ISO-NE Market Rules Update

Effective June 1, ISO-NE implemented a number of changes to its market rules, systems, and procedures related to the operation of the regional wholesale electricity markets. The most significant of these changes include:

  1. the Forward Capacity Market Pay for Performance initiative (“PFP”); and
  2. the Price-Responsive Demand (PRD) structure.

The two programs, released simultaneously earlier this month, will affect both traditional generation resources and demand response resources alike.… More

New Senate Bill in Massachusetts Provides Opportunities for Renewable Resources

Yesterday, June 7, 2018, the Massachusetts the Ways and Means Committee released S2545, “An Act to promote a clean energy future.” The far-reaching bill has the potential to provide new opportunities for renewable resources and in so doing, may also affect the competitive markets in the region. Among other things, the bill would:

  • establish new interim greenhouse gas (GHG) reduction limits;…
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Massachusetts Selects Vineyard Wind In 83C RFP

The Evaluation Team in Massachusetts’ Section 83C Offshore Wind Generation request for proposals (“RFP”) for long term contracts for offshore wind has announced that our client Vineyard Wind was named the winning bidder in the RFP for an offshore wind project to be built off the coast of Martha’s Vineyard.  The project will include approximately 800 megawatts of offshore wind energy generation as well as a generator lead line connection.  Once built, the Vineyard Wind project will be the first large-scale commercial offshore wind project in the United States.

MA DPU Approves Significant Investments and Upgrades to State’s Grid Modernization Technologies

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

IRS Issues PLR Approving Battery Storage for 25D Tax Credit When Integrated with Solar

The Internal Revenue Service has released a redacted copy of its private letter ruling 201809003 in which it concluded that a battery energy storage system charged 100% from an onsite solar system is eligible for the individual tax credit under Section 25D.

In the Letter Ruling, the Service reasoned that the “Battery meets the definition of a “qualified solar electric property expenditure” under § 25D(d)(2) of the Code” based on the taxpayer’s representation that “all energy that is used to charge the Battery can be effectively assured to come from the Solar Energy System” to which it would be interconnected.… More

FERC Issues Final Rule on Electric Storage Participation in Markets Operated by Regional Transmission Organizations and Independent System Operators

Energy StorageThe Federal Energy Regulatory Commission (FERC) issued a Final Rule (the Final Rule) on February 15, 2018 (Docket Nos. RM16-23-000; AD16-20-000; Order No. 841) pursuant to which FERC amended its regulations under the Federal Power Act to remove barriers to the participation of electric storage resources in the capacity, energy, and ancillary service markets operated by Regional Transmission Organizations (RTO) and Independent System Operators (ISO) (RTO/ISO markets).… More

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

TUE Committee to Hold Hearing on DPU’s Approval of MMRC Demand Charge

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

DOER Releases Results of SMART Procurement

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

FERC Rejects Grid Reliability and Resilience Pricing — For Now!

Yesterday, FERC terminated the docket it opened in response to DOE Secretary Perry’s September proposal to compensate generators who maintain a 90-day fuel supply on-site.  The intent of the proposal was to compensate generators who provide reliability and resilience attributes to the grid.

The decision was unanimous, though there were several concurrences.  The commissioners were not persuaded that there is a reliability problem that requires immediate,… More