Gov Signs Long-Term Contracting Bill (50% of Market), EDCs May Use Products For Default Service
August 09,2016
Massachusetts Governor Charlie Baker signed H. 4568 which requires the EDCs to solicit long-term contracts for 9,450,000 megawatts-hours of, "clean energy generation," and 1,600 megawatts of offshore wind power, which is equal to about 50% of retail sales in the state.
As previously reported, the adopted version of legislation gives the EDCs discretion as to the disposition of all products procured under the contracts.
An electric distribution company may elect to use any energy purchased under such contracts for resale to its customers, and may elect to retain renewable energy certificates to meet the applicable annual renewable portfolio standard requirements.
If the energy and renewable energy certificates are not so used, such companies shall sell such purchased energy into the wholesale market and shall sell such purchased renewable energy certificates attributed to Class I renewable portfolio standard eligible resources to minimize the costs to ratepayers under the contract; provided further, that a distribution company shall retain renewable energy certificates that are not attributed to Class I renewable portfolio standard eligible resources
In contrast, a prior version of the bill would have mandated that all products be sold into the market, and not used for default service.