. The standard offer load aggregation shall provide new residential and small non-residential customers service at the predetermined load aggregation prices. The standard offer load aggregation may contain alternative pricing for new load of medium and large non-residential customers and for load expansions of existing customer above a pre-specified demand level. The alternative pricing may be based on current electricity market prices at the time the customer takes service as part of the load aggregation.

I.Customer Notification

The customer-owned transmission and distribution utility shall provide its customers notification of the standard offer load aggregation at least 90 days but no greater than 120 days before the initiation of service. The notification shall be in writing and contain, at a minimum the following information:

1. a description of the terms and conditions of the standard offer load aggregation including the initiation and termination dates, load aggregation prices are not required to be included in the notification;

2. a prominent statement that customers that do not opt-out of the load aggregation will be required to continue to take service from the load aggregation throughout the term;

3. the procedures for customers to opt-out of the load aggregation; and

4. the existence of alternative pricing for customers that opt-out pursuant to subsection E and subsequently default to standard offer service, customers with pre-existing contracts that do not provide notice of the expiration of the contract pursuant to subsection G, and new customers and load expansions pursuant to subsection H.

J.Commission Notification

A consumer-owned transmission and distribution utility that establishes a standard offer load aggregation must notify the Commission at least 90 days prior to the initiation of load aggregation service.

K.Consolidated Load

Consumer-owned transmission and distribution utilities may consolidate the loads within their service territories for purposes of forming a standard offer load aggregation.

65- 407 C.M.R. ch. 301, § 10