Nonconcurrence Vote Passed
July 5, 2012
June 27, 2012(Key vote)
Title: Amends Renewable Energy Contract Requirements
Vote Smart's Synopsis:
Vote to pass a bill that amends renewable energy contract requirements.
Requires electric companies to solicit proposals for long-term contracts from renewable energy developers 2 times in each of the following periods, whereas existing law required 2 solicitations in a 5 year period (Secs. 40 & 41):
July 1, 2009 to December 31, 2012; and
January 1, 2013 and December 31, 2016.
Defines “long-term contract” as a contract with a term of 10 to 20 years (Sec. 41).
Requires electric companies to enter into cost-effective long-term contracts with renewable energy developers to facilitate the financing of renewable energy generation in the period between July 1, 2009 and December 31, 2012 (Sec. 40).
Requires electric companies to enter into additional cost-effective long-term contracts with renewable energy developers in the period between January 1, 2013 and December 31, 2016 (Sec. 41).
Requires the timetable and method for solicitation of long-term contracts with renewable energy developers adhere to the following criteria (Secs. 40 & 41):
Is jointly proposed by the electricity companies and Department of Energy Resources;
Is subject to approval by the Department of public utilities; and
Is a competitive bidding process.
Authorizes an electric company to cap the total energy demand supplied by long-term renewable energy contracts at no more than 4 percent of the total energy demand in that company’s service territory, whereas existing law authorizes a 3 percent cap (Sec. 41).
Reduces the annual investment return an electric company can receive from 4 percent to an amount equal to the following (Sec. 41):
The company’s cost for accepting the financial obligation of a long-term contract; and
Up to 1 percent of the annual payments under the contract.
Establishes a voluntary energy-efficiency rebate pilot program that will be available to the 5 largest electric users and the 5 largest gas users in each utility service territory that will fund up to 100 percent of a user’s cost for qualified energy efficiency measures, effective January 1, 2013 (Sec. 2).
Authorizes hydroelectric power to count towards the commonwealth’s renewable and alternative energy generation goals (Sec. 42).