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LDCs File Joint Motion For Clarification & DPU Seeks Comments
On December 29, 2023, the LDCs filed a Joint Motion for Clarification of the December 6, 2023 Order (“Motion for Clarification”), and Joint Motion to Extend the Judicial Appeal Period (together, “Motions”). In the Motion for Clarification, the LDCs request that the Department Clarify its Order regarding (1) the application of a non-gas pipeline alternatives (“NPA”) analysis to “additional investment in pipeline and distribution mains;” (2) the timetable for establishing “incentives and disincentives” for progress toward compliance with Climate Act mandates as part of a performance-based ratemaking (“PBR”) framework and achievement of approved Climate Compliance Plans (“CCPs”); and (3) the methodology for emissions reduction accounting for the CCPs. Motion for Extension at 2.
The Department hereby directs that any response to the LDCs’ Motions is due on or before 5:00 p.m. on Monday, January 22, 2024.
As background a group of local distribution companies (LDCs) filed joint motion for clarification.
Specifically, the LDCs requested clarification: (1) on “the application of a non-gas pipeline alternatives (‘NPA’) analysis to ‘additional investment in pipeline and distribution mains’,” including “the types of gas investments to which an NPA analysis should be applied”; (2) “the timetable for establishing ‘incentives and disincentives’ for progress toward compliance with Climate Act mandates as part of a performance-based ratemaking (‘PBR’) framework and achievement of approved Climate Compliance Plans (‘CCPs’),” given that “several of the LDCs are currently operating subject to Department-approved PBR plans or similar rate plans with terms extending over the next several years, or already have a proposal in front of the Department”; and (3) “the methodology for emissions reduction accounting for the CCPs,” noting that “By seemingly requiring the LDCs to measure their contributions to GHG emissions reductions based, in part, on Scope 3 emissions as defined by the Environmental Protection Agency, the Department would be requiring the LDCs to report on emissions from sources that are not owned or controlled by the LDCs, without citing legal authority to do so.”
As background, this matter was initiated from a Petition by the Attorney General requesting an investigation into the impact on the continuing business operations of local gas utilities as the considering the state’s “…legally binding statewide limit of net-zero greenhouse gas (‘GHG’) emissions by 2050.” Specifically, the AG is calling for a DPU investigation that: (1) examines the gas distribution industry, regulatory, and policy changes needed to support the achievement of Massachusetts’ mandated GHG emission limits; and (2) determine what near- and long-term adjustments are necessary to maintain a safe and reliable gas distribution system and protect consumer interests as the state transitions from fossil fuels to a “clean, increasingly electrified, and decarbonized energy future by 2050.”
Joint Motion for Clarification (12/29/2023)
20-80 (06/04/2020)
