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MA DPU Initiates Net Metering Rulemaking & Seeks Stakeholder Comments

Category: Massachusetts
Related Categories: Net Metering, Rulemaking

Excerpts from the Order Opening Net Metering Rulemaking:

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“By this Order, and pursuant to G.L. c. 30A, § 2 and 220 CMR 2.00, the Department commences a rulemaking and proposes revisions to 220 CMR 18.00 (“Net Metering Regulations”) for the purpose of implementing certain net metering provisions of the 2022 Clean Energy Act (“Proposed Net Metering Regulations”), 2 as well as additional changes for administrative clarification as discussed below. 3 The Proposed Net Metering Regulations may be further amended following receipt of public comments, and the final Net Metering Regulations will be effective upon publication in the Massachusetts Register.4 The Department does not typically speak to the timing of matters currently before it. We anticipate, however, that our investigation and the necessary interagency processes will require less time to promulgate final regulations than the preceding net metering rulemaking, D.P.U. 21-100, due in part to the changes contemplated in this proceeding being less complex and not as extensive. We will endeavor to move this proceeding forward as quickly as practicable since we understand that implementation of the Net Metering provisions in the 2022 Clean Energy Act is important to many stakeholders.”

To provide an opportunity for comment on the Proposed Net Metering Regulations, the Department will conduct a public hearing pursuant to G.L. c. 30A, § 2, and 220 CMR 2.05. The Department will conduct the hearing using Zoom videoconferencing on Wednesday, September 4, 2024, at 2:00 p.m. 

Attendees may join by entering this link, https://us06web.zoom.us/j/86410780167.  For audio-only access to the hearing, attendees can dial in at 1 (646) 558-8656 (not toll free) and then enter ID# 864 1078 0167. 

The Department also seeks initial written comments no later than 5:00 p.m., Wednesday, September 4, 2024. Following the public hearing, written reply comments must be filed no later than 5:00 p.m. on Wednesday, September 18, 2024

The Department welcomes specific recommended language changes to the Proposed Net Metering Regulations. Additionally, the Department seeks comments on the following topics:

Requests to all stakeholders: 

  1. G.L. c. 164, § 139(i) now defines Cap Exempt Facilities to include Class I Net Metering Facilities that (1) are not Net Metering Facilities of a Municipality or Other Governmental Entity, provided that they are generating Renewable Energy; (2) have a Nameplate Capacity equal to or less than 25 kW or if the Nameplate Capacity is greater than 25 kW such a facility must serve On-site Load, other than parasitic or station load; and (3) have executed ISA on or after January 1, 2021. Please respond to the following:
  1. Explain whether the Department should establish a deadline by which Affected Class I Net Metering Facilities must be reclassified as cap exempt. If so, what deadline should the Department establish? Please also provide any recommendations on additional administrative steps that should be established for such facilities to relinquish their Cap Allocations and be reclassified as Cap Exempt Facilities. 
  2. Refer to Net Metering Rulemaking, D.P.U. 21-100-A at 53-55 (February 15, 2024), the Department’s exception to the credit allocation process, where Affected Host Customers may reallocate Net Metering Credits that accrued, or will accrue, on accounts between January 1, 2022, and March 31, 2025. Explain whether this credit allocation exception should be extended to Class I Cap Exempt Facilities that serve On-site Load. If so, explain whether the date range identified is sufficient or if it should be adjusted. 
  1. Explain whether a random audit process of interconnected Net Metering Facilities, conducted by the Administrator, would be useful in ensuring compliance with Net Metering program requirements. When conducting the audit, the Administrator would confirm that the capacity of a Net Metering Facility matches the Cap Allocation granted to that Facility. D.P.U. 23-140 Page 15. 
  2. Explain whether you agree with the Department’s proposal in Section II.C(7) to require Cap Exempt Facilities Serving On-site Load to assign 100 percent of Net Metering Credits to the meter behind which the Net Metering Facility is interconnected. 
  3. Explain whether the Department should define the term Nameplate Capacity in 220 CMR 18.02. 
  1. If no, explain why. 
  2. If yes, please comment on the Department’s proposed definition of Nameplate Capacity. 
  1. Explain whether the Department should define the term Renewable Energy Generating Facility in 220 CMR 18.02. 
  1. If no, explain why. 
  2. If yes, please comment on the Department’s proposed definition of Renewable Energy Generating Facility. 
  1. Currently, in the context of pre-existing Net Metering Facilities that seek to expand, the Distribution Companies either issue a new ISA or amend the existing ISA, but there is not a consistent approach across Distribution Companies. Thus, where a pre-existing net metering facility seeks to expand, explain whether the Department should direct the Distribution Companies to engage in consistent treatment of ISAs, e.g., by directing each Distribution Company to issue new ISAs or to amend existing ISAs. Explain whether the Department should direct consistent treatment, with associated reasons favoring or opposing why or why not. If the Department should direct consistent treatment, please indicate what that treatment should be. 
  1. Requests to the Distribution Companies and the Administrator: 
  1. Review the proposed process described in Section II.D(2) above to reclassify Affected Class I Facilities and comment on its feasibility and workability, including the proposed time-frames. As part of your response, please provide an estimated time frame for Step 3. — D.P.U. 23-140 Page 16.
  2. Describe the safeguards or processes that would be employed to ensure that Cap Allocations are revoked only for the appropriate Affected Class I Facilities (i.e., those greater than ten kW but less than or equal to 25 kW and those greater than 25 kW but less than or equal to 60 kW that serve On-site Load) and not, for example, expansions that may appear as though they are facilities within the identified capacity range but are in fact part of a facility the total capacity of which exceeds 25 kW. 
  3. Administrator only: 

Please describe ways in which these implementation processes could be improved. d. Distribution Companies only: Refer to D.P.U. 21-100-A at 70-73. Please provide an update on the incremental costs and upgrades necessary to move towards allowing monthly Schedule Z updates. As part of the update, please provide the incremental costs of processing Schedule Z updates monthly, including for designated allocations across Distribution Company service territories, and assessing the potential decline in quality and accuracy of validation and processing of revised Schedule Zs in moving from updates four times per year to monthly. [***]

23-140  (Opened 07/30/2024)
Investigation by the Department of Public Utilities, On Its Own Motion, Instituting a Rulemaking Pursuant to the Acts of 2022, c. 179, § 54, G.L. c. 30A, § 2, and 220 CMR 2.00 to Amend the Net Metering Regulations at 220 CMR 18.00.