Introduction: The New England Eyes and Ears Digest

The Eyes and Ears Digest is a comprehensive collection of our weekly Eyes and Ears Flash Updates.

Digests contain the content from all the regular Flash Updates and Special Flash Updates from a 7-8

week cycle. In any given cycle, we may write more than once about a piece of legislation, regulatory

proceeding or other update. The final article appearing in the Digest is “consolidated”- that is, we’ve fused

all its articles together into one and removed any extraneous or now outdated information.

To consolidate an article, we begin by focusing on the main takeaway or development that transpired

during the cycle. That main development or takeaway serves as the focal point for any consolidated

article - we do not include content from a Flash Update that is no longer relevant. This can include

scheduling that has now occurred (e.g. discovery, comment deadlines, hearings) and in instances where

a docket or issue has been resolved, we do not include comment summaries.

Instead of repeating information that is no longer relevant, we center our consolidation on creating

succinct articles that get to the heart of the matter and provide clients with the key takeaways from any

given topic. When we do not include a full stakeholder comment summary, we provide a reference back

to the specific Flash Update (or Special Flash Update) from which it came to allow interested subscribers

the ability to quickly find it.

The Eyes and Ears Digest is meant to act as a comprehensive guide to the past 7-8 weeks of key

regulatory, legislative and policy updates in New England. We aim to include no new information in Digest

articles and instead, write about new content in an upcoming Flash Update. In some cases, it is pertinent

for us to include new material information or insight. In these cases, we place a large green diamond in

front of the title and mark the Digest status bar as “New E&E Content”.

Click here for a sample of a Flash Update article, and then click here out to see its final consolidated form

in the Digest.

SEA Eyes & Ears Sample Flash Email

From: Bob Grace Sent: Monday, May 1, 2017 Subject: SEA Eyes & Ears/Flash No. 60.5 Week Ending April 28, 2017

**Flash Update** Dear Eyes and Ears Subscribers: Flash 60.5 Week Ending April 28, 2017

Time sensitive articles are identified with the following icon:

Flash 60.5 Week Ending April 28, 2017

Contents

Massachusetts

• Hearing scheduled on May 2 on community empowerment, bioenergy and natural gas bills

• Additional bills proposed to increase RPS and further regulate biomass production

• 83D bidder's conference clarifies questions on RFP; possible participation by CT and/or RI being discussed

• Governor Baker announces initiatives to make renewable energy more affordable and accessible

• Kinder Morgan moving ahead with pipeline plans after FERC issues notice to proceed, despite lack of a quorum

• DPU issues schedule for National Grid Solar Phase II cost recovery proceeding

• MassCEC announces participants in next rounds of Solarize and Solar Connect programs

• Department of Agricultural Resources announces RFP for entity to run Massachusetts Farm Energy Program, bids due May 22

• Eversource to host next distributed generation interconnection seminar May 10

Connecticut

• PURA schedules May 9 hearing on EDCs power procurement plans, provided stakeholders make formal request by May 1

Rhode Island

• Bills to study carbon pricing and establish a statewide solar permit recommended for passage, votes scheduled for May 3

• Newly filed bills would restrict EDCs from entering ratepayer-backed long-term natural gas contracts, and expand potential uses for RGGI funds to EE, RE and EV purposes

• Bill modifying EDC supply procurement and allowing time-of-use rates recommended for passage, vote not yet scheduled

• Bills providing siting standards and modifying land use tax for agricultural renewable systems held for further study

Maine

• Commenting stakeholders support maintaining or increasing RPS levels, while House Republican Leader introduces text to alter Class I RPS targets while introducing REC multipliers based on in-state jobs created by generators

• Stakeholders split on support/opposition of generation ownership, advise caution regarding generation ownership bill

• Bills filed for NTA coordinator, solar procurement, and procurement restrictions, hearing scheduled May 3

• Jonesboro closure reportedly due to boiler leak, plant to resume operations shortly, PUC grants request to alter payment arrangement

Vermont

• Bill to review and update Act 250 making progress through Senate

• VEPP Inc. issues 2017 Standard Offer RFP after PSB denies REV's second reconsideration request

• PSB resumes interconnection rulemaking process (rule 5.500), schedules workshop on May 2

New Hampshire

• PUC rejects Eversource bid for reconsideration in Eversource/HQ PPA proceeding

• SEC suspends prior order granting Certificate of Site and Facility to Antrim Wind; schedules May 5 hearing on stakeholder motions for rehearing.

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Limitations on Use under the Subscription Agreement. Subscriber agrees not to distribute materials

received under the Eyes & Ears Service, whether by written, oral or electronic means, to any other person,

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by applicable law, regulatory proceeding or exchange rule. Subscriber is subject to additional terms and

conditions stated in the Subscription Agreement.

• EDP withdraws Spruce Wind proposal from ISO-NE queue, although project could be refiled in future

• PUC requests comments due May 12 on final grid modernization report

• Final Northern Pass federal EIS expected by the end of the year

ISO New England & Regional Developments

• D.C. Circuit Court dismisses Transmission Owners' and NESCOE's petitions for review of ISO-NE's FERC Order 1000 compliance filing

• Clean Energy Coalition voices support for FERC revisions to Large Generator Interconnection Procedure

• Bill Introduced in Congress would require PACE loans to submit to regulations placed on mortgages, passage unlikely

• TransCanada 584 MW hydro portfolio sold to ArcLight Capital Partners

• RGGI presents updated draft results of 2017 Reference Case with significantly reduced allowance prices, and Proposed Policy Scenarios; final results expected in late summer

• NECA 2017 Annual Energy Conference scheduled for May 9 and 10

• NECEC and Foley Hoag to host Emerging Trends Series: Offshore Wind on May 11 in Boston and New York

• Renewable Energy Finance Forum scheduled for June 20-21

• Wind Energy Update posts presentations from April 19 webinar on offshore wind

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Headlines

Time sensitive articles are identified with the following icon:

MASSACHUSETTS

Hearing scheduled on May 2 on community empowerment, bioenergy and natural

gas bills

The Joint Committee on Telecommunications, Utilities and Energy has scheduled a hearing for May 2, 2017

from 1:00 pm-05:00 pm in room A-2. The hearing includes consideration of the following bills, among others:

▪ H.1745 - An Act for community empowerment and S.1834 – An Act for Community

Empowerment (companion bills) - As introduced, the bill would provide, following a majority vote of a

municipality’s citizens, for long-term contracts between new renewable energy projects and municipalities

on behalf of the electricity customers within the municipality (a concept last discussed in Digest 55).

▪ H.2703 - An Act relative to encouraging greater renewable energy production in rural

Massachusetts - As introduced, the bill would allow bioenergy gasification facilities that are qualified as

RPS Class I by DOER to net meter.

▪ H.3637 - An Act relative to conservation and natural gas infrastructure - As introduced, this bill would

require gas companies to repair leaks and pursue conservation methods before adding new natural gas

capacity in any given municipality.

83D bidder's conference clarifies questions on RFP; possible participation by CT

and/or RI being discussed

A bidders’ conference was held April 25, 2017 to provide information on the Section 83D Request for Proposals

For Long-Term Contracts For Renewable Energy Projects ("83D RFP"), last discussed in Flash 60.1. At the

conference, DOER Commissioner Judith Judson gave introductory remarks, and then members of the

Evaluation Team – primarily Jeff Waltman of Eversource and Tim Brennan of National Grid, as well as Lisa

Glover of Unitil - reviewed key components of the RFP and associated issues, as summarized in the

detailed bidders conference presentation slides, which comprised the bulk of the meeting. . A list of attendees

is available on the 83D website.

The evaluators also took questions from attendees. While the session was well-attended, only a few questions

were posed, as potential bidders exhibited caution in tipping their hands to their competitors in what is shaping

up to be a very competitive procurement. Most bidders appeared to be saving their questions to be submitted

and answered in writing (as the hosts noted that any responses at the bidders conference were indicative, and

Click here to see the finalized

version of this article in the

Digest.

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only written responses could be relied upon). The evaluation team addressed potential bidders’ questions

pertaining to topics including:

▪ Winter delivery guarantee for firm service hydroelectric generation: An awardee would need to produce

according to the delivery profile it included in its bid, which must include commiting to delivering at least

60% of the highest delivery hour over an annual period in every winter peak hour. The highest delivery

hour that sets the winter peak delivery requirement may occur at some other time in the year.

▪ Notice of intent: Submitting a notice of intent to bid is not required to be able to submit an actual bid.

▪ Fair treatment of EDC subsidiary bids: While the evaluation will be conducted by the utilities (in

consultation with DOER staff), separate groups of individuals at each utility are designated as evaluation

team, subject matter experts, and bid teams (the latter of which are involved with proposals in response to

the RFP). the evaluation team will abide by standards of conduct (found on the RFP web site), the

independent evaluator will monitor and report on the bid selection process, and as an ultimate protection,

the Department of Public Utilities will need to approve final contracts and will evaluate filings for any undue

preference.

▪ Allocation of resources and maximum bids: There is no set target for procurement under the three different

categories of Clean Energy Generation (i) Firm Service Hydroelectric Generation from hydroelectric

generation alone; (ii) new Class I Renewable Portfolio Standard (RPS) eligible resources that are firmed up

with Firm Service Hydroelectric Generation; or (iii) new Class I RPS eligible resources”. Nor is there a

maximum size bid. Rather, the evaluation team will utilize a portfolio approach to take all submissions into

account.

▪ Paired storage: Energy storage will be factored into both the quantitative and qualitative evaluation criteria.

All bids can be paired with energy storage, and benefits and costs will be appraised in the same manner as

for generation alone. The evaluators have assumed that storage must have the same delivery point as the

generation, so it appears that any proposal for virtually paired facilities may have a difficult time being

evaluated (or could be rejected). For those considering proposing paired storage, we recommend posing

very specific written questions to gain necessary clarity on the topic.

▪ Consideration of REC values in a proposal and change of law risk: The RFP will seek bundled bids to price

energy and RECs separately, and the evaluation team will look for bids that have an energy/REC value

split of a similar magnitude to what is seen in the market today (as opposed to, for example, a bid splitting

the bid price the majority of the value in either energy or RECs). In effect, each part of the bid price will be

compared against the utilities’ forecast, so placing too much of the value in one or the other component

could disadvantage the bid. Bidders may submit bids for energy and RECs bundled together, but if there is

a change in law, the EDCs would not buy the RECs and would just pay for energy.

▪ Other questions were posed pertaining to:

▪ clarifications of geographic eligibility;

▪ what evidence of interconnection progress must be provided in the absence of a completed system

impact study (need all the information a bidder has in order to evaluate)

▪ whether ‘under contract by 2022’ implies delivering by 2022 (no, just under contract); and

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▪ clarification of the firmness requirements for different bid categories (see presentation for explanation).

In addition, the Evaluation Team also addressed questions relating to the possibility of other states potentially

joining the procurement process. The Evaluation Team referenced Footnote 8 in the RFP, which emphasizes

that Massachusetts will consider the participation of other states if that participation does not harm

Massachusetts ratepayers. If during the evaluation, the Massachusetts evaluation team determines multi-state

participation would cost-effectively achieve the Commonwealth’s clean energy goals, a portion of selected

projects may be allocated to EDCs located in other states. (We note that the coordination between three states

under the New England Clean Energy RFP, last discussed in Digest 59, was extraordinarily challenging. Under

this RFP, no such coordination is required.)

Both Connecticut and Rhode Island have existing statutory authority which could allow participation in a long-

term contracting RFP for renewables with other states. Representatives of state agencies in Connecticut and

Rhode Island have at times recently indicated a possible interest in participating in the 83D RFP, though there

are still many questions as to what and how those states would be able to procure under the solicitation.

Pursuant to the Affordable Clean Energy Security Act, signed into law in 2014, Rhode Island utilities are

permitted to participate in multi-state procurements for international large- or small-scale hydroelectric power as

well as RPS-eligible supply (see Digest 46 for more details). We note that the 83D solicitation could be a key

means of procuring sufficient renewable energy capacity to meet Governor Gina Raimondo’s recently-

announced aspirational goal of procuring 1,000 MW of renewable energy by 2020 (most recently discussed in

Digest 60). The Connecticut Department of Energy and Environmental Protection (DEEP) may be able to

participate using existing under the Connecticut Public Act 13-303 (Sections 6 and 7), Connecticut Public Act

15-107, or other authority (including some proposed in the current legislative session). Further, it is not yet

known what the MA evaluation team will determine as to the appropriateness of participation by other states,

whether available contracts would be for capacity, energy or both, and how much energy or capacity would be

available.

The deadline to submit written questions on the 83D RFP and a notice of intent to bid is May 2, 2017. As we

understand it, the utilities intend to respond to all questions posed (although they will group similar questions).

CONNECTICUT

PURA schedules May 9 hearing on EDCs power procurement plans, provided

stakeholders make formal request by May 1

In Connecticut, the EDCs procure supply for Standard Service (SS) and Last Resort Service (LRS) for

retail customers not supplied by competitive suppliers. Per the current procurement plan adopted in late 2012

(last discussed in Digest 36), to procure the required wholesale electricity supply, United Illuminating (for 100%

of its SS/LRS supply) and Eversource (for 80% of its SS/LSR supply) competitively procure a laddered portfolio

of tranches of full-requirements electricity bundled with RECs sufficient to meet associated RPS supply

obligations from wholesale suppliers. When wholesale suppliers are required to deliver power, they are also

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responsible for meeting the associated RPS requirements. As last discussed in Digest 60, stakeholders

submitted comments in Docket 12-06-02RE03 which was opened for the limited purpose of amending and

reviewing the existing EDC power procurement plans.

On April 19, 2017, the Public Utilities Regulatory Authority (PURA) issued a notice scheduling a hearing on

May 9, if stakeholders file a request for a hearing by May 1.

RHODE ISLAND

Bill modifying EDC supply procurement and allowing time-of-use rates

recommended for passage, vote not yet scheduled

In a consideration hearing held April 25, 2017, the House Committee on Corporations recommended the

passage of H. 5642 - An Act Relating to Public Utilities and Carriers - Public Utilities Commission - As

introduced, the bill would extend the requirement on EDCs to file supply procurement plans with the Public

Utility Commission until 2028. The bill would also remove the restriction on time of use rates for residential

customers.

The bill has not been placed on the House Calendar yet, but likely will be soon.

MAINE

Commenting stakeholders support maintaining or increasing RPS levels, while

House Republican Leader introduces text to alter Class I RPS targets while

introducing REC multipliers based on in-state jobs created by generators

On April 18, 2017, the Committee on Energy, Utilities and Technology held a hearing on two bills relevant to

the renewable portfolio standard (RPS). The two bills considered were:

▪ LD 1147 - An Act to Modernize the Renewable Portfolio Standard - This bill is currently a ‘concept

draft’ without substantive content which, if formally filed, would continue the current renewable portfolio

standard level (including the 10% "new" requirement) from January 2017 to December 2028. Note that this

bill essentially maintains the status quo, as the PUC previously ruled that the RPS would continue at 10%

indefinitely, unless altered by the legislature.

▪ LD 1185 - An Act Regarding Renewable Portfolio Standards - This bill is currently a ‘concept draft’

without substantive content which would, which would, if formally filed, enact as-yet unspecified measures

designed to update Maine's renewable portfolio standards.

The testimony filed on each bill is available on the docket pages linked above, under the "committee info" tab.

Almost all the stakeholders commented in support of maintaining the current RPS levels through at least 2028,

with some parties pushing for an expansion of the targets, or further exploration of additional support

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mechanisms for renewable energy. The only party strictly against the continuation of the RPS was the

Governor's Energy Office, stating that Maine was "incurring significant costs without obtaining any benefit from

this policy".

In addition, Representative Ken Fredette, House Republican Leader and sponsor of LD 1185, filed his

proposed sponsor's amendment to the bill, which, if adopted by the Committee, would add actual text to the

previous concept draft. With this proposed amendment, the bill would:

▪ Re-define the RPS’s REC structure by introducing "economic impact multipliers", which would provide

RECs to generators in proportion to the number of in-state economic benefits (defined as in-state jobs)

provided by the generation owner. Specifically (as laid out in the proposed amendment):

▪ Facilities providing in-state economic benefits equal to or greater than a ratio of four times their energy

generation capacity shall receive a multiplier of 1.5 applied to their RECs;

▪ Facilities providing in-state economic benefits with a ratio greater than two and less than four shall

receive a multiplier of 1.0;

▪ Facilities providing in-state economic benefits with a ratio greater than one and less than two shall

receive a multiplier of 0.75; and

▪ Facilities providing in-state economic benefits with a ratio less than one shall receive a multiplier of

0.25.

▪ The PUC would be required to adopt rules to implement the multipliers, as well as review the effect of

the multipliers in a report in 2025.

▪ Alter the refurbishment provisions to include any hydro generators which were re-licensed by FERC after

September 2005 (a provision which we understand to have been put forth by Brookfield Renewable

Energy);

▪ Increase the total new requirement of the RPS to 12% by 2018, 14% by 2020, and 15% by 2024 (and

thereafter). (We note that, with multipliers, such an increase may not lead to any greater quantity of

renewables, and depending on the ultimate specifics, could even correspond to a reduced quantity of

renewables required).

Note that this proposed amendment was not made available prior to the hearing, so commenters were not able

to address any of the amendment's provisions in their testimony.

We observe that the multipliers described above, as they appear in the proposed amendment, are impossible

to interpret without greater specificity (is it jobs per kW? Per MW? Per unit energy?), so further analysis will

have to wait for refinement of the text. Further, as drafted, the amendment offers no specific measures by

which to judge how many in-state jobs are associated with given generators, such as minimum time lengths for

jobs, or how generators which collectively employ large numbers of workers (such as residential solar systems)

will be categorized. It appears the intent of this proposal is to provide increased REC revenue to biomass

generators, and decreased revenue to wind and solar facilities, which create fewer permanent jobs per each

facility. We note that the legality of this proposal is questionable, and would almost certainly draw legal

challenges if it was passed.

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Bills filed for NTA coordinator, solar procurement, and procurement restrictions,

hearing scheduled May 3

During the past week, the following bills were filed with the Maine Legislature:

▪ LD 1487 - An Act to Control Electricity Transmission Costs through the Development of Non-

Transmission Alternatives - This bill would require the PUC to appoint a smart grid coordinator

(excluding T&D utilities and affiliates) and require the coordinator to develop non-transmission alternatives

for proposed transmission projects.

▪ LD 1504 - An Act Regarding Solar Power for Farms and Businesses - This bill would:

▪ Create a large scale solar procurement program to procure 50 MW by 2022, under 20-year contracts

with the standard buyer, which defaults to the T&D utilities (Note that a similar procurement program,

on a much larger scale, was passed by the legislature last year, but failed to overcome the Governor’s

veto. See coverage in Digest 56). It includes a preference for multifamily housing projects, and an 8

MW set-aside for agricultural or forest product businesses;

▪ Establish a small business distributed generation credit rate program as an alternative to net energy

billing for nonresidential customers, with 20 year terms for projects 25-250 kW;

▪ Eliminate the limit on the number of customers which can participate in community net energy billing

projects; and

▪ Allow the PUC to make or amend net energy billing rules, but dictates that such rules are major

substantive rules. (Major substantive rules, as opposed to routine technical rules, require review and

approval by the Legislature prior to final adoption by a regulatory agency.)

▪ LD 1513 - An Act to Provide for Affordable Long-term Energy Prices in Maine - This bill would prohibit

the PUC from directing T&D utilities to enter long term energy/REC/capacity contracts unless the in-state

economic benefits substantially outweigh the expected costs of the contracts. The PUC’s authority on such

contracts is currently governed by Sec. 1. 35-A MRSA §3210-C, sub-§3, which has been used in the past

for offering contracts to wind, biomass, and solar installations in-state.

These bills are currently in the Committee on Energy, Utilities and Technology, and there is

a hearing scheduled on May 3, 2017 at 10:00 AM for LD 1487 and LD 1513.

VERMONT

Bill to review and update Act 250 making progress through Senate

Vermont’s Act 250 is the state’s land use and development control law. As introduced, H.424 - An act relating

to the Commission on Act 250: the Next 50 Years would create a commission to review and make

recommendations on improving the effectiveness and efficiency of the Act as currently implemented in

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achieving its goals. The bill has already passed the House, and was reported favorably by the Senate

Committee on Natural Resources and Energy on April 24. It was then referred to the Senate Committee on

Appropriations, which began its consideration of the bill on April 25.

NEW HAMPSHIRE

PUC rejects Eversource bid for reconsideration in Eversource/HQ PPA

proceeding

On April 20, 2017, the New Hampshire Public Utilities Commission (PUC) issued an order denying Eversource

Energy's motion for rehearing of the PUC's rejection of a PPA between Eversource and Hydro-Quebec in

Docket 16-693. The PUC noted that Eversource did not present new information, but rather provided the same

primary arguments, which did not suffice as grounds for rehearing. Eversource previously argued that the goals

of RSA 374-F, which includes lowering energy costs, supersede the same regulations' requirement "to maintain

functional separation of distribution from other EDC activities." The PUC disagreed. In addition, the PUC noted

that pending legislation or a pending appeal of a prior order are equally insufficient grounds for either staying

this proceeding or otherwise not ruling on Eversource's motion, as suggested by Eversource. As last discussed

in Flash Update 60.3, on April 3, Eversource filed a motion requesting that the PUC suspend their rejection of

the PPA, due to a due to a pending bill SB 128 - An Act Relative to the Policy Goal of Electric Utility

Restructuring which, if signed into law, would fundamentally change the restructuring statutes to prioritize

lowering costs to ratepayers, lowering price volatility, and minimizing the potential for electricity supply

disruptions. As drafted, the bill would allow the proposed PPA to move forward.).

SEC suspends prior order granting Certificate of Site and Facility to Antrim Wind;

schedules May 5 hearing on stakeholder motions for rehearing

On April 3, 2017, the Site Evaluation Committee (SEC) issued an order suspending their prior approval of a

Certificate of Site and Facility for the proposed Antrim Wind Farm. The order was issued pursuant to a motion

for rehearing filed by the Meteorological Intervenors (detailed and linked below). On April 20, 2017, the SEC

issued a notice and order establishing a hearing on May 5 (9:00 am) to deliberate on the following three

motions for rehearing in SEC Docket 2015-02:

▪ the Abutting Landowners Group, Non-Abutting Landowners Group, the Levesque Alle Group, the Stoddard

Conservation Commission, and the WindAction Group Motion for Rehearing

▪ Counsel for the Public Motion for Rehearing

▪ the Meteorological Intervenors Motion for Rehearing

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Antrim Wind subsequently filed an objection to the Counsel for the Public’s motion for rehearing and

an objection to the joint motion for rehearing.

Stakeholder motions focused on the SEC subcommittee's deliberations, which they argue were unlawful by not

always adhering to a composition that included 2 members of the public. Furthermore, stakeholders contended

that the proposed project details were similar to that of the originally proposed Antrim Wind farm in how they

affected local aesthetics and that the project should therefore have never been granted a Certificate of Site and

Facility.

While it is difficult to assess whether or not stakeholder motions for rehearing will be successful or not, at the

very least this represents a minor delay for Antrim Wind. If the stakeholder motions are found to have merit and

are subsequently granted, the SEC subcommittee will be required to hold additional hearings to deliberate on

the issuance of a Certificate of Site and Facility for Antrim Wind.

As last discussed in Digest 60, on March 17, the SEC issued their final order, affirming their issuance of

Certificate of Site and Facility to the Antrim Wind Project.

ISO NEW ENGLAND, REGIONAL AND NATIONAL DEVELOPMENTS

D.C. Circuit Court dismisses Transmission Owners' and NESCOE's petitions for

review of ISO-NE's FERC Order 1000 compliance filing

On April 18, 2017, the D.C. District Circuit Court issued an order dismissing two petitions for review of ISO-

NE's Federal Energy Regulatory Commission (FERC) Order 1000 compliance filing, as filed by the New

England Transmission Owner's (NETO's) and the New England States Committee on Energy (NESCOE). The

Court dismissed the petitions for some of the following reasons:

▪ FERC mandating that ISO-NE (rather than the New England states) evaluate both transmission needs and

their potential solutions is "a reasonable implementation of Order 1000";

▪ Because ISO-NE has no part in creating public policy for the New England states, transmission needs are

considered based upon a plethora of different sources including federal or state policy requirements; and

▪ Order 1000 essentially codified a regional planning process for transmission needs and development,

which fits squarely within the role of an ISO to "plan for the region's transmission needs".

As last discussed in Digest 56, in May 2015, NESCOE, on behalf of regulatory entities from Massachusetts,

Connecticut, Rhode Island, Vermont and New Hampshire, filed a petition with the U.S. Court of Appeals which

requested a review of ISO-NE's compliance filing order. NESCOE argued that the compliance order went

beyond Order No. 1000 and impermissibly altered the balance of responsibility and power as between state

governments and ISO-NE.

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Clean Energy Coalition voices support for FERC revisions to Large Generator

Interconnection Procedure

During the week ending April 14, 2017, a Clean Energy Coalition (CEC), consisting of the Advanced Energy

Economy (AEE), the Energy Storage Association (ESA), the American Wind Energy Association (AWEA), and

the American Council on Renewable Energy (ACORE) submitted comments in Federal Energy Regulatory

Commission (FERC) Docket No. RM17-8-000 to explore proposed reforms to Large Generator Interconnection

Procedure (LGIP). Comments supported the FERC revisions to the interconnection process and focused on the

following areas:

▪ The proposed rule would allow a more cost-effective deployment of both energy storage and renewable

energy systems;

▪ The reduction in interconnection barriers will translate into lower costs for consumers; and

▪ will help transition "to a more efficient, resilient, and affordable energy grid".

As last discussed in Flash Update 60.4, on April 13, 2017, ISO-NE submitted comments and

recommendations on FERCs ongoing deliberation.

Regards, Bob Grace

Sustainable Energy Advantage, LLC 161 Worcester Road, Suite 503 Framingham, MA 01701 ********************************************************** Robert C. Grace – President and Managing Director Sustainable Energy Advantage, LLC Tel 508.665.5855 Fax 508.665.5858 mobile 617.803.8900 bgrace@seadvantage.com www.seadvantage.com

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15

Sustainable Energy Advantage, LLC

New England

Renewable Energy

‘Eyes & Ears’ Digest #61

May 25, 2017

Terms & Conditions

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distributed to employees, officers and directors of Subscriber or Authorized Affiliate who have been made

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additional terms and conditions stated in the Subscription Agreement.

New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC

Digest #61 – Thursday, May 25, 2017

Top Stories in this Update…

➢ Massachusetts - Section 83D RFP tilts toward hydro or hydro-backed wind; bidder's conference held, proposals due July 27

➢ Massachusetts - EDCs file proposed offshore wind solicitation under section 83C, Independent Evaluator files report finding solicitation to be satisfactorily fair, open, and transparent

➢ Massachusetts - Stakeholders file reply comments in DPU's PURPA investigation; Allco clashes

with EDCs on long-term avoided cost rate methodology and contract term

➢ Massachusetts - Stakeholders file testimony addressing many concerns with Eversource rate case proposals

➢ Massachusetts - Avangrid announces 50% ownership stake in Vineyard Wind

➢ Connecticut - Omnibus bill currently awaiting action by Senate, renewable energy provisions to

move to separate legislative vehicle if support falters for nuclear support provisions

➢ Connecticut - House passes bill to remove Q5 borrowing as RPS compliance tool, bill now awaits deliberation by Senate

➢ Connecticut - DEEP proposing draft amendment partially removing proposed restrictive siting

criteria for utility-scale solar

➢ Connecticut - House passes bill expanding existing C-PACE statute

➢ ♦ Connecticut - Bill requiring DEEP to complete CT Green Plan for best practices of energy

infrastructure siting referred to Committee on Appropriations

➢ Rhode Island - Senate passes bills requiring the study of carbon pricing and establishing a statewide solar permit; House committee recommends passage of solar permit companion bill

➢ Rhode Island - House passes bill removing restrictions on residential TOU rates and continuing

requirement for National Grid to file procurement plans

➢ Rhode Island - Senate passes bill expanding Renewable Energy Growth program, advances to House for consideration

➢ Rhode Island - PUC unanimously accepts Docket 4600 Working Group final report on rate

design, issues further directives to National Grid and the Division

➢ Rhode Island - OER and Division hold initial meetings on Power Sector Transformation (PST) Initiative, materials now available; late May Technical Sessions scheduled

➢ Maine - Utilities, environmental groups support bill authorizing regional procurements, but are

hesitant to endorse wind siting provisions

➢ Maine - Stakeholders express support for bill to establish Maine Energy Office, tempered with concerns over funding and scope

New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC

Digest #61 – Thursday, May 25, 2017

➢ Maine - Commenting stakeholders other than Governor support bills either maintaining or increasing RPS levels; House Republican leader introduces text to increase Class I RPS gross targets, while the impact of REC multipliers based on in-state jobs created by generators could mean no net gain

➢ Maine - Wind production tax bill voted Ought Not to Pass

➢ Maine - Generation ownership bill receives split support/opposition from stakeholders, most advise caution

➢ Maine - Long term contracting limitation bill reported out with Ought Not to Pass recommendation

➢ Vermont - Forest protection bill to create stricter permitting requirements passes the House

➢ Vermont - Bill to review and update Act 250 (H.424) passes both chambers, awaiting Governor

Scott's consideration

➢ Vermont - Legislature passes bill transforming Vermont PSB into Vermont PUC, calls for siting reforms and report on storage; awaits Governor's signature

➢ Vermont - DPS requests PSB review of utility rate regulation, proceeding awaits appointment of

new Chair

➢ Vermont - VEPP Inc. issues 2017 Standard Offer RFP after PSB denies REV's second reconsideration request, REV appeals to Vermont Supreme Court

➢ New Hampshire - PUC rejects Eversource motion for reconsideration in Eversource/HQ PPA

proceeding

➢ New Hampshire - National Grid proposes 1,200 MW "Granite State Power Link" transmission project as apparent competitor to Northern Pass

➢ New Hampshire - Bill to change restructuring principles retained by House Committee on

Science, Technology, and Energy, would clear path for Eversource/HQ PPA via NPT, appears unlikely to return in 2018 session

➢ New Hampshire - House committee considering key energy bill featuring an increase to the solar

RPS, an increase in ACPs for Class III facilities; bill garners support from biomass and timber industries, opposition from House Republicans

➢ New Hampshire - Bill establishing committee to study duration of subsidies for energy projects

under the state RPS awaiting Governor's signature after undergoing materially important technical correction

➢ New Hampshire - SEC declines to reconsider Antrim Wind approval, intervenors may appeal to

NH Supreme Court; Antrim to drop out of CE RFP after contracting to other buyers

➢ New Hampshire - Final Northern Pass federal EIS expected by the end of the year

➢ New York - NYSERDA and DPS issue Final Clean Energy Standard Phase 1 Implementation Plan for 2017; Albany Engineering seeks Tier 1 eligibility for a repowered hydro facility; PSC denies ESCO request for a stay of ZEC compliance obligation

New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC

Digest #61 – Thursday, May 25, 2017

➢ New York - Stakeholders suggest revisions to PSC "Value of DER" Order; comments on rehearing and/or reconsideration due June 19; Phase Two organizational conference held May 23

➢ New York - Issuance of NYSERDA and NYPA renewables RFPs further delayed; expected to be issued in May

➢ New York - NYSERDA files Phase 2 Implementation Plan Proposal

➢ New York - LIPA releases Integrated Resource Plan; will meet CES requirement primarily through

procurement of offshore wind

➢ ISO releases discussion paper on Substitution Auction concept ahead of May 17 IMAPP Meeting

➢ ISO & Regional – At FERC’s Technical Conference, stakeholders stake out positions on regulators’ roles addressing state policy impacts on wholesale markets

➢ ISO & Regional - D.C. Circuit Court vacates FERC transmission ROE decision, grants

transmission owners' petitions for review

➢ ISO & Regional - RGGI presents updated draft results of 2017 Reference Case with significantly reduced allowance prices, and Proposed Policy Scenarios; final results expected in late summer

Other Featured Topics… MASSACHUSETTS

➢ ♦ Now Available: 2017 Massachusetts E&E Legislative Activity Overview

➢ Bill would establish tax on fossil fuels and Clean Energy Trust, remove EDC net metering caps

and 2 MW maximum Class III net metering facility limit

➢ Status of Other Renewable Energy Legislation

o Several bills heard in committee with no further action

o Bills proposed, awaiting hearing

➢ SMART program emergency regulations delayed again until mid-May; negotiations regarding ultimate clearing price break down

➢ Public net metering cap met in National Grid territory, solar industry hoping for small cap increase to cover SREC-II projects without net metering cap allocation until SMART begins

➢ Section 83D RFP tilts toward hydro or hydro-backed wind; bidder's conference held, proposals

due July 27

➢ EDCs file proposed offshore wind solicitation under section 83C, Independent Evaluator files report finding solicitation to be satisfactorily fair, open, and transparent

New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC

Digest #61 – Thursday, May 25, 2017

➢ Stakeholders file reply comments in DPU's PURPA investigation; Allco clashes with EDCs on long-term avoided cost rate methodology and contract term

➢ At DPU technical conference on blanket exception to “single-parcel” net metering rule, solar

industry stakeholders, AGO and DOER express support, while EDCs oppose changes and DPU stresses gaming concerns

➢ Stakeholders file testimony addressing many concerns with Eversource rate case proposals

➢ Stakeholders file testimony critiquing EDC grid modernization proposals, evidentiary hearings scheduled

➢ Avangrid announces 50% ownership stake in Vineyard Wind

➢ Court rules in favor of Falmouth's Wind 1; many additional cases still pending as turbine

continues to sit idle

➢ BOEM issues draft supplemental environmental impact statement for Cape Wind, hundreds of comments received

➢ DEP amends RGGI regulations to encourage CHP

CONNECTICUT:

➢ ♦ Now Available: 2017 Connecticut E&E Legislative Activity Overview

➢ Omnibus bill currently awaiting action by Senate, renewable energy provisions to move to

separate legislative vehicle if support falters for nuclear support provisions

➢ ♦ Bill requiring DEEP to complete CT Green Plan for best practices of energy infrastructure siting

referred to Committee on Appropriations

➢ ♦ Senate amends and passes bill which alters approach to advertising green power and timing of

RPS annual reporting; bill subsequently placed on House calendar for consideration

➢ House passes bill expanding existing C-PACE statute

➢ House passes bill to remove Q5 borrowing as RPS compliance tool, bill now awaits deliberation by Senate

➢ DEEP proposing draft amendment partially removing proposed restrictive siting criteria for utility-

scale solar

➢ Stakeholder concerns grow that large state budget deficit could lead to raid on CGB and RGGI funds

➢ Several renewable energy bills reported out of the LCO, placed on House and Senate calendars

for consideration

➢ ♦ EDCs’ compliance filings detailing year 5 LREC/ZREC bids available

New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC

Digest #61 – Thursday, May 25, 2017

➢ EDCs issue year 6 LREC/ZREC RFP, bids due June 8

➢ EDCs encourage submission of additional applications to the still under-subscribed Year 5 Small

ZREC program

➢ Stakeholders submit comments in support of PURA-proposed revisions to RPS compliance and voluntary green products market regulations

➢ PURA issues draft decision certifying CGB SHREC facilities as Class I resources

➢ DEEP presents on clean energy RFP and small resources RFP at PURA technical conference,

EDCs to submit CERFP contracts to PURA 60 days after submission of small resources RFP contracts

➢ PURA stays portions of net metering banking decision related to solar customers

➢ Solar developers express disappointment after revised SCEF RFP receives fewer bids than initial

RFP

RHODE ISLAND:

➢ ♦ Now Available: 2017 Rhode Island E&E Legislative Activity Overview

➢ Senate passes bill expanding Renewable Energy Growth program, advances to House for

consideration

➢ Senate passes bills requiring the study of carbon pricing and establishing a statewide solar permit; House committee recommends passage of solar permit companion bill

➢ Senate passes bill establishing a statewide solar permit; House committee recommends passage

of companion bill

➢ House passes bill removing restrictions on residential TOU rates and continuing requirement for National Grid to file procurement plans

➢ House Finance Committee recommends passage of amended bill modifying PACE

➢ Draft of interconnection bill indicates potential compromise in long-running interconnection

dispute

➢ Bill prohibiting the use of ratepayer recovery mechanisms for natural gas-related infrastructure withdrawn at sponsor's request

➢ Status of Other Renewable-Energy-Related Legislation

o Bills Filed and Awaiting Hearing

o Bills Held for Further Study or Committee Consideration Postponed

New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC

Digest #61 – Thursday, May 25, 2017

➢ PUC unanimously accepts Docket 4600 Working Group final report on rate design, issues further directives to National Grid and the Division

➢ OER and Division hold initial meetings on Power Sector Transformation (PST) Initiative, materials now available; late May Technical Sessions scheduled

➢ PUC approves National Grid's request to allow Renewable Energy Growth program RECs to be

used directly for SOS RPS compliance

➢ Southern Sky Renewables files a Petition for Declaratory Judgement on net metering for public facilities

➢ 30 MW Community Net Metering program now live; General Assembly holds bill raising cap for further study

➢ Draft state building code includes 3-foot setback rule for residential rooftop solar

➢ Providence opts into RIIB C-PACE program; information session and workshop held May 3 & 4

➢ Orbit Energy requests Renewable Energy Resource eligibility for Johnston anaerobic digester facility

➢ West Warwick passes moratorium on wind development

MAINE:

➢ 2017 Maine Legislative Activity Overview

➢ Representative Berry files highly anticipated solar bill intended to overturn PUC's net energy billing decision

➢ Community solar procurement bill supported by most stakeholders, but CMP and GEO opposed;

back-up solar bill also presented

➢ Utilities, environmental groups support bill authorizing regional procurements, but are hesitant to endorse wind siting provisions

➢ Commenting stakeholders other than Governor support bills either maintaining or increasing RPS

levels; House Republican leader introduces text to increase Class I RPS gross targets, while the impact of REC multipliers based on in-state jobs created by generators could mean no net gain

➢ Bill to codify separation of permitting processes for wind and transmission facilities voted ought

not to pass despite EDC support

➢ Stakeholders express support for bill to establish Maine Energy Office, tempered with concerns over funding and scope

➢ Energy Committee unanimously rejects bill to ban Aqua Ventus project

➢ Wind production tax bill voted Ought Not to Pass

New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC

Digest #61 – Thursday, May 25, 2017

➢ Bill making GridSolar a statewide “smart grid coordinator” receives split reviews from stakeholders

➢ Stakeholders weigh in on non-transmission alternatives bill at April 4 hearing

➢ Long term contracting limitation bill reported out with Ought Not to Pass recommendation

➢ Bill extending deadline for natural gas pipeline cost rate recovery signed into law

➢ Testimony reflects confusion on microgrid bill

➢ Utility ownership clarification bill generally supported by stakeholders, committee votes Ought To

Pass As Amended

➢ Generation ownership bill receives split support/opposition from stakeholders, most advise caution

➢ PUC issues supplemental bench memo and sets schedule for consideration of NTA coordinator

➢ CLF files appeal of PUC’s refusal to reconsider net metering order with Maine Supreme Court

➢ Stored Solar granted alteration of payment arrangements under biomass rescue contracts with

CMP, Jonesboro plant temporarily offline due to economics, boiler leak

➢ Sappi Somerset biomass generator granted Class I status under refurbishment provisions

➢ GridSolar files final report on Boothbay smart grid pilot project, highlighting significant savings and resource portability

VERMONT:

➢ General Assembly Wrapping Up Legislative Session

➢ Senate amends unrelated efficiency bill to codify PSB net metering proposal, and House concurs, sending bill for Governor’s signature

➢ Bill to review and update Act 250 (H.424) passes both chambers, awaiting Governor Scott's

consideration

➢ Legislature passes bill transforming Vermont PSB into Vermont PUC, calls for siting reforms and report on storage; awaits Governor's signature

➢ Forest protection bill to create stricter permitting requirements passes the House

➢ DPS requests PSB review of utility rate regulation, proceeding awaits appointment of new Chair

➢ GMP files traditional rate case requesting 5% increase; costs include those incurred for

transmission, capacity payments, and increased net metering incentive payments

➢ PSB files proposed wind sound rule with Secretary of State, sets schedule for additional hearings and comments

New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC

Digest #61 – Thursday, May 25, 2017

➢ VEPP Inc. issues 2017 Standard Offer RFP after PSB denies REV's second reconsideration request, REV appeals to Vermont Supreme Court

➢ PSB resumes interconnection rulemaking process (rule 5.500), requests comments by June 16

➢ PSB issues order authorizing GMP purchase of hydro facilities, Allco appeals decision to Vermont

Supreme Court

➢ PSB orders sound monitoring in Sheffield wind dispute

➢ PSB dismisses Swanton Wind petition for VT long-term contract

➢ Ranger Solar's 20MW Coolidge project approved by PSB

NEW HAMPSHIRE:

➢ Now Available; 2017 New Hampshire E&E Legislative Activity Overview

➢ House committee considering key energy bill featuring an increase to the solar RPS, an increase in ACPs for Class III facilities; bill garners support from biomass and timber industries, opposition from House Republicans

➢ Bill establishing committee to study duration of subsidies for energy projects under the state RPS

awaiting Governor's signature after undergoing materially important technical correction

➢ Senate Committee on Energy and Natural Resources determines amended REC production reporting bill ought to pass Senate, amendment strikes disclosure of confidential contractual terms on REC transactions

➢ Bill to change restructuring principles retained by House Committee on Science, Technology, and

Energy, would clear path for Eversource/HQ PPA via NPT, appears unlikely to return in 2018 session

➢ Bill regarding the usage of energy efficiency funding for RE projects reported out of Senate

Committee as Ought to Pass

➢ Senate Committee on Energy and Natural Resources refers bill on wind energy systems back to itself, clarifying that more stakeholder input is needed

➢ House tables budget bill reallocating REF funds to low-income ratepayer assistance

➢ PUC rejects Eversource motion for reconsideration in Eversource/HQ PPA proceeding

➢ Stakeholders file briefs restating their positions in net metering successor proceeding

➢ SEC declines to reconsider Antrim Wind approval, intervenors may appeal to NH Supreme Court;

Antrim to drop out of CE RFP after contracting to other buyers

➢ PUC grants comment extension deadline on final grid modernization report

New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC

Digest #61 – Thursday, May 25, 2017

➢ National Grid proposes 1,200 MW "Granite State Power Link" transmission project as apparent competitor to Northern Pass

➢ Alexandria biomass plant set to (temporarily) close April 30, citing insufficient revenue to support

continued operation

➢ EDP Renewables withdraws Spruce Wind proposal from ISO-NE queue

➢ Final Northern Pass federal EIS expected by the end of the year

➢ PUC staff requests reallocation of REF FY 2017 program budgets

➢ Eversource stranded cost recovery and energy service charge proceedings

o PUC approves charges for 2015

o 2016 stranded cost recovery and energy service charges request filed, decision appears unlikely until 2018

ISO NEW ENGLAND, REGIONAL AND NATIONAL DEVELOPMENTS:

ISO AND NEPOOL ARTICLES

➢ At FERC’s Technical Conference, stakeholders stake out positions on regulators’ roles addressing state policy impacts on wholesale markets o Participation by New England stakeholders o Overall take-aways from the technical conference o Next steps

➢ ISO releases discussion paper on Substitution Auction concept ahead of May 17 IMAPP Meeting

➢ ♦ IMAPP meeting held May 17 as NESCOE submits feedback on IMAPP proposals; agenda and

materials available

➢ ISO-NE to delay interconnection clustering proposal filing until FERC quorum restored, introducing a potential barrier to Massachusetts Section 83D proposals

➢ ISO-NE Planning Advisory Committee meets, discusses Economic Study sensitivities in carbon

pricing and Least-Cost, Emissions-Compliant scenarios

➢ NEPOOL Markets Committee directs NEPOOL GIS Operating Rules Working Group to consider eliminating cap on quarterly REC deposits in GIS retail subaccounts, WG discussion held May 19

➢ ISO files with FERC answer to NEPGA comments on CONE and ORTP filing

➢ ISO-NE files comments in response to FERC NOPR on interconnection reforms for large

generators

New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC

Digest #61 – Thursday, May 25, 2017

➢ ISO staff provides insights into 2016 Economic Study’s Phase I results at March Restructuring

Roundtable

➢ ISO-NE releases 2017 CELT Report, annual load forecasted to decline on average by .64% per year; forecast omits any consideration of electrification load

➢ ISO-NE releases final 2017 PV Forecast, increasing forecast of regional total PV capacity to 4.7

GW AC by 2026 OTHER REGIONAL ARTICLES (NESCOE, etc.)

➢ Generators petition U.S. Appellate Court of D.C. to review FERC orders relating to renewables exemption from Minimum Price Offer Rule in FCM

➢ NESCOE hosts webinar summarizing results of Renewable and Clean Energy Scenario Analysis and Mechanisms 2.0 Study Phase I: Scenario Analysis Report

➢ NESCOE will not request Public Policy Transmission Study, says no state or federal public policy

requirements driving transmission needs in ISO-NE

NATIONAL ARTICLES

➢ President Trump intends to nominate Robert Powelson and Neil Chatterjee as FERC commissioners

➢ D.C. Circuit Court vacates FERC transmission ROE decision, grants transmission owners' petitions for review

➢ Maryland PSC approves US Wind and Deepwater Wind offshore wind projects totaling 368 MW,

authorizes 20-year OREC price; approval subject to conditions including in-state job creation and infrastructure investments

➢ Bill Introduced in Congress would require PACE loans to submit to regulations placed on

mortgages, passage unlikely

➢ TransCanada 584 MW hydro portfolio sold to ArcLight Capital Partners

➢ DOE Secretary Perry requests study of reliability and baseload power closures

➢ SEC probing SolarCity and Sunrun over disclosure of contract cancellations

➢ Gaz Métro Acquires Standard Solar RGGI ARTICLES

➢ RGGI presents updated draft results of 2017 Reference Case with significantly reduced allowance prices, and Proposed Policy Scenarios; final results expected in late summer

➢ Stakeholders provide comments on RGGI program review, with some calling for a 5% decrease in the annual emissions cap

New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC

Digest #61 – Thursday, May 25, 2017

REPORTS & EVENTS:

➢ ♦ UPCOMING EVENTS

o Massachusetts

▪ Senate Committee on Global Warming and Climate Change schedules "Clean Energy Future Tour" throughout May and June

o Rhode Island ▪ OER to hold public hearing to determine allocation of RGGI proceeds on June 1

o New England, Regional, and National

▪ LBNL to host webinar on "Regulatory Incentives and Disincentives for Utility Investments in Grid Modernization" on May 31

▪ Renewable Energy Finance Forum scheduled for June 20-21

▪ NWRC schedules webinar on offshore wind vessels and the potential to reduce costs of development

➢ PREVIOUS EVENTS AND REPORTS

o Massachusetts ▪ Technical Standards Review Group holds meeting May 16

o Rhode Island

▪ OER releases Study of Renewable Energy Installation Quality in the Renewable Energy Growth Program

▪ OER releases land-based wind siting guidelines o Maine

▪ PUC’s 2015 annual RPS report shows nearly all 2015 Class I RECs produced by biomass

o Vermont

▪ SunShot Initiative-funded Statewide Solar Pathways study released

o New York ▪ NYSERDA releases annual reports on renewables programs, while NYISO Load

Forecast shows impact of NY Sun on system peaks

▪ NYSERDA to release report this summer assessing New York offshore wind offtake options

o New England, Regional, and National ▪ BOEM releases report on socioeconomic impact of OSW development on

fisheries in the Atlantic

New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC

Digest #61 – Thursday, May 25, 2017

▪ LBNL releases report comparing resource risk of renewable and gas-fired

generation

▪ NREL releases report on costs and barriers for residential solar photovoltaics with energy storage

▪ CGB issues guidebook for accelerating adoption of residential solar through

popular Solarize programs

▪ NREL releases 2016 State of Wind report, indexing development by region

▪ GTM releases report analyzing wealth of solar homeowners relative to non-solar homeowners

▪ Wind Energy Update hosts webinar on offshore wind

▪ NREL releases 2015 Cost of Wind Energy Review

▪ NREL issues new report analyzing relationship between solar installer pricing

and size of firm

New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC

Digest #61 – Thursday, May 25, 2017

MASSACHUSETTS

SMART program emergency regulations delayed again until mid-May; negotiations regarding ultimate clearing price break down (KEYWORDS: RPS, Solar, DG, LT Contracts, FIT, RECs, Storage, Solicitation, Utility Procurement) Consolidated/Last Updated: Flash 60.6 The Massachusetts Department of Energy Resources (DOER) has been developing a successor program

to the SREC-II program (see dedicated website), named the Solar Massachusetts Renewable Target

(SMART) Program. The emergency regulations are now expected to be released in mid-May, a delay of

two months relative to initial expectations. Given the number of decision-making steps involved in the

program development, approval and implementation of the Block 1 procurement process (discussed in

detail in Digest 60), any future delays beyond mid-May would likely push the start of the program to after

July 1, 2018.

DOER has been undertaking final revisions to the regulations in response to discussions among the

Administration, utilities, ratepayer advocates and solar industry participants on the structure of the initial

phase auction, and how the auction results will be used to establish the base incentive for the declining

block incentive (DBI). On April 26, 2017, Eversource and National Grid delivered a joint letter with the

Solar Energy Industries Association (SEIA) to DOER Commissioner Judith Judson listing eight

recommended parameters for the initial 100 MW solicitation process. The recommendations are designed

to limit speculative bidding, and are described in more detail in Flash Update 60.6.

Solar stakeholders, DOER and the EDCs have also been negotiating regarding the structure of the initial

procurement. As summarized in Flash Update 60.2, these negotiations focused on providing for a higher

auction ceiling price than described in Digest 60, in exchange for projects in the initial procurement being

paid as-bid instead of at the clearing price. Earlier reports of the negotiations suggested that the

benchmark for setting the initial DBI base rate would then be set at the midpoint between that ceiling price

and the capacity-weighted average of the winning bids. However, SEA has recently learned through

stakeholders close to the process that these negotiations have broken down, and that no more

discussions about initial procurement structure are likely to take place before the filing of the emergency

regulations.

Meanwhile, according to stakeholders close to the process, DOER may use this additional time to draft a

straw proposal for the on-bill crediting mechanism to be released when the agency releases the SMART

regulations (as further discussed in Flash Update 60.4).

Stakeholders also indicated that state legislators will likely wait to address net metering or any related

issues until the SMART regulations are issued.

New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC

Digest #61 – Thursday, May 25, 2017

Section 83D RFP tilts toward hydro or hydro-backed wind; bidder's conference held, proposals due July 27 (KEYWORDS: Procurement, LT Contracts, Hydro, RPS, Solicitation, Transmission) Consolidated/Last Updated: Flash 60.5 The Massachusetts' electric distribution companies (EDCs) issued the Section 83D Request for

Proposals For Long-Term Contracts For Renewable Energy Projects ("83D RFP") on March 31, 2017, as

authorized by Chapter 188 of Session Laws 2016 - An Act to Promote Energy Diversity. The

issuance of the final RFP followed a March 27, 2017 Order from the Massachusetts Department of Public

Utilities (DPU) in Docket 17-32 approving the proposed timetable and method for solicitation with few

changes to the proposed RFP filed by the EDCs originally filed in February (See Digest 60). Bid

proposals are due July 27, 2017.

DOER held a bidders’ conference on April 25, 2017 to provide information on the RFP. At the conference,

DOER Commissioner Judith Judson gave introductory remarks, and then members of the Evaluation

Team – primarily Jeff Waltman of Eversource and Tim Brennan of National Grid, as well as Lisa Glover of

Unitil - reviewed key components of the RFP and associated issues, as summarized in the

detailed bidders conference presentation slides, which comprised the bulk of the meeting. A list of

attendees is available on the 83D website. The evaluators also took questions from attendees, which

were described in Flash Update 60.5.

DOER accepted written questions on the 83D RFP and voluntary, non-binding notices of intent to bid

through May 2, 2017. As we understand it, the utilities intend to respond to all questions posed (although

they will group similar questions).

While the bidders' conference was well-attended, only a few questions were posed, as potential bidders

exhibited caution in tipping their hands to their competitors in what is shaping up to be a very competitive

procurement. Most bidders appeared to be saving their questions to be submitted and answered in writing

(as the hosts noted that any responses at the bidders’ conference were indicative, and only written

responses could be relied upon).

The Evaluation Team also addressed questions relating to the possibility of other states potentially joining

the procurement process. The Evaluation Team referenced Footnote 8 in the RFP, which emphasizes

that Massachusetts will consider the participation of other states if that participation does not harm

Massachusetts ratepayers. If during the evaluation, the Massachusetts evaluation team determines multi-

state participation would cost-effectively achieve the Commonwealth’s clean energy goals, and if other

states express interest, a portion of selected projects may be allocated to EDCs located in other states.

Click here to see one of

the initial flash articles

New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC

Digest #61 – Thursday, May 25, 2017

Representatives of state agencies in Connecticut and Rhode Island have indicated a possible interest in

participating in the 83D RFP, though there are still many questions as to what (energy, capacity, or both)

and how those states would be able to procure under the solicitation. Pursuant to the Affordable Clean

Energy Security Act, signed into law in 2014, Rhode Island utilities are permitted to participate in multi-

state procurements for international large- or small-scale hydroelectric power as well as RPS-eligible

supply (see Digest 46 for more details). We note that the 83D solicitation could be a key means of

procuring sufficient renewable energy capacity to meet Governor Gina Raimondo’s recently-announced

aspirational goal of procuring 1,000 MW of renewable energy by 2020 (most recently discussed in Digest

60). The Connecticut Department of Energy and Environmental Protection (DEEP) may be able to

participate using existing under the Connecticut Public Act 13-303 (Sections 6 and 7), Connecticut Public

Act 15-107, or other authority (including some proposed in the current legislative session).

We also note that the coordination between three states under the New England Clean Energy RFP, last

discussed in Digest 59, was extraordinarily challenging. Under this RFP, no such coordination is required.

It appears that the RFP and evaluation may somewhat tilt toward proposals that are either hydroelectric

or Class I firmed by hydroelectric over Class I only proposals, compared to the recent Clean Energy RFP

(see Digest 53). In addition, while solar dominated the recent Clean Energy RFP, based on our read of

the RFP features, we would expect hydro or wind firmed by hydro to grab a larger share of the ultimately

awarded volume under the Section 83D RFP.

Of note, in addition to the wind projects located in New England and Maine that had proposed into the

New England Clean Energy RFP, Windpower Monthly reports that Canadian wind projects may be

positioning themselves to bid, along with the anticipated Canadian hydro bids. Any bids for significant

amounts of Canadian hydropower would almost definitely include associated transmission lines to deliver

the power into the New England grid, and wind developers north of the border are reportedly considering

joining their projects into combined hydro-storage bids being planned for the solicitation.

As discussed in the ISO Section of this digest, ISO-NE will delay filing its clustering proposal to address

interconnection backlogs until a quorum has been restored at FERC, which may impact the ability of bids

to fulfill the RFP transmission, firmness and delivery requirements. The quorum would be restored if

President Trump's two pending nominations are put forth and approved.

CONNECTICUT

DEEP proposing draft amendment partially removing proposed restrictive siting criteria for utility-scale solar (KEYWORDS: Legislation, Solar, Siting) During the week ending May 5, 2017 stakeholders close to the legislative process circulated a draft

amendment proposed by the Department of Energy and Environmental Protection (DEEP) to SB 943 -

New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC

Digest #61 – Thursday, May 25, 2017

An Act Concerning the Installation of Certain Solar Facilities on Productive Farmlands. As raised,

the bill would limit the use of prime farmlands and forest lands for utility-scale solar development. It would

prohibit the siting of facilities 2 MW or greater on prime farmland, unless applicants can provide evidence

that the development would not "materially affect the status of such land".

Instead of prohibiting outright all solar facilities larger than 2 MW, the draft amendment would allow any

solar facility larger than 2 MW and selected by DEEP pursuant to any existing procurement statute to

move forward. The amendment also includes provisions to allow virtual net metering on brownfields

(facilities of 3 MW or less) with an annual authorization of $3M per year for virtual net metering on

brownfields. The language in the linked amendment has not yet been acted on or been posted online.

The Joint Committee on the Environment favorably reported the bill out of committee on March 10. The

Legislative Commissioners' office subsequently reported the bill out on March 28. DEEP’s amendment

would, in theory, be attached as part of the bill for Senate consideration, or conceivably during the

conference committee process resolving differences between House and Senate language.

RHODE ISLAND

Senate passes bill expanding Renewable Energy Growth program, advances to House for consideration (KEYWORDS: Legislation, Solar, DG, LT Contracts, FIT, Utility Procurement) Consolidated/Last Updated: Flash 60.7 On May 11, 2017, the Rhode Island State Senate voted 31 to 3 to pass S. 112 Sub A – An Act Relating

to Public Utilities and Carriers – Renewable Energy Growth Program. As described in Digest 60, the

bill would extend the Renewable Energy Growth (REGrowth) program for ten years past its current

termination year of 2019 with an annual target of 40 MW – for a total of 400 MW. The Senate Committee

on Environment & Natural resources added an amendment to correct an error in the companion House

Bill H. 5274 and clarify the ten-year extension. The bill now goes to the House for consideration under the

jurisdiction of the House Committee on Environment & Natural Resources. This legislation is similar to a

bill passed by the Senate last year but never brought to a vote in the House (see coverage of S. 2181 in

Digest 55). According to stakeholders closely following the legislative process, the bill is expected to face

some opposition when it reaches the House. Given the overwhelming support in the Senate, its prospects

for passage are possible, but uncertain.

House passes bill removing restrictions on residential TOU rates and continuing requirement for National Grid to file procurement plans (KEYWORDS: Legislation, Rates) No Modifications/Last Updated: 60.6 On May 2, 2017, the Rhode Island House voted to pass H. 5642 - An Act Relating to Public Utilities

and Carriers - Public Utilities Commission - As introduced, the bill would extend the requirement on

New England Renewable Energy ‘Eyes & Ears’ Digest Sustainable Energy Advantage, LLC

Digest #61 – Thursday, May 25, 2017

EDCs to file supply procurement plans with the Public Utility Commission until 2028. The bill would also

remove the restriction on time-of-use (TOU) rates for residential customers. The bill has not yet been

referred to a Senate committee.

As discussed in article below on the Docket 4600 Working Group, time-of-use rates were one of the

recommendations made in the Docket 4600 Working Group’s final report, circulated in early April.

Contributors: Bob Grace, Jason Gifford, Tom Michelman, Deborah Donovan, Po-Yu Yuen, Jim Kennerly,

Kate Daniel, Jordan Shoesmith, Ted Snook, Jake McDermott, Ben Walton and Lynn NeJaime.

For More Information Please Contact:

Sustainable Energy Advantage, LLC

161 Worcester Road, Suite 503

Framingham, MA 01701

www.seadvantage.com

Bob Grace - bgrace@seadvantage.com 508.665.5855

Deborah Donovan – ddonovan@seadvantage.com 508.665.5859

Jim Kennerly – jkennerly@seadvantage.com 508.665.5862