News  Inspector General Shapiro Issues Policy Recommendations for Improvements to Retail Electricity Supplier Programs

The Office of the Inspector General issued a letter on September 26, 2023, to the Commonwealth’s Climate Chief Melissa Hoffer, Executive Office of Energy and Environmental Affairs Secretary Rebecca Tepper, Senator Michael Barrett and Representative Jeffrey Roy, the Chairs of the Joint Committee on Telecommunications, Utilities and Energy, with policy recommendations for improvements to retail electricity supplier (RES) programs in the Commonwealth.  

Massachusetts RES programs – including the Renewable Energy Portfolio Standard (RPS), Alternative Energy Portfolio Standard (APS) and Clean Energy Standard (CES) – have a substantial impact on public funds, raising revenue that helps fund Commonwealth investments in mitigating the negative consequences of climate change and accelerating development of the state’s clean energy future. 

Following an investigation, the OIG has concluded that strengthened enforcement mechanisms and bolstered surety requirements are necessary to position the Commonwealth RES programs to fulfill their purpose and hold participants accountable. Unfortunately, in reviewing prior years of this program, the OIG found enforcement gaps that prevented the Commonwealth from recouping millions of dollars that retail electricity suppliers owed to the state.  

The Department of Energy Resources and Department of Environmental Protection’s work in overseeing the Commonwealth’s RES programs has proven enormously successful in accelerating the use of renewable and clean energy and bringing in millions in funding for state programs working to mitigate the impacts of climate change. However, the current paradigm has allowed certain vendors to avoid paying the Commonwealth millions of dollars due under the RES programs, with no real recourse for the Commonwealth. The OIG believes that with some modest changes, these provisions can be tightened to protect the Commonwealth’s interests. By adopting important legislative and regulatory fixes to the RPS, APS and CES programs, Massachusetts can continue to be a national leader in preserving our environment and stimulating our green sector economy through fostering investments in renewable and clean energy sources, while positioning itself to collect fees and fines owed by retail electricity sellers for the benefit of Massachusetts consumers.