Compliance Procedures for Retail Electricity Suppliers

(1) Standard Compliance. Each Retail Electricity Supplier shall be deemed to be in compliance with 225 CMR 15.00 if the information provided in the Compliance Filing submitted pursuant to 225 CMR 15.09 is true and accurate and demonstrates compliance with 225 CMR 15.07. A Retail Electricity Supplier shall demonstrate to the satisfaction of the Department that RPS Class II Renewable Generation Attributes and RPS Class II Waste Energy Generation Attributes used for compliance have not otherwise been, nor will be, sold, retired, claimed, used or represented as part of electrical energy output or sales, or used to satisfy obligations in jurisdictions other than Massachusetts. Banked Compliance. A Retail Electricity Supplier may use RPS Class II Renewable Generation Attributes and RPS Class II Waste Energy Generation Attributes produced in one Compliance Year for compliance over the course of the following two subsequent Compliance Years, subject to the limitations in 225 CMR 15.08(2) and provided that the Retail Electricity Supplier is in compliance with 225 CMR 15.00 for all previous Compliance Years. In addition, the Retail Electricity Supplier shall demonstrate to the satisfaction of the Department that such Attributes: (a) were in excess of the RPS Class II Renewable Generation Attributes and RPS Class II Waste Energy Generation Attributes needed for compliance in the Compliance Year in which they were generated, and that such excess Attributes have not previously been used for compliance with 225 CMR 15.00; (b) do not exceed 30% of the RPS Class II Renewable Generation Attributes and 30% of the RPS Class II Waste Energy Generation Attributes needed by the Retail Electricity Supplier for compliance with the RPS Class II Renewable Generation Minimum Standard, and RPS Class II Waste Energy Minimum Standard in the year they were generated, subject to 225 CMR 15.09(2)(d) and subject to the following limitations: 1. In Compliance Years 2014 and 2015 no excess RPS Class II Waste Energy Generation Attributes shall be available as Banked Compliance; and 2. Commencing with Compliance Year 2016, bankable excess RPS Class II Waste Energy Generation Attributes shall not exceed 5% of the RPS Class II Waste Energy Generation Attributes needed by the Retail Electricity Supplier for compliance with the RPS Class II Waste Energy Minimum Standard in the year they were generated. (c) were produced during the Compliance Year in which they are claimed as excess by the generation of electrical energy sold to End-use Customers in the ISO-NE Control Area, by the generation of electrical energy on End-use Customers' sides of retail meters in the ISO-NE Control Area, or by the generation of electrical energy from Off-grid Generation Units in Massachusetts; and (d) have not otherwise been, nor will be, sold, retired, claimed or represented as part of electrical energy output or sales, or used to satisfy obligations in jurisdictions other than Massachusetts. Alternative Compliance for RPS Class II Renewable Generation Minimum Standard. A Retail Electricity Supplier may discharge its obligations under 225 CMR 15.07(1), in whole or in part, for any Compliance Year by making an ACP to the MassCEC. Such funds shall be held in an account separate from other accounts of the MassCEC. (a) Procedures. A Retail Electricity Supplier shall receive Alternative Compliance Credits from the Department, subject to the following: 1. The quantity of Credits, specified in MWhs, that can be applied to its obligations under 225 CMR 15.07(1) shall be determined by calculating the ratio of the total of ACPs paid for the Compliance Year to the ACP Rate for that Compliance Year. 2. The ACP Rate for the RPS Class II Renewable Generation Minimum Standard shall be $25 per MWh for Compliance Year 2009. For each subsequent Compliance Year, the Department shall publish the ACP Rate by January 31st of the Compliance Year. The ACP Rate shall be equal to the previous year's ACP Rate adjusted up or down according to the previous year's Consumer Price Index. The ACP Rate for the RPS Class II Renewable Generation Minimum Standard shall not exceed $35 per MWh for any given Compliance Year. 3. The Retail Electricity Supplier shall include with its Annual Compliance Filing copies of any ACP receipt(s) for ACPs made to the MassCEC during the Compliance Year. (b) Use of Funds. The Department shall oversee the use of ACP funds by the MassCEC. Alternative Compliance for RPS Class II Waste Energy Minimum Standard. A Retail Electricity Supplier may discharge its obligations under 225 CMR 15.07(2), in whole or in part, for any Compliance Year by making an ACP to the MassCEC. Such funds shall be held in an account separate from other accounts of the MassCEC. (a) Procedures. A Retail Electricity Supplier shall receive Alternative Compliance Credits from the Department, subject to the following: 1. The quantity of Alternative Compliance Credits, specified in MWhs, that can be applied to its obligations under 225 CMR 15.07(2) shall be determined by calculating the ratio of the total of ACPs paid for the Compliance Year to the ACP Rate for that Compliance Year. 2. The ACP Rate for the RPS Class II Waste Energy Minimum Standard shall be $10 per MWh for Compliance Year 2009. For each subsequent Compliance Year, the Department shall publish the ACP Rate by January 31st of the Compliance Year. The ACP Rate shall be equal to the previous year's ACP Rate adjusted up or down according to the previous year's Consumer Price Index. In Compliance Year 2021 through 2025, the ACP Rate for the RPS Class II Waste Energy Minimum Standard shall be equal to the ACP Rate for the RPS Class II Renewable Energy Minimum Standard set pursuant to 225 CMR 15.08(3)(a)2., but shall be $11.50 per MWh beginning in 2026. 3. The Retail Electricity Supplier shall include with its Annual Compliance Filing copies of any ACP receipt(s) for ACPs made to the MassCEC during the Compliance Year. (b) Use of Funds. The Department shall oversee the use of ACP funds by the MassCEC. (5) Beginning in 2025 and every five years thereafter, the Department shall conduct a review of the ACP Rate and consult with DEP on the ACP Rate for the RPS Class II Waste Energy Minimum Standard to ensure consistency with the solid waste master plan. Following stakeholder comment and input on the review of the ACP Rate, the Department may modify the rate for the following five years.