Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H3515 Compare Versions

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1	1	1 of 1
2	2	HOUSE DOCKET, NO. 927 FILED ON: 1/14/2025
3	3	HOUSE . . . . . . . . . . . . . . . No. 3515
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Michael P. Kushmerek and Margaret R. Scarsdale
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 Worcester1/14/2025Margaret R. Scarsdale1st Middlesex1/14/2025 1 of 9
16	16	HOUSE DOCKET, NO. 927 FILED ON: 1/14/2025
17	17	HOUSE . . . . . . . . . . . . . . . No. 3515
18	18	By Representatives Kushmerek of Fitchburg and Scarsdale of Pepperell, a petition (accompanied
19	19	by bill, House, No. 3515) of Michael P. Kushmerek and Margaret R. Scarsdale relative to
20	20	municipal lighting plants of purchasing municipalities or cooperatives. Telecommunications,
21	21	Utilities and Energy.
22	22	The Commonwealth of Massachusetts
23	23	_______________
24	24	In the One Hundred and Ninety-Fourth General Court
25	25	(2025-2026)
26	26	_______________
27	27	An Act to enhance municipal choice and provide affordable electricity options.
28	28	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
29	29	of the same, as follows:
30	30	1 SECTION 1. Section 19 of chapter 25 of the General Laws, as appearing in the 2018
31	31	2Official Edition, is hereby amended by inserting after the word “plant”, in line 3, the following
32	32	3words:- formed prior to December 31, 2026.
33	33	4 SECTION 2. Said section 19 of said chapter 25, as so appearing, is hereby further
34	34	5amended by inserting after the word “companies”, in line 6, the following words:- , participating
35	35	6municipal lighting plants.
36	36	7 SECTION 3. Section 20 of said chapter 25, as so appearing, is hereby amended by
37	37	8inserting after the word “plant”, in line 3, the following words:- formed prior to December 31,
38	38	92026. 2 of 9
39	39	10 SECTION 4. Said section 20 of said chapter 25, as so appearing, is hereby further
40	40	11amended by inserting after the word “ plant”, in line 11, the following words:- formed prior to
41	41	12December 31, 2026.
42	42	13 SECTION 5. Section 21 of said chapter 25, as so appearing, is hereby amended by
43	43	14inserting after the word “companies”, in line 10, the following words:- , municipal light plants
44	44	15formed after December 31, 2026.
45	45	16 SECTION 6. Said section 21 of said chapter 25, as so appearing, is hereby further
46	46	17amended by inserting after the word “companies”, in line 92, the following words:- , municipal
47	47	18light plants.
48	48	19 SECTION 7. Said section 21 of said chapter 25, as so appearing, is hereby further
49	49	20amended by inserting after the word “companies”, in line 96, the following words:- , municipal
50	50	21light plants.
51	51	22 SECTION 8. Said section 21 of said chapter 25, as so appearing, is hereby further
52	52	23amended by inserting after the word “companies”, in line 98, the following words:- , municipal
53	53	24light plants.
54	54	25 SECTION 9. Said section 21 of said chapter 25, as so appearing, is hereby further
55	55	26amended by inserting after the word “companies”, in line 101, the following words:- , municipal
56	56	27light plants formed after December 31, 2026.
57	57	28 SECTION 10. Said section 21 of said chapter 25, as so appearing, is hereby further
58	58	29amended by inserting after the word “companies”, in line 109, the following words:- and
59	59	30municipal light plants. 3 of 9
60	60	31 SECTION 11. Said section 21 of said chapter 25, as so appearing, is hereby further
61	61	32amended by inserting after the word “company”, in line 116, the following words:- , municipal
62	62	33light plant.
63	63	34 SECTION 12. Said section 21 of said chapter 25, as so appearing, is hereby further
64	64	35amended by inserting after the word “company”, in line 122, the following words:- , municipal
65	65	36light plant.
66	66	37 SECTION 13. Said section 21 of said chapter 25, as so appearing, is hereby further
67	67	38amended by inserting after the word “company”, in line 127, the following words:- , municipal
68	68	39light plant.
69	69	40 SECTION 14. Section 1B of chapter 164 of the General Laws, as so appearing, is hereby
70	70	41amended by inserting, after the word “affected”, in line 10, the following words:-
71	71	42 ; provided, however, that the purchase by a municipality or cooperative of a plant from a
72	72	43distribution company shall transfer all rights and obligations established in this section to the
73	73	44municipal lighting plant of the purchasing municipality or cooperative.
74	74	45 SECTION 15. Said chapter 164 is hereby amended by striking out section 43and
75	75	46inserting in place thereof the following section:-
76	76	47 Section 43. (a) If a municipality that votes to establish a municipal lighting plant fails,
77	77	48within 150 days from the passage of the final vote required by section 35 or 36, to agree with a
78	78	49distribution company currently serving such municipality as to price or as to the property to be
79	79	50included in the purchase, the municipality may apply to the department within 180 days after the 4 of 9
80	80	51expiration of the 150 days for review of the feasibility of the municipality’s acquisition of the
81	81	52property. The municipality’s filing shall include:
82	82	53 (1) an outline of the property the municipality wishes to acquire;
83	83	54 (2) a projection of purchase price of the property;
84	84	55 (3) a projection of total costs of establishing the municipal lighting plant;
85	85	56 (4) a financing plan to cover the purchase price, including a description of municipality’s
86	86	57bonding ability;
87	87	58 (5) pro forma income statement and balance sheet for the municipal lighting plant;
88	88	59 (6) the options for governance of the municipal lighting plant approved or anticipated by
89	89	60the municipality; and
90	90	61 (7) a projection of electric rates to be charged by the municipal lighting plant.
91	91	62 (b) The department may investigate the feasibility of the municipality’s proposed
92	92	63acquisition, and shall, within 180 days of the filing and after notice and a public hearing, issue a
93	93	64report regarding the feasibility of the municipality’s filing; provided, however, that the
94	94	65department shall not be required to issue more than 3 such reports in any contiguous 12-month
95	95	66period. Any reports that are not issued within 180 days of the filing shall be issued in the order of
96	96	67the filings. If multiple municipalities file with the stated intent of establishing a joint or
97	97	68cooperative system of municipal lighting plants, the department shall process such filings
98	98	69simultaneously, to the extent possible. The department shall transmit its report to the distribution
99	99	70company, the clerk of each municipality and the department of energy resources. The department
100	100	71shall report to the general court the results of its findings and file such reports with the clerks of 5 of 9
101	101	72the house of representatives and the senate, who shall forward the same to the joint committee on
102	102	73telecommunications, utilities and energy. The department may assess reasonable fees to fund its
103	103	74responsibilities under this subsection from each municipality submitting a filing for a proposed
104	104	75acquisition.
105	105	76 (c) Upon the issuance of the department’s report, the municipality may seek
106	106	77determination as to what property ought in the public interest to be included in the purchase and
107	107	78what price should be paid, which shall be based on the standard formula developed by the
108	108	79department in subsection (d). The value shall be estimated without enhancement on account of
109	109	80future earning capacity or good will or of exclusive privileges derived from rights in the public
110	110	81ways. The price shall include damages, if any, which the department finds would be caused by
111	111	82the severance of the proposed purchase property from other property of the owner, including: (1)
112	112	83stranded costs; (2) capital costs of infrastructure reconfiguration or additions caused by the
113	113	84severance; (3) engineering costs; and (4) any other costs incurred in preparing for the
114	114	85reconfiguration and the sale. The property shall include the portion of the property within the
115	115	86limits of the municipality as is suitable for, and shall be used in connection with, the distribution
116	116	87of electricity within such limits. If any such property is subject to any mortgages, liens or other
117	117	88encumbrances, the department in making its determination shall provide for the deduction or
118	118	89withholding from the purchase price, pending discharge, of such sum or sums as it deems proper.
119	119	90The department may assess reasonable fees to fund its responsibilities under this subsection from
120	120	91each municipality seeking such determination for a proposed acquisition.
121	121	92 (d) No later than December 31, 2026 the department shall develop a standard formula
122	122	93used to determine the value of property, including any jointly-owned poles or other facilities
123	123	94shared with other public utilities, to be purchased by any municipality seeking to establish a 6 of 9
124	124	95municipal lighting plant under this section. The formula shall be used by the department in all
125	125	96determinations of property value performed under subsections (c) and (g); provided, however,
126	126	97that the department may make reasonable exceptions to the formula in specific transactions.
127	127	98 (e) The department, after notice to the parties to the proposed acquisition, shall give a
128	128	99hearing on the proposed acquisition and make the determination described in subsection (c) not
129	129	100more than 180 days after the date of the municipality’s application.
130	130	101 (f) Not more than 60 days after the department makes the determination described in
131	131	102subsection (c), the distribution company shall tender to the municipality’s clerk a copy of a good
132	132	103and sufficient deed of conveyance for the property to be purchased and place the deed in escrow.
133	133	104The municipality shall have not more than 300 days after the date of tender in which to accept or
134	134	105reject the tender and, if accepting, to pay to the distribution company the price determined by the
135	135	106department. In the case of a city, the city council shall vote to accept or reject the tender and a
136	136	107majority of the voters at an annual or special city election shall ratify the city council vote. In
137	137	108case of a town, a town meeting or a town officer or body to which the town meeting delegates
138	138	109authority shall vote to accept or reject the tender and a majority of voters at an annual or special
139	139	110town election shall ratify the vote.
140	140	111 (g) In connection with the exercise by a municipality of the option to purchase a utility
141	141	112plant pursuant to this section, the municipality may elect to assume responsibilities for
142	142	113maintenance, placement and removal of jointly-owned poles or other facilities shared with other
143	143	114public utilities or to purchase such facilities at a price set by the department based on the
144	144	115standard formula established in subsection (d). Except where the municipality makes such
145	145	116election, the municipality shall assume the rights and obligations of the previous owner with 7 of 9
146	146	117respect to any person other than the distribution company controlling or using the poles, conduits
147	147	118or other jointly-owned or joint-use facilities, property and rights; provided, that in the
148	148	119assumption of the rights and obligations of the previous owner by a municipality, the
149	149	120municipality shall in no way or form restrict, impede or prohibit access that other parties would
150	150	121enjoy under the previous ownership.
151	151	122 (h) A municipal lighting plant established pursuant to this section shall file with the
152	152	123department a plan for supporting development of renewable and alternative energy production
153	153	124comparable to the magnitude of such support achieved under: (1) sections 138 to 143, inclusive,
154	154	125(2) sections 11F and 11F½ of chapter 25A and (3) section 83 of chapter 169 of the acts of 2008.
155	155	126Following department approval of such plan, the municipal lighting plant shall implement the
156	156	127plan and report annually to the department regarding implementation.
157	157	128 (i) The department shall not allow any costs of the incumbent distribution company in
158	158	129connection with the proceedings described in this section as a cost of service in excess of the
159	159	130costs reasonably necessary to provide information, negotiate necessary contractual arrangements
160	160	131and represent the interests of the remaining ratepayers in designing any severance plan required.
161	161	132 (j) If, at the time of purchase of the distribution equipment by a municipality, the
162	162	133distribution company has unfunded liabilities for pensions and other post-retirement benefits that
163	163	134would be recovered through distribution rates, the department shall determine the fair share of
164	164	135such liabilities attributable to the distribution system to be acquired by the municipality and the
165	165	136method by which the municipal lighting plant shall compensate the distribution company for that
166	166	137fair share. 8 of 9
167	167	138 (k) To the extent that the distribution company has entered into any long term contracts
168	168	139for renewable energy pursuant to section 83 of chapter 169 of the acts of 2008 prior to the date of
169	169	140the acquisition, the municipality acquiring any electric distribution facilities pursuant to this
170	170	141section shall be required to assess its distribution customers an equivalent charge in distribution
171	171	142rates to cover its proportionate share of the monthly costs of such contracts, as would have been
172	172	143charged to the electric distribution customers in such municipality had the acquisition not
173	173	144occurred. Such amounts collected shall then be remitted to the electric distribution company
174	174	145within 30 days of being invoiced by the electric distribution company.
175	175	146 (l) The department shall report to the joint committee on telecommunications, utilities
176	176	147and energy annually on the operation of this section, including a summary of activity under this
177	177	148section and any recommendations for amending the section.
178	178	149 SECTION 16. Section 47A of said chapter 164, as so appearing, is hereby amended by
179	179	150inserting after the word “law”, in line 2, the following words:- formed prior to December 31,
180	180	1512026.
181	181	152 SECTION 17. Said section 47A of said chapter 164, as so appearing, is hereby further
182	182	153amended by inserting after the word “law”, in line 7, the following words:- formed prior to
183	183	154December 31, 2026.
184	184	155 SECTION 18. Said section 47A of said chapter 164, as so appearing, is hereby further
185	185	156amended by adding the following subsection:-
186	186	157 (g) Any municipal light plant formed after December 31, 2026, shall submit to the
187	187	158department a plan for allowing its retail customers a competitive choice of generation supply.
188	188	159The plan shall allow a customer purchasing competitive generation supply at the plan’s effective 9 of 9
189	189	160date to continue such purchase and shall regulate migration of customers to and from competitive
190	190	161service only as necessary to protect the financial integrity of the municipal light plant while
191	191	162providing power to municipal-utility generation customers at the lowest feasible stable prices.
192	192	163 SECTION 19. Said chapter 164 is hereby amended by inserting after section 56E the
193	193	164following section:-
194	194	165 Section 56F. The department may promulgate rules and regulations to establish service
195	195	166quality standards for municipal light plants formed after December 31, 2026, including, but not
196	196	167limited to, standards for customer satisfaction, service outages, distribution facility upgrades,
197	197	168repairs and maintenance, telephone service, billing service and public safety provided. Each
198	198	169municipal light plant formed after December 31, 2026 shall file a report with the department by
199	199	170March first of each year comparing its performance during the previous calendar year to the
200	200	171department's service quality standards and any applicable national standards as may be adopted
201	201	172by the department.
202	202	173 SECTION 20. The executive office of energy and environmental affairs may to adopt
203	203	174rules and regulations necessary to carry out the requirements of this act.