Compliance Procedures for Retail Electricity Suppliers

(1) Standard Compliance. Each Retail Electricity Supplier shall be deemed to be in compliance with 225 CMR 16.00 if the information provided in the Compliance Filing submitted pursuant to 225 CMR 16.09 is true and accurate and demonstrates compliance with 225 CMR 16.07. A Retail Electricity Supplier shall demonstrate to the satisfaction of the Department that APS Alternative 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. (2) Banked Compliance. A Retail Electricity Supplier may use APS Alternative Generation Attributes produced in one Compliance Year for compliance in either or both of the two subsequent Compliance Years, subject to the limitations in 225 CMR 16.08(2) and provided that the Retail Electricity Supplier is in compliance with 225 CMR 16.00 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 APS Alternative 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 16.00; (b) do not exceed 30% of the APS Alternative Generation Attributes needed by the Retail Electricity Supplier for compliance with the APS Minimum Standard in the year they were generated, subject to 225 CMR 16.09(2)(d); (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. (3) Alternative Compliance. A Retail Electricity Supplier may discharge its obligations under 225 CMR 16.07, in whole or in part, for any Compliance Year by making an Alternative Compliance Payment (ACP) to the Massachusetts Clean Energy Technology Center, established by M.G.L. c. 23J, § 2. Such funds shall be held in an account separate from other accounts of the Corporation. (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 16.07(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 APS Minimum Standard shall be $20 per MWh for Compliance Year 2009. For each subsequent Compliance Year, the Department shall publish the ACP Rate by January 31 of the Compliance Year. The ACP Rate shall be st equal to the previous year's ACP Rate adjusted up or down according to the previous year's Consumer Price Index. 3. The Retail Electricity Supplier shall include with its Annual Compliance Filing copies of any ACP receipt(s) for ACPs made to the Massachusetts Clean Energy Technology Center during the Compliance Year. (b) Use of Funds. The Department shall oversee the use of ACP funds by Massachusetts Clean Energy Technology Center, so as to further the commercial development of Alternative Generation.