Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H3184 Compare Versions

Only one version of the bill is available at this time.

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1	1	1 of 1
2	2	HOUSE DOCKET, NO. 2625 FILED ON: 1/19/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 3184
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Michael P. Kushmerek
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act to enhance municipal choice and provide affordable electricity options.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Michael P. Kushmerek3rd Worcester1/19/2023Margaret R. Scarsdale1st Middlesex1/20/2023 1 of 9
16	16	HOUSE DOCKET, NO. 2625 FILED ON: 1/19/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 3184
18	18	By Representative Kushmerek of Fitchburg, a petition (accompanied by bill, House, No. 3184)
19	19	of Michael P. Kushmerek and Margaret R. Scarsdale relative to municipal lighting plants of
20	20	purchasing municipalities or cooperatives. Telecommunications, Utilities and Energy.
21	21	The Commonwealth of Massachusetts
22	22	_______________
23	23	In the One Hundred and Ninety-Third General Court
24	24	(2023-2024)
25	25	_______________
26	26	An Act to enhance municipal choice and provide affordable electricity options.
27	27	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
28	28	of the same, as follows:
29	29	1 SECTION 1. Section 19 of chapter 25 of the General Laws, as appearing in the 2018
30	30	2Official Edition, is hereby amended by inserting after the word “plant”, in line 3, the following
31	31	3words:- formed prior to December 31, 2024.
32	32	4 SECTION 2. Said section 19 of said chapter 25, as so appearing, is hereby further
33	33	5amended by inserting after the word “companies”, in line 6, the following words:- , participating
34	34	6municipal lighting plants.
35	35	7 SECTION 3. Section 20 of said chapter 25, as so appearing, is hereby amended by
36	36	8inserting after the word “plant”, in line 3, the following words:- formed prior to December 31,
37	37	92024.
38	38	10 SECTION 4. Said section 20 of said chapter 25, as so appearing, is hereby further
39	39	11amended by inserting after the word “ plant”, in line 11, the following words:- formed prior to
40	40	12December 31, 2024. 2 of 9
41	41	13 SECTION 5. Section 21 of said chapter 25, as so appearing, is hereby amended by
42	42	14inserting after the word “companies”, in line 10, the following words:- , municipal light plants
43	43	15formed after December 31, 2024.
44	44	16 SECTION 6. Said section 21 of said chapter 25, as so appearing, is hereby further
45	45	17amended by inserting after the word “companies”, in line 92, the following words:- , municipal
46	46	18light plants.
47	47	19 SECTION 7. Said section 21 of said chapter 25, as so appearing, is hereby further
48	48	20amended by inserting after the word “companies”, in line 96, the following words:- , municipal
49	49	21light plants.
50	50	22 SECTION 8. Said section 21 of said chapter 25, as so appearing, is hereby further
51	51	23amended by inserting after the word “companies”, in line 98, the following words:- , municipal
52	52	24light plants.
53	53	25 SECTION 9. Said section 21 of said chapter 25, as so appearing, is hereby further
54	54	26amended by inserting after the word “companies”, in line 101, the following words:- , municipal
55	55	27light plants formed after December 31, 2024.
56	56	28 SECTION 10. Said section 21 of said chapter 25, as so appearing, is hereby further
57	57	29amended by inserting after the word “companies”, in line 109, the following words:- and
58	58	30municipal light plants.
59	59	31 SECTION 11. Said section 21 of said chapter 25, as so appearing, is hereby further
60	60	32amended by inserting after the word “company”, in line 116, the following words:- , municipal
61	61	33light plant. 3 of 9
62	62	34 SECTION 12. Said section 21 of said chapter 25, as so appearing, is hereby further
63	63	35amended by inserting after the word “company”, in line 122, the following words:- , municipal
64	64	36light plant.
65	65	37 SECTION 13. Said section 21 of said chapter 25, as so appearing, is hereby further
66	66	38amended by inserting after the word “company”, in line 127, the following words:- , municipal
67	67	39light plant.
68	68	40 SECTION 14. Section 1B of chapter 164 of the General Laws, as so appearing, is hereby
69	69	41amended by inserting, after the word “affected”, in line 10, the following words:-
70	70	42 ; provided, however, that the purchase by a municipality or cooperative of a plant from a
71	71	43distribution company shall transfer all rights and obligations established in this section to the
72	72	44municipal lighting plant of the purchasing municipality or cooperative.
73	73	45 SECTION 15. Said chapter 164 is hereby amended by striking out section 43and
74	74	46inserting in place thereof the following section:-
75	75	47 Section 43. (a) If a municipality that votes to establish a municipal lighting plant fails,
76	76	48within 150 days from the passage of the final vote required by section 35 or 36, to agree with a
77	77	49distribution company currently serving such municipality as to price or as to the property to be
78	78	50included in the purchase, the municipality may apply to the department within 180 days after the
79	79	51expiration of the 150 days for review of the feasibility of the municipality’s acquisition of the
80	80	52property. The municipality’s filing shall include:
81	81	53 (1) an outline of the property the municipality wishes to acquire;
82	82	54 (2) a projection of purchase price of the property; 4 of 9
83	83	55 (3) a projection of total costs of establishing the municipal lighting plant;
84	84	56 (4) a financing plan to cover the purchase price, including a description of municipality’s
85	85	57bonding ability;
86	86	58 (5) pro forma income statement and balance sheet for the municipal lighting plant;
87	87	59 (6) the options for governance of the municipal lighting plant approved or anticipated by
88	88	60the municipality; and
89	89	61 (7) a projection of electric rates to be charged by the municipal lighting plant.
90	90	62 (b) The department may investigate the feasibility of the municipality’s proposed
91	91	63acquisition, and shall, within 180 days of the filing and after notice and a public hearing, issue a
92	92	64report regarding the feasibility of the municipality’s filing; provided, however, that the
93	93	65department shall not be required to issue more than 3 such reports in any contiguous 12-month
94	94	66period. Any reports that are not issued within 180 days of the filing shall be issued in the order of
95	95	67the filings. If multiple municipalities file with the stated intent of establishing a joint or
96	96	68cooperative system of municipal lighting plants, the department shall process such filings
97	97	69simultaneously, to the extent possible. The department shall transmit its report to the distribution
98	98	70company, the clerk of each municipality and the department of energy resources. The department
99	99	71shall report to the general court the results of its findings and file such reports with the clerks of
100	100	72the house of representatives and the senate, who shall forward the same to the joint committee on
101	101	73telecommunications, utilities and energy. The department may assess reasonable fees to fund its
102	102	74responsibilities under this subsection from each municipality submitting a filing for a proposed
103	103	75acquisition. 5 of 9
104	104	76 (c) Upon the issuance of the department’s report, the municipality may seek
105	105	77determination as to what property ought in the public interest to be included in the purchase and
106	106	78what price should be paid, which shall be based on the standard formula developed by the
107	107	79department in subsection (d). The value shall be estimated without enhancement on account of
108	108	80future earning capacity or good will or of exclusive privileges derived from rights in the public
109	109	81ways. The price shall include damages, if any, which the department finds would be caused by
110	110	82the severance of the proposed purchase property from other property of the owner, including: (1)
111	111	83stranded costs; (2) capital costs of infrastructure reconfiguration or additions caused by the
112	112	84severance; (3) engineering costs; and (4) any other costs incurred in preparing for the
113	113	85reconfiguration and the sale. The property shall include the portion of the property within the
114	114	86limits of the municipality as is suitable for, and shall be used in connection with, the distribution
115	115	87of electricity within such limits. If any such property is subject to any mortgages, liens or other
116	116	88encumbrances, the department in making its determination shall provide for the deduction or
117	117	89withholding from the purchase price, pending discharge, of such sum or sums as it deems proper.
118	118	90The department may assess reasonable fees to fund its responsibilities under this subsection from
119	119	91each municipality seeking such determination for a proposed acquisition.
120	120	92 (d) No later than December 31, 2024 the department shall develop a standard formula
121	121	93used to determine the value of property, including any jointly-owned poles or other facilities
122	122	94shared with other public utilities, to be purchased by any municipality seeking to establish a
123	123	95municipal lighting plant under this section. The formula shall be used by the department in all
124	124	96determinations of property value performed under subsections (c) and (g); provided, however,
125	125	97that the department may make reasonable exceptions to the formula in specific transactions. 6 of 9
126	126	98 (e) The department, after notice to the parties to the proposed acquisition, shall give a
127	127	99hearing on the proposed acquisition and make the determination described in subsection (c) not
128	128	100more than 180 days after the date of the municipality’s application.
129	129	101 (f) Not more than 60 days after the department makes the determination described in
130	130	102subsection (c), the distribution company shall tender to the municipality’s clerk a copy of a good
131	131	103and sufficient deed of conveyance for the property to be purchased and place the deed in escrow.
132	132	104The municipality shall have not more than 300 days after the date of tender in which to accept or
133	133	105reject the tender and, if accepting, to pay to the distribution company the price determined by the
134	134	106department. In the case of a city, the city council shall vote to accept or reject the tender and a
135	135	107majority of the voters at an annual or special city election shall ratify the city council vote. In
136	136	108case of a town, a town meeting or a town officer or body to which the town meeting delegates
137	137	109authority shall vote to accept or reject the tender and a majority of voters at an annual or special
138	138	110town election shall ratify the vote.
139	139	111 (g) In connection with the exercise by a municipality of the option to purchase a utility
140	140	112plant pursuant to this section, the municipality may elect to assume responsibilities for
141	141	113maintenance, placement and removal of jointly-owned poles or other facilities shared with other
142	142	114public utilities or to purchase such facilities at a price set by the department based on the
143	143	115standard formula established in subsection (d). Except where the municipality makes such
144	144	116election, the municipality shall assume the rights and obligations of the previous owner with
145	145	117respect to any person other than the distribution company controlling or using the poles, conduits
146	146	118or other jointly-owned or joint-use facilities, property and rights; provided, that in the
147	147	119assumption of the rights and obligations of the previous owner by a municipality, the 7 of 9
148	148	120municipality shall in no way or form restrict, impede or prohibit access that other parties would
149	149	121enjoy under the previous ownership.
150	150	122 (h) A municipal lighting plant established pursuant to this section shall file with the
151	151	123department a plan for supporting development of renewable and alternative energy production
152	152	124comparable to the magnitude of such support achieved under: (1) sections 138 to 143, inclusive,
153	153	125(2) sections 11F and 11F½ of chapter 25A and (3) section 83 of chapter 169 of the acts of 2008.
154	154	126Following department approval of such plan, the municipal lighting plant shall implement the
155	155	127plan and report annually to the department regarding implementation.
156	156	128 (i) The department shall not allow any costs of the incumbent distribution company in
157	157	129connection with the proceedings described in this section as a cost of service in excess of the
158	158	130costs reasonably necessary to provide information, negotiate necessary contractual arrangements
159	159	131and represent the interests of the remaining ratepayers in designing any severance plan required.
160	160	132 (j) If, at the time of purchase of the distribution equipment by a municipality, the
161	161	133distribution company has unfunded liabilities for pensions and other post-retirement benefits that
162	162	134would be recovered through distribution rates, the department shall determine the fair share of
163	163	135such liabilities attributable to the distribution system to be acquired by the municipality and the
164	164	136method by which the municipal lighting plant shall compensate the distribution company for that
165	165	137fair share.
166	166	138 (k) To the extent that the distribution company has entered into any long term contracts
167	167	139for renewable energy pursuant to section 83 of chapter 169 of the acts of 2008 prior to the date of
168	168	140the acquisition, the municipality acquiring any electric distribution facilities pursuant to this
169	169	141section shall be required to assess its distribution customers an equivalent charge in distribution 8 of 9
170	170	142rates to cover its proportionate share of the monthly costs of such contracts, as would have been
171	171	143charged to the electric distribution customers in such municipality had the acquisition not
172	172	144occurred. Such amounts collected shall then be remitted to the electric distribution company
173	173	145within 30 days of being invoiced by the electric distribution company.
174	174	146 (l) The department shall report to the joint committee on telecommunications, utilities
175	175	147and energy annually on the operation of this section, including a summary of activity under this
176	176	148section and any recommendations for amending the section.
177	177	149 SECTION 16. Section 47A of said chapter 164, as so appearing, is hereby amended by
178	178	150inserting after the word “law”, in line 2, the following words:- formed prior to December 31,
179	179	1512024.
180	180	152 SECTION 17. Said section 47A of said chapter 164, as so appearing, is hereby further
181	181	153amended by inserting after the word “law”, in line 7, the following words:- formed prior to
182	182	154December 31, 2024.
183	183	155 SECTION 18. Said section 47A of said chapter 164, as so appearing, is hereby further
184	184	156amended by adding the following subsection:-
185	185	157 (g) Any municipal light plant formed after December 31, 2024, shall submit to the
186	186	158department a plan for allowing its retail customers a competitive choice of generation supply.
187	187	159The plan shall allow a customer purchasing competitive generation supply at the plan’s effective
188	188	160date to continue such purchase and shall regulate migration of customers to and from competitive
189	189	161service only as necessary to protect the financial integrity of the municipal light plant while
190	190	162providing power to municipal-utility generation customers at the lowest feasible stable prices. 9 of 9
191	191	163 SECTION 19. Said chapter 164 is hereby amended by inserting after section 56E the
192	192	164following section:-
193	193	165 Section 56F. The department may promulgate rules and regulations to establish service
194	194	166quality standards for municipal light plants formed after December 31, 2024, including, but not
195	195	167limited to, standards for customer satisfaction, service outages, distribution facility upgrades,
196	196	168repairs and maintenance, telephone service, billing service and public safety provided. Each
197	197	169municipal light plant formed after December 31, 2024 shall file a report with the department by
198	198	170March first of each year comparing its performance during the previous calendar year to the
199	199	171department's service quality standards and any applicable national standards as may be adopted
200	200	172by the department.
201	201	173 SECTION 20. The executive office of energy and environmental affairs may to adopt
202	202	174rules and regulations necessary to carry out the requirements of this act.