Vote Smart's Synopsis:

Vote to pass a bill that amends renewable energy contract requirements.

Highlights:

• 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).

Full Bill Text