SECTION 1. Chapter 25 of the General Laws is hereby amended by adding the following after section 21 subsection (b): --

(c) Each Three Year Plan shall be informed by a study identifying all potential efficiency and demand reduction resources that are cost effective or less expensive than supply. The study informing the plan may not be older than 5 years, but the first study shall be completed within 6 months of passage of this bill. The study shall be performed by a consultant procured by the Energy Efficiency Advisory Council (EEAC). The findings of the study shall be presented to the EEAC and the Department of Public Utilities. The first study shall compare the savings goals of the currently applicable Three Year Plans to the potential identified in the first study. If the first study finds that the savings goals in the plan currently underway are falling short of what potential indicates, thus failing to capture all available efficiency and demand reduction resources that are cost effective or less expensive than supply, then the distribution companies shall adopt the targets from the study as part of the mid-term modification process.

SECTION 2. Chapter 25 of the General Laws, section 21 subsection (d)(2) is amended by adding the following after the last sentence: --

To the extent that the Department approves a plan that contains a figure for all efficiency and demand reduction resources that are cost effective or less expensive than supply that is shown to be less than what is identified in the findings of the study called for in section 21(c), the Department shall issue a finding explaining this difference.

SECTION 3. Chapter 25 of the General Laws, section 21 subsection (e), as appearing in the 2012 Official Edition, is hereby amended by striking out, in line 111, the word “may” and inserting in place thereof the following word: “shall”.