DPU Directs Boston To Cease Marketing A Low-Income Discount Associated With SMART Program As Part Of Boston's Municipal Aggregation

December 16, 2020

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The Massachusetts Department of Public Utilities issued a letter to the City of Boston stating that the DPU has identified certain issues with the City's marketing of a low-income customer discount, apparently associated with the Solar Massachusetts Renewable Target ("SMART") Program, as an advantage of the city's opt-out municipal aggregation

"The Department of Public Utilities ('Department') is aware that the City of Boston ('City') has commenced its customer education efforts related to the initiation of the City's municipal aggregation program ('Program'). The Department has reviewed several of the publicly available materials. The Department appreciates the various efforts the City has undertaken to date to educate its residents about the Program. The Department notes, however, that the City is highlighting a discount to low-income customers as a key advantage of the Program. The discount appears to be contemplated in connection with community solar incentives offered through the Solar Massachusetts Renewable Target ('SMART') Program. The Department has identified three distinct issues with the City's marketing of this discount," the DPU said in a letter to the City

In a December 4 news release, the City of Boston had stated, "One of the key advantages of Boston's CCE program is the opportunity to provide over 20,000 low-income customers meaningful discounts on their electricity costs through the Commonwealth of Massachusetts' Solar Massachusetts Renewable Target (SMART) Program. The City of Boston has partnered with NextGrid Inc. which will build 100 megawatts (MW) of new solar PV modules within Massachusetts. When completed, the incentives from the new solar projects will result in an estimated $72 annual savings for the average low-income household, and more than $28 million over 20 years. The City is seeking to contract with other developers for more solar energy capacity to increase low-income customer savings and spur job creation."

In a December 15 letter to the City, the DPU said, "First, the updated SMART tariffs filed with the Department on December 3, 2020 are under review by the Department in docket D.P.U. 20-145; we have not approved the proposed revisions. Second, a discount to low-income customers through the Program (in connection with the SMART Program or otherwise) was not part of the City's proposed municipal aggregation plan ('Plan') and, therefore, the Department has neither reviewed nor authorized this offering. Third, the offering may be inconsistent with G.L. c. 164, § 134(a) and Department rulings."

Although the DPU did not further detail how the low-income discount offering may be inconsistent with G.L. c. 164, § 134(a), such statute, among other things, provides that a municipal aggregation must provide for "universal access" and "equitable treatment of all classes of customers."

"If the City seeks to offer a discount to low-income customers through its Program, it must file for and obtain an amendment to its Department-approved Plan. The City and its municipal aggregation consultant are directed to immediately cease the marketing of a SMART Program discount to low-income customers through the Program," the DPU said in the letter

Docket 19-65

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