Code of Massachusetts Regulations
220 CMR - DEPARTMENT OF PUBLIC UTILITIES
Title 220 CMR 24.00 - Competitively Solicited Long-term Contracts for Clean Energy
Section 24.04 - Methods for Soliciting and Entering into Long-term Contracts

Universal Citation: 220 MA Code of Regs 220.24

Current through Register 1531, September 27, 2024

(1) In developing the provisions of Long-term Contracts, Distribution Companies shall consider Long-term Contracts for renewable energy certificates (RECs) for energy or for a combination of RECs and energy, if applicable.

(2) The Distribution Companies, in coordination with DOER, shall consult with the Attorney General regarding the choice of solicitation methods. The Distribution Companies and DOER shall jointly propose a timetable and method for solicitations of Long-term Contracts using a competitive solicitation process. Prior to initiating a solicitation, the Distribution Companies' timetable and methods for solicitation and contracting shall be subject to review and approval by the Department.

(3) The Distribution Companies shall, in any filing with the Department regarding the timetable and methods for soliciting and contracting consented to by DOER, describe the proposed methods reviewed and selected.

(4) A solicitation may be coordinated and issued jointly with other New England states or entities designated by those states.

(5) The Distribution Companies may conduct one or more competitive solicitations through a staggered procurement schedule developed by the Distribution Companies and DOER, provided that the schedule shall ensure the Distribution Companies enter into cost-effective Long-term Contracts for Clean Energy Generation equal to approximately 9,450,000 megawatt-hours by December 31, 2022.

(6) DOER and the Attorney General shall jointly select, and DOER shall contract with, an independent evaluator to monitor and report on the solicitation and bid selection process in order to assist DOER in determining whether a proposal is reasonable and to assist the Department in its consideration of Long-term Contracts filed for approval.

(7) A Distribution Company may, subject to Department approval, decline to pursue Long-term Contract proposals having terms and conditions that the Distribution Company determines would place an unreasonable burden on its balance sheet, provided that the Distribution Company takes all reasonable actions to structure its Long-term Contracts, pricing, or administration of the products purchased to mitigate impacts on the balance sheet or income statement of the Distribution Company or its parent company; and provided further that such mitigation shall not increase costs to ratepayers.

(8) To ensure an open, fair and transparent solicitation and bid selection process that is not unduly influenced by an affiliated company, the independent evaluator shall:

(a) Have access to information and data related to the competitive solicitation and bid selection process, provided that the independent evaluator ensures that proprietary information remains confidential;

(b) Issue a report to the Department analyzing the timetable and method of solicitation, and the solicitation process implemented by the Distribution Companies and DOER under 220 CMR 24.04, and include recommendations, if any, for improving the process; and

(c) Upon the Department's review of a proposed Long-term Contract, file a report with the Department that summarizes and analyzes the solicitation and the bid selection process, and provides the independent evaluator's assessment of whether all bids were evaluated in a fair and objective manner.

(9) Proposals received pursuant to a solicitation shall be subject to review by DOER. If DOER, in consultation with the Distribution Companies and the independent evaluator, determines that reasonable proposals were not received pursuant to a solicitation, DOER may terminate the solicitation, and may require additional solicitations.

(10) DOER shall give preference to proposals that combine New Class I Renewable Portfolio Eligible Resources and Firm Hydroelectric Generation and demonstrate a benefit to low-income ratepayers in Massachusetts, without adding cost to the project.

(11) If the Distribution Companies are unable to agree on a winning bid following a solicitation, the matter shall be submitted to DOER, which shall, in consultation with the independent evaluator, issue a final, binding determination of the winning bid, provided that the final contract shall be subject to review by the Department, per 220 CMR 24.00 and Department precedent.

(12) If a Distribution Company deems all proposals to be unreasonable, the Distribution Company shall, within 20 days of the date of its decision, submit a filing to the Department. The filing shall include full and complete documentation supporting the Distribution Company's decision to decline the proposals. The Department will approve or reject the Distribution Company's decision within four months of the date of filing, and may order the Distribution Company to reconsider any proposal. No Long-term Contract entered into under 220 CMR 24.00 shall take effect before it is filed with, and approved by, the Department.

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