State Agency Says Municipal Aggregation Failed To Comply With Requirements Under Renewable & Alternative Energy Portfolio Standards

The Massachusetts Department of Energy Resources (DOER) stated in an August 4 notice of non-compliance that DOER, "hereby finds that the Hampshire Council of Governments ('HCOG') has failed to comply with the requirements of the Renewable and Alternative Energy Portfolio Standards under 225 CMR 14.00 ('RPS Class I'), 225 CMR 15.00 ('RPS Class II') and 225 CMR 16.00 ('APS') for the 2019 compliance year."

The Hampshire Council of Governments was a licensed retail electric supplier in Massachusetts, serving both opt-in municipal loads as well as loads under various municipal aggregations, at various times.

As previously reported, the Hampshire Council of Governments was dissolved last year, due to insolvency

DOER stated in its August 4 notice that, "HCOG failed to submit the Alternative Compliance Payments ('ACPs') required to meet its shortfalls of certificates needed to meet its obligations under RPS Class I, RPS Class II, and APS regulations. HCOG’s Non-compliance commenced on July 2, 2020, and remains in effect until HCOG takes the necessary steps required to return to compliance."

DOER stated in its notice that, "The 2019 Annual RPS and APS Compliance Filing, including any ACPs, was due July 1, 2020, for all Massachusetts retail electricity suppliers. DOER did not receive a 2019 RPS/APS and Clean Energy Standard ('CES') (310 CMR 7.75) Annual Compliance Filing Workbook by July 1, 2020, nor did it receive confirmation of any ACPs from HCOG by July 1, 2020, as required by regulations. HCOG’s 2019 Load Obligation that DOER provided showed that it needed to make $331,537.55 in ACPs because it did not acquire the required amount of certificates to meet its regulatory obligations for 2019 (this amount includes credit for HCOG’s 2018 banked certificates)."

DOER stated in its notice that, "On July 7, 2020, DOER notified HCOG via email that it was overdue in its filing of its 2019 RPS/APS/CES Annual Compliance Filing Workbook and overdue in DOER’s confirmation of receipt of the ACPs owed."

DOER averred in its notice that, "DOER received acknowledgement via email from HCOG on July 7, 2020, of its receipt of DOER’s overdue notice. HCOG has acknowledged in previous meetings with DOER that it is aware of its 2019 RPS/APS/CES obligations and admitted that it no longer has the assets to cover its 2019 RPS/APS/CES obligations."

DOER stated in its notice that, "Additionally, HCOG’s non-compliance with its RPS and APS obligations also puts it in default with the CES, which is a separate regulatory program administered through MassDEP."