Code of Massachusetts Regulations
220 CMR - DEPARTMENT OF PUBLIC UTILITIES
Title 220 CMR 23.00 - Competitively Solicited Long-term Contracts for Offshore Wind Energy
Section 23.05 - General Criteria for Long-term Contracts and Offshore Wind Energy Generation Sources

Universal Citation: 220 MA Code of Regs 220.23

Current through Register 1531, September 27, 2024

(1) Long-term Contracts must be with offshore wind energy generating resources that:

(a) Are determined by the Department to:
1. Provide enhanced electricity reliability;

2. Contribute to reducing winter electricity price spikes;

3. Be cost effective to Massachusetts electric ratepayers over the term of the contract, taking into consideration potential economic and environmental benefits to the ratepayers;

4. Avoid line loss and mitigate transmission costs to the extent possible and ensure that transmission cost overruns, if any, are not borne by ratepayers;

5. Adequately demonstrate project viability in a commercially reasonable timeframe;

6. Allow offshore wind energy generation resources to be paired with energy storage systems;

7. Mitigate any environmental impacts, where possible; and

8. Create and foster employment and economic development in Massachusetts, where feasible.

(b) Are a cost-effective mechanism for procuring reliable renewable energy on a long-term basis taking into account the factors outlined in 220 CMR 23.00.

(2) In evaluating Long-term Contracts for Offshore Wind Energy Generation, the Department will consider the recommendations of the Attorney General, which shall be submitted to the Department within 45 days of the filing of Long-term Contracts.

(3) The Department shall consider the findings of the independent evaluator and may adopt recommendations made by the independent evaluator as a condition for Long-term Contract approval. If the independent evaluator concludes in the findings that the solicitation and bid selection of a Long-term Contract were not fair and objective and that the process was substantially prejudiced as a result, the Department shall reject the winning bid proposal.

(4) The market products of Offshore Wind Energy Generation Sources procured through the Long-term Contract(s) shall be apportioned among the Distribution Companies. The apportioned share shall be calculated and based upon the total energy demand from all Customers in each service territory of the Distribution Companies.

(5) Proposals for Long-term Contracts shall include associated transmission costs; provided that, to the extent that transmission costs are included in a bid, the Department may authorize or require the contracting parties to seek recovery of such transmission costs of the project through federal transmission rates, consistent with policies and tariffs of the Federal Energy Regulatory Commission, to the extent the Department finds such recovery is in the public interest.

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