PETITION OF:

Chapter 164 of the General Laws is hereby amended by adding the following 3 sections:-

Section 138. (a) In this section, unless context otherwise requires, the following words shall have the following meanings:

“Net metering”, the process of measuring the difference between electricity delivered by an electric distribution company and electricity generated by a renewable-net-metering facility and fed back to the distribution company.

“Renewable-net-metering facility”, a facility for the production of electrical energy that has a generating capacity of not more than two thousand (2,000) kilowatts, is located on or in the vicinity of a customer’s premise, is intended primarily to offset part or all of that customer’s requirements for electricity, and generates electricity using any of the following: (i) solar photovoltaic or solar thermal electric energy; (ii) wind energy; (iii) ocean thermal, wave, or tidal energy; (iv) fuel cells utilizing renewable fuels; (v) landfill gas; (vi) naturally following water and hydroelectric; or (vii) low-emission, advanced biomass power conversion technologies.

“Virtual billing”, enables the combination of all the meters under ownership or lease of a legally established entity in the commonwealth for the purposes of net metering.

(b) A distribution company customer that uses electricity generated by a renewable-net-metering-facility may elect net metering.

(i) If the electricity generated by the renewable-net-metering facility during a billing period plus any generation credits carried forward from prior billing periods exceeds the customer’s kilowatt-hour usage during the billing period, the customer shall be billed for zero kilowatt-hour usage and the excess generation shall be credited to the customer’s account for the following billing period.

(ii) If the customer’s kilowatt-hour- usage exceeds the electricity generated by the renewable-net-metering facility during the billing period plus any generation credits carried forward from prior billing periods, the customer shall be billed for the net kilowatt-hour usage at the applicable rate.

(c) Net metering shall apply to all charges calculated on a kilowatt-hour basis, including distribution, transmission, generation, and transition charges.

(d) Net metering shall be implemented using a single meter. Where an electro-mechanical meter is employed, the meter shall register the flow of electric power in both directions and shall display the net flow. Where a digital meter is employed, it shall be programmed to register the net flow as implemented in electro-mechanical meters, or shall separately register the inward flow to the customer and the outward flow to the distribution company to enable subsequent calculation of the net flow.

(e) Distribution companies are prohibited from imposing special fees or higher rates on net metering customers, such as backup charges, or additional controls or liability insurance as long as the renewable-net-metering facility complies with the applicable interconnection, safety, and power quality standards; provided, however, that distribution companies may charge a net metering customer with a renewable-net-metering facility with a generating capacity greater than 60 kilowatts for the actual cost of any additional metering equipment required to implement net metering

(f) Virtual billing for municipalities and their associations, businesses and their associations, homeowner or condominium associations, educational or non-profit institutions and their associations shall be permitted.

Section

Section 139. (a) In this section, unless context otherwise requires, the following words shall have the following meanings:

“Least Cost Planning” (LCP), requires that all new power supplies and demand side management be prioritized for acceptance by the Department of Telecommunications and Energy according to the lowest combined financial, societal and environmental costs. The combined costs are to be used to prioritize the acquisition of sources of power, energy efficiency programs and demand side management programs and will be based on the assumptions in penalties per megawatt hour listed in the Chart by purchasing new megawatts of renewable generation that meets requirements of MGL Chapter 125 A, Section 11 F.

(b) The Department of Telecommunications, utilities and Energy will initiate proceedings at least every two years, or earlier at the discretion of the Chair, to adjust the Power Supply Rankings Chart listed below.

Power Supply Rankings Chart (in dollars per megawatt hour)

Coal combustion; $6.00

Clean Coal gasification; $4.5

Clean Coal gasification with carbon sequestration; $3.5

Oil#6: $5.00

Oil#2 combined cycle turbines; $4.00

Nuclear; $3.5

Natural gas combustion; $3.00

Natural gas combined cycle turbines; $2.00

Waste to energy; $2.00

Bio Mass Combustion; $1.00

Hydro; $0.5

Fuel cell; natural gas, $0.5; fuel cell with a renewable source of hydrogen, 0

Land-fill gas; 0

Bio Mass Composting; 0

Combined power and heat; 0

Wind; 0

Solar Thermal; 0

Solar Photovoltaic; 0

“Energy Efficiency; minus $1

Demand side response management; minus $1

Peak demand side response management; minus $1.5

(c) Within six months of the enactment of this act, all distribution companies and retail power suppliers shall submit to the Department a power supply procurement plan for all expected new demand of electric power supply in their service area or regions of operation for a three year period. The Department will initiate proceedings to accept public comment on each plan.

(d) The Department’s approval of each plan will be contingent upon a determination that each utility and retail provider of electricity has demonstrated a reasonable attempt to purchase all available energy efficiency demand side management and renewable energy supplies, as determined by a consultant under contract to the Department.

(e) The Department shall set a goal for each distribution company and retail provider of achieving zero growth of fossil fuel generated electricity based upon ISO New England’s projections for new demand of electric power supply growth within the three year time period.

(f) Contracts for renewables, efficiency and demand side management that have longer terms shall be given a higher priority by the Department.

(g) Within three years of the enactment of this legislation all distribution companies and retail suppliers of electricity shall submit a power supply procurement plan for their complete power supply portfolio to the Department for review and approval. Every five years from that time going forward the Department will undertake review of all distribution companies and retail power suppliers least cost power supply procurement plans for review and approval.

(h) The Department shall set a new goal after three years, for distribution companies and retail suppliers, that reduces the consumption of fossil fuel based electricity from levels of usage current at that time. The Department’s approval of the plans shall be based on how well the distribution companies and retail suppliers achieve the reduction of fossil fuel generated electricity in relation to the availability of non fossil fuel resources as determined by a consultant under contract and employ of the department.

(i) The consultant(s) under contract with the department shall be paid through an assessment of each utility that shall be recoverable through an increase in systems benefit charge for energy efficiency programs.

Section 140. (a) In this section, unless context otherwise requires, the following words shall have the following meanings:

“Adjustable Rate Cap” (ARC), requires that the Department of Telecommunications and Energy conduct hearings to determined the level of revenue necessary to cover a utility’s expenses and a reasonable return on investment or profit level. The Department then sets the rate to cover those expenses plus a reasonable profit. Positive or negative differences in that profit level will be reconciled in consumer rates in succeeding years.

(b) Within two months from the enactment of this act, The Department shall initiate proceedings to determine the appropriate level of revenue for each distribution company in the Commonwealth and a process to reconcile profits or losses at the end of the term. Rates for the succeeding term shall be adjusted to make up for the difference from the established level of revenue approved by the Department.