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 23.04 - Methods for Soliciting and Entering into Long-term Contracts

Current through Register 1525, July 5, 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 offshore wind energy generation equal to
		1,600 megawatts of aggregate nameplate capacity not later than June 30, 2027,
		and provided further that individual solicitations shall seek proposals for no
		less than 400 megawatts of aggregate nameplate capacity of Offshore Wind Energy
		Generation resources. A staggered procurement schedule developed by DOER, if
		applicable, shall specify that a subsequent solicitation shall occur within 24
		months of a previous solicitation. The Department will not approve a Long-term
		Contract that results from a subsequent solicitation and procurement period if
		the levelized price per megawatt hour, plus associated transmission costs, is
		greater than or equal to the levelized price per megawatt hour plus
		transmission costs that resulted from the previous procurement.
(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 the
		Long-term Contracts, pricing, or administration of the products purchased to
		prevent or mitigate an impact 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 23.04, 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.