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Mass. EDCs Propose Disposition, Cost Recovery Of Products Procured Under Offshore Wind Contracts

August 1, 2018

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The Massachusetts investor-owned electric distribution companies have collectively sought approval at the DPU for PPAs totaling 800 MW with Vineyard Wind LLC for offshore wind energy

The EDCs said in testimony that, "the Distribution Companies intend to sell the energy into the ISO-NE wholesale market and intend to retain RECs for the purpose of meeting the Distribution Companies’ annual RPS and CES obligations. Any RECs not used for annual RPS and CES requirements will be sold into the market and all distribution service customers shall be credited for the difference between the PPA price and the sales price, unless the Distribution Companies are directed by DOER to retain the RECs to facilitate reaching emission reduction targets pursuant to chapter 298 of the Acts of 2008 or chapter 21N of the General Laws. Accordingly, National Grid, Eversource and Unitil are making this proposal under 220 C.M.R. § 23.06(2)(c) as an alternative approach subject to review and approval of the Department."

The EDCs would use the existing nonbypassable long-term contract cost recovery mechanism to recover costs under the PPA

"The Distribution Companies propose to recover the following costs associated with each Distribution Company’s various long-term renewable contracts procured pursuant to Section 83, Section 83A, Section 83D, and Section 83C: (1) the net costs of the energy sold into the ISO-NE market; (2) the net costs of the RECs obtained under the long-term contracts; (3) the costs of transmission associated with procuring energy under Section 83D; and (4) the remuneration allowed in recognition of the Distribution Companies’ acceptance of the financial obligation of the long-term contracts under Sections 83, 83A, 83D and 83C," the EDCs said in testimony

The EDCs have recently proposed similar product disposition and cost recovery for a separate set of long-term hydro PPAs (see story here)

Dockets 18-76 et. al.

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