On May 10, 2018, the Department of Public Utilities (DPU) issued an Order approving significant grid-facing investments and upgrades to the state’s electric grid. Specifically, the DPU’s Order authorizes Massachusetts’ utility companies to make $220 million in grid-facing investments in grid modernization technologies over the next three years to upgrade their distribution systems to improve the efficiency and reliability of the electric grid. In the Order, the DPU noted that the Order establishes the platform and the method for the electric distribution companies to make initial investments in grid modernization technologies to upgrade their current infrastructure and to increase the use of renewable energy,… More
Category Archives: Massachusetts
Massachusetts Senate Committee on Global Warming and Climate Change Releases Far-Reaching Draft Legislation
Yesterday, February 12, 2018, the Massachusetts Senate Committee on Global Warming and Climate Change released a Proposed Draft of legislation staking out an ambitious and far-reaching set of policies across a wide range of sectors.
There is a lot in the proposal and we are still reviewing the details, including the differences among mandates, targets, goals and discretionary authority.
For now,… More
Massachusetts Legislators are taking a look at the Department of Public Utilities’ (DPU) recent approval of an Eversource Energy proposal to apply different rate structures to customers who participate in net metering, such as customers who install solar energy systems at their homes or businesses. The Joint Committee on Telecommunications, Utilities and Energy (TUE) will hold an oversight hearing on the DPU’s recent decision in the Eversource Energy rate case to approve Eversource’s proposal to include a demand charge as a part of a monthly minimum reliability contribution (MMRC) applicable to net metering customers. … More
This afternoon, the Massachusetts Department of Energy Resources (DOER) released the much-anticipated results of the competitive procurement that will set the base compensation rates for the SMART program. The base compensation rates range from $0.17 in the NSTAR and Nantucket Electric territories to about $0.14 in WMECO. In Massachusetts Electric territory, the non-Nantucket territory served under the National Grid umbrella, the base compensation rate is about $0.16. A DOER summary table of the procurement is below. … More
Massachusetts Department of Public Utilities Investigates Issues Relating to Net Metering, Energy Storage, and Forward Capacity Market Participation
On October 3, 2017, the Massachusetts Department of Public Utilities (“DPU”) opened a new docket (D.P.U. 17-146) to investigate two issues: whether energy storage systems paired with net metering facilities are eligible for net metering and what should be done to clarify the rights of net metering facilities to participate in the Forward Capacity Market (“FCM”).
These issues have been percolating for years. In fact, D.P.U.… More
Stakeholders have been following the development of “SMART” as a successor to the SREC program in Massachusetts for more than a year. (See our previous posts on the development process here, here, and here.) As it stands, SMART reflects a determined effort by the Department of Energy Resources (“DOER”) to craft a program that balances multiple interests and sets a sustainable path for solar development in Massachusetts. … More
Initiative petition proponents filed with the Massachusetts Attorney General’s Office earlier this week 28 proposed initiative petitions that, if certified by the AG and endorsed by the requisite number of registered voters, could appear on the November 2018 ballot. (See this post for more details on the ballot initiative process.) Interested parties have until Friday, August 11 to (1) submit memoranda setting forth why the AG should or should not certify the measure,… More
On June 30, 2017, the Massachusetts Department of Energy Resources (“DOER”) announced an “aspirational” target for Massachusetts’ utilities to procure 200 MWh of energy storage by January 1, 2020. While solar targets are typically expressed in MW, the capabilities of energy storage facilities are often measured both in terms of power (MW) and energy (MWh), reflecting the multiple applications for which energy storage can be used. … More
Presented by Foley Hoag LLP and NECEC
After decades of speculation about offshore wind’s future in the United States, the industry that has long powered grids in Europe has finally arrived in the Northeast. In the last year America’s first offshore wind project–off the coast of Rhode Island–started spinning and delivering power to the grid, Massachusetts Governor Charlie Baker signed into law a bill authorizing the procurement of 1,600 megawatts of offshore wind,… More
In a letter circulated on January 24, 2017, the Massachusetts Department of Energy Resources (DOER) announced it will present a final proposed design of a new solar incentive program at a meeting on January 31, 2017.
DOER has worked with stakeholders over the last several months to develop a successor program to the Solar Carve Out II Program (SREC II). Final details are not yet available,… More
MA Appellate Tax Board Again Finds Virtually Net Metered Solar Facility Exempted from Property Taxation
The Commonwealth of Massachusetts’ Appellate Tax Board (the “Board”) has again ruled that a ‘virtual’ net-metered solar PV project is exempted from property taxation under clause “forty-fifth” of Massachusetts General Laws, Chapter 59, Section 5. This time, the board promulgated its Findings of Fact and Report in KTT, LLC v. Board of Assessors of The Town of Swansea.
The Findings represent yet another major change in the application of the Commonwealth’s property tax exemption for off-site,… More
On September 23, DOER presented a straw proposal for the next phase of Massachusetts solar incentives. DOER’s ambitious proposal for a tariff-based program reflects a thoughtful development process and a laudable goal of crafting a program that is more efficient at promoting sustained solar deployment. There is plenty to like. But, DOER has bitten off quite a mouthful by proposing a structure that departs so dramatically from the SREC approach. … More
The report on energy storage released by the Massachusetts Department of Energy Resources (DOER) and the Massachusetts Clean Energy Center (MassCEC) on September 16 put forward a bevy of policy proposals that have reinvigorated discussions of energy storage in the Commonwealth. A key policy initiative that seems certain to be implemented is the Advancing Commonwealth Energy storage (ACES) Program a $10 million, competitive grant program for energy storage projects to be administered by MassCEC and DOER. … More
The Massachusetts Department of Energy Resources (“DOER”) and the Massachusetts Clean Energy Center (“MassCEC”) released their long-awaited report on energy storage, “State of Charge” (the “Storage Study”) on Friday. The Storage Study is a central component of the Commonwealth’s “Energy Storage Initiative” and is likely to serve as the basis for future policy initiatives. It recommends a suite of policies designed to promote the development of 600 MW of advanced energy storage (i.e.… More
Massachusetts Legislature Enacts Significant Energy Bill in Support of Offshore Wind and Hydro Procurement, Storage and Transmission
Late last night, the Massachusetts legislature enacted House Bill 4568, an act to promote energy diversity (the “Act”). Overall, the Act marks a compromise between the House’s original procurement-only legislation and the Senate’s more comprehensive “omnibus” bill. It is expected Massachusetts Governor Charlie Baker will sign the legislation shortly. After that, regulations will be required to be implemented and other regulatory actions will need to be taken by Massachusetts’ Department of Public Utilities,… More
MA DPU Sets September 26, 2016 as Net Metering “Notification Date” Setting the Stage for Transition to a Market Net Metering Credit
The Massachusetts Department of Public Utilities (the “Department“) today issued its Order Announcing Notification Date in its proceeding under 16-64, setting September 26, 2016 at 2PM as the “Notification Date” related to the transition to market net metering credits for private net metering projects.
The Order, 16-64-D, is available here: 16-64-D Order Announcing Notification Date 7 29 16.
The Department determined in its order that “aligning the timing for transition to the new regime of net metering credits with DOER’s SREC II program is the best option to result in a smooth transition to a stable and equitable solar net metering market.” With this Order,… More
The Massachusetts Department of Public Utilities has issued its final Order (16-64-C) in its Docket 16-64 and has released its draft of amended net metering regulations under 220 CMR 18.00 et seq.
A copy of the Order and the final regulations is available at this link: 16-64-C Order Adopting Final Regs 7.15.16 With Appendices
According to the Order, the DPU intends to make the amended regulations go effective on July 29,… More
On April 8, 2016 the Massachusetts Department of Energy Resources (DOER) filed emergency changes to 225 CMR 14.00 with the Secretary of the Commonwealth in an effort to bridge the gap between the expiration of the current solar incentive program and the expected publication of a new solar incentive program. Subsequent to a public hearing and comment period, DOER made several responsive modifications, and finalized the regulations which the Secretary of the Commonwealth officially promulgated as of July 1,… More
Last Friday, the Senate Committee on Ways and Means released its version of the energy bill that passed the House earlier this month. Whereas the House bill would require distribution companies to procure 1,200 MW of offshore wind power by 2027 and 9,450,000 MWH of hydroelectric power by 2022, the Senate’s version would require 2,000 MW of offshore wind by 2030 and 12,450,000 MWH of “clean energy generation” by 2018.… More
This week a draft of the long-awaited Massachusetts energy bill was reported out of the Joint Committee on Telecommunications, Utilities and Energy. The bill would require the Commonwealth’s distribution companies to competitively solicit long-term, fifteen- to twenty-year contracts for large-scale offshore wind and hydroelectric power. Notably absent from the bill are provisions addressing resources such as solar, onshore wind, nuclear, energy storage, and energy efficiency.
The bill seeks to jumpstart the development of offshore wind in federal lease areas by directing distribution companies to enter into contracts for 1,200 MW of offshore wind power before July 1,… More
The Massachusetts Legislature’s Joint Committee on Telecommunication, Utilities and Energy and the Baker Administration’s Department of Energy Resources have each delivered comments to the Department of Public Utilities in its Docket 16-64 implementing the Commonwealth’s transition to a “market net metering credit” rate for private net metering projects.
Another Solar Emergency!? Will the Commonwealth’s Transition to a “Market Net Metering Credit” for Private Solar Projects be “Stable and Equitable” After All?
The Massachusetts Department of Public Utilities’ (“DPU”) recent emergency order (the “Order”) issued May 11 in its Docket 16-64 made some immediate changes to the Commonwealth’s net metering law enacted by the Act Relative to Solar Energy (the “Act), which, according to its own preamble, was itself was an “emergency law, necessary for the public convenience” adopted, in part,… More
On April 11, Massachusetts Governor Charlie Baker signed into law compromise legislation modestly raising the cap on the state’s net metering program. Net metering allows customers to generate solar power to offset electricity costs and provide surplus power to the grid.
The program was previously limited to 4 percent of peak electricity demand for private projects and 5 percent for public projects. These limits were reached in National Grid’s service territory last March,… More
On Tuesday, after months of waiting, the Massachusetts Department of Public Utilities (DPU) took action on the Grid Modernization Plans filed last summer by the three Massachusetts Electric Distribution Companies (EDCs), Eversource Energy, National Grid, and Unitil, calling for all interested parties to intervene in the proceedings by March 30, 2016.
The EDCs’ Grid Modernization Plans propose concrete steps to modernize the electric grid,… More
Last month the Massachusetts Attorney General’s Office released a study concluding that no new gas pipelines are needed for electric reliability in New England, as the region is expected to meet its energy needs through 2030.
The study arrives amid a debate regarding the role of gas pipelines in New England’s energy future. Recently, the Massachusetts Department of Public Utilities ruled that it had the authority to allow distribution companies to pass along the costs of firm pipeline capacity to ratepayers.… More
Governor Baker recently submitted Senate Bill No. 1965 to the Legislature. It calls for utilities to solicit long-term purchases of renewable energy. We are talking about as much as 1/3 of Massachusetts’ annual electricity use over a 15-25 year period. Two rationales are often provided to justify the large purchase of Canadian hydropower. First, cheap hydropower will ameliorate the high cost of electricity. Second, it will help Massachusetts attain its initial Global Warming Solutions Act goal of reducing GHG emissions by 25% below 1990 levels by 2020. … More
San Diego Gas & Electric Company Proposes Paying Customers to Install Customer-Owned Energy Storage Resources
One key challenge to tapping the full potential of energy storage systems to improve the function of the electric grid is the absence of obvious paths for the owner of storage resources to realize the revenue opportunities associated with all of the various services that such a resource could provide. Energy storage resources can frequently provide multiple services – often crossing lines between categories of traditional resources that are compensated under different regulatory schemes. … More
One week after the Massachusetts legislature departed for its summer recess, Governor Charlie Baker today released net metering legislation to rival the Massachusetts Senate’s recent bill.
Where the Senate bill would have simply raised the net metering cap to 1600 MWs and largely retained the current net metering credit calculations, the Governor’s bill would increase the metering cap but would substantially reduce the calculation of net metering credits.… More
Readers expecting the Massachusetts electric distribution companies to file their Grid Modernization Plans yesterday will have to wait another two weeks. On Tuesday, the Massachusetts Department of Public Utilities granted a last minute extension, making the GMP filings due on August 19th. In their request for the extension, the electric distribution companies noted that the “requirement to develop comprehensive, forward-looking GMPs was the first of its kind” and that the GMPs “encompass sophisticated and complex technological investment portfolios,… More
California has been a national leader in promoting policies to support the deployment of energy storage resources. The California Public Utility Commission’s directive that California utilities procure 1,325 MW of energy storage through biennial procurements has spurred significant excitement and economic activity as have capacity procurements that required a portion of need to be met with energy storage. (The California Roadmap, … More
The Baker Administration announced on July 9 that it filed a bill for sourcing long-term hydroelectric power in the Commonwealth. Hydroelectric power currently provides a small portion of electricity consumed in Massachusetts. According to the Energy Information Administration, it ranks behind natural-gas, nuclear, coal and other renewable energy sources.
The bill, titled “An Act Relative to energy sector compliance with the Global Warming Solutions Act,” would require the State’s electric distribution companies to solicit proposals for hydroelectric contracts spanning 15 to 25 years. … More
Recently, the Mississippi Public Service Commission (PSC) unanimously voted to move forward in developing a net metering policy. This decision comes (somewhat) on the heels of an independent study commissioned by the state’s PSC concluding that distributed solar would provide levelized net benefits to the state over a period of twenty-five years. Adding to a growing body of work finding untapped value in distributed solar,… More
The latest volley in the ongoing debate over the economic value of solar policies comes from Maine, where the state’s Public Utilities Commission (PUC) released an independent study finding that the net value of distributed solar is $0.337 per kWh when levelized over the course of twenty-five years. That is significantly more than the state currently offers as offset credit to customers engaged in photovoltaic net metering.… More
National Grid Joins Eversource Energy and Spectra Energy on Access Northeast: New England Grapples With How to Pay for New Energy Infrastructure
Multiple news outlets (including the Boston Globe and PR Newswire) reported on Wednesday that National Grid is joining Eversource Energy (formerly Northeast Utilities) and Spectra Energy Corp. as a co-developer of the Access Northeast pipeline project. The Access Northeast project, which Spectra outlined to the New England States Committee on Electricity (NESCOE) in June, is a compliment to previously announced expansions of Spectra’s regional pipeline infrastructure (specifically the Algonquin Incremental Market or “AIM” project and the Atlantic Bridge project). … More
Last November the U.S. Department of Interior (DOI) announced that over 742,000 acres of offshore Massachusetts land would be auctioned for commercial wind development by the Bureau of Ocean Energy Management (BOEM) as part of the Obama Administration’s Climate Action Plan. The land was divided into four leasable tracts of varying sizes, and twelve companies qualified to bid.
That auction took place on January 29th,… More
The day before Governor Charlie Baker was sworn into office as the state’s 72nd chief executive, the Massachusetts Department of Environmental Protection released its proposed Clean Energy Standard (CES) to reduce greenhouse gas emissions in the state.
The CES would come into effect in 2020 and require a minimum percentage of electricity sold to retail customers in Massachusetts to come from “clean generation,” starting with a 45% requirement in 2020 and increasing to 49% by 2024.… More
According to this week’s Boston Globe, both NStar and National Grid have terminated their power purchase agreements with Cape Wind, citing the failure by Cape Wind to meet a December 31, 2014 deadline to obtain financing and begin construction. Cape Wind is asserting that the utilities may not validly terminate the PPAs, arguing that the protracted litigation against the project excuses Cape Wind’s obligation to meet the December 31 date.… More
Massachusetts Appellate Tax Board Finds MA Department of Revenue’s Denial of Property Tax Exemption for Virtually Net Metered Solar Facility “Incorrect,” Based on an “Illusory Distinction” and “Entitled to No Deference”
On December 4, 2014, the Commonwealth of Massachusetts’ Appellate Tax Board (the “Board”) promulgated its Findings of Fact and Report in Forrestall Enterprises, Inc. v. Board of Assessors of The Town of Westborough.
The Findings represent a major change in the application of the Commonwealth’s property tax exemption for off-site, net-metered and virtual-net-metered wind and solar systems. For some time now, the Massachusetts Department of Revenue (“DOR”) has taken the position that certain net metered solar and wind systems,… More
Will Time Varying Rates Shift Demand and Reduce Costs in Massachusetts? We Will Find Out (Eventually)
In June, I wrote about the Massachusetts Department of Public Utilities’ proposal to shift “Basic Service”—the default electricity service provided by electric distribution companies and used by most residential customers—from a flat rate structure to a time varying rate. On November 5th, the DPU adopted that proposal without modification.
That means that, in the future, the default service for retail customers in Massachusetts will have a time-of-use pricing structure. … More
The Massachusetts DPU Sets Requirements for Utility Grid Modernization Plans, Starting a Nine Month Period for Utilities to Identify Investments
Massachusetts has taken the next step towards requiring substantial investments to increase the capabilities of its electrical system and create opportunities for new technologies and innovations. On November 5th, the Massachusetts Department of Public Utilities issued an Order, D.P.U. 12-76-C, along with itemized filing requirements and a summary template, laying out what Massachusetts utilities must file in their “Grid Modernization Plans” (“GMPs”)—the ten-year proposals for investments promoting “grid modernization objectives” (such as reducing the effects of outages,… More