Amendment #205 to H5562

DPU Investigation of Large Load Interconnection & Economic Development Rates

Mr. Hendricks of New Bedford moves to amend the bill by striking out Section 149 and inserting in place thereof the following section:

SECTION 149(a) -  As used in this section, the followings words shall have the following meanings unless the context requires otherwise:

“Economic development rates”, standardized utility tariffs and discounted rates offered by a distribution company designed to attract new businesses to Massachusetts and promote expansion by businesses already located in the commonwealth.

“Special contracts”, discounted utility rates negotiated between distribution companies and large new businesses locating to Massachusetts or large new businesses expanding in the commonwealth.

(b) –The Department of Public Utilities shall initiate an investigation into electric distribution tariffs, rates, and interconnection requirements that support economic development by attracting new businesses to the Commonwealth and promoting the expansion of existing businesses.  Such investigation shall be initiated within 90 days of enactment of this legislation.

(c) –In conducting such investigation, the Department may consider, without limitation, rate design elements, tariff structures, and customer eligibility frameworks, including but not limited to:

i.            the establishment of separate customer classes or categories based on load characteristics;

ii.           appropriate rate structures, including demand based or capacity based charges;

iii.          potential economic development rates for qualifying new businesses;

iv.          minimum demand requirements or other mechanisms to provide revenue certainty;

v.           minimum terms of service, including provisions addressing load ramp up periods;

vi.          exit fees, termination provisions, or other forms of financial assurance;

vii.         cost allocation methodologies;

viii.        requirements for the use of special contracts; and

ix.          mechanisms to ensure that proposed rates do not increase or shift costs to other ratepayers.

(d) – The Department shall ensure any rate structures developed pursuant to this section support economic development while maintaining just and reasonable rates and avoiding shifting costs to other customers.

(e) – In conducting the investigation, the Department shall consult with the executive office of economic development to align regulatory frameworks with statewide economic development objectives.

Prior to the establishment of any economic development rates, OED shall establish all necessary requirements and qualification criteria to ensure the achievement of economic benefits for the Commonwealth.”

Additional co-sponsor(s) added to Amendment #205 to H5562

DPU Investigation of Large Load Interconnection & Economic Development Rates