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The 190th General Court of the Commonwealth of Massachusetts

Section 11E: Monitoring and reporting on electricity system reliability and future capacity excesses or deficits

Section 11E. The department is hereby authorized and directed to monitor any independent systems operator or power exchanges organized pursuant to the provisions of chapter 164. The department shall determine the extent to which said operators and exchanges serve the needs of retail customers and contribute to the achievement of energy efficiency and fuel diversity goals as said goals are identified by the department and the department of public utilities.

The analysis and publication of all data and information collected by the department, shall be conducted to inform consumers, energy suppliers, the department of public utilities, and the general court about the operation of retail markets and any deficiencies in the operation of those markets, and to recommend improvements to such. Said data and information shall be used by the department for the publication of periodic projections of the supply, demand, and price of energy on statewide and regional basis.

The department shall annually issue a report containing information on all issues of electricity system reliability, including, but not limited to, generation and transmission data detailing load and capacity, for the prior calendar year and forecasting potential future capacity excesses or deficits for the next five calendar years. The department shall utilize any and all information available to forecast potential capacity excesses or deficits, including, but not limited to, analyses by the independent system operator and other such data collected by the department pursuant to section 7. Said report shall contain (i) electricity spot price information for the previous calendar year, including, but not limited to, the average regional monthly spot price; (ii) a determination of the extent to which the energy markets are maintaining necessary levels of reliability; (iii) a determination of whether or not all customer classes are being adequately served by competitive energy markets; (iv) a determination of the competitiveness of energy markets; including a determination whether or not the electric industry is providing consumers with the lowest prices possible within a restructured, competitive retail marketplace; and (v) a determination of the extent to which the energy markets are achieving the energy efficiency and fuel diversity goals of the commonwealth. Said report may be undertaken in combination with the report required pursuant to section 7, at the discretion of the commissioner. Said report shall identify any substantial fluctuation or pricing differences in the cost of electricity available to consumers, especially with respect to geographic regions and low and moderate income consumers. Said reports shall make recommendations for improving any deficiencies so identified in electricity energy markets, including non-competitive pricing situations, which are within the authority of the general court, the department of public utilities, the federal energy regulatory commission, or any other governmental body with jurisdiction over the deficiency so identified. The department shall submit such report to the joint committee on telecommunications, utilities and energy and the house and senate committees on ways and means no later than April thirtieth of each year, including drafts of legislation to implement recommendations within such report.