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Massachusetts DOER Files Straw Proposal To Implement Clean Peak Standard Applicable To Suppliers

April 09,2019



The Massachusetts DOER has posted a straw proposal to implement a clean peak standard applicable to LSEs

See the straw proposal for full details

The CPS is a minimum standard obligation applied to all retail electricity suppliers and is set as a percentage of total retail sales

The annual obligation on suppliers must increase by at least 0.25% per year

Retail load served under contracts executed prior to 1/1/19 is exempt from obligation

Among other things, under the straw proposal, DOER aims to keep ratepayer costs at under $0.005/kWh

Under the straw proposal, DOER anticipates keeping the ACP rate level for the first 10 years, and then declining the ACP annually to control ratepayer costs, reflect declining technology costs, and reflect potentially diminishing value of further reductions in peak demand

Under the straw draft, the DOER proposes to require a procurement process for EDCs: Preference would be to establish compensation via a tariff based mechanism if deemed feasible (e.g. SMART), however, could require standard form contracts to be signed with each selected project (e.g. CT LREC/ZREC programs)

See background on the CPS here



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