65- 407 C.M.R. ch. 316, § 4

Current through 2024-25, June 19, 2024

Section 407-316-4 - CONTRACTING AUTHORITY

A.General Authority

When in the best interests of ratepayers, the Commission may direct investor-owned transmission and distribution utilities to enter into long-term contracts for:

1. Capacity resources;

2. Any available energy associated with capacity resources contracted for under this Chapter:

a. To the extent necessary to fulfill the policy specified in section 2(A) of this Chapter; or

b. If the Commission determines appropriate for purposes of supplying or lowering the cost of standard-offer service or otherwise lowering the cost of electricity for the ratepayers in the State. Available energy contracted pursuant to this subparagraph may be sold into the wholesale electricity market in conjunction with solicitations for standard-offer supply bids; and

3. Any available renewable energy credits associated with capacity resources contracted under paragraph A. The price paid by the investor-owned transmission and distribution utility for the renewable energy credits must be lower than the price received for those renewable energy credits at the time they are sold by the investor-owned transmission and distribution utility.

B.Contracting Limits

Capacity resources contracted for under this Chapter may not exceed the amount necessary to ensure the reliability of the electric grid of this State or to lower customer costs. Unless the Commission determines the public interest requires otherwise, a capacity resource may not be contracted for under this Chapter unless the Commission determines that the capacity resource is recognized as a capacity resource for purposes of any regional or federal capacity requirements.

C.Contract Type

A long-term contract authorized under this section may be for physical delivery of the products or may be a financial transaction. The Commission may permit, but may not require, investor-owned transmission and distribution utilities to enter into contracts for differences that are designed and intended to buffer ratepayers in the State from potential negative impacts from transmission development.

65- 407 C.M.R. ch. 316, § 4