Amendment #34 to H.4198
Long Term Contracts
Ms. Ehrlich of Marblehead move that the bill be amended striking out, in lines 432-451, SECTION 42 and inserting in place thereof the following section:-
SECTION 42. Each distribution company shall consider, and the department shall approve, long-term contracts for the purchase of capacity, energy or other attributes, with a term of no less than 15 years and a fixed price for the capacity and energy, provided the department finds, after public hearing and within twelve months of the filing of the long-term contract with the department, that the purchase of capacity, energy or other attributes shall be from a proposed electric generation facility: (i) that is to be located on the site of a coal or oil-fired electric generation facility in the commonwealth that will be permanently retired and decommissioned prior to the commercial operation date of the proposed facility; (ii) that will have quick start capability and an agreement with one or more resources of comparable nameplate capacity that qualify as a Class I renewable energy generating source under section 11F of chapter 25A to provide firming services ; (iii) whose developer, or an affiliate thereof, shall have committed to demolish the coal or oil-fired generation plant and to remediate the site of the existing and operating coal or oil-fired generation plant; (iv) that the developer provides a decommissioning plan and establishes a decommissioning fund for the proposed facility; and (v) that such new facility is reasonably expected to result in net benefits in terms of costs to electricity customers in the commonwealth and the mitigation of environmental impacts including, but not limited to, site remediation and reduced greenhouse gas emissions in the commonwealth as well as reduced, emissions of criteria pollutants and hazardous air pollutants as compared to the emissions from the coal or oil-fired electric generation facility that is permanently retired and decommissioned. Any contract executed by the contracting distribution company shall provide for annual remuneration for such company of up to 4 per cent of the annual payments under the contract to compensate the company for accepting the financial obligation of the long-term contract, as determined by the department of public utilities at the time of contract approval. Distribution companies shall not be obligated to enter into long-term contracts pursuant to this paragraph that would, in the aggregate, exceed ten per cent of the total energy demand from all distribution customers in the service territory of the distribution company.