Code of Massachusetts Regulations
220 CMR - DEPARTMENT OF PUBLIC UTILITIES
Title 220 CMR 11.00 - Rules Governing the Restructuring of the Electric Industry
Section 11.04 - Distribution Company Requirements

Universal Citation: 220 MA Code of Regs 220.11

Current through Register 1531, September 27, 2024

(1) Purpose and Scope.

(a) Purpose.220 CMR 11.04 establishes the rules of procedure by which Distribution Companies shall:
1. Provide Distribution Service to Distribution Customers in their Service Territories;

2. Provide Electric Service to Low-income Customers in their Service Territories;

3. Provide funding for Renewable Resources;

4. Provide Energy Efficiency and DSM services to Retail Customers in their Service Territories;

5. Provide Standard Offer Generation Service and Default/Basic Generation Service to Retail Customers in their Service Territories that are not receiving Generation Service from a Competitive Supplier;

6. Bill Retail Customers in their Service Territories; and

7. Terminate Electric Service to Retail Customers for non-payment of bills.

(b) Scope. 220 CMR 11.04 applies to all Distribution Companies subject to the jurisdiction of the Department.

(2) Distribution Service.

(a) Each Distribution Company shall have the exclusive obligation to provide Distribution Service to all Customers within its Service Territory. No other entity may provide Distribution Service within such Service Territory without the written consent of the Distribution Company. Such consent shall be filed with the Department and the clerk of the municipality so affected.

(b) Each Distribution Company shall file, for Department approval, a Distribution Service tariff for each rate class.

(c) Each Distribution Company shall file, for Department approval, terms and conditions governing the manner in which Distribution Service is, provided to its Distribution Customers. These terms and conditions shall be consistent with the Model Terms and Conditions for Distribution Service established by the Department.

(3) Transmission Service. Each Distribution Company shall file, for Department approval, terms governing the provision of Transmission Service to its Distribution Customers.

(4) Interconnection Standards. Each Distribution Company shall establish non-discriminatory Interconnection Standards that govern the connection of Generation Facilities to its Distribution Facilities. Such standards shall ensure that all Generation Facilities have fair access on reasonable terms to the Company's Distribution Facilities. The Interconnection Standards shall be on file at the Department.

(5) Low-income Customer Tariff.

(a) Each Distribution Company shall file, for Department approval, a Low-income Customer Tariff that provides a level of discount to Customers taking Distribution Service under such tariff equivalent to the discount provided under its low-income tariff in effect prior to March 1, 1998. The discount shall be in addition to any reduction in rates provided by the Distribution Company on or after March 1, 1998. The discount shall be provided to Low-income Customers through a reduction in the distribution and Transition Charges to which such Customers would otherwise be subject.

(b) Each Distribution Company shall establish Customer eligibility criteria for its Low-income Customer Tariff based upon verification of a Customer's receipt of any means-tested public-benefit program or verification of eligibility for the low-income home energy assistance program or its successor program, for which eligibility does not exceed 200% of the federal poverty level based on a household's gross income or other criteria approved by the Department. Eligibility for the low-income discount rate shall be indexed to changes in the federal poverty level percentage income-criterion, and households satisfying that criterion shall qualify for the rate discount.

(c) Each Distribution Company shall periodically notify all Customers of the availability of and method of obtaining service on the Low-income Customer Tariff.

(d) Each Distribution Company shall allocate to other rate classes, as part of a general rate case, the revenue deficiency resulting from the Low-income Customer Tariff using an allocation method approved by the Department for the Distribution Company.

(e) Each Distribution Company shall guarantee payment to a Competitive Supplier for Generation Service provided to a Customer taking Distribution Service under the Company's Low-income Customer Tariff in the event of non-payment by such Customer, where non-payment shall be determined consistent with 220 CMR 11.05(3)(c) and (d). Upon determination that such a Customer has failed to pay the amount owed to the Competitive Supplier, the Distribution Company shall pay the Competitive Supplier, except that such payment shall not exceed the prices that the Distribution Company charges to Customers for Standard Offer Generation Service. The Distribution Company shall guarantee payment only for the period of time prior to the earliest date that the Competitive Supplier could have terminated Generation Service to the Customer, in accordance with 220 CMR 11.05(3)(c) and the Distribution Company's Terms and Conditions for Competitive Suppliers.

(6) Farm Discount.

(a) Each Distribution Company shall provide Customers who meet the eligibility requirements for being engaged in the business of agriculture or farming, as defined in M.G.L. c. 128, § 1A, a 10% reduction in the rates to which such Customers would otherwise be subject. Each Distribution Company shall allocate to other rate classes, as part of a general rate case, the revenue deficiency resulting from the farm discount using an allocation method approved by the Department for the Distribution Company.

(b) Eligibility Verification. Eligibility for the farm discount shall be verified according to criteria established by the Department.

(7) Renewable Resources.

(a) Funding of Renewable Resources.
1. Funding Levels. Each Distribution Company shall collect a charge to support the Massachusetts Renewable Energy Trust Fund beginning March 1, 1998, in accordance with the following schedule of charges per kilowatthour: $ 0.00075 in 1998; $ 0.001 in 1999; $ 0.00125 in 2000; $ 0.001 in 2001; $ 0.00075 in 2002; and $ 0.0005 in each calendar year thereafter. The revenues generated by this charge shall be remitted to the Massachusetts Technology Park Corporation.

2. Public Purpose. The public purpose of this fund shall be to generate the maximum economic and environmental benefits over time from renewable energy to the ratepayers of the Commonwealth by promoting the increased availability, use, and affordability of renewable energy.

(b) Availability of Information. Each Distribution Company shall make available to its Customers upon request non-proprietary information in its possession, custody, or control regarding Renewable Resources and emerging energy technologies and the methods by which these technologies can be acquired and installed.

(8) Energy Efficiency.

(a) Funding of Energy Efficiency Services. Energy Efficiency services provided by a Distribution Company to Customers shall be funded by a charge to be collected beginning on March 1, 1998, according to the following schedule of charges per kilowatthour: $ 0.0033 in 1998; $ 0.0031 in 1999; $ 0.00285 in 2000; $ 0.0027 in 2001; and $ 0.0025 in 2002 through 2012. In each year, at least 20% of residential DSM expenditures, and in no event less than 0.25 mills per kilowatthour, which charge shall also be continued in the years subsequent to 2002, shall be spent on comprehensive DSM programs and education for Low-income Customers.

(b) Department Review. The Department shall review energy efficiency expenditures in accordance with M.G.L. c. 25A, § 11G.

(c) Availability of Information.
1. Each Distribution Company shall make available to its Customers upon request non-proprietary information in its possession, custody, or control regarding Energy Efficiency technologies, measures, or practices and the programs offered by the Distribution Company through which these technologies, measures, or practices can be installed or implemented.

2. Each Distribution Company shall make provisions to ensure confidentiality for those Customers who indicate that their Customer-specific Energy Efficiency information is to remain confidential.

(9) Standard Offer Generation Service and Default/Basic Generation Service.

(a) Each Distribution Company shall have the obligation to provide Standard Offer Generation Service and Default/Basic Generation Service to Customers within its Service Territory who are not receiving Generation Service from a Competitive Supplier, consistent with the provisions set forth in 220 CMR 11.04(9)(b) and (c).

(b) Standard Offer Generation Service.
1. Term. Standard Offer Generation Service shall be available for a period of seven years after the Retail Access Date.

2. Availability.
a. Standard Offer Generation Service shall be available to each Customer within a Distribution Company's Service Territory who:
i. Was a Customer of the Distribution Company as of the Retail Access Date; and

ii. Has not received Generation Service from a Competitive Supplier since the Retail Access Date, except as provided in 220 CMR 11.04(9)(b)2.d.

b. A Customer receiving Standard Offer Generation Service shall be allowed to retain such service upon moving within a Distribution Company's Service Territory.

c. A Customer who moves into a Distribution Company's Service Territory after the Retail Access Date is not eligible to receive Standard Offer Generation Service, except that a Low-income Customer who moves into a Distribution Company's Service Territory after the Retail Access Date shall be eligible to receive Standard Offer Generation Service.

d. A Customer who has received Generation Service from a Competitive Supplier since the Retail Access Date is not eligible to receive Standard Offer Generation Service, except that:
i. A Low-income Customer may receive Standard Offer Generation Service at any time, regardless of whether the Customer previously has received Generation Service from a Competitive Supplier;

ii. A residential or small commercial and industrial Customer who has received Generation Service from a Competitive Supplier since the Retail Access Date is eligible to receive Standard Offer Generation Service by so notifying the Distribution Company within 120 days of the date when the Customer first began to receive Generation Service from a Competitive Supplier, provided that such notification occurs during the first year following the Retail Access Date; and

iii. A Customer who has received Generation Service pursuant to an agreement with a Public Aggregator is eligible to receive Standard Offer Generation Service by so notifying the Distribution Company within 180 days of the date when the Customer first began to receive Generation Service through such agreement.

3. Rates.
a. The initial rate(s) for Standard Offer Generation Service shall be set so that, when considered in conjunction with Customers' distribution, transmission, Renewable Resources, Energy Efficiency, and Transition Charges, Customers' average rates are reduced by not less than 10% from 1997 average rates, as determined by the Department.

b. As of March 1, 1999, the rate(s) for Standard Offer Generation Service shall be set so that, when considered in conjunction with Customers' distribution, transmission, Renewable Resources, Energy Efficiency, and Transition Charges, Customers' average rates shall increase by not more than the rate of inflation, as determined by the Department.

c. As of September 1, 1999, the rate(s) for Standard Offer Generation Service shall be set so that, when considered in conjunction with Customers' distribution, transmission, Renewable Resources, Energy Efficiency, and Transition Charges, Customers' average rates are reduced by at least 15% from 1997 average rates, as adjusted for inflation.

d. A Distribution Company that is unable to meet the rate reductions set forth in 220 CMR 11.04(9)(b)3.a. and c. may petition the Department for relief pursuant to M.G.L. c.164, § 1G(3)(c).

e. Each Distribution Company shall file, for Department approval, the annual rates that Customers shall be charged for Standard Offer Generation Service for the seven-year period that this service will be available.

4. Procurement. Each Distribution Company shall procure electricity for Standard Offer Generation Service through competitive bidding, subject to review by the Department.

5. Terms and Conditions. Each Distribution Company shall file, for Department approval, a tariff for the provision of Standard Offer Generation Service. This tariff shall be consistent with the Model Tariff for Standard Offer Generation Service established by the Department.

(c) Default/Basic Generation Service.
1. Availability. Default/Basic Generation Service shall be available to any Customer who is not receiving either Generation Service from a Competitive Supplier or Standard Offer Generation Service.

2. Rates.
a. The rate(s) for Default/Basic Generation Service shall be as established through competitive bidding, but in no case shall they exceed the average monthly market price for electricity, as determined by the Department.

b. Each Distribution Company shall offer a Default/Basic Generation Service rate option to Customers in which the rate remains constant for a period of up to six months.

c. Each Distribution Company shall file, for Department approval, the rates that Customers shall be charged for Default/Basic Generation Service.

3. Procurement. Each Distribution Company shall procure electricity for Default/Basic Generation Service through competitive bidding, subject to review by the Department. The provider of Default/Basic Generation Service shall be entitled to furnish a one-page insert in the Distribution Company Bill.

4. Terms and Conditions. Each Distribution Company shall file, for Department approval, a tariff for the provision of Default/Basic Generation Service. This tariff shall be consistent with the Model Tariff for Default/Basic Generation Service established by the Department.

(d) Fee. There shall be no fee for initiating or terminating Standard Offer Generation Service or Default Generation/Basic Service when the initiation or termination is, made concurrent with a scheduled meter read or involuntary on the part of the Customer.

(e) Low-income Customers. Each Distribution Company shall make a determination whether a Low-income Customer shall be placed on Standard Offer Generation Service or Default/Basic Generation Service based on which service has the lower rate, unless otherwise requested by the Customer. This determination shall be made at the time the service is initiated.

(f) Terms and Conditions for Competitive Suppliers. Each Distribution Company shall file, for Department approval, terms and conditions that will govern the relationship between the Distribution Company and Competitive Suppliers providing Generation Service to Customers in the Distribution Company's Service Territory. These terms and conditions shall be consistent with the Model Terms and Conditions for Competitive Generation Service established by the Department.

(10) Billing and Payment.

(a) Each Distribution Company shall bill its residential Customers in accordance with 220 CMR 25.00.

(b) Each Distribution Company shall issue a single Bill, reflecting Unbundled Rates, to each Customer in its Service Territory receiving Standard Offer Generation Service or Default/Basic Generation Service.

(c) Each Distribution Company shall offer two billing options to a Customer receiving Generation Service from a Competitive Supplier:
1. Pass through billing, under which the Customer would receive one Bill for Distribution Service, Transmission Service (if appropriate), the Renewable Resources charge, the Energy Efficiency charge, and the Transition Charge from the Distribution Company and a second Bill from the Competitive Supplier for Generation Service and other services provided by the Competitive Supplier; and

2. Complete billing, under which the Customer would receive a single Bill from the Distribution Company for Distribution Service, Transmission Service (if appropriate), the Renewable Resources charge, the Energy Efficiency charge, the Transition Charge, and Generation Service provided by the Competitive Supplier.

(d) Each Distribution Company shall inform a Customer when Generation Service for the Customer has been initiated by a Competitive Supplier, along with information on how the Customer may file a complaint regarding an unauthorized initiation of Generation Service. This information shall be included on the first Distribution Company Bill rendered to the Customer after such initiation.

(e) Each Distribution Company may recover bad debt expenses associated with Distribution Service, Transmission Service, Standard Offer Generation Service, Default/Basic Generation Service, and guaranteed payments to Competitive Suppliers for Customers taking service under the Company's Low-income Customer Tariff, incurred as a result of Customers' failure to pay. The amount and method of recovery of such expenses shall be established by the Department.

(f) Each Distribution Company may, as appropriate, require a security deposit from, and impose late payment charges on, commercial and industrial customers in accordance with 220 CMR 26.00.

(g) Each Distribution Company shall bill condominium common areas and facilities in accordance with 220 CMR 28.00.

(11) Termination Protections.

(a) All residential Customers shall be protected from termination of Electric Service pursuant to 220 CMR 25.00.

(b) Each Distribution Company shall remain responsible for determining eligibility for termination protections pursuant to 220 CMR 25.00 and for administering such protections for Customers within its Service Territory.

(c) Each Distribution Company shall be prohibited from disconnecting or discontinuing Electric Service to a Customer for a disputed amount if that Customer has filed a complaint that is pending with the Department, in accordance with 220 CMR 25.02 and 220 CMR 11.07.

(12) Disclosure of Customer Usage Information.

(a) Each Distribution Company shall be required to provide a Customer's historic usage information to Competitive Suppliers and Electricity Brokers that have received the required Customer authorization, as established in 220 CMR 11.05(4)(a). The type of usage information shall be as provided below.
1. Demand Customers. For Customers that have been billed at least in part on a demand basis during the 36-month period prior to the release of information, the historic usage information shall include, for the most recent 12 months, the energy consumption for each month and the highest demand level for each month as well as the average monthly demand for the month. The Distribution Company shall indicate if any of the Energy and demand measurements were not based on actual recorded usage, and provide a description of the method used to determine the estimated measurements.

2. Energy-only Customers. For Customers that have been billed on an Energy-only basis during the 36-month period prior to the release of information, the historic usage information shall include the monthly Energy consumption for the most recent 12 months. The Distribution Company shall indicate if any of the Energy measurements were not based on actual recorded usage and provide a description of the method used to determine the estimated measurements.

(b) Each Distribution Company shall be required to provide a Customer's historic usage information to the Customer, upon the Customer's request. Distribution Companies shall be required to exercise best efforts to furnish the data requested by the Customer on a timely basis. The Distribution Company shall indicate if any of the usage information was not based on actual recorded usage and provide a description of the method used to determine the estimated usage.

(13) Dispute Resolution. Disputes between a Customer and a Distribution Company shall be resolved in accordance with 220 CMR 25.00 and 220 CMR 11.07.

(14) Conducting Business with Unauthorized Entities. A Distribution Company may provide services associated with the provision of Generation Service only to entities that are licensed as a Competitive Supplier or Electricity Broker by the Department pursuant to 220 CMR 11.05(2).

(15) Dissemination of Information. Each Distribution Company shall produce information, in the form of a mailing, or other method approved by the Department, to inform consumers about available rebates, discounts, credits, and other cost-saving mechanisms that assist consumers in lowering utility bills. Each Distribution Company will disseminate this information no less than semi-annually, and consistent with a plan filed with the Department.

Disclaimer: These regulations may not be the most recent version. Massachusetts may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.