Session Law – Acts of 1997 Chapter 164

AN ACT RELATIVE TO RESTRUCTURING THE ELECTRIC UTILITY INDUSTRY IN THE COMMONWEALTH, REGULATING THE PROVISION OF ELECTRICITY AND OTHER SERVICES, AND PROMOTING ENHANCED CONSUMER PROTECTIONS THEREIN.

Whereas
, The deferred operation of this act would
tend to defeat its purpose, which is to
establish forthwith a comprehensive framework for the restructuring of the
electric utility
industry, to establish
consumer electricity rate savings by March 1, 1998, and to
make certain other changes in law, necessary or
appropriate to effectuate important public purposes,
therefore it is hereby declared to be an emergency law,
necessary for the immediate preservation of the
public convenience.

Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
as follows:

SECTION 1. It is hereby found and declared that:

(a) electricity service is essential to the health and well-being of all
residents of the commonwealth, to public safety, and to orderly and
sustainable economic development;

(b) affordable electric service should be available to all consumers on
reasonable terms and conditions;

(c) ratepayers and the commonwealth will be best served by moving from (i)
the regulatory framework extant on July 1, 1997, in which retail
electricity service is provided principally by public utility corporations
obligated to provide ultimate consumers in exclusive service territories
with reliable electric service at regulated rates, to (ii) a framework under
which competitive producers will supply electric power and customers
will gain the right to choose their electric power supplier;

(d) the existing regulatory system results in among the highest, residential
and commercial electricity rates paid by customers throughout the
United States;

(e) such extraordinarily high electricity rates have created significant
adverse effects on consumers and on the ability of businesses located
in the commonwealth to compete in regional, national, and international
markets;

(f) the introduction of competition in the electric generation market will
encourage innovation, efficiency, and improved service from all
market participants, and will enable reductions in the cost of regulatory
oversight;

(g) competitive markets in generation should (i) provide electricity
suppliers with the incentive to operate efficiently, (ii) open markets
for new and improved technologies, (iii) provide electricity buyers and sellers
with appropriate price signals, and (iv) improve public confidence in
the electric utility industry;

(h) since reliable electric service is of utmost importance to the safety,
health, and welfare of the commonwealth’s citizens and
economy, electric industry restructuring should enhance the reliability of the
interconnected regional transmission systems, and provide strong
coordination and enforceable protocols for all users of the power grid;

(i) it is vital that sufficient supplies of electric generation will be
available to maintain the reliable service to the citizens and
businesses of the commonwealth; and that

(j) the commonwealth should ensure that universal service and energy
conservation policies, activities, and services are appropriately funded
and available throughout the commonwealth, and should guard against the
exercise of vertical market power and the accumulation of horizontal market
power;

(k) long-term rate reductions can be achieved most effectively by increasing
competition and enabling broad consumer choice in generation
service, thereby allowing market forces to play the principal role in
determining the suppliers of generation for all customers;

(l) the primary elements of a more competitive electricity market will be
customer choice, preservation and augmentation of consumer
protections, full and fair competition in generation, and enhanced
environmental protection goals;

(m) the interests of consumers can best be served by an expedient and
orderly transition from regulation to competition in the generation
sector consisting of the unbundling of prices and services and the functional
separation of generation services from transmission and distribution
services;

(n) the restructuring of the existing electricity system should not
undermine the policy of the commonwealth that electricity bills for low
income residents should remain as affordable as possible;

(o) the commonwealth should enter into a compact with the other New England
states and New York State, that provides incentives for the public
and investor owned electricity utilities located in such states to sell energy
to retail customers in Massachusetts which adheres to enforceable
standards and protocols and protects the reliability of interconnected regional
transmission and distribution systems;

(p) since reliable electricity service depends on conscientious inspection
and maintenance of transmission and distribution systems, to
continue and enhance the reliability of the delivery of electricity, the
regional network and the commonwealth, the department of telecommunications
and energy should set stringent and comprehensive inspection, maintenance,
repair, replacement, and system service standards;

(q) the transition to expanded customer choice and competitive markets may
produce hardships for employees whose working lives were dedicated
to their employment;

(r) it is preferable that possible reductions in the workforce directly
caused by electricity restructuring be accomplished through collective
bargaining negotiations and offers of voluntary severance, retraining, early
retirement, outplacement, and related benefits;

(s) the transition to a competitive generation market should be orderly and
be completed as expeditiously as possible, should protect electric
system reliability, and should provide electricity corporation investors with a
reasonable opportunity to recover prudently incurred costs associated
with generation-related assets and obligations, within a reasonable and fair
deregulation framework consistent with the provisions of this act;

(t) the recovery of such prudently incurred costs shall occur only after
such electric companies take all practicable measures to mitigate
stranded investments during the transition to a competitive market;

(u) such charges associated with the transition should be collected over a
specific period of time on a non-bypassable basis and in a manner
that does not result in an increase in rates to customers of electricity
corporations;

(v) financial mechanisms should be available that allow electricity
corporations to securitize that portion of their transition costs which
cannot be divested in the marketplace and which concurrently minimize
transition charges to consumers;

(w) the initial benefit of this transition to a competitive market shall
result in consumer electricity rate reductions of at least 10 per cent
beginning on March 1, 1998, as part of an aggregate rate reduction totaling at
least 15 per cent upon the subsequent approval of divestiture and
securitization; and

(x) the general court seeks, through the enactment of this legislation, to
establish the parameters upon which a restructuring of the
electricity industry shall be based and which reflects the public policy
decisions for the commonwealth designed to balance the needs of all
participants in the existing and future systems;

Therefore, it is found that it is in the public interest of the commonwealth
to promote the prosperity and general welfare of its citizens, a
public purpose for which public money may be expended, by restructuring the
electricity industry in the commonwealth to foster competition and
promote reduced electricity rates through the enactment of the following
statutory changes.

SECTION 2.
Section 91 of chapter 6 of the General Laws, as
appearing
in the 1996 Official
Edition, is hereby amended by striking out, in line 20, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 3.
Section 18D of chapter 6A of the General Laws, as
appearing
in the 1996 Official Edition, is hereby amended by striking out, in line 49,
the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 4.
Section 18E of said chapter 6A, as so appearing, is
hereby
amended by striking out, in line 3, the words “public utilities”
and inserting in place thereof the following words:- telecommunications
and energy.

SECTION 5.
Section 18F of said chapter 6A, as so appearing, is
hereby
amended by striking out, in lines 1 and 2, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 6.
Said section 18F of said chapter 6A, as so appearing, is
hereby further amended by striking out, in line 6, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 7.
Chapter 10 of the General Laws
is hereby amended by adding the
following section:-

Section 62. There shall be established and set up on the books of the
commonwealth a separate fund known as the Ratepayer Parity Trust Fund. There
shall be credited to such fund all personal and corporate tax revenues
attributable to the sale of assets relative to section 1A of chapter 164, all
penalties and fines collected under the provisions of said section 1A and
sections 1B to 1H, inclusive, of said chapter 164, and any income derived
from investment of amounts credited to said fund. Amounts credited to said
fund shall be received and held in trust and shall be used solely for the
purpose of providing extraordinary assistance in achieving the required rate
reduction provided by said section 1A to 1H, inclusive, of said chapter 164
to be expended, subject to appropriation, for said purposes. Prior to any
appropriation being made by the general court, the department of
telecommunications and energy shall file with the secretary of administration
and finance a request for distribution of such monies in said fund as
may be available for appropriation.

SECTION 8.
Section 11E of chapter 12 of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by
striking out, in line 6, the words “public utilities” and inserting in place
thereof the following words:- telecommunications and energy.

SECTION 9.
Section 18A of chapter 21A of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 50, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 10.
Said section 18A of said chapter 21A, as so appearing,
is hereby further amended by striking out, in line 70, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 11.
Said section 18A of said chapter 21A, as so appearing,
is hereby further amended by striking out, in line 73, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 12.
Said section 18A of said chapter 21A, as so appearing,
is hereby further amended by striking out, in line 77, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 13.
Said section 18A of said chapter 21A, as so appearing,
is hereby further amended by striking out, in line 79, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 14.
Section 7 of chapter 21C of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 57, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 15.
Said section 7 of said chapter 21C, as so appearing, is
hereby further amended by striking out, in line 67, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 16.
Section 8 of said chapter 21C, as so appearing, is
hereby amended by striking out, in line 13, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 17.
Section 5 of chapter 21E of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 243, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 18.
Section 19 of chapter 21G of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 2, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 19.
Said section 19 of said chapter 21G, as so appearing,
is
hereby further amended by striking out, in line 4, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 20.
Said section 19 of said chapter 21G, as so appearing,
is
hereby further amended by striking out, in line 10, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 21.
Section 3D of chapter 23A of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 37, the word “or” and inserting in place thereof the
following:- authority;.

SECTION 22.
Said section 3D of said chapter 23A, as so appearing,
is
hereby further amended by striking out clause (G) and inserting in
place thereof the following two clauses:-

(G) the designated area has a commercial vacancy rate of 20 per cent or
more;
or

(H) the municipality has sited within it a generation facility, as defined
pursuant to section 1 of chapter 164, which has a market value at the time
of sale that is at least 50 per cent less than its current net book value.

SECTION 23.
Section 3E of said chapter 23A, as so appearing, is
hereby amended by inserting after the letters “EOA”, in line 15,
the following words:- or the municipality has sited within it a generation
facility, as defined pursuant to section 1 of chapter 164, which has a
market value at the time of sale that is at least 50 per cent less than its
current net book value.

SECTION 24.
Section 32 of said chapter 23A, as so appearing, is
hereby amended by striking out, in line 97, the word “enterprise.”
and inserting in place thereof the following words:- enterprise; and

(v) to issue electric rate reduction bonds, as defined in section 1H of
chapter 164, for the benefit of any electric company, as defined in section 1
of chapter 164, determined to be eligible for said bond financing by the
department of telecommunications and energy pursuant to said chapter 164.
Such electric rate reduction bonds shall constitute “bonds” for purposes of
sections 35D to 35K, inclusive, and section 36.

SECTION 25.
Section 1 of chapter 24A of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 16, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 26.
Said section 1 of said chapter 24A, as so appearing, is
hereby further amended by striking out, in line 27, the word
“and”.

SECTION 27.
Said section 1 of said chapter 24A, as so appearing, is
hereby further amended by inserting after the word “five”, in
line 27, the following words:- ; and (4) the division of energy resources
established under the provisions of section 1 of chapter 25A.

SECTION 28.
Section 1 of chapter 25 of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 1, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 29.
Said chapter 25 is hereby further amended by striking
out section 2, as so appearing, and inserting in place thereof the
following section:-

Section 2. The department shall be under the supervision and control of a
commission consisting of five members, one of whom shall have a
background and expertise in electricity and energy issues, including issues
related to natural gas, one of whom shall have a background and expertise
in telecommunications issues, one of whom shall have a background and expertise
in consumer protection and advocacy issues, and one of whom shall
have a background and expertise in cable television issues. Beginning January
1, 1998, the commissioners shall be appointed by the governor for a
term of three years; provided, however, that the initial term of appointment
for two members shall be one year, the initial term of appointment for
two members shall be two years, and the initial term of appointment for one
member who shall be designated the chairman by the governor shall be
three years. Each member shall hold office until the appointment and
qualifications of his successor. The governor may remove any member for cause,
including, but not limited to, any violation of the provisions of section 3,
and shall fill any vacancy for the unexpired term. The commissioners
shall devote their full time to the duties of their office. The governor shall
designate one of said commissioners as chairman. Not more than three
members of said commission shall be members of the same political party.
Except as otherwise provided for in section 4, any decision made or order
issued by the commission may be made by majority vote of a quorum of three
members. In this chapter, said commission shall be called “the
commission”.

The initial base salary of the chairman of the commission shall be $90,000,
and the initial base salary of the other members shall be $82,500. Said
salaries shall be subject to step increases consistent with the provisions of
sections 45 and 46C of chapter 30. The members shall receive necessary
expenses incurred in the discharge of their official duties.

The commission shall make an annual report of its activities in January of
each year to the general court.

SECTION 30.
Said chapter 25 is hereby further amended by striking
out section 3, as so appearing, and inserting in place thereof the
following section:-

Section 3. Each commissioner shall be sworn to the faithful performance of
his or her official duties. A commissioner shall not own, or be
in the employ of, or own any stock in any regulated industry company, nor shall
he or she be in any way directly or indirectly pecuniarily interested
in or connected with any such regulated industry company or in the employ or
connected with any person financing any regulated industry company. A
commissioner shall not personally or through any partner or agent render any
professional service or make or perform any business contract with or
for any regulated industry company, except contracts made with the
commissioners as common carriers for furnishing of services, nor shall he or
she
directly or indirectly receive any commission, bonus, discount, present, or
reward from any regulated industry company.

For the purposes of this section and the provisions of chapter 164, a
regulated industry company shall be defined as any corporation, city, town or
other governmental subdivision, partnership or other organization, or any
individual engaged within the commonwealth in any business which is, or the
persons engaged in which are, in any respect made subject to the supervision or
regulation of the department by any provision of law except chapter 110A of
the General Laws and chapter 651 of the Acts of 1910, as amended.

SECTION 31.
Section 4 of said chapter 25, as so appearing, is
hereby
amended by striking out, in line 16, the word “one” and
inserting in place thereof the following word:- two.

SECTION 32.
Said section 4 of said chapter 25, as so appearing, is
hereby further amended by striking out, in line 17, the word “two”
and inserting in place thereof the following word:- three.

SECTION 33.
Said chapter 25 is hereby further amended by inserting
after
section 12E the following section:-

Section 12E½. There is hereby established within the department and under
the supervision and control of the commission a division of
telecommunications. The division, subject to such supervision and control,
shall perform such functions as the commission may determine in relation
to the administration, implementation, and enforcement of the
department’s authority over the telecommunications industry, including,
but not
limited to, the authority granted by chapters 25, 30A, 159, and 166. The
chairman of the commission shall appoint and may remove a director of the
division. The job group classification of the director’s position, in
accordance with section 46C of chapter 30, shall be determined by the
chairman in consultation with the commissioner of administration. The
commission shall annually prepare and submit to the governor and the general
court, on or before the first Wednesday of November, a report of the
division’s activity and of the condition of the telecommunications
industry within the commonwealth during the preceding fiscal year, together
with recommendations which the commission considers necessary or
desirable.

SECTION 34.
Section 12M of said chapter 25 is
hereby repealed.

SECTION 35.
Section 17 of said chapter 25 is
hereby repealed.

SECTION 36.
Section 17A of said chapter 25 is
hereby repealed.

SECTION 37.
Said chapter 25 is hereby further amended by striking
out section 18, as appearing in the 1996 Official Edition, and inserting in
place thereof the
following three sections:-

Section 18. The commission is hereby authorized to make an assessment
against each electric, gas, cable television, telephone, and telegraph
company under the jurisdictional control of the department and each generation
company and supplier licensed to do business in the commonwealth by
the department, based upon the intrastate operating revenues subject to the
jurisdiction of the department of each of said companies derived from
sales within the commonwealth of electric, gas, cable television, telephone,
and telegraph service respectively, as shown in the annual report of
each of said companies to the department.

Said assessments shall be made at a rate not exceeding two-tenths of 1 per
cent of such intrastate operating revenues, as shall be determined and
certified annually by the commission as sufficient to reimburse the
commonwealth for funds appropriated by the general court for the operation and
general administration of the department and for fringe benefits costs,
including group life and health insurance, retirement benefits, paid
vacations and holidays and sick leave, not to exceed 22 per cent of the amount
attributable to personnel costs of employees of the department in the
fiscal year in which the assessments are made, exclusive of funds appropriated
by the general court for the transportation division. The funds may
be used to compensate consultants in hearings on petitions filed by companies
subject to assessment under this section. Any funds unexpended in any
fiscal year for the purposes for which such assessments were made shall be
credited against the assessment to be made in the following fiscal year
and the assessment in the following fiscal year shall be reduced by any such
unexpended amount. Assessments made under this section may be credited
to the normal operating cost of each company. Such estimated assessments shall
be collected by the department. Each company shall pay the amount
assessed against it within 30 days after the date of the notice of estimated
assessment from the department. The amount so collected shall be
credited to the General Fund. The department subsequently shall make
assessment adjustments for any variation between the estimated and actual
amounts of such assessments. Such estimated and actual costs shall include an
amount equal to the cost of fringe benefits as established by the
commissioner of administration pursuant to section 6B of chapter 29.

For the purpose of providing the department with additional operating funds
for the regulation of electric companies, the commission is authorized to
make a separate assessment proportionally against each electric company under
the jurisdictional control of the department and each generation
company and supplier licensed by the department to do business in the
commonwealth of each of said companies derived-from retail sales of electricity
within the commonwealth as shown in the annual report of said companies to the
department. Said additional assessment shall be made at a rate as
shall be determined and certified annually by the commission as sufficient to
produce not more than $1,750,000 in revenue for the fiscal year in
which the assessment is made and shall be collected by the department.

A schedule of filing fees shall be determined annually by the commissioner of
administration under the provisions of section 3B of chapter 7 for the
following: (i) petitions for certificates of environmental impact and public
need; provided, however, that such filing fee for any municipal
corporation empowered to operate a municipal lighting plant under the
provisions of section 35 or 36 of chapter 164 shall not exceed a maximum
amount; and (ii) notices of intention to construct an oil facility, with a
maximum amount per oil facility to be graduated in accordance with the
expected capital investment in the facility.

Notwithstanding the provisions of section 20 of chapter 159 and section 94
of
chapter 164, during any fiscal year in which such assessment is made,
the department shall have no authority to suspend the effective date of any
rate, price, or charge set forth in any schedule filed subsequent to
January 1, 1977, by a telephone or telegraph company under the provisions of
chapter 159, or by any gas or electric company under the provisions of
section 94 of chapter 164 for a period longer than six months; provided,
however, that in the event that such six-month period expires on a Sunday or
legal holiday, any rate, price, or charge suspended under this section shall
remain suspended until the day following the next day which is not a
Sunday or legal holiday.

Section 19. Beginning on March 1, 1998, and for a period of five years
thereafter, the department is authorized and directed to require a
mandatory charge per kilowatt-hour for all consumers of the commonwealth,
except those served by a municipal lighting plant, to fund energy
efficiency activities, including, but not limited to, demand-side management
programs. Said charge shall be the following amounts: 3.3 mills
($0.0033) per kilowatt-hour for calendar year 1998; 3.1 mills ($0.0031) per
kilowatt-hour for calendar year 1999; 2.85 mills ($0.00285) per kilowatt-hour
for calendar year 2000; 2.7 mills ($0.0027) per kilowatt-hour for calendar year
2001; and 2.5 mills ($0.0025) per kilowatt-hour for calendar
year 2002; provided, however, that in authorizing such programs the department
shall ensure that they are delivered in a cost-effective manner
utilizing competitive procurement processes to the fullest extent practicable.
At least 20 per cent of the amount expended for residential demand-side
management programs by each distribution company in any year, and in no event
less than the amount funded by a charge of 0.25 mills per kilowatt-hour,
which charge shall also be continued in the years subsequent to 2002, shall be
spent on comprehensive low-income residential demand-side
management and education programs. A distribution company shall not be allowed
to assess any other charge relative to energy efficiency programs
which would exceed the levels permitted herein. The low-income residential
demand-side management and education programs shall be implemented
through the low-income weatherization and fuel assistance program network and
shall be coordinated with all gas and distribution companies in the
commonwealth with the objective of standardizing implementation. On March 1,
2001, the division of energy resources shall, in order to determine if
energy investments shall continue beyond that time, review then-current market
barriers, experience with competitive markets, and related
environmental and economic goals. If said division determines that the
continued operation of the programs delivers cost-effective, energy
efficiency services, said division shall file, with the clerk of the house of
representatives of the general court, legislation to extend for a time
certain the authorization contained herein for such a charge to fund energy
efficiency activities.

Section 20. (a)(1) Beginning on March 1, 1998, the department is hereby
authorized and directed to require a mandatory charge per kilowatt-hour
for all electricity consumers of the commonwealth, except those consumers
served by a municipal lighting plant which does not supply generation
service outside its own service territory or does not open its service
territory to competition at the retail level, to support the development and
promotion of renewable energy projects in accordance with the provisions of
section 4E of chapter 40J. Said charge shall be the following amounts:
three-quarters of one mill ($0.00075) per kilowatt-hour in calendar year 1998;
one mill ($0.001) per kilowatt-hour in calendar year 1999; one and
one-quarter mill ($0.00125) per kilowatt-hour in calendar year 2000; one mill
($0.001) per kilowatt-hour in calendar year 2001; three-quarters of one
mill ($0.00075) per kilowatt-hour in calendar year 2002; and one-half of one
mill ($0.0005) per kilowatt-hour in each calendar thereafter.

(2) In calendar year 1998 through calendar year 2002, the revenues derived
from one-quarter of one mill ($0.00025) of the charge assessed pursuant to
the preceding paragraph in each such year shall be set aside and expended
pursuant to implementing the provisions of paragraph (2) of subsection (i)
of section 4E of chapter 40J.

(b) In the fiscal year ending on June 30, 2001, the board of directors of
the Massachusetts Technology Park Corporation shall, in consultation with
the advisory committee established pursuant to subsection (h) of section 4E
of
chapter 40J, the department of telecommunications and energy, and the
division of energy resources, review the adequacy of the monies generated by
said mandatory charge in meeting the requirements of said section 4E of
said chapter 40J. If, after such review, said board determines that an
adjustment in said mandatory charge is necessary, said board shall file
recommendations in the form of legislation with the clerk of the house of
representatives. On or before January 1, 2002, said board shall submit to
the house and senate committees on ways and means and the joint committee on
government regulations a report which reviews in detail the activities
and expenditures of the Massachusetts Renewable Energy Trust Fund to date and
proposed activities and funding levels of said trust fund for the
succeeding five years for review and approval thereby; provided, however, that
said proposed activities continue to achieve the objectives of the
program. Following receipt of the five-year report from said board, the house
and senate committees on ways and means and the joint committee on
government regulations shall meet jointly and with sufficient public notice for
the purposes of conducting a public hearing to review the contents of
said report; provided, however, that the five-year review shall be made
available to the public no later than 45 days before said public hearing.

(c) The revenues generated by said mandatory charge shall be remitted to the
Massachusetts Technology Park Corporation and deposited into the
Massachusetts Renewable Energy Trust Fund, established pursuant to section 4E
of chapter 40J. The public purpose of said trust fund shall be to
generate the maximum economic and environmental benefits over time from
renewable energy to the ratepayers of the commonwealth through a series of
initiatives which exploits the advantages of renewable energy in a more
competitive energy marketplace by promoting the increased availability, use,
and affordability of renewable energy and by fostering the formation, growth,
expansion, and retention within the commonwealth of preeminent clusters
of renewable energy and related enterprises, institutions, and projects, which
serve the citizens of the commonwealth.

SECTION 38.
Section 1 of chapter 25A of the General Laws, as
appearing
in the 1996 Official Edition, is hereby amended by striking out, in
lines 1 and 2, the words “executive office of economic affairs” and inserting
in place thereof the following words:- office of consumer
affairs and business regulation.

SECTION 39.
Said section 1 of said chapter 25A, as so appearing, is
hereby further amended by striking out, in lines 6 and 7, the words
“secretary of economic affairs” and inserting in place thereof the following
words:- director of consumer affairs and business regulation.

SECTION 40.
Said section 1 of said chapter 25A, as so appearing, is
hereby further amended by striking out, in lines 7 and 8, the words
“secretary of economic affairs” and inserting in place thereof the following
words:- director of consumer affairs and business regulation.

SECTION 41.
Said section 3 of said chapter 25A, as so appearing, is
hereby further amended by inserting after the word “form”, in line 67,
the following words:- , or any wholesaler or
retail seller of electricity or natural gas.

SECTION 42.
Section 5 of said chapter 25A, as so appearing, is
hereby amended by inserting after the word “energy”, in line 2,
the following words:- the joint committee on government regulations.

SECTION 43.
Section 6 of said chapter 25A, as so appearing, is
hereby amended by inserting after the word “grants,”, in line 19,
the following words:- funds, monies,.

SECTION 44.
Said section 6 of said chapter 25A, as so appearing, is
hereby further amended by striking out, in line 24, the word
“responsibilities.” and inserting in place thereof the following:-
responsibilities;.

SECTION 45.
Said section 6 of said chapter 25A, as so appearing, is
hereby further amended by striking out, in line 27, the word
“chapter.” and inserting in place thereof the following:- chapter;

(10) plan, develop, oversee, and operate programs to help consumers
understand, evaluate, and select retail energy supplies and related services
offered as a consequence of electric and gas utility restructuring, in
accordance with the provisions of section 11D;

(11) provide technical
assistance to municipalities and governmental bodies seeking assistance during
the transition to a competitive market, including, but not limited to,
the voluntary aggregation of their citizens’ demand for electricity pursuant to
section 134 of chapter 164; and

(12) intervene and advocate on behalf of small commercial and industrial
users before the department of telecommunications and energy in any dispute
between such businesses and generation or distribution companies, as defined
pursuant to section 1 of chapter 164.

SECTION 46.
Section 7 of said chapter 25A, as so appearing, is
hereby amended by striking out, in line 4, the word “products” and
inserting in place thereof the following words:- products, electricity, natural
gas,.

SECTION 47.
Said section 7 of said chapter 25A, as so appearing, is
hereby further amended by inserting after the word “products,”,
in line 6, the following words:- electricity, natural gas,.

SECTION 48.
Said section 7 of said chapter 25A, as so appearing, is
hereby further amended by inserting after the second paragraph the
following paragraph:-

All electric and gas companies, transmission companies, distribution
companies, suppliers, and aggregators, as defined in section 1 of
chapter 164,
and suppliers of natural gas, including aggregators, marketers, brokers, and marketing affiliates of gas companies, excluding gas companies as
defined in said section 1 of said chapter 164, engaged in distributing or selling electricity or natural gas in the commonwealth shall make accurate
reports to the division of energy resources in such form and at such times, which shall be at least quarterly, as the division shall require pursuant
to this section. Each such company, supplier, and aggregator shall report semi-annually to the division the average of all rates charged for
default, low-income and standard offer service to each customer class and for each sub-class within the residential class, respectively; provided,
however, that all such rate information so reported pursuant to this paragraph shall be deemed public information, and no such rate information shall
be protected as a trade secret, confidential, competitively sensitive, or other proprietary information pursuant to section 5D of chapter 25. The
division shall, in cooperation with the department of telecommunications and energy, develop and issue, by March first of each year, a report which
shall detail the status in the previous calendar year of pricing disparities between customer class and separately within the residential class,
regions of the commonwealth, and distribution companies and suppliers serving
ratepayers; provided, however, that said report shall also include a
comparison of each customer class in the commonwealth as compared with the same
classes in each of the 49 other states and the District of Columbia.
Said report shall analyze the effects of restructuring plans, filed with and
approved by said department pursuant to section 1A of chapter 164, upon
such price disparities. The division may include in such report any
recommendations to address any such problems and price disparities.

SECTION 49.
Said section 7 of said chapter 25A, as so appearing, is
hereby further amended by striking out, in line 22, the word
“products” and inserting in place thereof the following:- products, or any
supplier of electricity or natural gas.

SECTION 50.
Said chapter 25A, as so appearing, is hereby further
amended by inserting after section 11C the following four sections:-

Section 11D. To enable retail customers to realize savings from electric
utility restructuring, the commissioner, in consultation with local
and state-wide consumer groups, is hereby authorized and directed to undertake
activities, subject to appropriation, to assist consumers in
understanding and evaluating their rights and choices with respect to retail
electricity supplies and related services offered as a benefit of said
restructuring. Said activities shall provide consumers with information that
provides a consistent and reliable basis for comparing products and
services offered in the electricity market and shall develop said activities in
cooperation with the attorney general to assist in the detection and
avoidance of unfair or deceptive marketing practices. Said activities may
include, but shall not be limited to, (i) development of consumer
education materials, including billing inserts, providing consumers with
information in a clear and consistent manner empowering consumers to select
their own electricity suppliers and products based on individual preferences,
such as price, resource type, and environmental considerations and
whether the generation company or supplier operates under collective bargaining
agreements and whether such generation company or supplier operates
with employees hired as replacements during the course of a labor dispute; (ii)
collection and dissemination of accurate and comparable information
derived from the uniform disclosure labeling system which shall identify, at a
minimum, the price of power generation, the length and kind of
contract, the mix of fuel and power generation sources, and the level of air
emissions.

The division may establish and advertise a toll-free telephone hotline that
shall be capable of responding to consumer questions and complaints about
their electricity service and the transition to a competitive retail
electricity market. The administration of any such hotline and consumer
response service so established shall be coordinated with the department of
telecommunications and energy and the office of the attorney general in
order to prevent the duplication of similar services. The information made
available to consumers by said hotline shall be fully coordinated and
consistent with the information made available to consumers by said department
and the office of the attorney general. Said hotline and consumer
response services, or any portions thereof, may be contracted to third parties,
provided that any such contracts shall be performance-based and
subject to approval by the secretary of administration and finance. Any such
hotline and consumer response administered by the division, the
department of telecommunications and energy or any contracted party is hereby
prohibited from promoting, endorsing or encouraging consumers to select
or purchase from a particular provider, supplier, aggregator, broker or other
purveyor of electricity and related services.

Consumer education activities proposed to be undertaken by the division
pursuant to this section for a subsequent fiscal year shall be described in a
plan to be submitted to the department of telecommunications and energy for
review and approval no later than February 1 of each year. Said plan
shall include a projected budget, including revenues sources, for the
activities proposed by said plan that explains the basis for all costs and cost
increases over the plan then in effect. The department, in reviewing said plan
for approval, shall establish that said activities of the division are
not duplicative and that the information made available to consumers thereby is
consistent with the status of utility restructuring. Said plan shall
also be submitted to the house and senate committees on ways and means and the
joint committee on government regulations. The division shall
recommend in the plan the termination of activities that are no longer
necessary due to the status of utility restructuring or in the public
interest. Said plan shall recommend the provision of services funded by the
commonwealth through the division only to the extent that the private
market cannot or does not adequately meet the information needs of retail
customers as determined by said division pursuant to section 11E.

Section 11E. The division of energy resources is hereby authorized and
directed to monitor any independent systems operator or power
exchanges organized pursuant to the provisions of chapter 164. The division
shall determine the extent to which said operators and exchanges serve
the needs of retail customers and contribute to the achievement of energy
efficiency and fuel diversity goals as said goals are identified by the
division and the department of telecommunications and energy.

The analysis and publication of all data and information collected by the
division, shall be conducted to inform consumers, energy suppliers, the
department of telecommunications and energy, and the general court about the
operation of retail markets and any deficiencies in the operation of
those markets, and to recommend improvements to such. Said data and
information shall be used by the division for the publication of periodic
projections of the supply, demand, and price of energy on statewide and
regional basis.

The division shall annually issue a report containing information on all
issues of electricity system reliability, including, but not limited to,
generation and transmission data detailing load and capacity, for the prior
calendar year and forecasting potential future capacity excesses or
deficits for the next five calendar years. The division shall utilize any and
all information available to forecast potential capacity excesses or
deficits, including, but not limited to, analyses by the independent system
operator and other such data collected by the division pursuant to
section 7. Said report shall contain (i) electricity spot price information
for the previous calendar year, including, but not limited to, the
average regional monthly spot price; (ii) a determination of the extent to
which the energy markets are maintaining necessary levels of reliability;
(iii) a determination of whether or not all customer classes are being
adequately served by competitive energy markets; (iv) a determination of the
competitiveness of energy markets; including a determination whether or not the electric industry is providing consumers with the lowest prices
possible within a restructured, competitive retail marketplace; and (v) a determination of the extent to which the energy markets are achieving the
energy efficiency and fuel diversity goals of the commonwealth. Said report may be undertaken in combination with the report required pursuant to
section 7, at the discretion of the commissioner. Said report shall identify any substantial fluctuation or pricing differences in the cost of
electricity available to consumers, especially with respect to geographic
regions and low and moderate income consumers. Said reports shall make
recommendations for improving any deficiencies so identified in electricity
energy markets, including non-competitive pricing situations, which are
within the authority of the general court, the department of telecommunications
and energy, the federal energy regulatory commission, or any other
governmental body with jurisdiction over the deficiency so identified. The
division shall submit such report to the joint committees on government
regulations and energy, respectively, and the house and senate committees on
ways and means no later than April thirtieth of each year, including
drafts of legislation to implement recommendations within such report.

Section 11F. (a) The division of energy resources, shall establish a
renewable energy portfolio standard for all retail electricity suppliers
selling electricity to end-use customers in the commonwealth. By December 31,
1999, the division shall determine the actual percentage of kilowatt-hours
sales to end-use customers in the commonwealth which is derived from
existing renewable energy generating sources. Every retail supplier shall
provide a minimum percentage of kilowatt-hours sales to end-use customers in
the commonwealth from new renewable energy generating sources, according
to the following schedule: (i) an additional 1 per cent of sales by December
31, 2003, or one calendar year from the final day of the first month in
which the average cost of any renewable technology is found to be within 10
per cent of the overall average spot-market price per kilowatt-hour for
electricity in the commonwealth, whichever is sooner; (ii) an additional
one-half of 1 per cent of sales each year thereafter until December 31,
2009; and (iii) an additional 1 per cent of sales every year thereafter until
a date determined by the division of energy resources. For
the purpose of this subsection, a new renewable energy
generating source is one that begins commercial operation after December 31,
1997, or that represents an increase in generating capacity after
December 31, 1997, at an existing facility.

(b) For the purposes of this section, a renewable energy generating source
is one which generates electricity using any of the following: (i) solar
photovoltaic or solar thermal electric energy; (ii) wind energy; (iii) ocean
thermal, wave, or tidal energy; (iv) fuel cells utilizing renewable
fuels; (v) landfill gas; (vi) waste-to-energy which is a component of
conventional municipal solid waste plant technology in commercial use; (vii)
naturally flowing water and hydroelectric; and (viii) low-emission, advanced
biomass power conversion technologies, such as gasification using such
biomass fuels as wood, agricultural, or food wastes, energy crops, biogas,
biodiesel, or organic refuse-derived fuel; provided, however, that after
December 31, 1998, the calculation of a percentage of kilowatt-hours sales to
end-use customers in the commonwealth from new renewable generating
sources shall exclude clauses (vi) and (vii) herein. The division may also
consider any previously operational biomass facility retrofitted with
advanced conversion technologies as a renewable energy generating source.
After conducting administrative proceedings, the division may add
technologies or technology categories to the above list; provided, however,
that the following technologies shall not be considered renewable energy
supplies: coal, oil, natural gas except when used in fuel cells, and nuclear
power.

Section 11G. The division of energy resources shall have the authority to
oversee and coordinate ratepayer-funded energy efficiency programs.
The division shall seek to achieve goals including, but not limited to, the
following: (i) ensure that energy efficiency funds are allocated
equitably among customer classes; (ii) ensure that there will be adequate
support for “lost opportunity” efficiency programs in areas
such as new construction, remodeling, and replacement of worn-out equipment;
(iii) give due emphasis to statewide market transformation programs in
order to systematically eliminate market barriers to energy efficiency goods
and services; and (iv) provide weatherization and efficiency services to
low-income customers. The division of energy resources shall annually file a
report with the department of telecommunications and energy on the
proposed funding levels for energy efficiency programs. The department shall
review and approve energy efficiency expenditures after determining
that implementation of such programs was cost-effective. Within one year of
enactment of this legislation, the division shall conduct a public
hearing process to investigate the role of the division in the oversight and
statewide coordination of energy efficiency programs. Not later than
March 1, 1999, the division shall promulgate rules and regulations necessary to
implement the findings of this section.

SECTION 51.
Section 39B of chapter 30 of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 9, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 52.
Said section 39B of said chapter 30, as so appearing,
is
hereby further amended by striking out, in line 13, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 53.
Said section 39B of said chapter 30, as so appearing,
is
hereby further amended by striking out, in line 18, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 54.
Said section 39B of said chapter 30, as so appearing,
is
hereby further amended by striking out, in line 32, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 55.
Section 39C of said chapter 30, as so appearing, is
hereby amended by striking out, in line 5, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 56.
Section 39E of said chapter 30, as so appearing, is
hereby amended by striking out, in line 8, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 57.
Section 1 of chapter 30B of the General Laws, as
so appearing, is hereby amended by striking out, in
line 84, the words “materials; or” and inserting in place thereof the
following:- materials;.

SECTION 58.
Subsection (b) of said section 1 of said chapter 30B,
as
so appearing, is hereby amended by striking out clause (31) and
inserting in place thereof the following three clauses:-

(31) an agreement for the purchase of photography services entered into by a
public school;

(32) energy aggregation contracts entered into by a political subdivision of
the commonwealth for energy or energy related services arranged or
negotiated by such subdivision on behalf of its residents; or

(33) energy contracts entered into by a city or town or group of cities or
towns or political subdivisions of the commonwealth, for energy or energy
related services; provided, however, that within 15 days of the signing of a
contract for energy or energy related services by a city, town,
political subdivision, or group of cities, towns or political subdivisions said
city, town, political subdivision, or group of cities, towns or
political subdivisions shall submit to the department of telecommunications and
energy, the division of energy resources, and the office of the
inspector general a copy of the contract and a report of the process used to
execute the contract.

SECTION 59.
Section 6 of said chapter 30B, as so appearing, is
hereby
amended by adding the following subsection:-

(k) Notwithstanding the provisions of this section, with respect to contracts
for energy-related services entered into by a city or town or group of
cities or towns, the requests for proposals may include proposed contractual
terms and conditions to be incorporated into the contract, some of which
may be deemed mandatory or non-negotiable; provided, however, that the request
for proposals may request proposals or offer options for fulfillment
of other contractual terms. The chief procurement officer shall make a
preliminary determination of the most advantageous proposal from a
responsible and responsive offeror taking into consideration price and the
evaluation criteria set forth in a request for proposals. The chief
procurement officer may negotiate all terms of the contract not deemed
mandatory or non-negotiable with such offeror. If after negotiation with such
offeror the chief procurement officer determines that it is in the best
interest of the governmental body, the chief procurement officer may
determine the proposal which is the next most advantageous proposal from a
responsible and responsive offeror taking into consideration price and the
evaluation criteria set forth in the request for proposals, and may negotiate
all terms of the contract with such offeror. The chief procurement
officer shall award the contract to the most advantageous proposal from a
responsible and responsive offeror taking into consideration price, the
evaluated criteria set forth in the request for proposals, and the terms of the
negotiated contract. The chief procurement officer shall award the
contract by written notice to the selected offeror within the time for
acceptance specified in the request for proposals. The parties may extend the
time for acceptance by mutual agreement.

SECTION 60.
Section 48 of chapter 31 of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 10, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 61.
Section 8 of chapter 38 of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 9, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 62.
Section 9 of said chapter 38, as so appearing, is
hereby
amended by striking out, in line 3, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 63.
Section 22D of chapter 40 of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
lines 36 and 37, the words “public utilities” and inserting in place thereof
the following words:- telecommunications and energy.

SECTION 64.
Section 39C of said chapter 40, as so appearing, is
hereby amended by striking out, in line 26, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 65.
Section 3 of chapter 40A of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 37, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 66.
Said section 3 of said chapter 40A, as so appearing, is
hereby further amended by striking out, in line 46, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 67.
The second paragraph of section 3 of chapter 40J of the
General Laws, as
so appearing, is hereby amended by striking out the first
sentence and inserting in place thereof the following
two sentences:- The corporation shall be governed and its corporate powers
exercised by a
board of directors, which shall consist of the director of the department
of economic development or his designee, the secretary of administration or his
designee, and the chancellor of the board of higher education or his
designee, two members shall be appointed from a list of persons nominated by
the president of the senate, two persons shall be appointed from a list
of persons nominated by the speaker of the house of representatives, and 16
persons shall be appointed by the governor, eight of whom shall be chief
executive officers of post-secondary educational institutions or distinguished
members of the electronics engineering faculties of said institutions,
or members of other appropriate faculties, and among said eight, at least three
of whom shall be representatives of public post-secondary educational
institutions, and six of whom shall be chief executive officers, chairpersons
or chief engineers of businesses concerned with the design and
manufacture of semi-conductor or micro-electronics components or products of
another technology which may come within the purview of this chapter
pursuant to the provisions of section 6, and two of whom shall be recommended
by the Massachusetts AFL-CIO. Each director appointed from the list of
nominations recommended by the president of the senate and the speaker of the
house of representatives shall serve a term of two years to be
coterminous with the legislative session of the general court.

SECTION 68.
Said chapter 40J
is hereby further amended by inserting after section 4D the
following section:-

Section 4E. (a) There is hereby established and set up on the books of the
corporation a separate trust fund to be known as the Massachusetts
Renewable Energy Trust Fund, hereinafter referred to as the fund. The
corporation shall hold the fund in an account or accounts separate from other
funds in those provisions of the second and third paragraphs of section 5 as
apply to the center fund in the corporation, and shall apply as well to
the fund. There shall be credited to the fund all amounts collected pursuant
to section 20 of chapter 25 and any income derived from the investment
of amounts credited to the fund. All amounts credited to the fund shall be
held in trust and used solely for activities and expenditures consistent
with the public purpose of the fund as set forth in subsection (b) of this
section; provided, however, that monies derived pursuant to paragraph (2)
of subsection (a) of section 20 of chapter 25 shall be especially segregated
for implementing the purposes of paragraph (2) of subsection (f) of this
section.

(b) The board may draw upon monies in the fund for the public purpose of
generating the maximum economic and environmental benefits over time from
renewable energy to the ratepayers of the commonwealth through a series of
initiatives which exploits the advantages of renewable energy in a more
competitive energy marketplace by promoting the increased availability, use,
and affordability of renewable energy, by making operational
improvements to existing renewable energy projects and facilities which, in the
determination of the board, have achieved results which would
indicate that future investment in said facilities would yield results in the
development of renewable energy more significant if said funds were
made available for the creation of new renewable energy facilities, and by
fostering the formation, growth, expansion, and retention within the
commonwealth of preeminent clusters of renewable energy and related
enterprises, institutions, and projects, which serve the citizens of the
commonwealth.

(c) Public interests to be advanced through the board’s actions shall
include, but not be limited to, the following: (i) the development and
increased use and affordability of renewable energy resources in the
commonwealth and the New England region; (ii) the protection of the environment
and the health of the citizens of the commonwealth through the prevention,
mitigation, and alleviation of the adverse pollution effects associated
with certain electricity generation facilities; (iii) the delivery to all
consumers of the commonwealth of as many benefits as possible created as a
result of increased fuel and supply diversity; (iv) the creation of additional
employment opportunities in the commonwealth through the development
of renewable technologies; (v) the stimulation of increased public and private
sector investment in, and competitive advantage for, renewable energy
and related enterprises, institutions, and projects in the commonwealth and the
New England region; and (vi) the stimulation of entrepreneurial
activities in these and related enterprises, institutions, and projects.

(d) In furtherance of these and other public purposes and interests, the
board may expend monies from the fund to make grants, contracts, loans,
equity investments, energy production credits, bill credits, or rebates to
customers, to provide financial or debt service obligation assistance, or
to take any other actions, in such forms, under such terms and conditions and pursuant to such selection procedures as the board deems appropriate
and otherwise in a manner consistent with good business practices; provided, however, that the board shall generally employ a preference for
competitive procurements; provided, further, that the board shall endeavor to leverage the full range of the resources, expertise, and participation
of other state and federal agencies and instrumentalities in the design and implementation of programs under this section; and provided, further,
that the board has determined and incorporated into the minutes of its proceedings a finding that such actions are calculated to advance the public
purpose and public interests set forth in this section, including, but not limited to, the following: (i) the growth of the renewable energy-provider
industry; (ii) the use of renewable energy by electricity customers in the commonwealth; (iii) public education and training regarding renewable
energy; (iv) product and market development; (v) pilot and demonstration projects and other activities designed to increase the use and affordability
of renewable energy resources by and for consumers in the commonwealth; (vi) the provision of financing in support of the development and application
of related technologies at all levels, including, but not limited to, basic and
applied research and commercialization activities; (vii) the design
and making of improvements to existing renewable energy projects and facilities
as defined herein which were in operation as of December 31, 1997;
and (viii) matters related to the conservation of scarce energy resources.

The board shall, in consultation with the division of energy resources and
the advisory committee established pursuant to subsection (i), adopt a
detailed plan for the application of the fund in support of the design,
implementation, evaluation, and assessment of a renewable energy program for
the commonwealth, subject to periodic revision by the board, that ensures that
the fund shall be employed to provide financial and non-financial
resources to overcome barriers facing renewable energy enterprises,
institutions, and projects in a prudent manner consistent with the public
purposes and interests set forth in this section. Said plan, to the extent
practicable, shall consist of at least four components: (i)
“product and market development” to establish a foundation for growth and
expansion of the commonwealth’s renewable energy enterprises,
institutions, and projects, including pilot and demonstration projects,
production incentives, and other activities designed to increase the use and
affordability of renewable energy in the commonwealth; (ii) “training and
public information” to allow for the development and
dissemination of complete, objective, and timely information, analysis, and
policy recommendations related to the advancement of the public purposes
and interests of the renewable energy fund; (iii) “investment” to support the
growth and expansion of renewable energy enterprises,
institutions, and projects; and (iv) “research and development” within the
commonwealth and the New England region related to renewable
energy matters. Said plan shall specify the expenditure of such monies from
the fund to each of these component activities; provided, however, that
monies so expended shall be used to develop such renewable energy projects with
priority given to projects, institutions, and enterprises, first,
within the commonwealth; next, to such activities within New York and the New
England region which serve the regional power grid; and finally, all
other such activities regardless of location. In developing said plan, the
board is hereby authorized and directed to consult with and utilize the
services of the department of telecommunications and energy and the division of
energy resources for such technical assistance as the board deems
necessary or appropriate to the effective discharge of the board’s
responsibilities and duties relative to the fund.

(e) Subject to the approval of the board, investment activity of monies from
the fund may consist of the following: (i) an equity fund, to provide
risk capital to renewable energy enterprises, institutions, and projects; (ii)
a debt fund, to provide loans to energy enterprises, institutions,
projects, intermediaries, and end-users; and (iii) a market growth assistance
fund, to be used to attract private capital to the equity and debt
funds. To implement these investment activities, the corporation is hereby
authorized to retain, through a bid process, a public or private sector
investment fund manager or managers, who shall have prior knowledge and
experience in fund management and possess related skills in renewable energy
and related technologies development, to direct the investment activity
described herein and to seek other fund co-sponsors to contribute public and
private capital from the commonwealth and other states; provided, however, that
such capital is appropriately segregated. Said manager or managers,
subject to the approval of the board, shall be authorized to retain necessary
services and consultants to carry out the purposes of the fund. Said
manager or managers shall develop a business plan to guide investment
decisions, which shall be approved by the board prior to any expenditures from
the trust fund and which shall be consistent with the provisions of the plan
for the fund as adopted by the board.

(f)(1) For the purposes of expenditures from the fund, renewable energy
technologies eligible for assistance shall include the following: solar
photovoltaic and solar thermal electric energy; wind energy; ocean thermal,
wave, or tidal energy; fuel cells; landfill gas; waste-to-energy which is
a component of conventional municipal solid waste plant technology in
commercial use; naturally flowing water and hydroelectric; low emission,
advanced biomass power conversion technologies, such as gasification using such
biomass fuels as wood, agricultural, or food wastes, energy crops,
biogas, biodiesel, or organic refuse-derived fuel; and storage and conversion
technologies connected to qualifying generation projects; provided,
however, that expenditures related to waste-to-energy projects or facilities
shall be limited to funds segregated pursuant to paragraph (2). Such
funds may also be used for appropriate joint energy efficiency and renewable
projects, as well as for investment by distribution companies in
renewables and distributed generation opportunities, if consistent with the
provisions of this section. The following technologies or fuels shall
not be considered renewable energy supplies: coal, oil, natural gas except when
used in fuel cells, and nuclear power.

(2) The board shall make available from monies in the fund in accordance
with subsection (a) grants to municipalities and other governmental bodies
to provide debt service assistance in conjunction with alleviating payment
obligations incurred by said municipalities and other governmental bodies
through an existing contractual agreement pursuant to the installation of
pollution control technology and the implementation of other operational
improvements to existing renewable energy projects and facilities in the
commonwealth utilizing waste-to-energy technology as a component of
municipal solid waste plant technology in commercial use, or the closure of any
such existing facilities; provided, however, that such grants shall
not exceed, in the aggregate, in any calendar year prior to calendar year 2003
the amount segregated in the fund pursuant to this paragraph in the
calendar year previous thereto; provided further, that no such grants shall be
made from any funds collected for the fund in any calendar year
subsequent to the calendar year 2002; provided further, that in the
distribution of such grant monies priority shall be given initially to
municipalities and governmental bodies which have not previously received any
monies, either through an appropriation or other such fiscal assistance
from the state, to address debt service obligations relative to such pollution
control technology improvements.

(g) The use by said corporation of monies to implement the provisions of
this section shall be deemed to be an essential governmental function.
Notwithstanding any general or special law to the contrary, the provisions of
clause (a) of section 4A of this chapter shall apply to expenditures
made from the fund; provided, however, that no such expenditure shall be deemed
to involve a capital facility project; provided further, that no
lease or license executed in furtherance of the public purpose and interests of
the fund shall exceed 30 years in duration, and the duration and
terms shall be developed in a manner consistent with good business practices;
and provided further, that the corporation shall take no action which
contravenes the commonwealth’s reversionary interest in any of its real
property. The corporation, any purchasing cooperative established
thereby, and all members of any such purchasing cooperative may participate in
any energy-related purchasing, aggregating, or similar program
established and operated by the Massachusetts health and educational facilities
authority and such participation shall be deemed to be in furtherance
of an essential governmental function.

(h) The provisions of clause (k) of section 4 of this chapter shall not
apply to disbursements from the trust fund.

(i) The governor shall, from the recommendation submitted by the chairman of
the board relating to clause (i) of said section 4, appoint an advisory
committee to assist the corporation in matters related to the fund and in the
implementation of the provisions of this section. Said advisory
committee shall include not more than 15 individuals with an interest in
matters related to the general purpose and activities of the fund and the
knowledge and experience in at least one of the following areas: electricity
distribution, generation, supply, or power marketing; the concerns of
commercial and industrial ratepayers; residential ratepayers, including
low-income ratepayers; economics, financial or investment consulting
expertise relative to the fund; regional environmental concerns; academic
issues related to power generation, distribution or the development or
commercialization of renewable energy sources; institutions of higher
education; municipal or regional aggregation matters; and renewable and clean
energy issues. The board shall consult with said advisory committee in
discharging its obligations under this section.

(j) The books and records of the corporation relative to expenditures and
investments of monies from the fund shall be subject to a biennial audit by
the auditor of the commonwealth.

(k) Beginning with the fiscal year ending on June 30, 1999, on or by August
15th of each year, the board, in conjunction with the advisory committee,
shall annually submit to the governor, the joint committees on government
regulations and energy, respectively, and the house and senate committees
on ways and means a report detailing the expenditure and investment of monies
from the fund over the previous fiscal year and the ability of the fund
to meet the requirements and provisions of this section, and any
recommendations for improving the ability of the board, the corporation, and
the
fund to meet said requirements and provisions.

SECTION 69.
Section 2A of chapter 59 of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 55, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 70.
Section 5 of said
chapter 59, as so appearing, is hereby amended by
inserting after the word “pipes”, in line 257,
the following words:- ; provided,
however, that no property, except property
entitled to a pollution control abatement pursuant to the provisions of the
forty-fourth clause or a cogeneration facility as defined herein, shall
be exempt from taxation if it is used in the manufacture or generation of
electricity and it has not received a manufacturing classification
effective on or before January 1, 1996. For the purposes of this section, a
cogeneration facility shall be defined as any electrical generating unit
having power production capacity which, together with any other power
generation facilities located at the same site, is not greater than 30
megawatts and which produces electric energy and steam or other form of useful
energy utilized for industrial, commercial, heating, or cooling
purposes.

SECTION 71.
Said chapter 59 is hereby further
amended by inserting after section 38G the following section:-

Section 38H. For the purposes of this section, the term department shall
refer to the
department of telecommunications and energy.

(a) Any electric company as defined in section 1 of chapter 164 which
generates electricity or any distribution company as defined in said section 1
which is authorized by the commonwealth or the department to recover transition
cost amounts associated with past investments in generation
facilities, or any generation company as defined in said section 1 or such
company’s affiliate, subsidiary, or parent company which currently has no
binding agreement for tax payments or payments in lieu of taxes to
municipalities in which the company’s generation facilities are located shall
be
required to make transition payments to any municipality in which an
affiliated generation facility, as defined in said section 1, or part thereof,
is located and has been devalued for property tax payment purposes; provided,
however, that where such a binding agreement for the payment of real
and personal property taxes or the binding agreement for payment in lieu of
such taxes has been entered into on or after the effective date of this
section, such agreement shall govern, and such generation facility shall be
exempt from the provisions of this section. Said payments shall offset
any reductions of property taxes as a result of any devaluation of said
generation facility. This section does not provide for any exemption from
property tax and is in addition to such tax obligation.

For the purposes of this section, “fiscal year” shall be determined by
sections 56 and 56A of chapter 44.
For fiscal years 1998, 1999 and 2000, such payments shall be the difference
between the property taxes for fiscal years 1998, 1999 and 2000,
respectively, and the property taxes for fiscal year 1997. From fiscal year
2001 to fiscal year 2009, inclusive, such future payments shall be
calculated as follows:

(i) For fiscal year 2001, such amount shall be equivalent to 90 per cent of
the difference between the
local property tax value of the property as of January 1, 1996 and the fair
cash value of the property as of January 1, 2000, multiplied by the
applicable commercial tax rate for the fiscal year 2001;

(ii) For fiscal year 2002, the calculated amount shall be equivalent to 80
per cent of the difference between the local property tax value of the
property as of January 1, 1996 and the fair cash value of the property as of
January 1, 2001, multiplied by the applicable commercial tax rate for
the fiscal year 2002;

(iii) For fiscal year 2003, the calculated amount shall be equivalent to 70
per cent of the difference
between the local property tax value of the property as of January 1, 1996 and
the fair cash value of the property as of January 1, 2002, multiplied
by the applicable commercial tax rate for the fiscal year 2003;

(iv) For fiscal year 2004, the calculated amount shall be equivalent to 60
per cent of the difference
between the local property tax value of the property as of January 1, 1996 and
the fair cash value of the property as of January 1, 2003, multiplied
by the applicable commercial tax rate for the fiscal year 2004;

(v) For fiscal year 2005, the calculated amount shall be equivalent to 50
per cent of the difference between the local property tax value of the
property as of January 1, 1996 and the fair cash value of the property as of
January 1, 2004, multiplied by the applicable commercial tax rate for
the fiscal year 2005;

(vi) For fiscal year 2006, the calculated amount shall be equivalent to 40
per cent of the difference between the local property tax value of the
property as of January 1, 1996 and the fair cash value of the property as of
January 1, 2005, multiplied by the applicable commercial tax rate for
the fiscal year 2006;

(vii) For fiscal year 2007, the calculated amount shall be equivalent to 30
per cent of the difference
between the local property tax value of the property as of January 1, 1996 and
the fair cash value of the property as of January 1, 2006, multiplied
by the applicable commercial tax rate for the fiscal year 2007;

(viii) For fiscal year 2008, the calculated amount shall be equivalent to 20
per cent of the difference between the local property tax value of the
property as of January 1, 1996 and the fair cash value of the property as of
January 1, 2007, multiplied by the applicable commercial tax rate for
the fiscal year 2008;

(ix) For fiscal year 2009, the calculated amount shall be equivalent to 10
per cent of the difference
between the local property tax value of the property as of January 1, 1996 and
the fair cash value of the property as of January 1, 2008, multiplied
by the applicable commercial tax rate for the fiscal year 2009.

Any such transition payments shall be included in the tax base for purposes
of determining the levy ceiling and levy limit under section 21C of this
chapter and in determining minimum residential factor and classification of
property under section 1A of chapter 58 and section 56 of chapter 40.
The department of revenue may issue guidelines for implementing the provisions
of this subsection consistent with preserving the transition payment
amounts in the local tax base for such purposes.

(b) A generation company which does not qualify for a manufacturing
classification exemption pursuant to paragraph (3) of the clause Sixteenth of
said section 5 may, in order to comply with its property tax liability
obligation, execute an agreement for the payment in lieu of taxes with the
municipality in which such generation facility is sited, and said company shall
be exempt from property taxes, in whole or in part, as provided in
any such agreements during the terms thereof. Any such agreement shall be the
result of good faith negotiations and shall be the equivalent of the
property tax obligation based on full and fair cash valuation. Any such
negotiated amount shall be included in the tax base for purposes of
determining the levy ceiling and levy limit under section 21C and in
determining minimum residential factor and classification of property under
section 1A of chapter 58 of the General Laws and section 56 of chapter 40
of
the General Laws. The department of revenue may issue guidelines for
implementing the provisions of this subsection consistent with preserving the
negotiated payment amount in the local tax base for such purpose.

A city or town, acting by and through its governing body and board of
assessors, is hereby authorized to enter into an agreement with the New England
Power Company concerning the assessed valuation of all real and personal
property presently owned by said company in said city or town for the fiscal
years 1997 to 2001, inclusive; provided, however, that said agreement shall
constitute a good faith attempt to value said property at its fair market
value. Any such agreement as described herein executed prior to and in effect
on December 1, 1997, is hereby ratified, validated, and confirmed in
all respects and as though this act had been in full force and effect at the
time of the execution of said agreement.

(c) In the case of any nuclear-powered electric generation facility in the
commonwealth which exceeds 250 megawatts in size and which was owned in
whole or in part by an electric company as of July 1, 1997, whether or not such
generation facility is in service as of the date of the collection in
rates of the transition costs, as defined pursuant to section 1 of chapter 164,
such electric company shall not be subject to the provisions of
subsections (a) and (b) of this section and, in order to be eligible to collect
the full amount of transition costs as approved by the department
pursuant to section 1G of said chapter 164, shall enter into an agreement to
pay the host community payments in addition to taxes. Said payments in
addition to taxes shall be made in equal payments on or before July 31, October
31, January 31, and April 30 each year by said electric company in
the following amounts: for fiscal years 1999, 2000, and 2001 in an amount which
equals the amount of tax payments remitted to such host community in
fiscal year 1998. Such electric company shall, by the commencement of fiscal year 2002, have entered into an agreement to pay the host community
payments in lieu of taxes for such generation facility; provided, however, that such agreement shall be executed as a result of good faith
negotiations between the electric company and the host community; provided further, that such agreement shall cover a period of time the greater of
which is the time until the licensed termination date of such facility, as included in the original license or in a renewal of such license, or 15
years beginning with fiscal year 1998. For the purposes of this subsection, the standard of good faith shall not require either party to agree to a
proposal or require the making of concessions, but shall require active participation in negotiations and a willingness to make reasonable
concessions and to provide justification for proposals, and a sincere effort to reach agreement. In the event that an agreement on such payment in
lieu of taxes cannot be effected through such good faith negotiations on or before January 1, 1999, the parties shall submit to arbitration, and such
arbitration shall be performed by the department of telecommunications and energy or by a state-certified professional arbitrator or arbitration firm
appointed by said department and operating in accordance with any applicable
rules and regulations. The department shall not approve any plan
submitted by such electric company to utilize the provisions of securitization
pursuant to section 1H of chapter 164 if such tax agreement has not
been executed pursuant to the provisions of this subsection.

SECTION 72.
Section 6 of chapter 64H of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 325, the words “Department of Public Utilities” and inserting in place
thereof the following words:- department of
telecommunications and energy.

SECTION 73.
Said section 6 of said chapter 64H, as so appearing, is
hereby further amended by striking out, in line 329, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 74.
Section 3 of chapter 79 of the General Laws, as
appearing
in the 1996 Official Edition, is hereby amended by striking out, in
line 10, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 75.
Section 5B of said chapter 79, as so appearing, is
hereby
amended by striking out, in line 13, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 76.
Section 5C of said chapter 79, as so appearing, is
hereby amended by striking out, in line 7, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 77.
The third paragraph of section 13
of chapter 81A of the General Laws, as appearing in section 6 of chapter 3
of the acts of 1997, is hereby amended by striking out the second sentence
and inserting in place thereof the
following sentence:- Notwithstanding the provisions of any general or special
law to the contrary, the relocation of the facilities of any public utility,
including rail lines, in accordance with the provisions of this section shall
be valid upon the filing of the plans thereof with the department of
telecommunications and energy, if applicable.

SECTION 78.
Section 40 of chapter 82 of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
lines 111 and 112, the words “public utilities” and inserting in place thereof
the following words:- telecommunications and energy.

SECTION 79.
Section 1 of chapter 83 of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 39, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 80.
Section 4 of said chapter 83, as so appearing, is
hereby
amended by striking out, in line 16, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 81.
Section 1 of chapter 90 of the General Laws, as
appearing
in the 1996 Official Edition, is hereby amended by striking out, in
line 313, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 82.
Section 1A of said chapter 90, as so appearing, is
hereby amended by striking out, in line 5, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 83.
Section 7B of said chapter 90, as so appearing, is
hereby
amended by striking out, in line 25, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 84.
Said section 7B of said chapter 90, as so appearing, is
hereby further amended by striking out, in line 124, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 85.
Said section 7B of said chapter 90, as so appearing, is
hereby further amended by striking out, in line 153, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 86.
Said section 7B of said chapter 90, as so appearing, is
hereby further amended by striking out, in line 252, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 87.
Section 8A of said chapter 90, as so appearing, is
hereby
amended by striking out, in line 37, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 88.
Said section 8A of said chapter 90, as so appearing, is
hereby further amended by striking out, in line 41, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 89.
Said section 8A of said chapter 90, as so appearing, is
hereby further amended by striking out, in line 43, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 90.
Said section 8A of said chapter 90, as so appearing, is
hereby further amended by striking out, in line 47, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 91.
Section 8A½ of said chapter 90, as so appearing, is
hereby amended by striking out, in line 42, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 92.
Section 9 of said chapter 90, as so appearing, is
hereby
amended by striking out, in line 13, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 93.
Section 33 of said chapter 90, as so appearing, is
hereby
amended by striking out, in line 35, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 94.
Section 40H of said chapter 90, as so appearing, is
hereby amended by striking out, in line 2, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 95.
Section 1 of chapter 90C of the General Laws, as
so appearing, is hereby amended by striking out, in
line 70, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 96.
Section 43 of chapter 92 of the General Laws, as
so appearing, is hereby amended by striking out, in
line 2, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 97.
Section 44 of said chapter 92, as so appearing, is
hereby
amended by striking out, in line 18, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 98.
Section 50 of said chapter 92, as so appearing, is
hereby
amended by striking out, in line 6, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 99.
Section 51 of said chapter 92, as so appearing, is
hereby
amended by striking out, in line 1, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 100.
Section 67 of said chapter 92, as so appearing, is
hereby amended by striking out, in lines 11 and 12, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 101.
Section 68 of said chapter 92, as so appearing, is
hereby amended by striking out, in line 6, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 102.
Section 24 of chapter 93 of the General Laws, as
so appearing, is hereby amended by striking out, in
lines 10 and 11, the words “public utilities” and inserting in place thereof
the following words:- telecommunications and energy.

SECTION 103.
Section 8 of chapter 110C of the General Laws, as
so appearing, is hereby amended by striking out, in
lines 3 and 4, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 104.
Section 5K of chapter 111 of the General Laws, as
so appearing, is hereby amended by adding
the following subsection:-

(E) The department is hereby authorized to make an assessment against the
operator of each existing and proposed nuclear power plant in the
commonwealth in an amount equal to the costs incurred in the prior fiscal year
by the department’s radiation control program in the performance
of its duties under this section. The department is hereby further authorized
to make a collection, based on that assessment, of monies from said
operators of nuclear power plants to defray the cost of such activities. Said
amount shall not exceed $90,000 per annum, per facility, which shall
be expended for any such facility, including, but not be limited to, a
facilities located in the town of Rowe and in the town of Plymouth, and in
Seabrook, New Hampshire. The department shall send notice of its assessment to
the individual company against which the assessment is made, and said
company shall pay such assessment within 30 days of the notice of the
assessment; provided, however, that such company shall have a reasonable
opportunity to submit objections concerning said assessment to the department
for review. If, after completion of such review, the department
determines the assessment is valid, the department shall issue a demand for
such assessment, and the company against which such assessment is made
shall pay such assessment immediately. If a company subject to assessment
under this section fails to pay the assessment within 30 days of the
notice of the assessment, or fails to pay the demand for assessment upon
completion of the final review, whichever occurs later, the department may
refer such matter to the department of revenue for the collection of the
assessment in accordance with applicable enforcement provisions pursuant to
chapter 62C. The amount so collected shall be deposited into the General Fund
and credited to the department.

SECTION 105.
Said chapter 111 is hereby further amended by inserting
after section 142M the following section:-

Section 142N. For the purpose of preventing, mitigating, or alleviating
impacts on the resources of the commonwealth and to the health of its
citizens from pollutants emitted by fossil fuel-fired electric generation
facilities serving retail customers in the commonwealth, the department of
environmental protection shall, in consultation with the office of the attorney
general and the department of telecommunications and energy,
promulgate rules and regulations to adopt and implement for fossil fuel-fired
electric generation facilities uniform generation performance standards
of emissions produced per unit of electrical output on a portfolio basis for
any pollutant determined by the department of environmental protection
to be of concern to public health, and produced in quantity by electric
generation facilities. The department of environmental protection shall have
said uniform performance standards for at least one pollutant in effect on, but
not before, May 1, 2003, unless three or more other northeastern
states enact similar standards before that date, in which case the department
of environmental protection may adopt such standards prior to May 1,
2003. The department of environmental protection shall issue annually, by
March first of each year, an annual report detailing the implementation
and compliance of said program, its standards, and its companion rules and
regulations.

SECTION 106.
Section 81R of chapter 112 of the General Laws, as
so appearing, is hereby amended by striking out, in
lines 82 and 83, the words “public utilities” and inserting in place thereof
the following words:- telecommunications and energy.

SECTION 107.
Section 34A of chapter 132 of the General Laws, as
so appearing, is hereby amended by striking out, in
line 13, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 108.
Said section 34A of said chapter 132, as so appearing,
is hereby further amended by striking out, in line 25, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 109.
Said section 34A of said chapter 132, as so appearing,
is hereby further amended by striking out, in line 35, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 110.
Said section 34A of said chapter 132, as so appearing,
is hereby further amended by striking out, in line 37, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 111.
Section 16 of chapter 132A of the General Laws, as
so appearing, is hereby amended by striking out, in
line 15, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 112.
Section 7 of chapter 141 of the General Laws, as
so appearing, is hereby amended by striking out, in
line 18, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 113.
Section 14 of chapter 142A of the General Laws, as
so appearing, is hereby amended by striking out, in
line 37, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 114.
Section 71S of chapter 143 of the General Laws, as
so appearing, is hereby amended by striking out, in
lines 4 and 5, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 115.
Section 57 of chapter 147 of the General Laws, as
so appearing, is hereby amended by striking out, in
line 18, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 116.
Section 26E of chapter 148 of the General Laws, as
so appearing, is hereby amended by striking out, in
line 30, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 117.
Section 148 of chapter 149 of the General Laws, as
so appearing, is hereby amended by striking out, in
line 26, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 118.
Section 71F of chapter 151A of the General Laws, as
so appearing, is hereby amended by inserting after
the word “amount”, in line 30, the following
words:- ; provided, however, that.

SECTION 119.
Said chapter 151A is hereby further amended by
inserting after
section 71H the following section:-

Section 71I. (a) Any employee of a generation facility, an electric
company, or a gas company, each as defined in section 1 of chapter 164, who
is
terminated after July 1, 1997, through no fault of his own as a result of the
restructuring of the electricity or gas industries in the commonwealth,
and is otherwise eligible for unemployment benefits, shall receive reemployment
assistance benefits, as provided pursuant to section 71F of this
chapter, and health insurance benefits, as provided pursuant to section 71G of
this chapter. No such employee shall be denied or be determined to be
ineligible for any such benefits if the employer has provided notice of the
cessation of employment. Such benefits shall be in addition to any
benefits any employee may receive pursuant to the provisions of an agreement
resulting from collective bargaining by the owners of electric
companies, generation facilities, who owned such facilities as of July 1, 1997,
or a gas company and an organization or organizations representing
such employee in any such negotiations of said agreement.

(b) Any employer at a generation facility, an electric company, or a gas
company where such eligible employee had been terminated shall be billed an
amount equal to 100 per cent of the amount of reemployment assistance benefits
paid under said section 71F and an amount equal to 100 per cent of the
amount of health insurance benefits paid under said section 71G, and shall
otherwise be subject to section 71H.

SECTION 120.
Section 4 of chapter 155 of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 3, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 121.
Section 5 of said chapter 155, as so appearing, is
hereby amended by striking out, in line 1, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 122.
Section 5A of said chapter 155, as so appearing, is
hereby amended by striking out, in line 1, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 123.
Section 16 of chapter 158 of the General Laws, as
so appearing, is hereby amended by striking out, in
line 7, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 124.
Section 39 of said chapter 158, as so appearing, is
hereby amended by striking out, in line 8, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 125.
Section 40 of said chapter 158, as so appearing, is
hereby amended by striking out, in line 4, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 126.
Section 10 of chapter 159 of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 1, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 127.
Section 59 of said chapter 159, as so appearing, is
hereby amended by striking out, in lines 11 and 12, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 128.
Said section 59 of said chapter 159, as so appearing,
is
hereby further amended by striking out, in line 15, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 129.
Said section 59 of said chapter 159, as so appearing,
is
hereby further amended by striking out, in line 26, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 130.
Said section 59 of said chapter 159, as so appearing,
is
hereby further amended by striking out, in line 28, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 131.
Section 65 of said chapter 159, as so appearing, is
hereby amended by striking out, in line 5, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 132.
Said section 65 of said chapter 159, as so appearing,
is
hereby further amended by striking out, in line 18, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 133.
Said section 65 of said chapter 159, as so appearing,
is
hereby further amended by striking out, in lines 23 and 24, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 134.
Said section 65 of said chapter 159, as so appearing,
is
hereby further amended by striking out, in line 27, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 135.
Said section 65 of said chapter 159, as so appearing,
is
hereby further amended by striking out, in line 28, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 136.
Said section 65 of said chapter 159, as so appearing,
is
hereby further amended by striking out, in line 37, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 137.
Section 70 of said chapter 159, as so appearing, is
hereby amended by striking out, in line 21, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 138.
Said section 70 of said chapter 159, as so appearing,
is
hereby further amended by striking out, in line 51, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 139.
Said section 70 of said chapter 159, as so appearing,
is
hereby further amended by striking out, in line 63, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 140.
Said section 70 of said chapter 159, as so appearing,
is
hereby further amended by striking out, in line 65, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 141.
Section 73 of said chapter 159, as so appearing, is
hereby amended by striking out, in line 5, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 142.
Section 74 of said chapter 159, as so appearing, is
hereby amended by striking out, in line 4, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 143.
Said section 74 of said chapter 159, as so appearing,
is
hereby further amended by striking out, in line 17, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 144.
Said section 74 of said chapter 159, as so appearing,
is
hereby further amended by striking out, in line 21, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 145.
Said section 74 of said chapter 159, as so appearing,
is
hereby further amended by striking out, in line 46, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 146.
Section 78 of said chapter 159, as so appearing, is
hereby amended by striking out, in line 19, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 147.
Section 79 of said chapter 159, as so appearing, is
hereby amended by striking out, in lines 5 and 6, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 148.
Section 80 of said chapter 159, as so appearing, is
hereby amended by striking out, in line 23, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 149.
Said section 80 of said chapter 159, as so appearing,
is
hereby further amended by striking out, in lines 34 and 35, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 150.
Said section 80 of said chapter 159, as so appearing,
is
hereby further amended by striking out, in lines 35 and 36, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 151.
Said section 80 of said chapter 159, as so appearing,
is
hereby further amended by striking out, in line 40, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 152.
Section 1 of chapter 159A of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 32, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 153.
Section 2 of said chapter 159A, as so appearing, is
hereby amended by striking out, in line 3, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 154.
Section 3 of said chapter 159A, as so appearing, is
hereby amended by striking out, in line 6, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 155.
Section 2 of chapter 159B of the General Laws, as
so appearing, is hereby amended by striking out, in
lines 21 and 22, the words “public utilities” and inserting in place thereof
the following words:- telecommunications and energy.

SECTION 156.
Said section 2 of said chapter 159B, as so appearing,
is
hereby further amended by striking out, in line 38, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 157.
Said section 2 of said chapter 159B, as so appearing,
is
hereby further amended by striking out, in line 88, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 158.
Section 6B of chapter 159B, as so appearing, is hereby
amended by striking out, in lines 29 and 30, the words “of public
utilities”.

SECTION 159.
Section 1 of chapter 160 of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 7, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 160.
Section 104 of said chapter 160, as so appearing, is
hereby amended by striking out, in line 15, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 161.
Said section 104 of said chapter 160, as so appearing,
is hereby further amended by striking out, in line 20, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 162.
Section 127A of said chapter 160, as so appearing, is
hereby amended by striking out, in line 1, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 163.
Section 134A of said chapter 160, as so appearing, is
hereby amended by striking out, in lines 30 and 31, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 164.
Said section 134A of said chapter 160, as so
appearing,
is hereby further amended by striking out, in line 35, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 165.
Section 145 of said chapter 160, as so appearing, is
hereby amended by striking out, in line 3, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 166.
Section 147A of said chapter 160, as so appearing, is
hereby amended by striking out, in lines 3 and 4, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 167.
Section 1 of chapter 161 of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 8, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 168.
Section 82 of said chapter 161, as so appearing, is
hereby amended by striking out, in line 9, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 169.
Section 85 of said chapter 161, as so appearing, is
hereby amended by striking out, in line 16, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 170.
Said section 85 of said chapter 161, as so appearing,
is
hereby further amended by striking out, in lines 19 and 20, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 171.
Said section 85 of said chapter 161, as so appearing,
is
hereby further amended by striking out, in line 21, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 172.
Said section 85 of said chapter 161, as so appearing,
is
hereby further amended by striking out, in line 26, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 173.
Section 3 of chapter 161A of the General Laws, as
so appearing, is hereby amended by striking out, in
lines 72 and 73, the words “public utilities” and inserting in place thereof
the following words:- telecommunications and energy.

SECTION 174.
Section 5 of said chapter 161A, as so appearing, is
hereby amended by striking out, in line 184, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 175.
Section 11A of said chapter 161A, as so appearing, is
hereby amended by striking out, in line 7, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 176.
Section 22 of said chapter 161A, as so appearing, is
hereby amended by striking out, in line 2, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 177.
Said section 22 of said chapter 161A, as so appearing,
is hereby further amended by striking out, in line 4, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 178.
Section 6 of chapter 161B of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 61, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 179.
Section 8 of said chapter 161B, as so appearing, is
hereby amended by striking out, in line 82, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 180.
Said chapter 161B is hereby further amended by striking
out
section 16, as so appearing, and inserting in place thereof the following
section:-

Section 16. In the event of any conflict between the regulatory powers and
duties of the department of telecommunications and energy in respect to
mass transportation service within an area, the department of
telecommunications and energy shall resolve such dispute and exercise such
powers as it
deems required in the particular instance.

SECTION 181.
Section 1 of chapter 162 of the General Laws, as
so appearing, is hereby amended by striking out, in
line 2, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 182.
Section 1 of chapter 163 of the General Laws, as
so appearing, is hereby amended by striking out, in
line 2, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 183.
Section 1 of chapter 164 of the General Laws, as
so appearing, is hereby amended by inserting before
the definition of “Alternative energy producer” the following definition:-

“Aggregator”, an entity which groups together electricity customers for
retail sale purposes, except for public entities, quasi-public
entities or authorities, or subsidiary organizations thereof, established
pursuant to the laws of the commonwealth.

SECTION 184.
Said section 1 of said chapter 164, as so appearing,
is
hereby further amended by inserting after the definition of
“Alternative energy producer” the following definition:-

“Ancillary services”, those functions which support generation, transmission,
and distribution, and shall include the following services:
(1) reactive power/voltage control; (2) loss compensation; (3) scheduling and
dispatch; (4) load following; (5) system protection service; and (6)
energy imbalance service.

SECTION 185.
Said section 1 of said chapter 164, as so appearing,
is
hereby further amended by inserting after the definition of
“Cogeneration facility” the following definition:-

“Contract termination fee”, the fees owed by the distribution company to its
wholesale power supplier, as determined and approved by
the department.

SECTION 186.
Said section 1 of said chapter 164, as so appearing,
is
hereby further amended by striking out, in line 59,
the words “public utilities” and inserting in place
thereof the following words:-
telecommunications and energy.

SECTION 187.
Said section 1 of said chapter 164, as so appearing,
is
hereby further amended by inserting after the definition of
“Department” the following six definitions:-

“Default Service”, the electricity services provided to a retail customer
upon either the (i) failure of a distribution
company or supplier to provide such electricity services as required by law or
as contracted for under the standard service offer, (ii) the
completion of the term of the standard service offer, or (iii) upon the
inability of a customer to receive standard service transition rates during
the term of the standard service offer pursuant to section 1B.

“Distributed generation”, a generation facility or renewable energy facility
connected directly to distribution facilities or to
retail customer facilities which alleviate or avoid transmission or
distribution constraints or the installation of new transmission facilities or
distribution facilities.

“Distribution”, the delivery of electricity over lines which operate at a
voltage level typically equal to or greater than 110 volts and
less than 69,000 volts to an end-use customer within the commonwealth. The
distribution of electricity shall be subject to the jurisdiction of the
department.

“Distribution company”, a company engaging in the distribution of electricity
or owning, operating, or controlling distribution
facilities; provided, however, a distribution company shall not include any
entity which owns or operates plant or equipment used to produce
electricity, steam, and chilled water, or any affiliate engaged solely in the
provision of such electricity, steam, and chilled water, where the
electricity produced by such entity or its affiliate is primarily for the
benefit of hospitals and non-profit educational institutions, and where
such plant or equipment was in operation prior to January 1, 1986.

“Distribution facility”, plant or equipment used for the distribution of
electricity and which is not a transmission facility, a
cogeneration facility, or a small power production facility.

“Distribution service”, the delivery of electricity to the customer by the
electric distribution company from points on the transmission
system or from a generating plant, at distribution voltage.

SECTION 188.
Said section 1 of said chapter 164, as so appearing,
is
hereby further amended by striking out the definition of “Electric
company” and inserting in place thereof the following four definitions:-

“Electric company”, a corporation organized under the laws of the
commonwealth for the purpose of making by means of water
power, steam power or otherwise and selling, or distributing and selling, or
only distributing, electricity within the commonwealth, or authorized by
special act so to do, even though subsequently authorized to make or sell gas;
provided, however, that electric company shall not mean an alternative
energy producer; and provided further, that a distribution company shall not
include any entity which owns or operates a plant or equipment used to
produce electricity, steam, and chilled water, or any affiliate engaged solely
in the provision of such electricity, steam, and chilled water, where
the electricity produced by such entity or its affiliate is primarily for the
benefit of hospitals and non-profit educational institutions, and where
such plant or equipment was in operation prior to January 1, 1986.

“Electric service”, the provision of generation, transmission, distribution,
or ancillary services.

“Energy efficiency”, the implementation of an action, policy, or measure
which entails the application of the least amount of energy
required to produce a desired or given output.

“FERC”, the federal energy regulatory commission.

SECTION 189.
Said section 1 of said chapter 164, as so appearing,
is
hereby further amended by striking out the definition of “Gas company” and
inserting in place thereof the following seven definitions:-

“Gas company”, a corporation organized for the purpose of making and selling,
or distributing and selling, gas within the
commonwealth, even though subsequently authorized to make or sell electricity;
provided, however, that gas company shall not mean an alternative
energy producer.

“Generation”, the act or process of transforming other forms of energy into
electric energy, or the amount of electric energy so produced.

“Generation company”, a company engaged in the business of producing,
manufacturing, or generating electricity for retail sale to
the public.

“Generation facility”, plant or equipment used to produce, manufacture, or
otherwise generate electricity and which is not a transmission
facility.

“Generation service”, the provision of generation and related services to a
customer.

“Horizontal market power”, a situation in which one or a few market
participants combined have undue concentration in the ownership of
facilities at the same level in the chain of production resulting in the
ability to influence price to his or their own benefit.

“Mitigation”, all actions or occurrences which reduce the amount of money
that a distribution company seeks to collect through the
transition charge, including those amounts resulting from both matters within
the company’s control and from matters not wholly within the company’s
control. Mitigation shall, in accordance with the provisions of section 1G,
include, but not be limited to, the following: (1) sales of capacity,
energy, ancillary services, reserves, and emission allowances from generating
facilities that are wholly or partly owned by the company; (2) sales of
capacity, energy, ancillary services, reserves, and emission allowances from
generating facilities with which the company has a power purchase
agreement; (3) adjustments to the company’s minimum obligations under purchase
power agreements that decrease such obligations, such as those that
may be obtained through contract buy-out or renegotiation; (4) residual value;
(5) sales and voluntary write downs of company generation-related
assets; (6) any market value in excess of net book value associated with the
sale, lease, transfer, or other use of the assets of the company
unrelated to the provision of transmission service or distribution service at
regulated prices, including, but not limited to, rights-of-way,
property, and intangible assets when the costs associated with the acquisition
of those assets have been reflected in the company’s rates for
regulated service; provided, however, that the department shall determine their
market values based on the highest prices that such assets could
reasonably realize after an open and competitive sale; and (7) any allowed
refinancing of stranded assets or other debt obligations as
provided by law.

SECTION 190.
Said section 1 of said chapter 164, as so appearing,
is
hereby further amended by inserting after the definition of “Primary
energy source” the following six definitions:-

“Renewable energy” or “renewables”, either (i) resources whose common
characteristic is that they are nondepletable or are
naturally replenishable but flow-limited, or (ii) existing or emerging
non-fossil fuel energy sources or technologies, which have significant
potential for commercialization in New England and New York, and shall include
the following: solar photovoltaic or solar thermal electric energy;
wind energy; ocean thermal, wave, or tidal energy; fuel cells; landfill gas;
waste-to-energy which is a component of conventional municipal solid
waste plant technology in commercial use; naturally flowing water and
hydroelectric; and low-emission, advanced biomass power conversion
technologies, such as gasification using such biomass fuels as wood,
agricultural, or food wastes, energy crops, biogas, biodiesel, or organic
refuse-derived fuel. The following technologies or fuels shall not be
considered
renewable energy supplies: coal, oil, natural gas except when used in fuel
cells, and nuclear power.

“Residual value”, the value of electric company assets, not including the
income which may be obtained through generation
facility operation.

“Retail access”, the use of transmission and distribution facilities owned by
a transmission company or a distribution company to
transmit or distribute electricity from a generation company, supplier, or
aggregator to retail customers.

“Retail customer”, a customer who purchases electricity for its own
consumption.

“Securitization”, the use of rate reduction bonds to refinance debt and
equity associated with transition costs pursuant to
section 1H.

“Service territory”, the geographic area in which a distribution company
provided distribution service on July 1, 1997.

SECTION 191.
Said section 1 of said chapter 164, as so appearing,
is
hereby further amended by inserting after the definition of “Small
power production facility” the following definition:-

“Supplier”, any supplier of generation service to retail customers, including
power marketers, brokers, and marketing affiliates
of distribution companies, except that no electric company shall be considered
a supplier.

SECTION 192.
Said section 1 of said chapter 164, as so appearing,
is
hereby further amended by adding
the following nine definitions:-

“Transition charge”, the charge that provides the mechanism for recovery of
an electric company’s transition costs.

“Transition costs”, the embedded costs as determined pursuant to section 1H
which remain after accounting for maximum possible
mitigation, subject to determination by the department.

“Transmission”, the delivery of power over lines that operate at a voltage
level typically equal to or greater than 69,000 volts from
generating facilities across interconnected high voltage lines to where it
enters a distribution system.

“Transmission company”, a company engaging in the transmission of electricity
or owning, operating, or controlling
transmission facilities. A transmission company shall provide transmission
service to all generation companies, municipal lighting
plants, suppliers, and load aggregators in the commonwealth, whether affiliated
or not, on comparable, nondiscriminatory prices and terms, pursuant
to provisions of federal law and regulation.

“Transmission facility”, plant or equipment used for the transmission of
electricity, as determined by the federal energy
regulatory commission pursuant to federal law and regulation.

“Transmission service”, the delivery of electricity to a retail customer,
supplier, distribution company, or wholesale customer
by a transmission company.

“Unbundled rates”, rates designed to separate the costs of providing
generation, the costs of transmission and distribution
services, and transition and general access charges.

“Vertical market power”, a situation in which one or a few market
participants, having joint ownership of facilities at
differing levels of the chain of production, such as generation, transmission,
and distribution, possess the ability to use such joint ownership to
influence price to the participants’ own benefit.

“Wholesale generation company”, a company engaged in the business of
producing, manufacturing, or generating electricity for
sale at wholesale only.

SECTION 193.
Said chapter 164 is hereby further amended by
inserting
after section 1 the following eight sections:-

Section 1A. (a) The department is hereby authorized and directed to
require electric companies organized pursuant to the provisions of this
chapter to accommodate retail access to generation services and choice of
suppliers by retail customers, unless otherwise provided by this chapter.
Such companies shall file plans that include, but shall not be limited to, the
provisions set forth in this section.

On or before January 1, 1998, each electric company organized under the
provisions of this chapter, which has not filed a plan prior to the enactment
of this section, shall file with the department a detailed plan for
restructuring its operations to allow for the introduction of retail
competition
in generation supply in accordance with the provisions of this chapter. The
department shall review each plan and make an express finding to
determine whether such plan is consistent or substantially complies with the
provisions of this chapter. An electric company that has filed a plan
which substantially complies or is consistent with this chapter as determined
by the department shall not be required to file a new plan, and the
department shall allow such plans previously approved or pending before the
department to be implemented. Approval of such previously filed or
approved plans shall be deemed to satisfy the requirements contained in
section 1G including for the department to conduct an audit of previously
incurred costs and find reasonable mitigation of transition costs, and shall
allow the department to approve charges for transition costs, provided
that the department shall audit, review and reconcile the difference between
projected transition costs and actual transition costs by March 1, 2000,
and every 18 months, thereafter and provided that such approved plans provide a
reduction of 10% for customers choosing the standard service
transition rate from the average of undiscounted rates for the sale of
electricity in effect during August 1997 or such other date as the department
may determine. Each plan shall be designed to implement a restructured
electric
generation market by March 1, 1998. Each electric company shall offer
retail access to all customers as of said date. The department may issue an
initial order prior to March 1, 1998, approving any plan filed pursuant
to this section subject to further review and reconciliation in order to allow
implementation of retail access for all customers after March 1, 1998.

Each restructuring plan shall include, without limitation, the following: an
estimate and detailed accounting of total transition costs eligible for
recovery pursuant to subsection (b) of section 1G; a description of the
company’s strategies to mitigate such transition costs; unbundled
prices or rates for generation, distribution, transmission, and other services;
proposed charges for the recovery of transition costs; proposed
programs to provide universal service for all customers; proposed programs and
recovery mechanisms to promote energy conservation and demand-side
management; procedures for ensuring direct retail access to all electric
generation suppliers; and discussions of the impact of the plan on the
company’s employees and the communities served by the company.

The department shall review the restructuring plan filed by each electric
company and shall issue an order accepting, modifying, or rejecting such
plan at the earliest date possible. If the department rejects a restructuring
plan, the department shall state the specific reasons for rejection and
direct the company to file an alternative plan addressing these objections
within 30 days of the department’s order rejecting the plan. The
department shall review this alternative plan and issue a final order within 60
days of the filing of the revised plan.

(b)(1) If an electric company chooses to divest itself of its existing
non-nuclear generation facilities, such electric company shall transfer or
separate ownership of generation, transmission, and distribution facilities
into independent affiliates of the electric company or functionally
separate such facilities within 30 business days of federal approval. The
transmission facilities owned by the electric company, including all
rights-of-way, property, fiber optic cable, and other tangible or intangible
assets
used directly or indirectly by the utility in the transmission of
electricity, as of December 31, 1996, or acquired thereafter, shall be
transferred to a transmission company at a price that shall equal the book
value of said transmission facilities on the electric company’s accounts net of
depreciation as of the date of transfer. The distribution
facilities owned by an electric company, including all rights-of-way, property,
fiber optic cable, and other tangible or intangible assets used
directly or indirectly by the utility in the distribution of electricity, as of
December 31, 1996, or acquired thereafter, shall be transferred to a
successor distribution company at a price that shall equal the book value of
the distribution facilities on the electric company’s accounts net
of depreciation as of the date of transfer. The newly created distribution
companies shall be prohibited from selling electricity at retail, except
as provided in sections 1B to 1F, inclusive, and shall be prohibited from
directly owning, operating, or controlling transmission facilities,
generating facilities, or marketing affiliates, and shall be prohibited from
selling, leasing, renting, or otherwise transferring all or a portion of
any assets it obtains from the utility pursuant to this section without the
expressed approval of the department. In providing such approval, the
department shall conduct evidentiary hearings and must issue a finding that
such transfers will mitigate to the maximum extent possible the total
amount of transition costs of the utility and will minimize the impact of
recovery of transition costs on ratepayers in the commonwealth. Except as
otherwise provided in this section, an electric company divesting existing
non-nuclear generation facilities shall be in no way disadvantaged by
virtue of the fact that it has or plans to divest its existing electricity
generating facilities. In the event that an electric company chooses to
divest its existing generation facilities, such electric company shall
demonstrate to the department that the sale process is equitable and maximizes
the value of the existing generation facilities being sold.

(2) For the purposes of this section and sections 1B to 1H, inclusive, the
requirement to divest generation facilities shall be deemed satisfied if
an electric company divests its non-nuclear generation facilities by (i)
selling such non-nuclear facilities in a competitive auction or sale in a
process approved by the department which shall ensure complete, uninhibited, non-discriminatory access to all data and information by any and all
interested parties seeking to participate in such auction or sale; provided, however, that an affiliated company may participate and bid in such
competitive auction or sale; or (ii) transferring such non-nuclear generation facilities and purchase power contracts to an affiliated company at a
value determined to be reasonable and appropriate by the department including but not limited to a value based on the sale value of comparable plants
through prior divestiture actions; provided, however, that in no instance shall
such minimum price be lower than the highest price per kilowattage of
capacity for any capacity sold in New England, as determined by the department;
provided, further, that in the case of the divestiture of any non-nuclear
generation facility currently containing only combustion turbine generation
capacity of less than 50 megawatts but situated on a site
containing free standing retired or unused structures formerly containing steam
electric generating units of greater than 200 megawatts capacity, the
electric company so divesting shall cause, either through its own efforts prior
to said divestiture or through assignment of such obligation to the
purchaser of each facility in an agreement approved by the department, said
unused structures to be appropriately removed and decommissioned, which
may be subject to a re-use plan. The minimum price for the transfer of such
assets pursuant to this paragraph shall be determined and approved by the
department prior to any such proceeding.

(3) All proceeds from any such divestiture and sale of generation facilities
pursuant to paragraphs (1) and (2), net of tax effects and less any
other adjustments approved by the department that inure to the benefit of
ratepayers, shall be applied to reduce the amount of the selling electric
company’s transition costs.

(c) If an electric company chooses not to sell its existing non-nuclear
generation facilities, then the electric company’s recovery of
transition costs shall be net of any market value in excess of book value of
the non-divested non-nuclear facilities, as determined in this section
and in accordance with section 1G, and it shall transfer all of its
non-nuclear
generation facilities and purchased power contracts to an affiliate
that is a generating company at a price to be determined and approved by the
department herein prior to any such proceeding; and in accordance with
subsection (b). Such generation company affiliate shall exist separate from
and independent of the distribution and transmission operations of such
electric company. There shall exist strict separation between such generation
affiliate and the distribution and transmission operations of such
electric company. Both nuclear and non-nuclear generation facilities and the
electric company’s purchased power contracts shall be subject to a
valuation by the department where such facilities are either sold or assessed
by an assessor independent of the electric company or otherwise valued
pursuant to the provisions of this chapter, to determine the maximum market
value of such assets that could reasonably be realized after an open and
competitive sale, and the electric company’s recovery of transition costs shall
be net of any market value in excess of book value as
determined in this section in a competitive market. A generation company
formed pursuant to this section shall be prohibited from acquiring new
generation facilities as of March 1, 1998. If an electric company chooses not
to divest all of its non-nuclear generating facilities, then the
electric company’s recovery of transition costs shall be net of any
market value in excess of book value of the non-divested non-nuclear
facilities, as determined in this section and in accordance with section 1G.
Such electric company shall not be assessed or charged any costs
through its rates established by the department to transfer such generation
facilities to an unregulated affiliate or subsidiary or as a consequence
of transferring such generation facilities to an unregulated affiliate or
subsidiary; provided, however, that should any generation facility so
transferred to an unregulated subsidiary be further sold, transferred to, or
disposed of, to a third party within 48 months of the generation facility’s
transfer to an unregulated affiliate or subsidiary of the electric
company, then any amount recovered in such a sale, transfer, or
disposition in excess of the remaining net book value of the generation
facility shall be applied to reduce the amount of the selling electric
company’s
transition costs. Except as otherwise provided in this section, an electric
company retaining all or a portion of its existing generation
facilities shall be in no way disadvantaged by virtue of the fact that it is so
retaining existing generation facilities.

(d) In the event that (i) an electric company with generation facilities in
the commonwealth owns, or has an affiliate that owns, generation
facilities in another state in the New England region, and (ii) an electric
company or its affiliate continues to operate one or more generation
facilities in another state in the New England region, then the electric
company, should it choose not to divest its existing fossil-fuel fired
generation facilities and its existing hydroelectric generation facilities,
shall be allowed for purposes of efficiency and local ownership of local
generation facilities, to retain any such facilities as set forth in subsection (c); provided, however, that an electric company not divesting its
existing fossil-fuel fired and hydroelectric generation facilities shall not
recover through rates, charges, or elsewhere any amount of transition
costs associated with the retained existing fossil-fuel fired generation
facilities and existing hydroelectric generation facilities. Each reference
to existing generation facilities in this section shall include, without
limitation, existing generation facilities, regardless of size, and
associated property. The department should determine a value for any
facilities retained pursuant to this subsection and reduce the amount of the
electric company’s transition costs by such value in accordance with subsection (b).

(e) A generation company shall not be subject to regulation as a public
utility or as an electric company, except as specifically provided in this
chapter. A wholesale generation company shall be subject to regulation only as
specifically provided in this chapter.

Section 1B. (a) The department shall define service territories for each
distribution company by March 1, 1998, based on the service
territories actually served on July 1, 1997, and following to the extent
possible municipal boundaries. After March 1, 1998, until terminated by
effect of law or otherwise, the distribution company shall have the exclusive
obligation to provide distribution service to all retail customers
within its service territory, and no other person shall provide distribution
service within such service territory without the written consent of
such distribution company which shall be filed with the department and the
clerk of the municipality so affected.

(b) Each distribution company shall provide a standard service transition
rate to those customers who are within said company’s service
territory and who choose not to purchase electricity from a non-affiliated
generation company after March 1, 1998. A distribution company shall
provide a standard service transition rate which, together with the
transmission, distribution, and transition charges, produces for such a service
package for all retail customers including the facilities on Deer island
operated by the Massachusetts Water Resources Authority, prior to the
implementation of securitization pursuant to section 1H and the application of
a residual value credit pursuant to section 1A or the deduction of the
market value of generation facilities pursuant to said section 1A, a rate
reduction of at least 10 per cent beginning on March 1, 1998. Said reduction
shall be applied against the average of the undiscounted rates for the sale of
electricity in effect during August 1997 or such other date as the
department may determine to be representative of 1997 rates for such company,
but excluding customers with contracts for electricity sales that
provide for percentage discounts below cost-based or tariffed rates executed
and approved by the department prior to January 1, 1997. Upon the
approval by the department of (i) a financing order to implement securitization
pursuant to section 1H or (ii) the residual value credits from
divestitures or market valuations for such a company, the distribution company
shall apply the net proceeds from the divestiture and the net savings
from the securitization. The total rate reduction, net proceeds from the
divestiture and the net savings from securitization, in combination with
the rate reduction implemented by or on March 1, 1998, shall be 15 per cent on
or before September 1, 1999, applied against the rate adjusted for
inflation from August 1997 or such other date as the department may determine
to be representative of 1997 rates for such company, which was the
benchmark for the March 1, 1998, rate reduction; provided, however that a
company unable to meet the rate reduction required under this section shall
be subject to the provisions of paragraph (3) of subsection (c) of
section 1G.
The standard service transition rate shall be offered for a transition
period of seven years at prices and on terms approved by the department and
shall require a distribution company to purchase electricity after a
competitive bid process that is reviewed and approved by the department. Any
customer who has chosen retail access from a non-affiliated generation
company but who otherwise requires electric service due to said generation
company’s failure to provide contracted service shall be eligible
for service through the distribution company’s default service provided
pursuant to the provisions of subsection (d).

(c) Effective March 1, 1998, no electric company regulated by the department
and no affiliate of such electric company shall be allowed to use the
distribution system of another electric company or make sales, either directly
or indirectly through third parties, to end-use customers in another
electric company’s service territory unless the department has approved a
restructuring plan for the supplying electric company which provides
for comparable direct access to end-use customers within its own distribution
service territory or the supplying electric company has entered into an
agreement, on or before January 1, 1997, for direct access to an end-use
customer located on the border of its service territory, in which event the
department shall authorize service by an electric company to such end-use
customer. No electric company and no affiliate of such electric company
shall be allowed to prohibit sales of electricity or restrict such sales
through non-comparable distribution charges to end-use customers in its
service territory by another electric company or its affiliate operating under
a restructuring plan approved by the department.

(d) Beginning on March 1, 1998, each distribution company shall provide its
customers with default service and shall offer a default service rate to
its customers who have chosen retail electricity service from a non-utility
affiliated generation company or supplier but who require electric
service because of a failure of such company or the supplier to provide
contracted service or who, for any reason, have stopped receiving such
service, and to all customers at the end of the term of the standard offer.
The
distribution company shall procure such service through competitive
bidding; provided, however, that the default service rate so procured shall not
exceed the average monthly market price of electricity; and provided,
further, that all bids shall include payment options with rates that remain
uniform for periods of up to six months. Any department-approved provider
of service, including an affiliate of a distribution company, shall be eligible
to participate in the competitive bidding process. Notwithstanding
the actual issuer of a ratepayer’s bill, the default service provider shall be
entitled to furnish a one-page insert accompanying the ratepayer’s bill. The
department may authorize an alternate generation company or
supplier to provide default service, as described herein, if such
alternate service is in the public interest. In implementing the provisions of
this section, the department shall ensure universal service for all
ratepayers and sufficient funding to meet the need therefor.

(e) As of March 1, 1999, the total, average rates for all of the
distribution company’s customers purchasing electricity under said standard
service transition rate, shall be subject to an inflation cap through the
remainder of the standard offer period. The calculation and implementation
of the rate reduction and the inflation cap shall be subject to adjustment,
review, and approval in accordance with procedures in the rules and
regulations promulgated by the department, which shall require that, the
economic value of the rate reduction required under this section, be
maintained during the standard service transition rate period.

(f) The department is hereby authorized and directed to promulgate rules and
regulations necessary to carry out the provisions of this section,
including the procedure for default service procurement and governing a
customer’s ability to return to the standard service after choosing
retail access from a non-utility affiliated generation company.

Section 1C. Any marketing company formed by an electric company shall be in
the form of an affiliate of the electric company and shall be
separate from any generation, transmission, or distribution company affiliate
of the electric company. The department shall promulgate standards of
conduct which shall ensure the separation of such affiliates and which shall be
consistent with the following provisions: (i) a distribution company
shall not give any affiliates any preference over non-affiliated suppliers or
customers thereof in matters relating to any product or service; (ii)
all products, services, discounts, rebates, and fee waivers offered by a
distribution company shall be available to all customers and suppliers
simultaneously, to the extent technically possible, on a comparable basis;
(iii) a distribution company shall process all same or similar requests
for any product, service, or information in the same manner and within the same
period of time; (iv) a distribution company shall not condition or
tie the provision of any product, service, or rate agreement by the
distribution company to the provision of any product or service to which an
affiliate is involved; (v) a distribution company shall not share with any
affiliate any market information acquired or developed by the distribution
company in the course of responding to requests for distribution service or any
proprietary customer information without the prior written
authorization by the customer; (vi) a distribution company shall refrain from
presenting that any advantage accrues to customers or others in the use
of its services as a result of that customer or others dealing with any such
affiliate; (vii) a distribution company shall not engage in joint
advertising or marketing programs with any affiliate; and (viii) employees of a
distribution company shall not be shared with, and shall be
physically separated from those of, any generating or marketing affiliate.

Section 1D. Beginning January 1, 1998, all electric and gas bills sent to a
retail customer shall be unbundled to separately reflect the rates
charged for generation, transmission, and distribution services, as well as any
other charges, as added pursuant to any provision of law, contained
in the total retail price. Any transition charge, if so allowed to be
assessed, shall be reflected separately on bills as of March 1, 1998. Electric
and gas bills may reflect the total costs of services, without breakdown for
type of service, in addition to, but not instead of, separately itemized
rates for generation, transmission, and distribution services and transition
charges as of March 1, 1998. Not later than six months after said March
1, in order to promote customer choice and convenience in a restructured
electricity and gas market, distribution companies shall create and send
bills to retail customers pursuant to either of the following billing
options: (1) single bill from the distribution company that shows such
charges; or (2) two bills: one from the non-utility supplier that shows
energy-related charges, and one from the distribution company that shows
distribution-related charges; provided, however, that all bills shall contain
information concerning the quantity of gas or electricity consumed by
said customer during the same billing period for the previous year. Costs for
such inserts shall be apportioned accordingly between the parties. The
department is hereby authorized and directed to determine whether any
additional information shall be required to be disclosed on the bills and to
promulgate rules and regulations to implement the provisions of this
subsection. Rules and regulations relative to the appeals process for billing
disputes or damage claims made by customers shall be published and distributed
to customers as part of an education and outreach program.

Section 1E. (a) The department is hereby authorized to promulgate rules
and regulations to establish and require performance based rates for
each distribution, transmission, and gas company organized and doing business
in the commonwealth pursuant to the provisions of this chapter. In
promulgating such performance based rate schemes, the department shall
establish service quality standards each distribution, transmission, and gas
company, including, but not limited to, standards for customer satisfaction
service outages, distribution facility upgrades, repairs and maintenance,
telephone service, billing service, and public safety provided, however, that
such service quality standards shall include benchmarks for employee
staff levels and employee training programs for each such distribution,
transmission, and gas company.

(b) In complying with the service quality standards and employee benchmarks
established pursuant to this section, a distribution, transmission, or
gas company that makes a performance based rating filing after the effective
date of this act shall not be allowed to engage in labor displacement or
reductions below staffing levels in existence on November 1, 1997, unless such
are part of a collective bargaining agreement or agreements between
such company and the applicable organization or organizations representing such
workers, or with the approval of the department following an
evidentiary hearing at which the burden shall be upon the company to
demonstrate that such staffing reductions shall not adversely disrupt service
quality standards as established by the department herein. Nothing in this
paragraph shall prevent reduction of forces below the November 1, 1997
level through early retirement and severances negotiated with labor
organizations before said date.

(c) Each distribution, transmission, and gas company shall file a report
with the department by March first of each year comparing its performance
during the previous calendar year to the department’s service quality standards
and any applicable national standards as may be adopted by the
department. The department shall be authorized to levy a penalty against any
distribution, transmission, or gas company which fails to meet the
service quality standards in an amount up to and including the equivalent of 2
per cent of such company’s transmission and distribution
service revenues for the previous calendar year.

(d) The department is authorized and directed to promulgate regulations
relative to an alternative dispute resolution process for the handling of
damage claims by customers in an amount under $100. The department shall
establish a 60 day timeline for the resolution of all mediation claims. The
department shall issue a biannual report to the house and senate clerks and
the joint committee on government regulations which shall include,
but not be limited to, the following information: nature of consumer claims,
number of consumer claims and resolutions of consumer claims reviewed by
the department during the previous six months. Said report shall be available
for public review at the department.

Section 1F. The department is hereby authorized and directed to require
electric companies organized pursuant to this chapter to accommodate
retail access to generation services and choice of suppliers by retail
customers, unless otherwise provided by this chapter. The department shall
promulgate rules and regulations to provide retail customers with the utmost
consumer protections contained in law, including, but not limited to,
the following provisions:

(1) The department shall license to do business in the commonwealth all
generation companies, aggregators, suppliers, energy marketers, and energy
brokers in accordance with the provisions of subparagraphs (i), (ii), and
(iii). The department shall maintain a list of all licensed generation
companies, aggregators, energy brokers, energy marketers, and suppliers, which
shall be available to any consumer requesting such information through
the department for a reasonable fee.

(i) All generation companies shall submit a license application to the
department for approval to sell electric power or provide generation services
within the commonwealth. Such application shall include the following: the
company’s technical ability, as defined pursuant to regulations
promulgated by the department, to generate or otherwise obtain and deliver
electricity and provide any other proposed services; documentation of
financial capability of the applicant to provide the proposed services; a
description of the company’s form of ownership; and documentation
regarding any valid purchase power contracts between the company, the
company’s affiliates, or the company’s parent or subsidiary, and
any electric company formed pursuant to the provisions of this chapter. A
license shall not be granted unless and until all of the above information
is provided with the payment of a fee, the amount to be determined by the
department.

(ii) All private, non-profit, or co-operative aggregators established
pursuant to sections 135 and 136 seeking to do business in the commonwealth
shall submit a license application to the department, subject to rules and
regulations promulgated by the department and subject to the payment of a
fee, the amount to be determined by the department.

(iii) All energy brokers, energy marketers, and other suppliers seeking to
do business in the commonwealth shall submit a license application to the
department, subject to rules and regulations promulgated by the department and
subject to the payment of a fee, the amount to be determined by the
department.

(2) Pursuant to this paragraph, the department shall promulgate rules and
regulations which shall include, but not be limited to, the following
provisions: (i) a requirement that all distribution companies, generation
companies, aggregators, marketers and suppliers notify their customers in
writing of the terms of their agreement to provide service at the time service
is initiated, a formal procedure allowing a customer to file a
complaint against a distribution or generation company, aggregator, or
supplier; and (ii) a formal dispute resolution procedure developed in
consultation with the Massachusetts office of dispute resolution, which shall
include options for mediation, arbitration, facilitation or other
dispute resolutions methods. Under such procedure, the department or a
professional neutral provided by the Massachusetts office of dispute
resolution and approved by the department will assist in resolving disputes
between any customer and a distribution or generation company,
aggregator, or supplier against which a complaint is issued, subject to a
penalty determined by the department, including any fines authorized by
paragraph (7). No distribution or generation company may disconnect or
discontinue service to a customer for a disputed amount if that customer has
filed a complaint which is pending with the department.

(3) The department is hereby authorized and directed to establish rules and
regulations to (i) promote effective competition; (ii) to investigate
disputes; (iii) to institute a complaint mechanism for the resolution of
disputes, including, but not limited to, those arising from alleged vertical
or horizontal market power abuses; (iv) to hear such disputes in the first
instance at an informal level and, if requested, at a formal hearing
before the department; (v) to refer complaints to the attorney general where
appropriate; and (vi) to impose fines or penalties, including when
appropriate a reduction in return on equity of a regulated distribution
company, for violations of any regulations establishing the corporate rules
of conduct.

(4)(i) The department shall require that distribution companies provide
discounted rates for low income customers comparable to the low-income
discount rate in effect prior to March 1, 1998. Said discount shall be in
addition to any reduction in rates that becomes effective pursuant to said
subsection (b) of said section 1B on March 1, 1998, and to any subsequent
rate
reductions provided by a distribution company after said date pursuant
to said subsection. The cost of such discounts shall be included in the rates
charged to all other customers of a distribution company. Each
distribution company shall guarantee payment to the generation supplier for all
power sold to low-income customers at said discounted
rates. Eligibility for the discount rates established herein shall be
established upon
verification of a low-income customer’s receipt of any means tested public
benefit, or verification of eligibility for the low-income home
energy assistance program, or its successor program, for which
eligibility does not exceed 175 per cent of the federal poverty level based on
a household’s gross income. Said public benefits may include,
but are not limited to, assistance which provides cash, housing, food, or
medical care, including, but not limited to, transitional assistance for
needy families, supplemental security income, emergency assistance to elders,
disabled, and children, food stamps, public housing, federally-subsidized or
state-subsidized housing, the low-income home energy assistance
program, veterans’ benefits, and similar benefits. The division
of energy resources shall make available to distribution companies the
eligibility guidelines for said public benefit programs. Each distribution
company shall conduct substantial outreach efforts to make said low-income
discount available to eligible customers and shall report to said
division, at least annually, as to its outreach activities and results.
Outreach may include establishing an automated program of matching customer
accounts with lists of recipients of said means tested public benefit programs
and based on the results of said matching program, to presumptively
offer a low-income discount rate to eligible customers so identified; provided,
however, that the distribution company, within 60 days of said
presumptive enrollment, informs any such low-income customer of said
presumptive enrollment and all rights and obligations of a customer under said
program, including the right to withdraw from said program without penalty.

Not later than March 1, 1999 the department shall conduct an investigation
and
report to the joint committee on government regulations regarding the
cost and benefits of expanding eligibility for the discount rates established
in clause (i) of subparagraph (4) of the first paragraph of section 1F
to any low-income customer who is eligible for any means tested public benefit
for which eligibility does not exceed 175 per cent of the federal
poverty level based on gross household income. The department shall further
provide to said committee any legislative recommendations necessary to
implement this section.

(ii) Prior to the termination of the seven year period of the standard
service
transition rate, the department shall, in consultation with said
division, evaluate the effects of electricity restructuring on the
affordability of electric power for low-income customers. The department shall
make recommendations to the general court relative to the continuation of the
low-income discount rate authorized pursuant to this subsection or to
make modifications thereto. The department shall, in its recommendations,
consider whether or not to modify said discount by establishing a sliding
scale low-income discount program.

(iii) A residential customer eligible for low-income discount rates shall
receive the service on demand and may return to standard offer service at
any time including from default service. Each distribution company shall
periodically notify all customers of the availability of and method of
obtaining low-income discount rates and standard offer service. An existing
residential customer eligible for low-income discount on the date of
start of retail access who orders service for the first time from a
distribution company shall be offered standard offer service by that
distribution
company. A residential customer eligible for low-income discount receiving
standard offer service shall be allowed to retain standard offer service
upon moving within the service territory of a distribution company.

(iv) There shall be no charge to any residential customer for initiating
or
terminating low-income discount rates, default service, or standard offer
service when said initiation or termination request is made after a regular
meter reading has occurred and the customer is in receipt of the results
of said reading. A distribution company may impose a reasonable charge, as set
by the department through regulation, for initiating or terminating low-income
discount rates, default service, or standard offer service when a
customer does not make such an initiation or termination request upon the
receipt of said results and prior to the receipt of the next regularly
scheduled meter reading. For purposes of this subsection, there shall be a
regular meter reading conducted of every residential account no less often than
once every two months. Notwithstanding the foregoing, there shall be
no charge when the initiation or termination is involuntary on the part of the
customer.

(5)(i) Before service is initiated by a generation company, aggregator, or
supplier to any customer, the generation company, aggregator, or supplier
shall disclose information on rates and other information to a customer in a
written statement which the customer may retain. The department shall
promulgate rules and regulations prescribing the form, content, and
distribution of such information to be disclosed, which shall include, but not
be
limited to, the following: the disclosure of the rate to be charged; whether
the generation company or supplier operates under collective bargaining
agreements and whether such generation company or supplier operates with
employees hired as replacements during the course of a labor dispute; any
charges, fees, penalties, or other conditions imposed upon a customer should he
or she choose to purchase power from another generation company,
aggregator, or supplier during the term specified in the contract; the fuel mix
and emissions of the generation sources; whether a credit agency will
be contacted; deposit requirements and the interest paid on deposits; due date
of bills and all consequences of late payment; consumer rights where a
bill is estimated; consumer rights of third-party billing and like
arrangements; consumer rights to deferred payment arrangements; low-income
rates;
limits, if any, on warranty and damages; the applicable provisions of this
section; the provisions for default service; a toll-free telephone number
for service complaints; any other fees, charges, or penalties; and the methods
by which a consumer shall be notified of any changes to any of these
items. A generation company, a supplier, or an aggregator licensed by the
department to do business in the commonwealth pursuant to this section
shall prepare an information booklet describing a customer’s rights under the
provisions of this chapter. Such company, supplier, or aggregator
shall annually mail this booklet to its customers.

(ii) A generation company, an aggregator, or a supplier shall be allowed
to
advertise the percentage of its power or energy portfolio that is
generated by employers that operate under collective bargaining agreements or
that operate with employees hired as replacements during the course of
a labor dispute or that connotes or signifies to the ratepayer the relative
environmentally beneficial effects of the power or energy sold by said
generation company, an aggregator, or a supplier pursuant to rules and
regulations promulgated by the department.

(iii) In addition to the disclosure requirements provided for in
subparagraphs (i) and (ii), the department shall promulgate such rules and
regulations prescribing information to be disclosed by a generation company in
any advertising or marketing of electricity rates, which regulations
shall include, but not be limited to, disclosure of the rate to be charged in
bold print in the case of print advertisements or through clear spoken
language in the case of television or radio advertisements and on any monthly
billing materials. The department shall coordinate with the attorney
general to avoid duplication and to ensure consistency with the attorney
general’s regulations.

(6) The department shall promulgate uniform labeling regulations which shall
be applicable to all suppliers as a condition of licensure pursuant to
paragraph (1). Such information to be required by regulation in said labeling
shall include price data, information on price variability, and
customer service information and information about whether the generation
company or supplier operates under collective bargaining agreements and
whether such generation company or supplier operates with employees hired as
replacements during the course of a labor dispute, fuel sources, and air
emissions of sulfur dioxide, nitrogen dioxides, carbon dioxide, heavy metals,
and any other emission which the department may determine causes
significant health or environmental impact and for which sufficiently accurate
and reliable data is available. The department shall require that such
an electricity information label provide prospective and existing customers
with adequate information by which to readily evaluate power supply
options available in the market. Electricity suppliers shall be required to
present such information, including information about the environmental
characteristics of the sale of electric power products and services and whether
the generation company or supplier operates under collective
bargaining agreements and whether such generation company or supplier operates
with employees hired as replacements during the course of a labor
dispute to customers, in conformance with department requirements as to form
and substance, and shall comply with federal and state laws governing
unfair advertising and labeling.

(7) The department shall establish a code of conduct applicable to the
provision of distribution and transmission services and the retail sale of
electricity to all customers, including, but not limited to, rules and
regulations governing the confidentiality of customer records, metering,
billing, and information systems, and conformance with fair labor practices.
The department is authorized and directed to oversee quality and
reliability of service and to require that quality and reliability are the same
as or better than levels that exist on November 1, 1997. The
department is authorized and directed to retain or make increasingly protective
of retail ratepayers the rules adopted by the department and codified
at Title 220 of the Code of Massachusetts Regulations, sections 25, 27, 28, and
29, and the policies reflected in the department’s adjudication
of customer complaints, and, notwithstanding anything in this chapter to the
contrary, shall continue to apply them to generation and thus to all
generation companies, generation facilities, aggregators, and suppliers. The
department is authorized and directed to promulgate rules and
regulations to establish service quality standards for each distribution,
transmission, and gas company, including, but not limited to, standards for
universal service, customer satisfaction, service outages, telephone service,
billing service, and public and employee safety. Any person, firm,
electric or generation company, supplier, or other corporation doing business
in the commonwealth who violates any provisions of said code or of any
rule or regulation promulgated by the department pursuant to sections 1A to
1H,
inclusive, or any provision of chapter 93A, pursuant to authority
established by section 102C, shall be subject to a civil penalty not to exceed
$25,000 for each violation for each day that the violation persists;
provided, however, that the maximum civil penalty shall not exceed $1,000,000
for any related series of violations. Any such civil penalty shall be
determined by the department after a public hearing. In determining the amount
of the penalty, the department shall consider the following: the
appropriateness of the penalty to the size of the business of the person, firm,
or corporation charged; the gravity of the violation; and the good
faith of the person, firm, or corporation charged in attempting to achieve
compliance after notification of a violation.

(8)(a) Each customer choosing
a generation company or its affiliate, subsidiary, or parent company, or a
supplier or aggregator shall be required to affirmatively choose such
entity. It shall be unlawful for a generation company, supplier, or aggregator
to provide power or other services to such a customer without first
obtaining said affirmative choice from the customer. For the purposes of this
section, the term “affirmative choice” shall mean the
signing of a letter of authorization, third party verification, or the
completion of a toll-free call made by the customer to an independent third
party operating in a location physically separate from the telemarketing
representative who has obtained the customer’s initial oral
authorization to change to a new electricity provider. For the purposes of
this
section, the term “third party verification” shall mean
an appropriately qualified and independent third party operating in a location
physically separate from the telemarketing representative who has
obtained the customer’s oral authorization to change to a new electricity
service provider, such authorization to include appropriate
verification data, such as the customer’s date of birth and social security
number; provided, however, any such information or data in the
possession of the third party verifier or the marketing company shall not be
used, in any instance, for commercial or other marketing purposes, and
shall not be sold, delivered, or shared with any other party for such
purposes. Such authorization shall include appropriate verification data, such
as
the customer’s date of birth and social security number; provided, however, any
information or data in possession of the independent third
party verifier or the marketing company shall not be used, in any instance, for
commercial or other marketing purposes, and shall not be sold,
delivered, or shared with any other party for such purposes.

For the purposes of this section, the term “letter of authorization” shall
mean, (i) a separate document, an easily separable document
containing only the authorizing language described in paragraph (d),
whose sole purpose is to authorize a generation company,
aggregator, or supplier to initiate a primary generation company, aggregator,
or supplier change. The letter of authorization must be signed and
dated by the consumer requesting the primary generation company, aggregator, or
supplier change.

(ii) The letter of authorization shall not be combined with inducements of
any kind on the same document.

(iii) At a minimum, the letter of authorization must be printed with a
readable type of sufficient size to be clearly legible and must contain clear
and unambiguous language that confirms:

(1) The consumer’s billing name and address;

(2) The decision to change electricity service from the current generation
company, aggregator, or supplier to the prospective generation company,
aggregator or supplier;

(3) That the consumer understands that only one generation company,
aggregator, or supplier may be designated as the consumer’s electric
company; and

(4) That the consumer understands that any primary generation company,
aggregator, or supplier selection the consumer chooses may involve a charge to
the consumer for changing the consumer’s primary generation company,
aggregator, or supplier.

(iv) Letters of authorization shall not suggest or require that a consumer
take some action in order to retain the consumer’s current
generation company, aggregator, or supplier.

(v) If any portion of a letter of authorization is translated into another
language, then all portions of the letter of authorization must be
translated into that language.

Each customer choosing a generation company or its affiliate, subsidiary, or
parent company, a supplier or aggregator shall have the right to
rescind, without charge or penalty, his or her choice of generation company,
aggregator, or supplier no later than midnight on the third day
following the customer’s receipt of a written confirmation of an agreement to
purchase electricity. Upon the switching of a customer’s
service provider, there shall be included in the customer’s first bill an
acknowledgment to be completed by the customer agreeing to the service
switch. Such bill shall also include all information mandated under
clause (i)
of subparagraph (5).

Each customer choosing a generation company or its affiliate subsidiary, or
parent company, a supplier or aggregator shall have the right to rescind,
without charge or penalty, the choice of generation company, aggregator, or
supplier no later than midnight on the third day following the customer’s
receipt of a written confirmation of an agreement to purchase
electricity and a statement of the terms and conditions of service as
described in subsection (5)(i). Upon switching of a customer’s service
provider, there shall be included in the customer’s bill for
distribution service an acknowledgment of the service switch, along with
information on how to file a complaint regarding an unauthorized switch.

(b) A customer may initiate a complaint that his retail electricity service
has been switched by or to another service provider without his prior
authorization. Said complainant shall file the complaint with the department
within 30 days after the statement date of the notice indicating that
the customer’s retail electricity service has been switched. The department
shall, within 10 business days of receiving the complaint, request
from the customer a copy of the customer’s electricity bill, the name of the
original service provider, the name of the new service provider,
and any other information the department may deem relevant. The customer
shall,
within 15 business days of the department’s notifying the
customer, submit to the department the requested information. Within 15
business days of receiving the request of information from the customer, the
department shall send (i) to the customer, a letter acknowledging receipt of
the information; (ii) to the original service provider, a letter
informing it of the pending complaint and requesting it to provide information
relevant to the service switch; and (iii) to the new service provider,
a letter informing it of the pending complaint, requesting the proof of the
customer’s affirmative choice to switch his service provider, and
requesting it to provide other information the department deems relevant. The
original service provider and the new service provider shall, within five
business days of the department’s request, return the requested information to
the department. Within 25 business days after receiving a copy
of the customer’s third party verification and all relevant information as
required herein, the department shall determine if the customer
authorized the new service provider to switch the customer’s service.

(c) If the department determines that the new service provider does not
possess the required proof of the customer’s affirmative choice, the
department shall calculate and require the new service provider to refund the
following: (i) to the customer, the difference between what the
customer would have paid to the previous service provider and actual charges
paid to the new service provider; (ii) to the customer, any reasonable
expense the customer incurred in switching back to the original service
provider; and (iii) to the original service provider, any lost revenue, which
shall consist of the amount of money the original service provider would have
received for the service used by the customer during the time the
customer received services from the new service provider if the
customer’s service had not been switched. This amount shall gross,
irrespective
of expenses, what the original service provider would have reasonably incurred
providing the services to the customer. The department shall
promulgate rules and regulations for the implementation of this subsection.

(d) Any generation company, supplier, or aggregator determined by the
department to have switched any customer’s service provider without
proper authorization from the customer one or more times in a 12 month period
shall be subject to a civil penalty not to exceed $1,000 for the first
offense and not less than $2,000 nor more than $3,000 for any subsequent
offense per customer. In determining the amount of the civil penalty, the
department shall consider the nature, circumstances, and gravity of the
violation, the degree of the respondent’s culpability, and the
respondent’s history of prior offenses.

(e) Any generation company, supplier, or aggregator determined to have
switched any customer’s service provider without proper authorization
more than 20 times in a 12 month period may, after a full hearing and
determination by the department that such generation company supplier
or aggregator intentionally, maliciously or fraudulently switched the service
or more than 20 customers in a 12 month period, be prohibited
from selling electricity in the commonwealth for a period of up to one year. In
determining the length of suspension, the department shall consider
the nature, circumstances and gravity of each violation and the degree of the
culpability of the generation company, supplier or aggregator.

(f) The department shall track instances in which a generation company,
supplier, or aggregator switched a customer’s electricity service
without the customer’s prior authorization. The department shall keep a record
of all unauthorized switches which occurred during a calendar
year. Beginning with calendar year 1999, the department shall, by March 31 of
each year, file an annual report with the joint committee on government
regulations and the house and senate committees on ways and means detailing the
total number of unauthorized switches, enforcement procedures
undertaken by the department against such slamming tactics, so-called, the
total amount of dollars returned to customers, the total amount of dollars
collected in civil penalties pursuant to subsection (c), and the overall
impact
of the provisions of this section.

(9) Distribution companies which have at any time in the past three years
billed their commercial or industrial customers, including institutional
customers, in part on a demand basis, shall, in response to a customer’s
written request, provide such customers with a complete and accurate
historic record of monthly demand profiles. Distribution companies shall be
required to exercise best efforts to furnish such data to the customer on
a timely basis. At a distribution company’s election, the data may be provided
in written form or electronically; provided, however, that, in
the case of an electronic response by the distribution company, the
distribution company shall be allowed to bill the customer for the
out-of-pocket
cost of providing such electronic record. The historic record of monthly
demand
shall be for a period not less than the most recent 12 months and
shall include, at a minimum, the highest demand level observed over the month
as well as the average monthly demand sustained over the month. To the
extent deviations in the definition of the month are consistent with the
distribution company’s prior billing practices, such adjustments shall
be permitted and so noted. To the extent the distribution company has imputed
a
demand usage profile in any or all prior periods, the distribution
company shall indicate where prior measurements have not been based on actual
recorded usage. In those instances where a distribution company has
applied an imputed method for purposes of estimating a customer’s demand
profile, such distribution company shall describe the method used to
define monthly demands.

Section 1G. (a)(1) The department shall, in accordance with the provisions
of this section, identify and determine, upon application by a
distribution company and the applicable electric company, those costs and
categories of costs for generation-related assets, investments, and
obligations, as determined pursuant to subsection (b), which may be allowed to
be recovered through a non-bypassable transition charge authorized to
be assessed and collected in accordance with the provisions of subsection (e).
The
department shall conduct a comprehensive audit of each
distribution company and applicable electric company in order to assure
substantial compliance with the provisions of this section; provided,
however, that said audit shall be conducted in an expeditious manner. The
department shall be authorized to contract for such services through an
auditing or accounting company or organization which is fully independent of
any such distribution company or applicable electric company. The
department shall make a finding that any agreement filed by a company under
this section is substantially consistent with an initial audit before
allowing the recovery of transition costs by an electric company doing business
in the commonwealth to commence. For electric companies without an
agreement, transition costs shall not be reviewed or approved by the department
until the department completes an initial audit of electric company
records maintained on file at the department. Such audit shall include an
accounting of all costs eligible for recovery in accordance with the
provisions of this section. The department shall complete the comprehensive
audit no later than December 31, 1998. No amount shall be collected by a
distribution company through such non-bypassable transition charge unless such
amount has been approved by the department in accordance with the
provisions of this section.

(2) Notwithstanding any other provision of this section, the department
shall review a financing order periodically, at a minimum not less than every
18 months from the inception of the original financing order, to determine if
the amount of reimbursable transition costs amounts proved to be
accurate. Such review shall be limited to a comparison of assumed costs and
assumed mitigation to the actual costs determined through actual
mitigation. If the amount of reimbursable transition costs amounts previously
included in a financing order exceeds the correct amount of the
reimbursable transition costs amounts, then the electric company shall provide
ratepayers with a uniform rate credit based on usage that in total
equals the amount of the excess including carrying costs or pay to the
financing entity an amount equal to such excess and, provided that all reserve
funds are fully funded, the financing entity shall use or escrow such funds to
redeem or otherwise reduce the amount of the principal of the electric
rate reduction bonds; provided, however, that any such transfers or adjustments
shall not affect the rate of transition charges, the collection of
such charges, or the transfer to the bondholder trustee of the charges which
have been collected.

(b)(1) The department may allow a distribution company, which qualifies
pursuant to the requirements of subsection (c), and upon the commencement of
mitigation efforts as required by subsection (d), to collect a charge for net,
non-mitigable past investment commitments incurred prior to January 1,
1996, by the applicable investor-owned electric company during its operations
within a regulated electricity system which, subject to the conditions
included in this section, are classified to be transition costs in accordance
with the provisions of this section. The department shall develop
guidelines and parameters to identify and determine which transition costs may
be recovered by collection of a transition charge, which shall include
only the following:

(i) the amount of any unrecovered fixed costs determined by the department
for those costs and categories of costs for generation-related assets and
obligations to have been prudently incurred and associated with producing
electricity from existing generation facilities which were being collected
in department-approved rates on January 1, 1997, and that become uneconomic as
a result of the creation of a competitive generation market, in that
these costs may not be recoverable in market prices in a competitive market;

(ii) the department-authorized recovery for nuclear entitlements by those
electric companies which have divested their non-nuclear generation
facilities pursuant to section 1A and those previously incurred or known
liabilities incurred for post-shutdown and decommissioning costs associated
with nuclear power plants which are not recoverable from the decommissioning
fund as administered by the federal nuclear regulatory commission;
provided, however, that the department shall monitor the amount to be recovered
to assure that it shall not exceed the actual total costs necessary
to effect shutdown and decommissioning;

(iii) the unrecovered amount of the reported book balances of existing
generation-related regulatory assets, as approved by the department; provided,
that, for the purposes of this clause, the term “regulatory assets” shall
refer to the unrecovered balance of deferred costs that
otherwise would have been recognized in the period in which they were incurred
but have been specifically approved for deferral and later recovery by
the department; and

(iv) the amount by which the costs of existing contractual commitments for
purchased power exceeds the competitive market price for such power, upon
the reaffirmation, restructuring, renegotiation, or termination of such
contracts, or the liquidated payments associated with the disposal of these
contracts in a department-approved divestiture plan, as determined in
accordance with the provisions of paragraph (2) of subsection (d) of this
section.

(2) In addition to the aforementioned amounts of transition costs allowed to
be recovered pursuant to clauses (i) to (iv), inclusive, a distribution
company may be allowed to recover through the transition charge certain costs
incurred after January 1, 1996, which shall include only the following:

(i) in order to mitigate potential negative impacts on utility personnel
directly affected by electric industry restructuring, costs associated with
employee-related transition costs for personnel performing services in
connection with services provided by electric utilities, as approved by the
department, including costs incurred and projected for severance, retraining,
early retirement, outplacement, supplemental unemployment benefits, and
related expenses for the personnel; provided, that said costs result either
from the execution of agreements reached through collective bargaining
for union personnel or from the company’s programs and policies for non-union
personnel; provided, however, that there shall be no recovery for
employee-related transition costs associated with officers, senior supervisory
employees, and professional employees performing predominantly
regulatory functions; and provided, further, that these costs so incurred and
approved by the department shall be eligible for recovery only until
March 1, 2005;

(ii) any payments or payments in lieu of taxes made pursuant to section 38H
of chapter 59; and

(iii) any costs to remove and decommission retired structures at fossil
fuel-fired generation facilities required pursuant to paragraph (2) of
subsection (b) of section 1A.

(3) To the extent that the department does allow a distribution company to
collect a transition charge under this subsection (b), for purposes of
the computation of any carrying costs that the department may determine to
allow, the cost of equity component of any such computation shall be
determined as follows:

(a) to the extent that the cumulative average of the transition charge is no
more than $0.01 per kilowatt-hour, the company may collect total revenue
under that transition charge sufficient to provide for carrying charges
computed with a cost of equity capital no more than one hundred basis points
above the cost of common equity capital determined by the department in the
most recent adjudicated base rate proceeding under section 94 of this
chapter prior to December 31, 1996 that involved an electric company;

(b) to the extent that the cumulative average of the transition charge is
more than $0.01 but not more than $0.02 per kilowatt hour, the company may
collect total revenue under that transition charge sufficient to provide for
carrying charges computed with a cost of equity capital no more than the
rate set forth in subsection (a), less one basis point for each one tenth of
one mil by which the cumulative average transition charge is
more than $0.01; and

(c) to the extent that the cumulative average of the transition charge is
more than $0.02 the company may collect total revenue under that
transition charge sufficient to provide for carrying charges computed with a
cost of equity capital no more than the rate set forth in subsection (a), less
100 basis points, and less an additional two basis points for
each one tenth of one mil ($0.0001) by which the cumulative average
transition is more than $0.02 above the market rate for power provided under
comparable terms.

(d) provided that in no event shall the department determine to allow any
carrying costs for any period beyond the year 2009 on any unamortized
balance of costs allowable as transition costs under clauses (i) and (ii) of
paragraph (1) of subsection (b).

(c)(1) The department may, in accordance with the provisions of this
subsection, authorize a distribution company to recover eligible transition
costs if the following conditions are met:

(i) the company has filed on or before March 1, 1998, a plan to provide all
of its retail customers the ability to purchase electricity from an
alternative supplier or generation company as of March 1, 1998;

(ii) the distribution company, through the applicable electric company,
has
developed and will implement a plan to divest itself of its portfolio of
all non-nuclear generation assets by August 1, 1999, pursuant to
subsection (b)
of section 1A;

(iii) the applicable electric company, pursuant to subsection (d) of this
section, has developed and will implement a plan for all required,
necessary, and reasonable mitigation methods to reduce potential transition
costs; and

(iv) the plan formulated pursuant to clause (i) herein provides a
standard
service transition rate and rate reduction as required pursuant to section 1B.

(2) A distribution company is hereby authorized to attain the additional
rate reduction required pursuant to said section 1B through the use of
securitization, subject to the provisions of section 1H. A distribution
company’s use of securitization shall be approved by the department and
shall be subject to the achievement of mitigation efforts satisfactory to the
department pursuant to subsection (d); provided, that if a company
chooses to achieve any such required rate reduction through securitization, the
company shall demonstrate to the department that said rate reduction
is not financially viable without the use of securitization.

(3) If, after the submittal of a restructuring plan to the department
pursuant to section 1A, a distribution company claims that it is unable to
meet
a price reduction of 10 per cent reduction pursuant to subsection (a) of
section 1A and subsection (b) of section 1B it shall petition the department
to explore any and all possible mechanisms and options within the limits of the
constitution which may be available to the department to achieve
compliance with the provisions of this section, including, but not limited to,
the department may authorize an alternate generation company or
supplier to provide the standard offer service package as set forth in
subsection (b) of section 1B if said alternate service is determined by the
department to be in the public interest and necessary to achieve said required
rate reductions for its consumers.

(4) If, after the submittal of a restructuring plan to the department
pursuant to section 1A, a distribution company claims that it is unable to
meet
a price reduction of 15 per cent reduction pursuant to subsection (b) of
section 1B it shall petition the department to explore any and all possible
mechanisms and options within the limits of the constitution which may be
available to the department to achieve compliance with the provisions of
this section, including, but not limited to, the department may authorize an
alternate generation company or supplier to provide the standard offer
service package as set forth in subsection (b) of section 1B if said
alternate service is determined by the department to be in the public interest
and necessary to achieve said required rate reductions for its consumers;
provided, however, that the department may, upon petition of a company
unable to comply with the rate reduction required under subsection (b) of
section 1B, certify that the petitioner is eligible to receive funds from
the Ratepayer Parity Trust Fund, established pursuant to section 62 of
chapter 10. The department shall, in cooperation with the secretary of
administration and finance, promulgate regulations to establish a procedure to
disburse monies appropriated from said trust fund. The department
shall consider and may adopt proposals submitted by other parties, including
but not limited to the office of the attorney general, outlining means
and mechanisms by which a company could further mitigate its assets in order to
comply with said rate reduction of 15 per cent as referenced in
subsection (b) of section 1B; provided, however, in the event a company
claims
that it is unable to meet at least the 15 per cent reduction as set
forth in subsection (b) of section 1B, the department shall work with said
company to explore and implement all methods to achieve the required 15
per cent reduction; and provided, further, that said company shall be excluded
from the provisions of paragraph (2) of subsection (b) of section 1A
or subsection (c).

(d)(1) Any electric company seeking to recover transition costs pursuant to
this section shall, in accordance with the provisions of this subsection,
mitigate any such transition costs. Prior to the approval by the department of
any plan allowing for such recovery, the department shall issue an
order finding that the electric company has taken all reasonable steps to
mitigate to the maximum extent possible the total amount of transition
costs that will be recovered and to minimize the impact of recovery of such
transition costs on ratepayers in the commonwealth. Mitigation efforts
which an electric company shall engage in shall include, but not be limited to,
the following: (i) the divestiture of non-nuclear generation
facilities in accordance with the provisions of section 1A; provided, however,
that all net proceeds from such divestiture pursuant to said section 1A
shall be dedicated to reducing such company’s total transition cost amount
and the transition charge allowed to be assessed and collected by
a distribution company pursuant to this section; (ii) the electric company, in
accordance with the provisions of paragraph (2), shall engage in good
faith efforts to renegotiate, restructure, reaffirm, terminate, or dispose of
existing contractual commitments for purchased power which exceed the
competitive market price for such power as determined in accordance with said
paragraph (2); provided, however, that the department shall not begin
to review a registration application filed pursuant to paragraph (1) of section 1F until such company with a purchased power contract with a price
determined to be above-market commences such good faith efforts with such
electric company as required herein; and provided further, that the
department shall promulgate rules and regulations which shall establish a
standard for good faith; (iii) an examination and analysis of the historic
level of performance over the life of such contractual commitments for purchase
power, regardless of whether or not they exceed the competitive
market price; (iv) upon the determination of an amount of transition costs,
further mitigation shall include netting against such above-market costs
any below market assets other than those associated with distribution or
transmission which are owned by the company; (v) except to the extent that
such matters are provided for in collective bargaining agreements or asset
purchase agreements negotiated prior to this act, or amendments to such
previously negotiated asset purchase agreements, by obtaining written
commitments that purchasers of divested operations will offer employment to the
impacted employees who were employed in non-managerial positions to provide
services for the divested operations at any time during the three month
period prior to the divestiture, at levels of wages and overall compensation
not lower than the employees’ prior levels for a period of six
months; and (vi) any other mitigation and analytical activities which the
department determines to be reasonable and effective mechanisms for
reducing identifiable transition costs.

(2)(i) In order to mitigate any costs in excess of the projected market
value of power associated with purchased power contracts approved by the
department on or by December 31, 1995, except with respect to facilities which
burn trash to generate electricity, electric companies and the sellers
under such contracts shall make good faith efforts to renegotiate those
contracts which contain a price for electricity which is above-market as of
March 1, 1998, in order to achieve reductions in the transition charges,
authorized to be assessed pursuant to subsection (e), which
are attributable to any such contract, as determined by the department. For
the
purposes of this chapter, the standard of good faith shall not
require either party to agree to a proposal or require the making of
concessions, but shall require active participation in negations and a
willingness to make reasonable concessions in order to equitably mitigate
stranded costs, and to provide justification for proposals, and a sincere
effort to reach agreement. Beginning July 1, 1998, and at least annually
thereafter, the department shall continue to review said aforementioned
purchased power contracts in order to determine if such contracts contain a
price for electricity which is above-market as of the date of review. If
such contract is determined to be above-market, the electric company and the
seller under such contract shall, in accordance with the provisions of
this chapter, attempt to make a good-faith effort to renegotiate such contract
in order to achieve further reductions in the transition charge. If an
electric company has as a part of a department-approved divestiture plan
assigned such contract to a buyer having adequate financial resources, the
electric company shall have met its obligations under this paragraph.
Furthermore, if a seller under such contract has consented to assignment of
the existing contract to the buyer and has agreed to release the electric
company from its obligations under such contract, the seller shall have met
its obligations under this paragraph.

(ii) Upon a finding by the department that a negotiated contract buyout or
other modification to the terms and conditions of such contracts is likely
to achieve savings to the ratepayers and is otherwise in the public interest,
the remaining amounts in excess of market value associated with such
contract shall be included in the transition charges, which are authorized to
be assessed pursuant to said subsection (e) and upon
commencement of mitigation efforts as required herein. Upon a finding by the
department that a seller has made a bona fide offer for a contract
buyout or modification which is likely to achieve ratepayer savings and is
otherwise in the public interest, which offer has been refused by the
purchasing electric company, only those amounts in excess of market value
associated with such contract that would not have been mitigated by such
offer shall be included in the transition charges authorized pursuant to said
subsection (e), and the seller shall be deemed to have
met its obligation to negotiate in good faith. In order to compel such
negotiations, (a) electricity companies are hereby authorized to use
securitization, only to the extent allowed pursuant to section 1H, to finance
the costs of buydowns or buyouts of said contracts, and (b) the
department shall not begin to review a licensure application filed pursuant to
paragraph (1) of section 1F until such time as the seller under a
purchased power contract with a price determined to be above-market has
commenced good faith efforts in accordance with the standard for good faith
set forth in subparagraph (i) of paragraph (2). The department is hereby
authorized to approve the recovery of such costs associated with such
contract buydowns or buyouts. At least every 30 days, said companies shall
report the status of such renegotiations to the department.

(3) An electric company which fails to commence and complete the divestiture
of its non-nuclear generation assets shall not be eligible to benefit
from the securitization provisions and the issuance of electric rate reduction
bonds pursuant to section 1H, subject to determination by the
department. An electric company, which chooses under section 1A not to divest
all of its non-nuclear generation facilities shall subject its nuclear
and non-nuclear generation facilities and purchased power contracts to a
valuation pursuant to said section 1A under which the department shall
determine the market value of such generation facilities and contracts. The
department shall require a reconciliation of projected transition costs
to actual transition costs by March 1, 2000, and for every 18 months thereafter
through March 1, 2008, or the termination date of any transition
charge allowed to be assessed pursuant to subsection (e).

(4) Securitization shall not be made available pursuant to section 1H
unless
the electric company proves to the satisfaction of the department the
following: (i) it has fully mitigated, as defined in section 1, the related
transition costs, including but not limited to, as applicable,
divestiture of its non-nuclear generation facilities pursuant to section 1A,
renegotiation of existing power purchase contracts, and the valuation of
assets of the company, including, but not limited to, rights-of-way, property,
and intangible assets; (ii) savings to ratepayers will result from
securitization; (iii) all such savings derived from securitization shall inure
to the benefit of ratepayers; (iv) except to the extent that such
matters are provided for in collective bargaining agreements or asset purchase
agreements negotiated prior to this act, or amendments to such
previously negotiated asset purchase agreements, it has obtained written
commitments that purchasers of divested operations will offer employment to
the impacted employees who were employed in non-managerial positions to provide
services for the divested operations at any time during the three
month period prior to the divestiture, at levels of wages and overall
compensation no lower than the employees’ prior levels; and (v) the
electric company demonstrates that it has established, with the approval of the
department, an order of preference for use of bond proceeds such that
transition costs having the greatest impact on customer rates will be the first
to be reduced by those proceeds.

(e) The department is hereby authorized and directed to allow any approved
transition costs to be recovered from ratepayers through a non-bypassable
transition charge collected by the distribution company providing transmission
or distribution service to such ratepayers. For each electric company
submitting requests to the department for the recovery of transition costs, the
department shall impose a cap upon the level of the transition
charge, which shall remain in effect until altered upon action by the
department; provided, however, that in no instance shall such charge be
adjusted to reflect inflation. Any transition charge collected shall be used
for the specific purposes of paying for transition costs as identified
pursuant to the provisions of subsection (b) of this section. Amortization of
transition cost recovery may be accelerated relative to recovery of
such costs assumed in current rates, but in no case shall such amortization
result in an increase in rates for any class of customer of an electric
company over rates in effect as of December 31, 1997, for that company. The
department shall, on a case by case basis, determine the date upon which
there shall be no allowance for transition cost recovery in any rate charged by
any transmission or distribution company.

(f) The department shall, in writing, notify the joint committee on
government regulations of the general court within one business day upon the
approval and initiation of a transition charge to any electric company pursuant
to the provisions of this section. Subsequent to such notification,
said committee may conduct a public hearing or hearings on such a determination
for the purpose of updating the general court on the methodology used
by the department to determine allowable transition cost recovery and the
results of mitigation measures agreed to by electric companies to lower
their transition costs.

(g) Effective as of March 1, 1998, if the utility and the department have
received at least a six months notice of the customer’s plans to
install on-site cogeneration equipment, renewable energy technologies, fuel
cells, or to purchase electricity through cogeneration equipment, a
customer that reduces purchases of electricity through the operation of, or
purchases from, on-site generation or cogeneration equipment, shall not
be subject to an exit charge if (i) such customer provided less than or equal
to 10 per cent of the annual gross revenues collected by its previous
service provider in the year prior to the customer leaving the system after the
retail date established in this bill; provided, however, that in the
event that two or more customers who, at any time within a 36-month time
period, leave such system, after the retail access date established in this
bill, and represent together the aggregate of greater than or equal to more
than 10 per cent of the annual gross revenues collected by such previous
service provider in the year prior to the initial exit from the system, all
such customers shall be subject to an exit charge based upon that portion
of the annual gross revenues which is over the 10 per cent limit; and provided,
further, that such fee shall be prorated amongst such customers who
have left or are leaving on the system based upon the proportion of annual
gross revenues each customer represented within the total amount of gross
revenues being subtracted from the service provider’s system; or (ii) the
customer reduces purchases through the operation of, or purchases
from, on site renewable energy technologies, fuel cells, or cogeneration
equipment with a combined heat and power system efficiency of at least 50
per cent, based upon the higher heating value of the fuel used in the system;
or (iii) the customer reduces purchases through the operation of, or
purchases from, an on site generation or cogeneration facility of 60 kilowatts
or less which is eligible for net metering. Except as provided in
existing contracts or tariffs, the department and the utility shall not require
more than six months notice of the customer’s plans to install
said equipment. Any such exit charge shall be payable to the customer’s
distribution company for the benefit of other customers. Such exit
charge may be equal to but no greater than the expected value of the access
charge payments the customer would have paid out but for the operation of
such equipment and shall be determined by the department based upon federal and
state law, any applicable judicial determinations, and criteria
promulgated by the department through rules and regulations. Notwithstanding
clauses (i) to (iv), inclusive, if the total kilowatt hour usage in any
service territory falls below usage levels following the installation of such
on-site generation or cogeneration equipment, and the department
determines that the aggregate reduction in future purchases of electricity and
transition charge payments resulting from customers’ installing
such equipment will have a significant adverse impact on electric bill to be
paid by other customers in said distribution company’s territory
during the remaining period of transition cost recovery, then the department
may order that an exit charge shall be paid on such terms as determined
by the department based upon criteria promulgated herein and through rules and
regulations. The department shall issue a report on July 1, 1999 and
every year thereafter, for the period of transition cost recovery, relative to
degree of impact on the aggregate reduction of the electricity and
impact on transition charges due to implementation or use of cogeneration
systems, fuel cell and renewable energy technologies.

(h) If an electric company or distribution company challenges through the
administrative or judicial process a determination of the department
relative to an amount or particular component of transition costs allowed or
disallowed to be recovered pursuant to the provisions of this section,
or if an electric company or distribution company challenges through the
administrative or judicial process the manner or mechanism the department
utilizes to determine an amount or particular of such transition costs, such
challenge shall not prevent the department from implementing any
provision of chapter 25, 25A or 164 as it relates to said electric company or
distribution company or any other electric company or distribution
company not involved in the dispute. During the period of time such challenge
is in effect until a resolution of such is attained, said electric
company or distribution company shall continue to collect any and all monies so
authorized to be collected and maintain the amount under dispute in
an escrow account. Once a resolution of such challenge is attained, the
department shall, if necessary, make any adjustment upwards or downwards to
any charge such electric company or distribution company is allowed to collect
pursuant to section 1H, and such electric company or distribution
company shall dispose of such monies in said escrow account accordingly.

(i) The department is hereby authorized and directed to promulgate rules and
regulations to carry out the provisions of this section.

Section 1H. (a) As used in this section the following words shall, unless
the context otherwise requires, have the following meanings:-

“Agency”, the Massachusetts Industrial Finance Agency, established pursuant
to section 31 of chapter 23A.

“Authority”, the Massachusetts Health and Educational Facilities authority,
established pursuant to chapter 614 of the acts of 1968.

“Department”, the department of telecommunications and energy.

“Electric company”, an electric company as defined in section 1.

“Electric rate reduction bonds”, bonds, notes, certificates of participation
or beneficial interest, or other evidences of indebtedness
or ownership, issued pursuant to an executed indenture, financing document, or
other agreement of the financing entity, secured by or payable from
transition property, the proceeds of which are used to provide, recover,
finance, or refinance transition costs or to acquire transition property and
that are secured by or payable from transition property.

“Financing entity”, (i) the Massachusetts Industrial Finance Agency and the
Massachusetts Health and Educational Facilities Authority
acting jointly pursuant to a mutual agreement, (ii) any special purpose trust,
or (iii) any financing entity which is authorized by the department
pursuant to a financing order to issue electric rate reduction bonds or acquire
transition property in accordance with the provisions of this section.

“Financing order”, an order of the department adopted in accordance with this
section approving a plan, which shall include, without
limitation, a procedure to review and approve periodic adjustments to
transition charges to include recovery of principal and interest and the costs
of issuing, servicing, and retiring electric rate reduction bonds contemplated
by the financing order.

“Reimbursable transition costs amounts”, the total amount authorized by the
department in a financing order to be collected through the
transition charge, as defined pursuant to section 1, and
allocated to an electric company in accordance with a financing order.

“Special purpose trust”, any trust, partnership, limited partnership,
association, corporation, nonprofit corporation, limited liability
company, or other entity established and authorized by the agency and the
authority to acquire transition property or to issue rate reduction bonds,
or both, subject to approvals by the agency and the authority and the powers of
the agency and the authority as provided by the agency and the
authority in their resolutions authorizing the entities to issue rate reduction
bonds.

“Transition costs”, the costs determined pursuant to section 1G which remain
after accounting for maximum possible mitigation, subject to
determination by the department.

“Transition charge”, the charge to the customers which provides the mechanism
for the recovery of an electric company’s transition
costs.

“Transition property”, the property right created pursuant to this section,
including, without limitation, the right, title, and interest
of an electric company or a financing entity to all revenues, collections,
claims, payments, money, or proceeds of or arising from or constituting
reimbursable transition costs amounts which are the subject of a financing
order, including those non-bypassable rates and other charges that are
authorized by the department in the financing order to recover transition costs
and the costs of providing, recovering, financing, or refinancing the
transition costs, including the costs of issuing, servicing, and retiring
electric rate reduction bonds.

(b)(1) The department may issue financing orders in accordance with this
section to facilitate the provision, recovery, financing, or refinancing of
transition costs. A financing order shall specify that amounts collected from
a
customer shall be allocated first to current and past due transition
charges and then other charges and that, upon the issuance of electric rate
reduction bonds, transition charges collected shall be allocated first to
transition property and second to transition charges, if any, that are not
subject to a financing order.

(2) An electric company may, by January 1, 1999, and from time to time
thereafter as established by the department, file with the department an
application that provides that its transition costs may be recovered through
reimbursable transition costs amounts, which would therefore constitute
transition property under this section. An electric company may, upon the
department’s written determination of substantial and documentable
relative rate reduction, utilize a financing entity other than the
state-designated financing entity or special purpose trust. The department
shall
promulgate rules and regulations establishing the form and content of said
applications and establishing the procedure to be utilized for the filing
and approval of said applications. The department may view such applications
in separate proceedings or in an order instituting investigation or
order instituting rule making, or both. The electric company shall in its
application specify that its customers would benefit from reduced
electricity rates through the issuance of electric rate reduction bonds. The
department shall determine reimbursable transition costs amounts
recoverable in one or more financing orders if the department determines, as
part of its findings in connection with the financing order, that the
designation of the reimbursable transition costs amounts and the issuance of
electric rate reduction bonds by the financing entity in connection with
some or all of the reimbursable transition costs amounts would reduce rates
that an electric company’s customers would have paid if the
financing order were not adopted, and that such rates will be reduced in
aggregate amounts equal to savings realized by the electric company with
respect to the financing order; provided, however, that said bonds may qualify
for tax-exempt status to the full extent of state and federal law;
provided further, that the department shall consult with the financing entity
in making its determinations concerning electric rate reduction bonds;
and provided, further, that the electric company has complied with the
applicable transition cost mitigation measure, pursuant to subsection (d) of
section 1G. The transition charge and its payment as provided in the
financing
order shall be binding on all current and future distribution
companies and users of such distribution system until the bonds are paid in
full by the financing entity. A financing order shall expire after two
years if no rate reduction bonds have been issued pursuant thereto.

(3) Notwithstanding any other general or special law, rule, or regulation to
the contrary, except as otherwise provided in this section with respect
to transition property which has been made the basis for the issuance of
electric rate reduction bonds, the financing orders and the reimbursable
transition costs amounts shall be irrevocable, and the department shall not
have authority, either by rescinding, altering, or amending the financing
order or otherwise, to revalue or revise for ratemaking purposes the transition
costs, determine that the reimbursable transition costs amounts or
transition charges are unjust or unreasonable, or in any way reduce or impair
the value of transition property either directly or indirectly by
taking reimbursable transition costs amounts into account when setting other
rates for the electric company, nor shall the amount of revenues arising
with respect thereto be subject to reduction, impairment, postponement, or
termination. Except as otherwise provided in this paragraph, the
commonwealth does hereby pledge and agree with the owners of transition
property and holders of electric rate reduction bonds that the commonwealth
shall not (i) alter the provisions of this chapter which make the transition
charges imposed by the financing order irrevocable and binding or (ii)
limit or alter the reimbursable transition costs amounts, transition property,
financing orders, and all rights thereunder until the electric rate
reduction bonds, together with the interest thereon, are fully met and
discharged. The financing entity as agent for the commonwealth is hereby
authorized to include this pledge and undertaking for the commonwealth in these
electric rate reduction bonds.

(4)(i) Financing orders issued pursuant to the provisions of this section
shall not constitute a debt or liability of the commonwealth or of any
political subdivision thereof, other than the financing entity, and shall not
constitute a pledge of the full faith and credit of the commonwealth or
any of its political subdivisions, other than the financing entity, but shall
be payable solely from the funds provided therefor pursuant to the
provisions of this section. All the bonds shall contain on the face thereof
the
following statement: Neither the full faith and credit nor the taxing
power of the commonwealth of Massachusetts is pledged to the payment of the
principal of, or interest on, this bond.

(ii) The issuance of electric rate reduction bonds pursuant to the
provisions of this section shall not obligate the commonwealth, or any
political
subdivision thereof, to levy or to pledge any form of taxation therefor or to
make any appropriation for their payment.

(iii) The exercise of the powers granted by this section shall be in all
respects for the benefit of the people of the commonwealth, for the increase
of their commerce and prosperity, and for the improvement of their health and
living conditions. As the exercise of such powers shall constitute the
performance of essential governmental functions, the financing entity shall not
be required to pay any taxes or assessments upon the property
acquired or used by the financing entity pursuant to the provisions of this
section or upon the income therefrom. The bonds or other instruments
issued pursuant to the provisions of this section, their transfer and the
income therefrom, including any profit made on the sale thereof, shall at
all times be free from taxation within the commonwealth.

(iv) Any electric rate reduction bonds or other instruments issued by the
financing entity shall be used to pay for mitigated transition costs
related to subsection (b) of section 1G.

(v) Electric rate reduction bonds and other instruments so approved and
issued by a financing entity pursuant to the provisions of this section are
hereby made securities in which all public officers and public bodies of the
commonwealth and its political subdivisions, all insurance companies,
and savings banks, cooperative banks and trust companies in their banking
departments and within the limits set by section 14 of chapter 167E,
banking associations, investment companies, executors, trustees, and other
fiduciaries, and all other persons whatsoever who are now or may hereafter
be authorized to invest in bonds or other obligations of a similar nature, may
properly and legally invest funds, including capital in their control
or belonging to them, and such bonds are hereby made obligations which may
properly and legally be made eligible for the investment of savings
deposits and the income thereof in the manner provided by section 15B of
chapter 167. Such bonds are hereby made securities which may properly and
legally be deposited with and received by any state or municipal officer or any
agency or political subdivision of the commonwealth for any purpose
for which the deposit of bonds or other obligations of the commonwealth is now
or may hereafter be authorized by law.

(vi) The repayment of terms of any electric rate reduction bonds issued
for
the purpose of paying for transition costs related to clause (iv) of
paragraph 1 of subsection (b) of section 1G shall, subject to the
department’s approval, extend for not more than 15 years; provided,
that
in the event the department determines that a longer repayment period would
inure to the benefit of residential ratepayers, the department shall
approve any securitization plan that maximizes rate affordability to such
ratepayers.

(5) The department shall establish procedures for the expeditious processing
of applications for financing orders, including the approval or
disapproval thereof within 120 days of the electric company filing; provided,
however, that an electric company shall file a new application with the
department within 45 days of any such disapproval, if so ordered by the
department. A financing order shall also include a procedure whereby the
department shall periodically review the rate of transition charges authorized
therein on each anniversary of the date of such order and at such
additional intervals as may be provided for in such order, and shall approve
adjustments, if required, within 60 days of each such anniversary and
of each such additional interval date, such rate of transition charges if and
to the extent necessary to ensure the timely recovery of revenues
sufficient to provide for the payment of all principal, interest, premium, if
any, and other charges in respect of the electric rate reduction bonds
approved by the department pursuant to such financing order.

(6) Reimbursable transition costs amounts shall constitute transition
property when, and to the extent that, a financing order authorizing the
reimbursable transition costs amounts have become effective in accordance with
the provisions of this section. The transition property shall
thereafter continuously exist as property for all purposes with all of the
rights and privileges of this section for the period and to the extent
provided in the financing order, but in any event until the electric rate
reduction bonds are paid in full, including all principal, interest,
premium, costs, and arrearages thereon. Prior to its sale or other transfer by
the electric company pursuant to this section, transition property
shall be a vested contract right of the electric company, notwithstanding any
contrary treatment thereof for accounting, tax, or other purpose.

(7) Any unanticipated transition changes that are generated in excess of
the amounts necessary to pay principal, premium, if any, interest, and
expenses of the issuance of the electric rate reduction bonds shall be remitted
to the financing entity to be held or distributed in accordance with
the financing order and, provided that all reserve funds are fully funded, may
be used to benefit customers if this would not result in a
recharacterization of the tax, accounting, and other intended characteristics
of the financing, including, but not limited to, the following intended
characteristics: (i) avoiding the recognition of debt on the electric
company’s balance sheet for financial accounting and regulatory purposes;
(ii) treating the electric rate reduction bonds as debt of the electric company
or its affiliates for federal income tax purposes; (iii) treating the
transfer of the transition property by the electric company as a true sale for
bankruptcy purposes; and
(iv) avoiding any adverse impact of the financing on the electric
company’s credit rating.

(8) In no event shall any financing order (i) authorize or require the
customers of an electric company other than the electric company applying for
such financing order and its successors to pay any transition charges or other
amounts with respect to the transactions authorized by such financing
order; or (ii) authorize, permit, or require that any amounts arising from the
transactions authorized by such financing order be used to subsidize
or benefit an electric company or the customers thereof other than the electric
company and the affiliates thereof applying for such financing order
and its affiliates’ customers. A financing order shall require that transition
charges be paid over to the financing entity within one calendar
month of collection.

(c)(1) The financing entity may issue electric rate reduction bonds approved
by the department in the pertinent financing orders. Electric rate
reduction bonds shall be nonrecourse to the credit of it or any assets of the
electric company, other than the transition property as specified in
the pertinent financing order.

(2) Electric companies may sell or assign all or portions of their interest
in transition property to an affiliate. Electric companies or their
affiliates may sell or assign their interests to one or more financing entities
that make that property the basis for issuance of electric rate
reduction bonds to the extent approved in the pertinent financing orders.
Electric companies, their affiliates, or financing entities may pledge
transition property as collateral for electric rate reduction bonds to the
extent approved in the pertinent financing orders providing for a security
interest in the transition property, in the manner as set forth in
subsection (d).

In addition, transition property may be sold or assigned by either (i) the
financing entity or a trustee for the holders of electric rate reduction
bonds in connection with the exercise of remedies upon a default, or (ii) any
person acquiring the transition property after a sale or assignment
pursuant to this subsection.

(3) To the extent that any interest in transition property is so sold or
assigned, or is so pledged as collateral, the department shall require,
pursuant to the policing and regulatory power of the commonwealth, the electric
company and any successor or any other entity acting as an electric
company within the service territory to contract with the financing entity that
it will continue to operate its system to provide service to its
customers, will collect amounts in respect of the reimbursable transition costs
amounts for the benefit and account of the financing entity, and will
account for and remit these amounts to or for the account of the financing
entity. Contracting with the financing entity in accordance with such
authorization shall not impair or negate the characterization of the sale,
assignment, or pledge as an absolute transfer, a true sale, or security
interest, as applicable.

(4) Notwithstanding any general or special law, rule, or regulation to the
contrary, any provision under this section or a financing order requiring
the department take action with respect to the subject matter of a financing
order shall be binding upon the department, as it may be constituted
from time to time, and any successor agency exercising functions similar to the
department and the department shall have no authority to rescind,
alter, or amend that requirement in a financing order.

(d)(1) A security interest in transition property is valid and enforceable
against the pledgor and third parties, subject to the rights of any third
parties holding security interests in the transition property perfected in the
manner described in this subsection, and attaches when all of the
following have taken place: (i) the department has issued the financing order
authorizing the bondable reimbursable transition costs amounts included
in the transition property; (ii) value has been given by the pledgees of the
transition property; and (iii) the pledgor has signed a security
agreement covering the transition property.

(2) A valid and enforceable security interest in transition property shall
be perfected when it has attached and when a financing statement has been
filed in accordance with article 9 of chapter 106 naming the pledgor of the
transition property as “debtor” and identifying the
transition property. Any description of the transition property shall be
sufficient if it refers to the financing order creating the transition
property. A copy of the financing statement shall be filed with the department
by the electric company which is the pledgor or transferor of the
transition property, and the department may require the electric company to
make other filings with respect to the security interest in accordance
with procedures it may establish; provided, however, that the filings shall not
affect the perfection of the security interest.

(3) A perfected security interest in transition property shall be a
continuously perfected security interest in all revenues and proceeds arising
with respect thereto, whether or not the revenues or proceeds have accrued.
Conflicting security interests shall rank according to priority in time
of perfection. Transition property shall constitute property for all purposes,
including for contracts securing electric rate reduction bonds,
whether or not the revenues and proceeds arising with respect thereto have
accrued.

(4) Subject to the terms of the security agreement covering the transition
property and the rights of any third parties holding security interests in
the transition property perfected in the manner described in this subsection,
the validity and relative priority of a security interest created
pursuant to this subsection shall not be defeated or adversely affected by the
commingling of revenues arising with respect to the transition
property with other funds of the electric company that is the pledge or
transferor of the transition property. Subject to the terms of the security
agreement, the pledgees of the transition property shall have a perfected
security interest in all cash and deposit accounts of the electric company
in which revenues arising with respect to the transition property have been
commingled with other funds, but the perfected security interest shall be
limited to an amount not greater than the amount of the revenues with respect
to the transition property received by the electric company within 12
months before either (i) any default under the security agreement, or (ii) the
institution of insolvency proceedings by or against the electric
company, less payments from the revenues to the pledgees during that 12-month
period.

(5) If an event of default occurs under the security agreement covering the
transition property, the pledgees of the transition property, subject to
the terms of the security agreement, shall have all rights and remedies of a
secured party upon default pursuant to article 9 of chapter 106 and such
other rights and remedies as may be provided in the financing order, and shall
be entitled to foreclose or otherwise enforce their security interest
in the transition property, subject to the rights of any third parties holding
prior security interests in the transition property perfected in the
manner provided in this section. In addition, the department may require, in
the financing order creating the transition property, that, in the event
of default by the electric company in payment of revenues arising with respect
to the transition property, the commission and any successor thereto,
upon the application by the pledgees or transferees, including transferees
under subsection (f), of the transition property, and without limiting any
other remedies available to the pledgees or transferees by reason of the
default, shall order the sequestration and payment to the pledgees or
transferees of revenues arising with respect to the transition property. Any
order shall remain in full force and effect notwithstanding any
bankruptcy, reorganization, or other insolvency proceedings with respect to the
debtor, pledgor, or transferor of the transition property. Any
surplus in excess of amounts necessary to pay principal, premium, if any,
interest, costs, and arrearages on the electric rate reduction bonds, and
other costs arising under the security agreement, shall be remitted to the
debtor or to the pledgor or transferor.

(6) The state secretary shall establish and maintain a separate system of
records to reflect the date and time of receipt of all filings made under
this subsection (d) to perfect security interests in transition property and
to
effect the transfer to an assignee of any interest in a financing
order.

(e) Unless otherwise ordered by the department with respect to any series of
electric rate reduction bonds on or prior to the issuance of the series,
there shall exist a statutory lien as provided in this subsection. Upon the
effective date of the financing order, there shall exist a first priority
lien on all transition property then existing or thereafter arising pursuant to
the terms of the financing order. This lien shall arise by operation
of this subsection automatically without any action on the part of the electric
company, any affiliate thereof, the financing entity, or any other
person. This lien shall secure all obligations, then existing or subsequently
arising, to the holders of the electric rate reduction bonds issued
pursuant to the financing order, the trustee or representative for the holders,
and any other entity specified in the financing order. The persons
for whose benefit this lien is established shall, upon the occurrence of any
defaults specified in the financing order, have all rights and remedies
of a secured party upon default pursuant to article 9 of chapter 106, and
shall be entitled to foreclose or otherwise enforce this statutory lien in
the transition property. This lien shall attach to the transition property
regardless of whom shall own, or shall subsequently be determined to own,
the transition property, including any electric company, any affiliate thereof,
the financing entity, or any other person. This lien shall be valid,
perfected, and enforceable against the owner of the transition property and all
third parties upon the effectiveness of the financing order without
any further public notice; provided, however, that any person may, but shall
not be required to, file a financing statement in accordance with
subsection (d). Financing statements so filed may be “protective filings” and
shall not be evidence of the ownership of the transition
property.

A perfected statutory lien in transition property shall be a continuously
perfected lien in all revenues and proceeds arising with respect thereto,
whether or not the revenues or proceeds have accrued. Conflicting liens shall
rank according to priority in time of perfection. Transition property
shall constitute property for all purposes, including for contracts securing
rate reduction bonds, whether or not the revenues and proceeds arising
with respect thereto have accrued.

In addition, the department may require, in the financing order creating the
transition property, that, in the event of default by the electric
company in payment of revenues arising with respect to transition property, the
department and any successor thereto, upon the application by the
beneficiaries of the statutory lien, and without limiting any other remedies
available to the beneficiaries by reason of the default, shall order the
sequestration and payment to the beneficiaries of revenues arising with respect
to the transition property. Any order shall remain in full force and
effect notwithstanding any bankruptcy, reorganization, or other insolvency
proceedings with respect to the debtor, pledgor, or transferor of the
transition property. Any surplus in excess of amounts necessary to pay
principal, premium, if any, interest, costs, and arrearages on the electric
rate reduction bonds, and other costs arising in connection with the documents
governing the electric rate reduction bonds, shall be remitted to the
debtor or to the pledgor or transferor.

(f)(1) A transfer of transition property by an electric company to an
affiliate or to a financing entity, or by an affiliate of an electric company
or a financing entity to another financing entity, which the parties have in
the governing documentation expressly stated to be a sale or other
absolute transfer, in a transaction approved in a financing order, shall be
treated as an absolute transfer of all of the transferor’s right,
title, and interest, as in a true sale, and not as a pledge or other financing,
of the transition property, other than for federal and state income
purposes. Granting to holders of electric rate reduction bonds a preferred
right to revenues of the electric company, or the provision by the company
of other credit enhancement with respect to electric rate reduction bonds,
shall not impair or negate the characterization of any transfer as a true
sale, other than for federal and state income purposes.

(2) A transfer of transition property shall be deemed perfected as against
third persons when both of the following have taken place: (i) the
department has issued the financing order authorizing the fixed transition
amounts included in the transition property; and (ii) an assignment of the
transition property in writing has been executed and delivered to the
transferee.

(3) As between bona fide assignees of the same right for value without
notice, the assignee first filing a financing statement in accordance with
article 9 of chapter 106 naming the assignor of the transition property as
debtor and identifying the transition property has priority. Any
description of the transition property shall be sufficient if it refers to the
financing order creating the transition property. A copy of the
financing statement shall be filed by the assignee with the department. The
department may require the assignor or the assignee to make other filings
with respect to the transfer in accordance with procedures it may establish,
but these filings shall not affect the perfection of the transfer.

(g) Any successor to the electric company, whether pursuant to any
bankruptcy, reorganization, or other insolvency proceeding, or pursuant to any
merger, sale, or transfer, by operation of law, or otherwise, shall perform and
satisfy all obligations of the electric company pursuant to this
section in the same manner and to the same extent as the electric company,
including, but not limited to, collecting and paying to the holders of
electric rate reduction bonds or their representatives or the financing entity,
revenues arising with respect to the transition property sold to the
financing entity or pledged to secure electric rate reduction bonds. This
requirement that a successor electric company perform the obligations of
its predecessor is made pursuant to the commonwealth’s policing and regulatory
authority.

SECTION 194.
Section 2 of said chapter 164, as so appearing, is
hereby amended by inserting after the word “producer”, in line 14,
the following words:- other than persons,
firms, associations, and private corporations expressly excluded from the
definition of “electric company” in section 1 of this chapter.

SECTION 195.
Said section 2 of said chapter 164, as so appearing,
is
hereby further amended by adding the
following sentence:- Electric companies, which engage in generation and which
are not part of a vertically integrated electric company or do not have
a distribution affiliate in the commonwealth, shall be exempt from the
provisions of sections 3 to 33, inclusive, and section 93.

SECTION 196.
Said chapter 164 is hereby further amended by inserting
after section 34 the following two sections:-

Section 34A. (a) Any city or town receiving street lighting service from
an electric company pursuant to a tariff which provides for the use
by such municipality of lighting equipment owned by the electric company, such
as lighting ballasts, fixtures, and other equipment necessary for the
conversion of electric energy into street lighting service, shall have the
rights with respect to such lighting equipment as set forth in this
section. Such rights shall apply in the event that such municipality does not
establish a municipal lighting plant in accordance with this chapter
or such lighting plant is established but ownership and control of the
distribution facilities needed to deliver electric energy to such lighting
equipment is held and retained by the electric company serving the municipality
prior to the establishment of the lighting plant. A municipality
subject to the provisions of this section, at its option, upon 60 days notice
to the electric company and to the department, and subject to the
provisions of subsections (b) to (e), inclusive, may:

(i) convert its street lighting service from the subject tariff to an
alternative tariff approved by the department providing for delivery service by
the electric company of electric energy, whether supplied by the electric
company or any other person, over distribution facilities and wires owned
by the electric company to lighting equipment owned or leased by the
municipality, and further providing for the use by such municipality of the
space on any pole, lamp post, or other mounting surface previously used by the
electric company for the mounting of the lighting equipment of the
electric company;

(ii) purchase electric energy for use in such municipal lighting equipment
from the electric company or any other person allowed by law to provide
electric energy; and

(iii) acquire, or compensate the electric company for, the lighting
equipment of the electric company in the municipality in accordance with
subsection (b).

(b) Any municipality exercising the option to convert its street lighting
service pursuant to subsection (a) shall be required to compensate the
electric company for its unamortized investment, net of any salvage value
obtained by the electric company under the circumstances, in the lighting
equipment owned by the electric company in the municipality as of the date the
electric company receives notice of such exercise pursuant to
subsection (a). In meeting this requirement, the municipality may acquire all
or any part of such lighting equipment of the electric company upon
the payment of the unamortized investment allocable to such acquired equipment.
Upon such payment, the municipality shall have the right to use,
alter, remove, or replace such acquired equipment in any way the municipality
deems appropriate. In addition, the municipality may request that the
electric company remove any unacquired part of such lighting equipment.
Thereupon, the municipality shall pay to the electric company the cost of
removal by the electric company, along with the unamortized investment
allocable to such unacquired part, net of any salvage value attributable to
the removed equipment.

(c) In connection with the exercise by any municipality of the option to
convert its street lighting service pursuant to subsection (a), any person
other than the electric company controlling the right to use space on any pole,
lamp post, or other mounting surface previously used by the electric
company in such municipality shall allow the municipality to assume the rights
and obligations of the electric company with respect to such space for
the unexpired term of any lease or other agreement under which the electric
company used such space; provided, however, that in the assumption of the
rights and obligations of the electric company by such a municipality, such
municipality shall in no way or form restrict, impede, or prohibit
universal access for the provision of electric and other services.

(d) In connection with the exercise by any municipality of the option to
convert its street lighting service pursuant to subsection (a), any dispute
concerning the terms of the alternative tariff, the compensation to be paid the
electric company, or any other matter arising in connection with such
exercise, including, but not limited to, the terms on which space is to be
provided to the municipality in accordance with subsection (c), shall be
resolved by the department within 60 days of any request for such resolution by
the municipality or any person involved in such dispute.

(e) Notwithstanding any general or special law, rule, or regulation to the
contrary, any affiliate of any electric company whose street lighting
service is converted by any municipality in accordance with the provisions of
this section may solicit and compete for the business of any such
municipality for the provision of lighting equipment or any other service such
as equipment maintenance in connection therewith.

Section 34B. A distribution company or a telephone company engaging in the
removal of an existing pole and the installation of a new pole in
place thereof shall complete the transfer of wires, all repairs, and the
removal of the existing pole from the site within 90 days from the date of
installation of the new pole; provided, however, that for any approved
commercial or industrial construction project, the completion of which is
expected to take longer than one year, said company shall be required to remove
such pole within six months from the date of installation of the new
pole. The owner of such pole shall notify all other users of the starting date
of such removal and installation work at least 48 hours prior to the
commencement of such work, and said owner shall require all other users to
remove their wiring and other attachments from the poles in a timely
manner.

SECTION 197.
Said chapter 164 is hereby further amended by inserting
after section 47 the following four sections:-

Section 47A. (a) Any municipal lighting plant established pursuant to the
provisions of this chapter or special law shall be exempt from the
requirements to allow competitive choice of generation supply, unless and until
such lighting plant is dissolved pursuant to existing statutory
procedures.

(b) A municipal lighting plant established pursuant to the provisions of
this chapter or special law may prohibit retail sales by suppliers and
electric companies to customers within the service territory of said lighting
plant; provided, however, that a municipal lighting plant may supply
generation service outside its own service territory for retail purposes only
if outside suppliers may provide generation service within the service
territory of said municipal lighting plant by mutual agreement with said
lighting plant. Such agreement, upon execution, shall be submitted to the
department and shall detail the manner in which any such supplier shall conduct
business within the service territory of said lighting plant.

(c) A municipal lighting plant may sell electricity at wholesale, for
resale, to aggregators, or other entities in bulk and shall not, in doing so,
be deemed to be supplying generation services outside its own service territory
for the purposes of subsection (b).

(d) A municipal lighting plant may sell electricity at retail, by mutual
agreement or by order of the department as provided pursuant to section 47
or section 60 of this chapter, in the service territory of an adjoining
electric company or a municipal lighting plant, and such sale shall not be
deemed to be supplying generation service outside its own service territory for
the purposes of subsection (b). Such mutual agreement shall be
between the municipal lighting plant selling such electricity at retail and the
adjoining electric company or other municipal lighting plant.

(e) No municipality, private corporation, or other entity selling or
distributing electricity shall use existing lines or extend its lines except by
mutual agreement with a municipal lighting plant or by order of the department
as provided pursuant to section 47 or section 60 of this chapter in
order to distribute or sell electricity to customers presently served by such
municipal lighting plant.

(f) If a municipal lighting plant has not allowed retail customers served by
it competitive choice of generation supply by March 1, 2003, the
governing body for each city or town with such municipal lighting plant shall
conduct a study, which shall include the holding of public hearings,
and may make recommendations which may include, but shall not be limited to,
conducting a referendum relative to competitive choice of generation
supply for the customers of such municipal lighting plant.

Section 47B. Any municipality acting by and through its municipal light
board may construct, purchase, operate, own, lease, rent, maintain,
dispose of, share costs of, or otherwise have the right to the use, or portions
thereof, of subtransmission, transmission, distribution, and
generation facilities and equipment located outside of the municipality’s
limits. All such subtransmission, transmission, distribution, and
generation facilities and equipment, or portions thereof, referred to in this
section so constructed, purchased, owned, leased, rented, operated,
maintained, or otherwise having the right to be used by any municipality shall
hereafter be considered “plant” under the provisions of
sections 34, 40, and 57 of this chapter. Any municipality acting by and
through its municipal light board is hereby authorized to pay for the
construction, purchase, lease, rent, or the right to use, or portions thereof,
of the subtransmission, transmission, distribution, and generation
facilities and equipment referred to in this section from those amounts
accumulated for depreciation.

Section 47C. (a) Any municipal lighting plant created in a manner provided
for in this chapter shall be allowed to form cooperative public
corporations for the purpose of furnishing efficient, low cost, and reliable
electric power and energy-related services as provided in this section.

(b) A municipal lighting plant cooperative established pursuant to the
provisions of this section shall constitute a body politic and corporate and
is constituted a public instrumentality, and the exercise of the powers
conferred by this section shall be deemed and held to be the performance of
an essential public function.

(c) Any number of municipal lighting plants may associate themselves
together and with other public corporations, established under the laws of the
commonwealth or any other state or the federal government, as a municipal
lighting plant cooperative, with or without capital stock, for the
transaction of any lawful business associated with the purchase, acquisition,
distribution, sale, resale, supply, and disposition of energy or energy-related
services to wholesale or retail customers, subject to federal and state
laws and regulations; provided, however, that no such cooperative
organized pursuant to this section shall be associated or create a partnership
with the corporation established pursuant to chapter 775 of the acts
of 1975; and provided, further, that said corporation established pursuant to
said chapter 775 shall not be allowed to participate in any activity or
have an ownership share in any cooperative formed pursuant to this section.

(d) A municipal lighting plant cooperative may be formed for any purpose
stated in subsection (c) which may lawfully be carried out by any other
corporation; provided, that a municipal lighting plant cooperative shall be
organized and shall conduct its business primarily for the mutual benefit
of its members as patrons of the cooperative. A municipal lighting plant
cooperative shall have all of the powers of a natural person, including the
power to participate with others in any partnership, joint venture or other
association, transaction, or arrangement of any kind. In addition, each
municipal lighting plant cooperative shall have the following powers:

(i) To have perpetual succession by its corporate name unless a limited
period of duration is stated in the articles of incorporation;

(ii) To sue and be sued, complain, and defend its corporate name;

(iii) To have and use a corporate seal;

(iv) To purchase, take, receive, lease, or otherwise acquire, own, hold,
improve, use, and deal in and with real or personal property or any interest
therein, wherever situated;

(v) To sell, convey, mortgage, pledge, lease, exchange, transfer, or
otherwise dispose of all or any part of its property and assets;

(vi) To purchase, take, receive, subscribe for, or otherwise acquire, own,
hold, vote, use, employ, sell, mortgage, lend, pledge, or otherwise
dispose of, use, and deal in and with shares or other interest in, or
obligations of, other domestic or foreign corporations, associations,
partnerships, or individuals, or direct or indirect obligations of the United
States or any other government, state, territory, governmental
district, or municipality, or any instrumentality thereof;

(vii) To make contracts and incur liabilities, borrow money at rates of
interest the cooperative may determine, issue notes, bonds, certificates of
indebtedness, and other obligations, receive funds from members and pay
interest thereon, issue capital stock and certificates representing equity
interests in assets, allocate earnings and losses at the times and in the
manner the articles of incorporation or bylaws or other contract specify,
create book credits, capital funds, and reserves, and secure obligations by
mortgage or pledge of any of its property, franchises, and income;

(viii) To lend money for corporate purposes, invest and reinvest funds, and
take and hold real and personal property as security for the payment of
funds loaned or invested;

(ix) To conduct business, carry on operations, have offices, and exercise
the powers granted by this subsection, within or without this commonwealth;

(x) To elect or appoint officers and agents of the corporation, define their
duties, and fix their compensation;

(xi) To make and alter bylaws, not inconsistent with its articles of
incorporation or with the laws of this commonwealth, for the administration and
regulation of the affairs of the cooperative;

(xii) To make donations for the public welfare or for charitable,
scientific, or educational purposes;

(xiii) To pay pensions and establish pension plans, pension trusts,
profit-sharing plans, stock bonus plans, stock option plans, and other
incentive
plans for any or all of its directors, officers, and employees;

(xiv) To be a partner, member, associate, or manager of any partnership,
joint venture, trust, or other enterprise;

(xv) To cease corporate activities and surrender its corporate franchise;

(xvi) To purchase, acquire, distribute, sell, resell, supply, and dispose of
energy in any form or other services;

(xvii) To purchase, acquire, distribute, sell, resell, supply, and provide
any energy or energy-related services to wholesale or retail customers
within or without the commonwealth;

(xviii) To have access on comparable terms to energy transportation systems
for delivery of energy to its members and other customers;

(xix) To sell electricity to any consumer, including, but not limited to, a
consumer that receives electric distribution, transmission, or other
services from an entity other than the municipal light plant cooperative
organized under subsection (a), other than consumers served by municipal
light plants which are not members of a municipal light plant cooperative, that
is selling such electricity to such consumer; provided, that an
entity providing such distribution, transmission, or other services shall
provide non-discriminatory access and pricing for the use of its property
and services and shall otherwise facilitate such transactions;

(xx) To contract with natural persons, firms, corporations, business
trusts,
partnerships, public and private agencies, non-profit organizations and
corporations, other cooperatives, and local municipalities to accomplish any
purposes of the cooperative;

(xxi) To have and exercise all powers necessary or convenient to effect its
purposes;

(xxii) To exercise and perform all or part of its power and functions
through one or more wholly-owned or partly-owned corporations or other business
entities; and

(xxiii) To exercise all other powers not inconsistent with the state
constitution or the United States Constitution, which may be reasonably
necessary or appropriate for or incidental to the effectuation of its
authorized purposes or to the exercise of any of the foregoing powers, and
generally to exercise in connection with its property and affairs, and in
connection with property within its control, any and all powers which might
be exercised by a natural person or a private corporation in connection with
similar property and affairs.

(e) A municipal lighting plant cooperative organized pursuant to this
section shall be managed by a board of not less than three directors. The
directors shall be elected by and from the members of the cooperative at such
time, in such manner, and for such term of office as the bylaws may
prescribe and shall hold office during the term for which they were elected and
until their successors are elected and qualified. Any vacancy
occurring in the board of directors, and any directorship to be filled by
reason of an increase in the number of directors, may be filled by the
board of directors unless the articles of incorporation or the bylaws provide
that a vacancy or directorship so created shall be filled in some other
manner. A director elected or appointed to fill a vacancy shall be elected or
appointed for the unexpired term of the predecessor in office.

(f) Any municipal lighting plant cooperative organized pursuant to the
provisions of this section may enact bylaws to govern itself in the
implementation of the provisions of this section which are not inconsistent
with the provisions of this section.

(g) The provisions of chapter 258 shall apply to the municipal lighting
plant cooperatives established under the provisions of this section as if
said municipal lighting plant cooperatives were municipal lighting plants.

(h) The right of a member of a cooperative to vote may be limited, enlarged,
or denied to the extent specified in the articles of incorporation or
bylaws. Unless so limited, enlarged, or denied, each member shall be entitled
to one vote on each matter submitted to a vote of members.

(i) A member of the board of directors or an officer of any cooperative
subject to the provisions of this section shall have immunity from liability
equivalent to that granted to directors and officers of for-profit corporations
in the commonwealth. Except for debts lawfully contracted between a
member and the cooperative, no member shall be liable for the debts of the
cooperative to an amount exceeding the sum remaining unpaid on his or her
membership fee or subscription to capital stock.

(j) Except as provided for herein, a municipal lighting plant cooperative
shall be exempt from paying taxes, including, but not limited to taxes on
its income and real and personal property situated within the commonwealth and
owned by the municipal light plant cooperative; provided, however,
that the cooperative shall agree, in lieu of property taxes, to pay to any
governmental body authorized to levy local property taxes the amount which
would be assessable as local property taxes on the real and tangible personal
property if such property were the property of a domestic corporation;
provided, further, that no such municipal lighting plant cooperative shall be
allowed to commence any such operations allowed pursuant to this
section or exercise any such powers pursuant to subsection (d) until such
payment in lieu of taxes is executed. The cooperative shall pay all sales
or excise taxes which are properly assessed on its business activities under
this section to the extent such taxes are assessed against domestic
corporations.

(k) A municipal lighting plant cooperative created pursuant to the
provisions of this section shall be exempt from the public records requirement
of
section 10 of chapter 66 and the open meeting requirements of section 23B of
chapter 39 only in those instances when necessary for protecting trade
secrets, confidential, competitively sensitive or other proprietary information
provided in the course of proceedings conducted pursuant to this
chapter.

Section 47D. A municipal lighting plant created pursuant to the provisions
of this chapter or any special law shall be exempt from the public
records requirement of section 10 of chapter 66 and the open meeting
requirements of section 23B of chapter 39 only in those instances when
necessary
for protecting trade secrets, confidential, competitively sensitive or other
proprietary information provided in the course of proceedings conducted
pursuant to this chapter when such municipal lighting plant board determines
that such disclosure will adversely affect its ability to conduct
business in relation to or other entities making, selling, or distributing
electric power and energy pursuant to this chapter.

SECTION 198.
Section 56D of said chapter 164, as appearing in the
196 Official Edition, is
hereby amended by striking out the fifth and sixth sentences and
inserting in place thereof the following sentence:- This section shall not
apply to contracts for the supply of electricity to a municipal
lighting plant.

SECTION 199.
Section 57 of said chapter 164, as so appearing, is
hereby amended by inserting after the word “years”, in line 32,
the following words:- , and for the cost of
plant, nuclear decommissioning costs, the costs of
contractual commitments, and deferred costs related to such commitments which
the city council, the board of selectmen, or the municipal light board,
if any, determines are above market value.

SECTION 200.
Section 69G of said chapter 164, as so appearing, is
hereby amended by striking out the definition of “Certificate”
and inserting in place thereof the following definition:-

“Certificate”, a certificate of environmental impact and public interest, as
provided for in sections 69K and 69K½.

SECTION 201.
Said section 69G of said chapter 164, as so appearing,
is hereby further amended by striking out, in line 18, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 202.
Said section 69G of said chapter 164, as so appearing,
is hereby further amended by striking out the definition of
“Facility” and inserting in place thereof the following definition:-

“Facility”, (1) a generating facility; (2) a new electric transmission line
having a design rating of 69 kilovolts or more and which is one mile or
more in length on a new transmission corridor; (3) a new electric transmission
line having a design rating of 115 kilovolts or more which is 10 miles
or more in length on an existing transmission corridor except reconductoring or
rebuilding of transmission lines at the same voltage; (4) an ancillary
structure which is an integral part of the operation of any transmission line
which is a facility; (5) a unit, including associated buildings and
structures, designed for or capable of the manufacture or storage of gas,
except such units below a minimum threshold size as established by
regulation; and (6) a new pipeline for the transmission of gas having a normal
operating pressure in excess of 100 pounds per square inch gauge which
is greater than one mile in length except restructuring, rebuilding, or
relaying of existing transmission lines of the same capacity.

SECTION 203.
Said section 69G of said chapter 164, as so appearing,
is hereby further amended by inserting after the definition of
“Gas company” the following definition:-

“Generating facility”, any generating unit designed for or capable of
operating
at a gross capacity of 100 megawatts or more, including associated
buildings, ancillary structures, transmission and pipeline interconnections
that are not otherwise facilities, and fuel storage facilities.

SECTION 204.
Section 69H of said chapter 164, as so appearing, is
hereby amended by striking out the first paragraph and inserting in place
thereof the following paragraph:-

There is hereby established an energy facilities siting board
within the department, but not under the supervision or control of the
department. Said board shall implement the provisions contained in
sections 69H to 69Q, inclusive, so as to provide a reliable energy supply
for the commonwealth with a minimum impact on the environment at the lowest
possible cost. To accomplish this, the board shall review the need for,
cost of, and environmental impacts of transmission lines, natural gas
pipelines, facilities for the manufacture and storage of gas, and oil
facilities; provided, however, that the board shall review only the
environmental impacts of generating facilities, consistent with the
commonwealth’s policy of allowing market forces to determine the need for and
cost of such facilities. Such reviews shall be conducted consistent
with section 69J¼ for generating facilities and with section 69J for all
other facilities.

SECTION 205.
The fifth paragraph of said section 69H of said
chapter 164, as so appearing,
is hereby further amended by adding
the following
paragraph:-

(4) The board shall have the opportunity to issue orders with respect to any
matter over which it has jurisdiction. Any applicant who violates any
such order shall be subject to a civil penalty not to exceed $1000 for each
violation for each day that the violation persists; provided, however,
that the maximum civil penalty shall not exceed $200,000 for any related series
of violations.

SECTION 206.
Section 69H½ of said chapter 164, as so appearing, is
hereby amended by striking out, in line 20, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 207.
Section 69I of said chapter 164, as so appearing, is
hereby amended by striking out the fourth paragraph and inserting in place
thereof the following paragraph:-

As regional plans covering longer time periods are developed, they shall be
filed with the department. Neither said department, the board, nor any
other person, in taking any action pursuant to sections 69I to 69J¼, inclusive,
shall be subject to any of the provisions of sections 61 to 62H,
inclusive, of chapter 30.

SECTION 208.
Said section 69I of said chapter 164, as so appearing,
is hereby further amended by adding the
following two paragraphs:-

The department and the siting board shall prepare and file with the general
court, by March first of each year, an annual report for the previous
calendar year detailing the substance of all plans and forecasts filed pursuant
to this section, any and all actions taken by the department pursuant
to implementing the provisions of this section, and an analysis of the
reliability and diversity of electric power and gas needs based on such
filings with the department and decisions made and issued by the department.

The department is authorized to exempt any electric or gas company from any
or all provisions of this section upon a determination by the department
and the siting board, after notice and hearing, that an alternative process is
in the public interest.

SECTION 209.
Section 69J of said chapter 164, as so appearing, is
hereby amended by adding the following paragraph:-

The provisions of this section shall not apply in the case of a petition to
construct a generating facility, which shall be subject to the provisions
of section 69J¼.

SECTION 210.
Said chapter 164 is hereby further amended by inserting
after
section 69J the following section:-

Section 69J¼. No applicant shall commence construction of a generating
facility unless a petition for approval of construction of that
generating facility has been approved by the board. In addition, no state
agency of the commonwealth shall issue a construction permit for any such
generating facility unless the petition to construct such generating facility
has been approved by the board pursuant to this section.

To streamline its review of petitions to construct generating facilities
which have state of the art environmental performance characteristics, the
board periodically shall conduct a rulemaking to establish a technology
performance standard generating facilities emissions, including, but not
limited to, emissions of sulfur dioxide, nitrogen oxides, particulate matter,
fine particulates, carbon monoxide, volatile organic compounds, and
heavy metals. As to each such pollutant, the performance standard shall
reflect the best
available control technology or the lowest achievable emissions rate, whichever
would be applicable in the commonwealth for such pollutant that year. The
performance standard shall also reflect the best available and most efficient
technology to control and reduce water withdrawals. Such standard shall
reflect emission rates that are achievable by state of the art fossil fuel
generating and control technologies, as demonstrated by air permits for
construction that have been issued by the department of environmental
protection. The technology performance standard shall be used solely to
determine whether a petition to construct a generating facility shall include
information regarding other fossil fuel generation technologies. The
promulgation or application of this standard shall not in any way supersede or
impair the authority of the department of environmental protection with respect
to these or other facilities.

A petition to construct a generating facility shall include, in such form and
detail as the board shall from time to time prescribe, the following
information: (i) a description of the proposed generating facility, including
any ancillary structures and related facilities; (ii) a description of the
environmental impacts and the costs associated with the mitigation, control, or
reduction of the environmental impacts of the proposed generating facility;
(iii) a description of the project development and site selection process used
in choosing the design and location of the proposed generating facility;
(iv) either (a) evidence that the expected emissions from the facility meet
the technology performance standard in effect at the time of filing, or (b) a
description of the environmental impacts, costs, and reliability of other
fossil fuel generating technologies, and an explanation of why the proposed
technology was chosen; and (v) any other information necessary to demonstrate
that the generating facility meets the requirements for approval specified in
this section.

The board shall, after public notice and a period for comment, be authorized
to issue and revise its own list of guidelines. Sufficient data shall be
required from the applicant by these guidelines to enable the board to review
the local and regional land use impact, local and regional cumulative
health impact, water resource impact, wetlands impact, air quality impact,
solid waste impact, radiation impact, visual impact, and noise impact of
the proposed generating facility; provided, however, that these guidelines
shall not require any data related to the necessity or cost of the
proposed generating facility, except for data related to the costs associated
with the mitigation, control, or reduction of the environmental impacts
of the proposed generating facility, and, if the proposed facility does not
meet the technology performance standard in effect at the time of filing,
data related to the costs, including costs associated with the mitigation,
control, or reduction of environmental impacts, of other fossil fuel
generating technologies.
Within 60 days of the filing of a petition to construct a generating
facility, the board shall conduct a public hearing in each locality in which
the
generating facility would be located. In addition, the board shall, within 180
days of the filing thereof, conduct public evidentiary hearings on
every petition to construct a generating facility. Such evidentiary hearings
shall be adjudicatory proceedings under the provisions of chapter 30A.

The board shall, within one year from the date of filing, approve a petition
to construct a generating facility if the board determines that the
petition meets the following requirements: (i) the description of the proposed
generating facility and its environmental impacts are substantially
accurate and complete; (ii) the description of the site selection process used
is accurate; and (iii) the plans for the construction of the proposed
generating facility are consistent with current health and environmental
protection policies of the commonwealth and with such energy policies as are
adopted by the commonwealth for the specific purpose of guiding the decisions
of the board; (iv) such plans minimize the environmental impacts
consistent with the minimization of costs associated with the mitigation,
control, and reduction of the environmental impacts of the proposed
generating facility; and (v) if the petitioner was required to provide
information on other fossil fuel generating technologies, the construction of
the proposed generating facility on balance contributes to a reliable,
low-cost, diverse, regional energy supply with minimal environmental impacts.
Nothing in this chapter shall be construed as requiring the board to make
findings regarding the need for, the cost of, or alternative sites for a
generating facility; provided, however, that the board may, at its discretion,
evaluate a noticed alternative site for a generating facility if the
applicant requests such an evaluation, or if such an evaluation is an efficient
method of administering an alternative site review required by
another state or local agency. In addition, nothing in this chapter shall be
construed as requiring the board to make findings regarding alternative
generating technologies for a proposed generating facility whose expected
emissions meet the technology performance standard in effect at the time of
filing.

If the board determines that the standards set forth above have not been met,
it shall, within one year of the date of filing, either reject, in
whole or in part, the petition, setting forth in writing its reasons for such
rejection, or approve the petition subject to stated conditions. In the
event of rejection or conditional approval, the applicant may, within 180 days,
submit an amended petition. Public and evidentiary hearings on the
amended petition shall be held on the same terms and conditions applicable to
the original petition.

Upon fulfilling the requirements of this section, a generating facility shall
be deemed to contribute to a necessary energy supply for the
commonwealth with a minimum impact on the environment at the lowest possible
cost. If the board approves a petition to construct a generating
facility, the approval shall have no bearing or precedent-setting effect upon
any department proceeding regarding the recovery of costs associated
with the generating facility or upon any proceeding conducted pursuant to
section 94A of this chapter.

SECTION 211.
Section 69K of said chapter 164, as appearing in the
1996 Official Edition, is
hereby amended by striking out, in line 3, the word “need” and inserting in
place thereof the following word:- interest.

SECTION 212.
Said section 69K of said chapter 164, as so appearing,
is hereby further amended by striking out, in line 26, the word “need”
and inserting in place thereof the following word:- interest.

SECTION 213.
Said section 69K of said chapter 164, as so appearing,
is hereby further amended by adding the following
paragraph:-

The provisions of this section shall not apply in the case of a petition for
a certificate with respect to a generating facility, which shall be
subject to the provisions of section 69K½.

SECTION 214.
Said chapter 164 is hereby further amended by inserting
after
section 69K the following section:-

Section 69K½. Any applicant that proposes to construct or operate a
generating facility in the commonwealth may petition the board for a
certificate of environmental impact and public interest with respect to such
generating facility. The board shall consider such petition; provided,
that (i) the applicant is prevented from building a generating facility because
it cannot meet standards imposed by a state or local agency with
reasonable and commercially available equipment; or (ii) because the processing
or granting by a state or local agency of any approval, consent,
permit, or certificate has been unduly delayed for any reason, including the
preparation and publication of any environmental impact report required
by section 62 of chapter 30; or (iii) the applicant believes there are
inconsistencies among resource use permits issued by such state or local
agencies; or (iv) the applicant believes that a nonregulatory issue or
condition has been raised or imposed by such state or local agencies, such as,
but not limited to, aesthetics and recreation; or (v) the generating facility
cannot be constructed due to any disapprovals, conditions, or denials
by a state or local agency or body, except with respect to any lands or
interests therein, excluding public ways, owned or managed by any state
agency or local government; or (vi) the facility cannot be constructed because
of delays caused by the appeal of any approval, consent, permit, or
certificate.

In addition to the foregoing determinations, the board shall, upon petition,
consider an application for a certificate of environmental impact and
public interest if it finds that any state or local agency has imposed a
burdensome condition or limitation on any license or permit which has a
substantial impact on the responsibilities of the board as set forth pursuant
to section 69H. Any generating facility, with respect to which a
certificate is issued by the board, shall thereafter be constructed,
maintained, and operated in conformity with such certificate and any terms and
conditions contained therein.

A certificate shall be issued only in accordance with the provisions of
sections 69K to 69 O½, inclusive. Notwithstanding the provisions of
any other law to the contrary, a certificate may be so issued; provided,
however, that when so issued no state agency or local government shall
require any approval, consent, permit, certificate, or condition for the
construction, operation, or maintenance of the generating facility with
respect to which the certificate is issued, and no state agency or local
government shall impose or enforce any law, ordinance, by-law, rule, or
regulation nor take any action nor fail to take any action which would delay or
prevent the construction, operation, or maintenance of such
generating facility; provided, however, that the board shall not issue a
certificate, the effect of which would be to grant or modify a permit,
approval, or authorization, which, if so granted or modified by the appropriate
state or local agency, would be invalid because of a conflict with
applicable federal water or air standards or requirements. A certificate, if
issued, shall be in the form of a composite of all individual permits,
approvals, or authorizations which would otherwise be necessary for the
construction and operation of the generating facility, and that portion of
the certificate which relates to subject matters within the jurisdiction of a
state or local agency shall be enforced by said agency under the other
applicable laws of the commonwealth as if it had been directly granted by the
said agency.

A certificate may be transferred to any other electric company by the holder
thereof, subject to the terms and conditions contained therein. The
board may amend the terms and conditions of a certificate in accordance with
the requirement of subsection (d) of section 69L½. Each national
pollutant discharge elimination system permit issued by the board pursuant to
the provisions of this chapter shall have a fixed term which shall not
exceed five years and which shall commence to run when the certificate is
issued.

SECTION 215.
Section 69L of said chapter 164, as appearing in the
1996 Official Edition, is
hereby amended by striking out, in line 1, the word “An” and
inserting in place thereof the following:- Except in the case of an application
for a certificate with respect to a generating facility, which shall
be subject to the provisions of section 69L½, an.

SECTION 216.
Said chapter 164 is hereby further amended by inserting
after
section 69L the following section:-

Section 69L½. (a) An applicant for a certificate pursuant to section 69K½
shall file with the board a petition, in such form as the board may
prescribe, containing the following information:

(1) A description of the location of the generating facility to be
constructed or operated thereon;

(2) A summary of the studies which the applicant has made of the
environmental impact of the generating facility and a statement of the reasons
for
its choice of the location;

(3) A copy of the petition for the construction of a generating facility
approved under the provisions of section 69J¼; provided, however, that
this requirement may be waived by the board for emergency or unforeseen
conditions which may jeopardize the health and safety of the public;

(4) A statement setting forth the reasons for the application for the
certificate, which statement shall include the following: (i) all licenses,
permits, and other regulatory approvals required by law for the construction or
operation of the generating facility which have been granted; (ii) a
representation as to the good faith effort made by the applicant to obtain from
state agencies and local governments the licenses, permits, and other
regulatory approvals required by law for construction or operation of the
generating facility; (iii) either (a) a representation as to the inability,
if any, of the applicant to comply with any law, ordinance, by-law, rule, and
regulation affecting the construction or operation of the generating
facility, or (b) a representation as to the applicant’s inability to proceed
with the construction or operation of the generating facility by reason
of the denial, delay, appeal, or imposition of a burdensome condition in
issuing specified licenses, permits, or approvals; and (iv) such other
information as the applicant may deem relevant or the board may by regulation
require; and

(5) A copy or copies of said information, studies, and other pertinent
information shall be filed and made available for public inspection and
copying; provided, however, that the board shall not permit disclosure, other
than to another government agency concerned with the same matter, of
any information, other than data pertaining to the nature or constituency of
any water or air discharge, obtained by or submitted to the board
pursuant to the provisions of sections 69H to 69R, inclusive, upon a
showing, satisfactory to a majority of the board, that such information if
made public would divulge methods or processes entitled to protection as trade
secrets of any person.

(b) Each petition shall be accompanied by an affidavit of the applicant
certifying that: (i) a copy of the petition and a notice as to the date on
which the petition is to be filed have been served on each of the following:
the mayor of each city and the board of selectmen of each town in which
any part of the proposed generating facility is to be located, the secretary of
each executive office, and the attorney general; and (ii) public
notice thereof containing a summary of the petition and the date on which
notice is to be filed was given by publication, in such manner as the board
may by regulation provide.

(c) Failure to give such service or notice may be cured pursuant to an order
of the board subsequent to the filing of the petition. The board may
further order additional service and notice on such other persons as it deems
appropriate.

(d) Each petition may be amended by the applicant at any time, subject to
such reasonable requirements of notice as the board may impose. A petition
for an amendment of a certificate shall be in such form and subject to such
requirements of notice and hearings as the board may provide, consistent
with the nature and extent of the proposed amendment.

SECTION 217.
Section 69M of said chapter 164, as appearing in the
1996 Official Edition, is
hereby amended by striking out, in line 2, the words “section sixty-nine L”
and inserting in place thereof the following words:- section 69L or
section 69L½,
whichever is applicable.

SECTION 218.
Said section 69M of said chapter 164, as so appearing,
is hereby further amended by striking out, in line 5, the words
“section sixty-nine L” and inserting in place thereof the following
words:- section 69L or section 69L½, whichever is applicable,.

SECTION 219.
Section 69N of said chapter 164, as so appearing, is
hereby amended by striking out, in line 4, the words “section sixty-nine L”
and inserting in place thereof the following words:- section 69L or
section 69L½, whichever is applicable.

SECTION 220.
Said section 69N of said chapter 164, as so appearing,
is hereby further amended by striking out, in line 6, the words
“section sixty-nine L” and inserting in place thereof the following
words:- 69L or
section 69L½, whichever is applicable.

SECTION 221.
Section 69 O of said chapter 164, as so appearing, is
hereby amended by inserting after the word “petition”, in line 2, the
following words:- for a certificate pursuant to section 69K.

SECTION 222.
Said section 69 O of said chapter 164, as so
appearing,
is hereby further amended by adding the following
paragraph:-

The provisions of this section shall not apply in the case of a petition for
a certificate with respect to a generating facility filed pursuant to
section 69K½, which shall be subject to the provisions of section 69 O½.

SECTION 223.
Said chapter 164 is hereby further amended by inserting
after
section 69 O the following section:-

Section 69 O½. As expeditiously as possible, but in no event later than
180 days from the date of filing a petition for a certificate with regard to
a generating facility pursuant to section 69K½, the board shall, by a majority
vote, render a decision upon the petition either by denying the
petition or by granting the petition, or by granting the petition subject to
such terms and conditions as the board may determine. Neither the board
nor any other person shall be bound by the requirements of sections 61 to 62H,
inclusive, of chapter 30 to the extent that compliance with said
requirements will prevent the board from rendering a decision upon the petition
within the time limits of the section.

A certificate shall be issued only if the board determines that the issues
raised by state agencies or local governments regarding the proposed
generating facility have been addressed in a comprehensive manner by the board
either in its approval of said generating facility under section 69J¼ or in
its review under section 69K½. The board shall make its decision in
writing and shall include therein its findings and opinions with
respect to the following: (i) the compatibility of the generating facility with
considerations of environmental protection, public health, and public
safety; (ii) the extent to which construction and operation of the generating
facility will fail to conform with existing state and local laws,
ordinances, by-laws, rules, and regulations and reasonableness of exemption
thereunder, if any, consistent with the implementation of the energy
policies contained in this chapter; and (iii) the public interest or
convenience requiring construction and operation of the generating facility.

SECTION 224.
Section 69R of said chapter 164, as appearing in the
1996 Official Edition, is
hereby amended by striking out the first paragraph and inserting in place
thereof the following paragraph:-

Any electric or gas company, generation company, or wholesale
generation company may petition the department for the right to exercise
the power of eminent domain with respect to the facility or facilities
specified and contained in a petition submitted in accordance with section 69J
or a bulk power supply substation if such electric or gas company is unable to
reach agreement with the owners of land for the acquisition of any
necessary estate or interest in land. The applicant shall forward, at the time
of filing such petition, a copy thereof to each city, town, and
property owner affected.

SECTION 225.
Said section 69R of said chapter 164, as so appearing,
is hereby further amended by striking out, in lines 19 and 20, the words
“the community in which the greater portion of the unit is located” and
inserting in place thereof the following:- in the community in which the
land to be taken is located. For facilities involving takings in several
communities, a public hearing or hearings shall be held in communities in
proximity to the land to be taken, as determined by the department.

SECTION 226.
Said section 69R of said chapter 164, as so appearing,
is hereby further amended by striking out the seventh paragraph and
inserting in place thereof the following paragraph:-

This section shall not be construed as abrogating the department’s
jurisdiction described in section 72 in respect to transmission lines or the
department’s jurisdiction described in sections 75B to 75G, inclusive, in
respect to natural gas transmission lines.

SECTION 227.
Section 76B of said chapter 164, as so appearing, is
hereby amended by striking out, in line 5, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 228.
Said chapter 164 is hereby further amended by striking
out
section 78, as so appearing, and inserting in place thereof the
following section:-

Section 78. If any electric, gas, generation, transmission, or distribution
company, or any supplier violates or fails to comply with the provisions
of law, or violates or fails to comply with any lawful order of the department,
the department shall give written notice thereof to such company or
supplier and to the attorney general.

SECTION 229.
Said chapter 164 is hereby further amended by striking
out section 79, as so appearing, and inserting in place thereof the following
section:-

Section 79. The supreme judicial or superior court shall have jurisdiction
in equity, upon application of the department, to enforce its lawful
orders and all laws relative to cities and towns engaged in the manufacture and
sale or distribution and sale of electricity or gas, generation,
transmission or distribution companies, or suppliers.

SECTION 230.
Section 87 of said chapter 164, as so appearing, is
hereby amended by striking out, in lines 1 and 2, the words
“manufacture or sale” and inserting in place thereof the following words:-
manufacture, sale or distribution.

SECTION 231.
Section 92 of said chapter 164, as so appearing, is
hereby amended by inserting after the word “or”, in line 3, the second time it
appears, the
following words:- the distribution of.

SECTION 232.
Said section 92 of said chapter 164, as so appearing,
is
hereby further amended by striking out, in line 10, the words
“electricity or”.

SECTION 233.
Section 92A of said chapter 164, as so appearing, is
hereby amended by striking out, in line 2, the words “or electricity”.

SECTION 234.
Said section 92A of said chapter 164, as so appearing,
is hereby further amended by striking out, in line 5, the words
“or electricity”.

SECTION 235.
Said section 92A of said chapter 164, as so appearing,
is hereby further amended by striking out, in line 9, the words
“or electricity”.

SECTION 236.
Said section 92A of said chapter 164, as so appearing,
is hereby further amended by striking out, in line 15, the words
“or electricity”.

SECTION 237.
The last paragraph of section 94 of said chapter 164,
as so appearing, is
hereby amended by adding the following sentence:- Generation companies and
suppliers shall be exempt from the provisions of this
section.

SECTION 238.
Section 94A of said chapter 164, as so appearing, is
hereby amended by adding the following sentence:- The department is authorized
to exempt any electric or generation company from
any or all of the provisions of this section upon a determination by
the department, after notice and a hearing, that an alternative process or
incentive mechanism is in the public interest.

SECTION 239.
Section 94G of said chapter 164, as so appearing, is
hereby amended by adding the following
subsection:-

(g) The department is authorized to exempt any electric or generation
company or supplier from any or all of the provisions of this section upon a
determination by the department, after notice and a hearing, that an
alternative process or incentive mechanism is in the public interest.

SECTION 240.
Section 94G½ of said chapter 164, as so appearing, is
hereby amended by adding the following
paragraph:-

The department is authorized to exempt any electric, generation, or gas
company from any or all of the provisions of this section upon a
determination by the department, after notice and a hearing, that an
alternative process or incentive mechanism is in the public interest.

SECTION 241.
Section 95 of said chapter 164, as so appearing, is
hereby amended by striking out, in line 2, the words “manufacture or sale”
and inserting in place thereof the following words:- manufacture, sale, or
distribution.

SECTION 242.
Section 96 of said chapter 164, as so appearing, is
hereby amended by inserting after the word “companies”, in line 4, the
following:- or to a wholesale generation company.

SECTION 243.
Said section 96 of said chapter 164, as so appearing,
is
hereby further amended by inserting after the word
“interest”, in line 12, the following words:- ; provided,
however, that the purchase or sale of properties by, or the
consolidation or merger of, wholesale generation companies shall not require
departmental approval.

SECTION 244.
Said chapter 164 is hereby further amended by inserting
after section 102B the following section:-

Section 102C. (a) The attorney general is hereby authorized to bring an
action under section 4 of chapter 93A to enforce the consumer protection
provisions of sections 1B, 1C, 1D, 1E, 1F, and 137 of this chapter and to
obtain restitution, civil penalties, injunctive relief and any other relief
awarded pursuant to said chapter 93A. At the attorney general’s
discretion, pursuant to subsection (c) of section 2 of said chapter 93A, the
attorney general shall promulgate rules and regulations relative to methods,
acts, and practices of electric and generation companies and suppliers.

(b) All electric companies, aggregators, marketers, and all suppliers doing
business in the commonwealth shall submit to arbitration, if such
arbitration is requested by a retail electric customer or any company or other
such entity organized and governed pursuant to the provisions of this
chapter alleging an unfair or deceptive trade practice by its retail electric
suppliers or electric company. The department shall, in coordination
with the office of consumer affairs, promulgate rules and regulations to
implement this section to provide for the expeditious treatment of
complaints brought by any retail consumer. Said rules and regulations shall
include, but not be limited to, a description of the procedures
available to redress violations of the rules and regulations and afford said
consumers the opportunity to participate in a voluntary mediation
process with the supplier or electric company to settle the claim without
recourse to arbitration, and a provision that any violation of said rules
and regulations shall be deemed an unfair and deceptive act pursuant to the
provisions of chapter 93A. Said arbitration shall be performed by the
department or by a state-certified professional arbitrator or arbitration firm
appointed by the department and operating in accordance with the rules
and regulations promulgated by the department.

SECTION 245.
Section 125A of said chapter 164, as appearing in the
1996 Official Edition, is
hereby amended by inserting after the word “company”, in line 1, the following
words:- , generation company,
wholesale generation company, or supplier.

SECTION 246.
Section 128 of said chapter 164, as so appearing, is
hereby amended by inserting after the word “distribution”, in line 2,
the following words:- or only distribution,.

SECTION 247.
Said chapter 164 is hereby further
amended by adding the following
four sections:-

Section 134. (a) Any municipality or any group of municipalities acting
together within the commonwealth is hereby authorized to aggregate the
electrical load of interested electricity consumers within its boundaries;
provided, however, that such municipality or group of municipalities shall
not aggregate electrical load if such are served by an existing municipal
lighting plant. Such municipality or group of municipalities may group
retail electricity customers to solicit bids, broker, and contract for electric
power and energy services for such customers. Such municipality or
group of municipalities may enter into agreements for services to facilitate
the sale and purchase of electric energy and other related services.
Such service agreements may be entered into by a single city, town, county, or
by a group of cities, towns, or counties.

A municipality or group of municipalities which aggregates its electrical
load and operates pursuant to the provisions of this section shall not be
considered a utility engaging in the wholesale purchase and resale of electric
power. Providing electric power or energy services to aggregated
customers within a municipality or group of municipalities shall not be
considered a wholesale utility transaction. The provision of aggregated
electric power and energy services as authorized by this section shall be
regulated by any applicable laws or regulations which govern aggregated
electric power and energy services in competitive markets.

A town may initiate a process to aggregate electrical load upon authorization
by a majority vote of town meeting or town council. A city may
initiate a process to authorize aggregation by a majority vote of the city
council, with the approval of the mayor, or the city manager in a Plan D
or Plan E city. Two or more municipalities may as a group initiate a process
jointly to authorize aggregation by a majority vote of each particular
municipality as herein required.

Upon an affirmative vote to initiate said process, a municipality or group of
municipalities establishing load aggregation pursuant to this section
shall, in consultation with the division of energy resources, pursuant to
section 6 of chapter 25A, develop a plan, for review by its citizens,
detailing the process and consequences of aggregation. Any municipal load
aggregation plan established pursuant to this section shall provide for
universal access, reliability, and equitable treatment of all classes of
customers and shall meet any requirements established by law or the
department concerning aggregated service. Said plan shall be filed with the
department, for its final review and approval, and shall include,
without limitation, an organizational structure of the program, its operations,
and its funding; rate setting and other costs to participants; the
methods for entering and terminating agreements with other entities; the rights
and responsibilities of program participants; and termination of the
program. Prior to its decision, the department shall conduct a public hearing.
The department shall not approve any such plan if the price for
energy would initially exceed the price of the standard offer, as established
pursuant to section 1B of this chapter, for such citizens in the
municipality or group of municipalities, unless the applicant can demonstrate
that the price for energy under the aggregation plan will be lower than
the standard offer in the subsequent years or the applicant can demonstrate
that such excess price is due to the purchase of renewable energy as
described by the division of energy resources pursuant to chapter 25A.

Participation by any retail customer in a municipal or group aggregation
program shall be voluntary. If such aggregated entity is not fully
operational on the retail access date, any ratepayer to be automatically
enrolled therein shall receive standard offer service unless affirmatively
electing not to do so. Within 30 days of the date the aggregated entity is
fully operational, such ratepayers shall be transferred to the aggregated
entity according to an opt-out provision herein. Following adoption of
aggregation through the votes specified above, such program shall allow any
retail customer to opt-out and choose any supplier or provider such retail
customer wishes. Once enrolled in the aggregated entity, any ratepayer
choosing to opt-out within 180 days shall do so without penalty and shall be
entitled to receive standard offer service as if he was originally
enrolled therein. Nothing in this section shall be construed as authorizing
any city or town or any municipal retail load aggregator to restrict the
ability of retail electric customers to obtain or receive service from any
authorized provider thereof.

It shall be the duty of the aggregated entity to fully inform participating
ratepayers in advance of automatic enrollment that they are to be
automatically enrolled and that they have the right to opt-out of the
aggregated entity without penalty. In addition, such disclosure shall
prominently state all charges to be made and shall include full disclosure of
the standard offer rate, how to access it, and the fact that it is
available to them without penalty. The division of energy resources shall
furnish, without charge, to any citizen a list of all other supply options
available to them in a meaningful format that shall enable comparison of price
and product.

(b) A municipality or group of municipalities establishing a load
aggregation program pursuant to subsection (a) may, by a vote of its town
meeting
or legislative body, whichever is applicable, adopt an energy plan which shall
define the manner in which the municipality or municipalities may
implement demand side management programs and renewable energy programs that are consistent with any state energy conservation goals developed
pursuant to chapter 25A or chapter 164. After adoption of the energy plan by such town meeting or other legislative body, the city or town clerk
shall submit the plan to the department to certify that it is consistent with any such state energy conservation goals. If the plan is certified by
the department, the municipality or group of municipalities may apply to the
Massachusetts Technology Park Corporation for monies from the
Massachusetts Renewable Energy Trust Fund, established pursuant to
subsection (a) of chapter 40J, and receive, and if approved, expend moneys
from
the demand side management system benefit charges or line charges in an amount
not to exceed that contributed by retail customers within said
municipality or group municipalities. This will not prevent said municipality
or municipalities from applying to the Massachusetts Technology Park
Corporation for additional funds. If the department determines that the energy
plan is not consistent with any such state-wide goals, it shall inform
the municipality or group of municipalities within six months by written notice
the reasons why it is not consistent with any such state-wide goals.
The municipality or group of municipalities may re-apply at anytime with an
amended version of the energy plan.

The municipality or group of municipalities shall not be prohibited from
proposing for certification an energy plan which is more specific, detailed,
or comprehensive or which covers additional subject areas than any such
state-wide conservation goals. This subsection shall not prohibit a
municipality or group of municipalities from considering, adopting, enforcing,
or in any other way administering an energy plan which does not comply
with any such state-wide conservation goals so long as it does not violate the
laws of the commonwealth.

The municipality or group of municipalities shall, within two years of
approval of its plan or such further time as the department may allow, provide
written notice to the department that its plan is implemented. The department
may revoke certification of the energy plan if the municipality or
group of municipalities fails to substantially implement the plan or if it is
determined by independent audit that the funds were misspent within the
time allowed under this subsection.

Section 135. Any for-profit corporation, non-profit corporation, or
quasi-public authority, organized pursuant to the laws of the
commonwealth, is hereby authorized to establish a corporate retail load
aggregator for the purpose of purchasing bulk electricity to serve affiliated
corporations or affiliated business units organized pursuant to the laws of the
commonwealth which are not sited within the boundaries of a municipal
light department within the commonwealth. A corporate retail load aggregator
shall be authorized (i) to purchase electricity from any entity
authorized to sell electricity; (ii) to sell electricity at retail to any
corporate affiliate or business unit located outside of the boundaries of
communities served by municipal light departments within the commonwealth; and
(iii) to enter into such contracts and agreements as are necessary or
appropriate to provide such service. A corporate retail load aggregator shall
be prohibited from engaging in the generation of electric power and
from owning or operating any facilities for the transmission or distribution of
electric power, with the exception of meters.

A corporation may establish a corporate retail load aggregator upon
authorization by a majority vote of its board of directors. After a
corporation
has voted to establish a corporate retail load aggregator, the secretary of the
corporation shall forthwith transmit to the department a certified
copy thereof. A corporation that has established a corporate retail load
aggregator shall appoint, by a majority vote of its board of directors or,
as the case may be, a manager or a managing board of the corporate retail load
aggregator. Such manager or managing board shall have full charge of
the operation and management of the corporate retail load aggregator; the entry
into contracts and agreements pursuant to which power will be
purchased and sold; the employment of attorneys, agents, and servants; the
collection of bills; and the keeping of accounts. At the discretion of
the corporation, corporate officials may serve as such manager or on such
managing board. The compensation and term of office of such manager or
managing board shall be fixed by the corporation.

Nothing in this section shall be construed as relieving any company which
provides generation, transmission, or distribution of electricity or any
combination thereof, from any obligation relative to the transmission and
distribution of electricity to the corporation forming a corporate retail
load aggregator.

Corporate load aggregators shall be subject to any rules and regulations
promulgated by the department through existing statute or amendments
thereto, including licensure requirements.

Section 136. (a) Any number of persons may associate themselves together
as a cooperative, with or without capital stock, for the transaction
of any lawful business associated with the purchase, acquisition, distribution,
sale, resale, supply, and disposition of energy or energy-related
services to wholesale or retail customers, subject to federal and state laws
and regulations. Unless otherwise served by a municipal light plant
constructed or acquired pursuant to the provisions of this chapter or special
law, any natural person, firm, corporation, business trust,
partnership, public or private agency, non-profit organization or corporation,
cooperative, or local municipality may become a member or shareholder
of a cooperative. Such member or shareholder may thus access any services the
cooperative has to offer and participate in the governance of the
cooperative as provided in this subsection or by the bylaws of the cooperative.

(b) A cooperative may be established for any purpose outlined in subsection (a) of this section that may lawfully be carried out by any other
corporation; provided, that a cooperative shall be organized and shall conduct
its business primarily for the mutual benefit of its members as
patrons of the cooperative. A cooperative shall have all of the powers of a
natural person, including the power to participate with others in any
partnership, joint venture, or other association, transaction, or arrangement
of any kind. In addition, each cooperative subject to this chapter
shall have the following powers:

(i) To have perpetual succession by its corporate name unless a limited
period of duration is stated in the articles of incorporation;

(ii) To sue and be sued, complain, and defend its corporate name;

(iii) To have and use a corporate seal;

(iv) To purchase, take, receive, lease, or otherwise acquire, own, hold,
improve, use, and deal in and with real or personal property or any interest
therein, wherever situated;

(v) To sell, convey, mortgage, pledge, lease, exchange, transfer, or
otherwise dispose of all or any part of its property and assets;

(vi) To purchase, take, receive, subscribe for, or otherwise acquire, own,
hold, vote, use, employ, sell, mortgage, lend, pledge, or otherwise
dispose of, use, and deal in and with shares or other interest in, or
obligations of, other domestic or foreign corporations, associations,
partnerships, or individuals, or direct or indirect obligations of the United
States or any other government, state, territory, governmental
district, or municipality, or any instrumentality thereof;

(vii) To make contracts and incur liabilities, borrow money at rates of
interest the cooperative may determine, issue notes, bonds, certificates of
indebtedness, and other obligations, receive funds from members and pay
interest thereon, issue capital stock and certificates representing equity
interests in assets, allocate earnings and losses at the times and in the
manner the articles of incorporation or bylaws or other contract specify,
create book credits, capital funds, and reserves, and secure obligations by
mortgage or pledge of any of its property, franchises, and income;

(viii) To lend money for corporate purposes, invest and reinvest funds, and
take and hold real and personal property as security for the payment of
funds loaned or invested;

(ix) To conduct business, carry on operations, have offices, and exercise
the powers granted by this subsection, within or without this commonwealth;

(x) To elect or appoint officers and agents of the corporation, define their
duties, and fix their compensation;

(xi) To make and alter bylaws, not inconsistent with its articles of
incorporation or with the laws of this commonwealth, for the administration and
regulation of the affairs of the cooperative;

(xii) To make donations for the public welfare or for charitable,
scientific, or educational purposes;

(xiii) To pay pensions and establish pension plans, pension trusts,
profit-sharing plans, stock bonus plans, stock option plans, and other
incentive
plans for any or all of its directors, officers, and employees;

(xiv) To be a partner, member, associate, or manager of any partnership,
joint venture, trust, or other enterprise;

(xv) To cease corporate activities and surrender its corporate franchise;

(xvi) To purchase, acquire, distribute, sell, resell, supply, and dispose of
energy or
other services;

(xvii) To purchase, acquire, distribute, sell, resell, supply, and provide
any energy or energy-related services to wholesale or retail customers;

(xviii) To have access on comparable terms to energy transportation systems
for delivery of energy to its members and other customers;

(xix) To sell electricity to any consumer, including, but not limited to, a
consumer that receives electric distribution, transmission, or other
services from an entity other than the cooperative organized under
subsection (a), other than consumers served by municipal light plants, that is
selling such electricity to such consumer; provided, that an entity providing
such distribution, transmission, or other services shall provide
non-discriminatory access and pricing for the use of its property and services
and
shall otherwise facilitate such transactions;

(xx) To contract with natural persons, firms, corporations, business
trusts,
partnerships, public and private agencies, non-profit organizations and
corporations, other cooperatives, and local municipalities to accomplish any
purposes of the cooperative; and

(xxi) To have and exercise all powers necessary or convenient to effect its
purposes.

(c) A cooperative organized pursuant to this section shall be managed by a
board of not less than three directors. The directors shall be elected by
and from the members of the cooperative at such time, in such manner, and for
such term of office as the bylaws may prescribe and shall hold office
during the term for which they were elected and until their successors are
elected and qualified. Any vacancy occurring in the board of directors,
and any directorship to be filled by reason of an increase in the number of
directors, may be filled by the board of directors unless the articles of
incorporation or the bylaws provide that a vacancy or directorship so created
shall be filled in some other manner. A director elected or appointed
to fill a vacancy shall be elected or appointed for the unexpired term of the
predecessor in office.

(d) Any cooperative organized pursuant to the provisions of this section may
enact bylaws to govern itself in the implementation of the provisions of
this section which are not inconsistent with the provisions of this section.

(e) The right of a member of a cooperative to vote may be limited, enlarged,
or denied to the extent specified in the articles of incorporation or
bylaws. Unless so limited, enlarged, or denied, each member shall be entitled
to one vote on each matter submitted to a vote of members.

(f) A member of the board of directors or an officer of any cooperative
subject to the provisions of this section shall have immunity from liability
equivalent to that granted to directors and officers of for-profit corporations
in the commonwealth. Except for debts lawfully contracted between a
member and the cooperative, no member shall be liable for the debts of the
cooperative to an amount exceeding the sum remaining unpaid on his or her
membership fee or subscription to capital stock.

Section 137. Notwithstanding any general or special law, rule, or
regulation to the contrary, any non-profit institution in the commonwealth
or any agency, executive office, department, board, commission, bureau,
division, or authority of the commonwealth, including the executive,
legislative, and judicial branches of the commonwealth, or of any political
subdivision thereof, or of any authority established by the general court
to serve a public purpose, may, unless located within the boundaries of a
community served by a municipal light department, participate in and become
a member of any program organized and administered, pursuant to the provisions
of this chapter, by or on behalf of any public instrumentality of the
commonwealth or of any subsidiary organization thereof for the purpose of group
purchasing of electricity, natural gas, telecommunications services,
or similar products.

SECTION 248.
Section 1 of chapter 164A of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 3, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 249.
Section 8 of said chapter 164A, as so appearing, is
hereby amended by striking out, in lines 73 and 74, the words “public
utilities” and inserting in place thereof the following
words:- telecommunications and energy.

SECTION 250.
Section 1 of chapter 165 of the General Laws, as
so appearing, is hereby amended by striking out, in
line 7, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 251.
Section 28 of said chapter 165, as so appearing, is
hereby amended by striking out, in line 3, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 252.
Section 4 of chapter 166 of the General Laws, as
so appearing, is hereby amended by striking out, in
line 3, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 253.
Section 7 of said chapter 166, as so appearing, is
hereby amended by striking out, in line 6, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 254.
Section 8 of said chapter 166, as so appearing, is
hereby amended by striking out, in line 9, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 255.
Section 11 of said chapter 166, as so appearing, is
hereby amended by striking out, in line 3, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 256.
Section 15E of said chapter 166, as so appearing, is
hereby amended by striking out, in line 62, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 257.
Said section 15E of said chapter 166, as so appearing,
is hereby further amended by striking out, in line 65, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 258.
Said section 15E of said chapter 166, as so appearing,
is hereby further amended by striking out, in line 71, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 259.
Said section 15E of said chapter 166, as so appearing,
is hereby further amended by striking out, in lines 76 and 77, the words
“Department of Public Utilities” and inserting in place thereof the following
words:- said department’s.

SECTION 260.
Said section 15E of said chapter 166, as so appearing,
is hereby further amended by striking out, in line 83, the letters
“D.P.U.” and inserting in place thereof the following words:- said
department’s.

SECTION 261.
Said section 15E of said chapter 166, as so appearing,
is hereby further amended by striking out, in line 125, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 262.
Said section 15E of said chapter 166, as so appearing,
is hereby further amended by striking out, in line 131, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 263.
Section 22A of said chapter 166, as so appearing, is
hereby amended by striking out, in line 5,
the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 264.
Section 22L of said chapter 166, as so appearing, is
hereby amended by striking out, in line 4, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 265.
Section 25A of said chapter 166, as so appearing, is
hereby amended by striking out, in line 24, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 266.
Said section 25A of said chapter 166, as so appearing,
is hereby further amended by striking out the last paragraph and inserting in
place thereof the following two paragraphs:-

No attachments shall be made without the consent of the utility to the poles,
towers, piers, abutments, conduits, manholes, and other fixtures
necessary to sustain, protect, or operate the wires or cables of any lines used
principally for the supply of electricity in bulk.

Said department, pursuant to the provisions of this section, shall determine
a just and reasonable rate for the use of poles and communication ducts
and conduits of a utility for attachments of a licensee by assuring the utility
recovery of not less than the additional costs of making provision
for attachments nor more than the proportional capital and operating expenses
of the utility attributable to that portion of the pole, duct, or
conduit occupied by the attachment. Such portion shall be computed by
determining the percentage of the total usable space on a pole or the total
capacity of the duct or conduit that is occupied by the attachment.

SECTION 267.
Section 27 of said chapter 166, as so appearing, is
hereby amended by striking out, in line 6, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 268.
Section 44 of said chapter 166, as so appearing, is
hereby amended by striking out, in line 11, the words “public
utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 269.
Said section 44 of said chapter 166, as so appearing,
is
hereby further amended by striking out, in line 25, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 270.
Section 1 of chapter 166A of the General Laws, as
amended by section 110 of chapter 43 of the acts of 1997, is hereby
further amended by striking out the definition of
“Community antenna television system” or “CATV system” and
inserting in place thereof the following two definitions:-

“Commission”, the commission appointed pursuant to section 2 of chapter 25.

“Community antenna television system” or “CATV system”, a facility as defined
by federal law at 47 USC section 522 (7).

SECTION 271.
Said section 1 of said chapter 166A, as most recently
amended by said section 33 of chapter 88 of the acts of 1997, is hereby
further amended
by striking out the definition of “Director” and inserting in place thereof the
following definition:-

“Department”, the department of telecommunications and energy established
pursuant to chapter 25.

SECTION 272.
Said section 1 of said chapter 166A, as most recently
amended by said section 33 of said chapter 88, is
hereby further amended by striking out the definition of
“Licensee” and inserting in place thereof the following definition:-

“Licensee”, a person who is issued a license pursuant to section 3.

SECTION 273.
Section 2 of said chapter 166A, as most recently
amended
by section 35 of said chapter 88, is hereby further amended by
striking out the first three paragraphs and inserting in place thereof the
following paragraph:-

There shall be established in the department of telecommunications and energy
a division of community antenna television. Subject to the provisions
of section 4 of chapter 25, the chairman of the department shall designate a
director of said division who shall have the full scope of authority of
all of the provisions of this chapter, including, but not limited to, presiding
at hearings pursuant to section 2A; the right to maintain or
intervene in an action pursuant to section 12; the authority to hear appeals
and issue enforcement orders pursuant to section 14; the authority to
regulate rates pursuant to section 15; the authority to promulgate rules and
regulations pursuant to section 16; its enforcement powers pursuant to
section 17; and all other authority to carry out the duties and
responsibilities of this chapter. Appeals of any decision, order, or ruling of
the
director may be brought within 14 days of the issuance of said decision to the
full body of the commissioners of the department. When so requested
by any party interested, the department shall rule upon any question of
substantive law properly arising in the course of any proceeding before the
division within 14 days. Except as otherwise provided in this chapter,
appeals
taken from orders of the department shall be governed by section 5 of
chapter 25.

SECTION 274.
Said section 10 of said chapter 166A
is hereby amended by striking out, in line 6, as appearing in the 1996
Official Edition, the words “every
three months” and inserting in place thereof the following:- annually.

SECTION 275.
Section 12
of said chapter 166A, inserted by section 124 of said
chapter 43, is hereby further amended by striking out the words
“division and the consumer’s council” and inserting in place thereof
the following word:- department.

SECTION 276.
Section 5 of chapter 167B of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking
out, in line 78, the words “public utilities” and inserting in place thereof
the following words:- telecommunications and energy.

SECTION 277.
Section 20 of said chapter 167B, as so appearing, is
hereby further amended by striking out, in line 55, the words
“public utilities” and inserting in place thereof the following
words:- telecommunications and energy.

SECTION 278.
Section 1 of chapter 182 of the General Laws, as
so appearing, is hereby amended by striking out, in
lines 6 and 7, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 279.
Section 32 of chapter 184 of the General Laws, as
so appearing, is hereby amended by striking out, in
line 96, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 280.
Section 5 of chapter 187 of the General Laws, as
so appearing, is hereby amended by striking out, in
line 17, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 281.
Said section 5 of said chapter 187, as so appearing,
is
hereby further amended by striking out, in line 23, the words
“public utilities” and inserting in place thereof the following
words:- telecommunications and energy.

SECTION 282.
Section 76 of chapter 233 of the General Laws, as
so appearing, is hereby amended by striking out, in
line 6, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 283.
Section 34 of chapter 262 of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 56, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 284.
Said section 34 of said chapter 262, as so appearing,
is
hereby further amended by striking out, in line 60, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 285.
Said section 34 of said chapter 262, as so appearing,
is
hereby further amended by striking out, in line 66, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 286.
Said section 34 of said chapter 262, as so appearing,
is
hereby further amended by striking out, in line 70, the words
“public utilities” and inserting in place thereof the following words:-
telecommunications and energy.

SECTION 287.
Section 44 of said chapter 262, as so appearing, is
hereby amended by striking out, in line 1, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 288.
Section 120D of chapter 266, as appearing in the 1996
Official Edition, is hereby amended by striking out, in line 41, the
words “public utilities” and inserting in place thereof the following
words:- telecommunications and energy.

SECTION 289.
Section 6 of chapter 268 of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out, in
line 3, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 290.
Section 33 of said chapter 268, as so appearing, is
hereby amended by striking out, in line 6, the words “public utilities”
and inserting in place thereof the following words:- telecommunications and
energy.

SECTION 291.
Chapter 268A of the General Laws is hereby amended by
inserting after section 8A
the following section:-

Section 8B. No member of the department of telecommunications and energy
commission, appointed pursuant to section 2 of chapter 25,
shall, within one year after his service has ceased or terminated
on said commission, be employed by, or lobby said commission on behalf
of, any company or regulated industry over which said commission had
jurisdiction during the tenure of such member of the commission.

SECTION 292.
Section 17B of chapter 271 of the General Laws, as
appearing in the 1996 Official Edition, is hereby amended by striking out,
in line 3, the words “public utilities” and inserting in place thereof the
following words:- telecommunications and energy.

SECTION 293.
Chapter 614 of the acts of 1968 is hereby amended by
striking out section 1
and inserting in place thereof the following section:-

Section 1. Declaration of Policy.
– It is hereby declared that, for the
benefit of the people of the commonwealth, the increase of their
commerce, welfare, and prosperity, and the improvement of their health and
living conditions, it is essential that this and future generations of
youth be given the fullest opportunity to learn and to develop their
intellectual and mental capacities; that it is essential that institutions for
higher education within the commonwealth be provided with appropriate
additional means to assist such youth in achieving the required levels of
learning and development of their intellectual and mental capacities; that it
is essential that hospitals and other charitable institutions within
the commonwealth be provided with appropriate additional means to expand,
enlarge, and establish health care, hospital, charitable, and other related
facilities; that it is essential that cultural institutions within the
commonwealth be provided with appropriate additional means to expand the
services and resources which they offer for the intellectual and artistic
enrichment of the people of the commonwealth and for educational and
scientific purposes; and that it is the purpose of this act to provide a
measure of assistance and an alternative method to enable institutions for
higher education, hospitals, other charitable institutions, and cultural
institutions in the commonwealth to provide the facilities and structures
which are sorely needed to accomplish the purposes of this act, all to the
public benefit and good, to the extent and manner provided herein.

SECTION 294.
Paragraph (b) of section 3 of said chapter 614, as
most recently amended by section 1 of chapter 789
of the acts of 1985, is hereby further amended by inserting
after the word “parties”, in line 60, the
following words:- ; and, notwithstanding anything in this definition to
the contrary, “project” may also include any capital or operating
expenditure which may legally be made by any participating institution and the
thing produced or acquired by such expenditure.

SECTION 295.
Paragraph (g) of said
section 3 of said chapter 614, as amended by section 2 of said
chapter 789, is hereby further amended by inserting after the word
“facility”, in line 9, the following words:- ; or
any other non-profit charitable institution in the commonwealth
not otherwise eligible to participate under this act; provided, however,
that such other non-profit charitable institution may only undertake the
financing and construction or acquisition of a project or undertake the
refunding or refinancing of obligations or of a mortgage or of advances to the
extent that such projects, obligations, mortgages, or advances consist
of or result from the purchase of energy or from energy conservation or related
projects of such other non-profit charitable institution; and
provided further, that such other non-profit charitable institution
participates in or is a member of a group power purchasing program organized
and
administered by or on behalf of the authority.

SECTION 296.
Section 5 of chapter 614 of the acts of 1968 is hereby
amended by inserting after paragraph (o) the following paragraph:-

(o½) to issue electric rate reduction bonds, as defined in section 1H of
chapter 164 of the General Laws, for the benefit of any
electric company, as defined in section 1 of said chapter 164, that is
determined to be eligible for said bond financing by the department of
telecommunications and energy pursuant to said chapter 164, provided, however,
that such electric rate reduction bonds shall constitute bonds as
defined in clause (d) of section 3; provided, further, that such an electric
company shall be deemed to be a participating institution as defined in
clause (n) of section 3; and provided further, that the financing or
refinancing of transition costs or the acquiring of transition property as
provided for in said section 1H of said chapter 164 shall be deemed to be a
project as defined in clause (b) of section 3.

SECTION 297.
Sections 2 and 3 of chapter 292 of the acts of 1978
are hereby repealed.

SECTION 298.
The first sentence of subsection (e) of section 7 of
chapter 465 of the acts of 1980, as appearing in section 89 of chapter 233
of the acts of 1983, is hereby amended by striking out, in lines 1 and 2, the
words “and the
department are hereby each severally” and inserting in place
thereof the following word:- is.

SECTION 299.
The third sentence of said section (e) of said
section 7
of said chapter 465, as so appearing, is hereby amended by striking
out, in line 1, the words “or department”.

SECTION 300.
The sixth sentence of said section (e) of said
section 7
of said chapter 465, as so appearing, is hereby amended by striking
out, in lines 1 and 2, the words “or department”.

SECTION 301.
Section 3 of chapter 234 of the acts of 1985,
is hereby repealed.

SECTION 302.
Section 8 of chapter 428 of the
acts of 1993 is hereby amended by inserting after the word
“generators”, in line 7, the following words:- who are then.

SECTION 303.
Said section 8 of said chapter 428
is hereby further amended by striking out, in line 8, the words “storing
waste” and inserting in place thereof the following words:- are
storing or have in storage waste.

SECTION 304.
Notwithstanding any general or special law, rule, or
regulation to the contrary, the Massachusetts emergency management agency
is hereby authorized to make an assessment against each operator of a nuclear
power plant inside and outside of the commonwealth which is within a ten
mile radius of a municipality within the commonwealth to defray the costs
incurred by the office of emergency preparedness in the performance of its
duties pertaining to nuclear safety emergency preparedness in an amount to be
appropriated annually by the general court.

SECTION 305.
Notwithstanding any general or special law, rule or
regulation to the contrary, the department of telecommunications and
energy is hereby authorized and directed to coordinate with the operator of the
bulk power system in New England, the federal energy regulatory
commission, and the other public utility commissions in the states of
Connecticut, Maine, New Hampshire, New York, Rhode Island, and Vermont to adopt
and implement appropriate policy initiatives and statutory reforms, including,
but not limited to, the further development of the operator of the
bulk power system, to ensure the independent operation of the regional bulk
power system in order to provide for full and fair competition in
electric generation while preserving the reliability of the system.

The governor of the commonwealth, acting by and through said department, is
hereby authorized and directed to pursue the formation of a regional
oversight committee with members from the various public utilities regulatory
bodies from Connecticut, Maine, New Hampshire, New York, Rhode Island,
and Vermont to monitor any independent systems operator serving the New
England/New York area formed through federal statute or regulation. Said
committee shall be encouraged to pursue regional coordination of transmission
oversight, including, but not limited to, the development and execution
of a regional compact agreement, subject to federal congressional and executive
approval, in an effort to jointly monitor issues of reliability which
affect the region as a whole and to require publicly and investor-owned
utilities located in the aforementioned states that sell energy to retail
customers in the commonwealth to adhere to enforceable standards and protocols
to protect the reliability of the regional transmission and
distribution systems.

SECTION 306.
Notwithstanding any general or special law, rule, or
regulation to the contrary, any person who is licensed pursuant to
the provisions of the sixth paragraph of section 53 of chapter 146 of the
General Laws or covered by section 7 of chapter 141 of the General Laws
shall continue to be licensed or covered by said statutes as if such person was
an employee of a previously regulated utility for so long as such
person performs the same work in the same location or locations for any
successor employer or employers. In the event a person who has been licensed
as an employee of a utility pursuant to the provisions of said section 53 of
said chapter 146 or covered by said section 7 of said chapter 141 seeks
licensure under the non-utility sections of said statutes, such person shall
have credited towards any experience requirements of said statutes or
any rules or regulations made thereunder, all relevant service performed in the
employment of the utility or successor employers. The board of
regulations of the division of registration and the department of public safety
shall promulgate rules and regulations in order to ensure the
continuation of exemption from licensure under this section is limited to those
steps necessary to enable the existing utility industry workforce to
work in their places and locations of employment as of the effective date of
this act. Said requirements relative to such continuation of exemption
from licensure shall require, without limitation, said company or applicant to
submit the names of individuals, jobs performed, nature of work, and
work locations of individuals seeking continuation of said exemption.

SECTION 307.
Notwithstanding any general or special law, rule, or
regulation to the contrary, since the restructuring of the
electricity industry in the commonwealth and the transition to expanded
customer retail choice and competitive markets in said industry will trigger
shifts in the natural gas utility industry as regulated by the department of
telecommunications and energy, said gas utilities, in the implementation
of any restructuring of or the unbundling of the rate structure for the natural
gas industry in the commonwealth, shall consider the experience and
expertise of the work force in order to ensure the safety and reliability of
the natural gas system and the continued provision of high quality
customer service, and to avoid economic dislocation.

SECTION 308.
Notwithstanding any general or special law, rule, or
regulation to the contrary, if and to the extent that the power cost
component of the standard service transition rate to retail customers is below
the cost at which the electric company procures power for such
standard service transition rate from its wholesale suppliers pursuant to
chapter 164, the department of telecommunications and energy shall
investigate whether or not it is appropriate to extend, through additional
amendment to the provisions of said chapter 164 by the general court, such
a comparability credit at an equal amount for all other retail customers,
especially residential ratepayers, who are purchasing power from other
suppliers. Any cost deferrals required under this section shall be recovered
with a return commencing when the deficiency for sales under the
standard service transition rate no longer exists with a plan to be filed by
the electric company and approved by the department. Upon the enactment
of enabling legislation, the department shall issue rules and regulations
concerning this comparability credit which shall address issues including,
but not limited to, the length of time for the credit and which customers would
qualify for the credit.

SECTION 309.
Notwithstanding any general or special law, rule, or
regulation to the contrary, the department of telecommunications and
energy, the division of energy resources, and the office of the attorney
general shall, within 45 days after the effective date of this act, file
with the executive office of administration and finance a detailed budget
analyses relative to the additional fiscal and personnel resources, if any,
each such agency shall require in the fiscal year beginning July 1, 1998 in
order to implement the provisions of this act. Said analyses shall be
forwarded to the house and senate committees on ways and means, the joint
committee on government regulations and the joint committee on energy,
respectively, within five business days of submission to said executive office.
Said analyses shall contain recommendations, if any, for the
establishment, through an assessment process upon entities regulated by said
department, of new revenue sources to adequately fund said fiscal and
personnel requirements.

SECTION 310.
Notwithstanding any general or special law, rule, or
regulation to the contrary, any petition to construct a generating facility
filed pursuant to section 69J of chapter 164 of the General Laws, which is
pending before the energy facilities siting board as of the effective date
of this act, may be reviewed pursuant to the provisions of either section 69J
or section 69J¼ of said chapter 164, at the petitioner’s discretion
and request; provided, however, that any petition to construct a generating
facility pursuant to said section 69J of said chapter 164, which has been
subject to a public hearing prior to the effective date of this act, shall be
subject to the provisions of said section 69J and not the provisions of
said section 69J¼.

SECTION 311.
Notwithstanding any general or special law, rule, or
regulation to the contrary, there is hereby created a study commission,
which shall be authorized and directed to review and analyze outstanding
concerns regarding the siting of energy facilities in the commonwealth.
Such concerns shall include, but not be limited to, the following: (i) the
development of a procedure for coordinating and consolidating applications
to construct generating facilities between and among the board, the department
of environmental protection, and other appropriate agencies, to enable
one-stop shopping, so-called, for necessary permits or certificates or other
appropriate streamlining of the permitting system; (ii) the expansion
of such coordinated procedures to other energy facilities, if appropriate;
(iii) possible changes to the energy facilities siting board’s
procedures for reviewing electric and gas transmission lines in light of recent
and proposed changes in the structure and regulation of the electric
and gas industries, including regional approaches to the siting of such
facilities; (iv) clarification of the energy facilities siting board’s
jurisdiction over the repowering of existing generating facilities at existing
sites and the appropriate standards for reviewing such repowerings;
(v) the development of coordinated procedures to encourage the reuse of
existing industrial sites for the development of generating facilities; (vi)
the issue of application fees paid by developers to the energy facilities
siting board and the correlation of such fees to the board’s procedures, as
statutorily revised pursuant to this act, in reviewing such applications;
provided, that said study shall include, but not be limited to,
recommendations, if any, on reducing the application fee paid by developers to
the board in light of the board’s statutorily revised standards of
review of such applications pursuant to the provisions of this act; (vii) the
establishment of a site characterization and suitability commission
within the department of environmental protection, which would promulgate
criteria to be applied to sites included in an application before the
energy facilities siting board and rule on suitability of a proposed site as
before said application is approved; and (viii) the possibility of
requiring applicants to provide either (a) evidence that the proposed facility
would employ the best available and most efficient technology to
control and reduce water withdrawals, or (b) a description of the environmental
impacts, costs, and reliability of the water withdrawal method chosen
and an explanation of why the proposed technology was chosen.

Said study commission shall consist of the following members: the chairman of
the department of telecommunications and energy, or his designee, who
shall serve as the chairman of said study commission; the commissioner of the
department of environmental protection, or his designee; a member of
the energy facilities siting board other than the chairman of the department of
telecommunications and energy, who shall be selected to serve on said
commission by the governor; the house and senate chairmen of the joint
committee on government regulations; the house and senate chairmen of the
joint committee on energy; and ten members to be appointed by the governor, one
of whom shall be a representative of the Massachusetts municipal
association, one of whom shall be a representative of the Massachusetts
association of health boards, two of whom shall be a representative of an
environmental protection organization, two of whom shall be representatives of
the electric industry, including one member of the electric generation
industry and one member representing an electric utility, one of whom shall be
a representative of the gas industry, one of whom shall represent
residential ratepayers, and two of whom shall be recommended by the
Massachusetts AFL-CIO. Said study commission shall issue a final report, which
shall include the results of its review and analysis, to the joint committees
on government regulations and energy, respectively, and the house and
senate committees on ways and means on or before December 31, 1998.

SECTION 312.
Notwithstanding any general or special law, rule, or
regulation to the contrary, no sooner than January 1, 2000, the
department of telecommunications and energy, in conjunction with the division
of energy resources, is hereby authorized and directed to commence an
investigation and study relative to the manner in which metering, meter
maintenance and testing, customer billing, and information services have been
provided by distribution companies since March 1, 1998, pursuant to the
provisions of chapter 164 of the General Laws, to analyze and determine
whether such services should be unbundled and provided through a competitive
market, whether in doing so any substantive savings accrues to
consumers, and whether such substantive savings can be effected with little, if
no, disruptions to employee staffing levels of those distribution
companies presently conducting those activities. Said study shall also include
an investigation and review of the creation of exclusive distribution
service territories, pursuant to section 1B of said chapter 164, to determine
if such exclusivity shall be terminated or altered in any manner. As
part of its investigation and study, said department shall consult with and
seek input from, through a public hearing process conducted in accordance
with the provisions of chapter 30A of the General Laws, any and all interested
parties, including, but not limited to, employees of and
representatives of employees of distribution companies engaged in such
services, electricity ratepayers, consumer representatives, and
representatives of electricity services interests, including distribution and
transmission companies and natural gas industry interest. Said
department shall require all distribution companies operating in the
commonwealth pursuant to said chapter 164 to file detailed information
relative
to their costs of providing such metering, billing, and information services,
including, but not limited to, capital costs, depreciation, operating
expenses, and taxes. In the event that said department determines that such
services shall be subject to unbundling and competition, or that
territorial exclusivity shall be terminated or altered in any manner, said
department shall, by no later than January 1, 2001, file its
recommendations, along with drafts of legislation necessary to implement said
recommendations, with the clerk of the house of representatives. Any
unbundling and creation of retail competition of such services shall not
commence unless statutorily allowed through amendments to said chapter 164
upon said department’s compliance with the provisions herein. In the
event of unbundling of retail competition in metering and billing
services, the department will ensure that firms providing these services
collect the correct amounts from ratepayers. If the department determines a
firm is not collecting the full amount due or a firm defaults on its obligation
to collect sums owed to the electric company, the distribution
company, a transmission company, a generation company, the financing entity, or
electric rate reduction bondholders, it shall order that such firm
cease and desist metering and billing operations and the distribution company
resume providing such services within 30 days.

SECTION 313.
Notwithstanding any general or special law, rule, or
regulation to the contrary, all distribution transformers sold or first
installed in the commonwealth after December 31, 1999, shall meet the minimum
efficiency levels contained in tables 4-1 and 4-2 of National
Electrical Manufacturers Association standard TP1-1996. Efficiency shall be
tested in accordance with TP1-1996. These requirements shall only apply
to transformers within the scope of TP1-1996. For the purposes of this
section, the term “distribution transformer” shall be defined as
transformers designed for operation on electrical distribution systems at
primary voltages of 34.5kV and below and secondary voltages of 600 volts or
below.

SECTION 314.
Notwithstanding any general or special law, rule, or
regulation to the contrary, the department of telecommunications
and energy shall, by no later than July 1, 1998, disclose publicly all rates
approved by said department prior to July 1, 1997, for the sale of
electricity pursuant to section 94 of chapter 164 of the General Laws which
were previously not disclosed to the public pursuant to section 5D of
chapter 25 of the General Laws. For the purposes of this section, any such
rate shall be considered public information and in no manner shall
continue to receive non-disclosure status pursuant to said section 5D of said
chapter 25.

SECTION 315.
Notwithstanding the provisions of any general or special
law, rule, or regulation to the contrary, any distribution
company, aggregator, gas company, municipal lighting plant, or supplier, as
defined and governed pursuant to the provisions of chapter 164 of the
General Laws, shall be required to provide electricity or gas services to
persons or corporations engaged in the business of agriculture or farming,
as defined pursuant to section 1A of chapter 128 of the General Laws, at
rates,
prices, and charges established at least 10 per cent below any other
rate, price, or charge category, with further rate, price, or charge
considerations granted for off-peak consumption.

SECTION 316.
Notwithstanding any general or special law, rule, or
regulation to the contrary, the chairman of the department of
telecommunications and energy is hereby authorized and directed, in conjunction
with the commissioner of the community antenna television commission
established pursuant to chapter 166A of the General Laws, to conduct an
investigation and study relative to the adequacy and effectiveness of
existing licensing and regulation of cable television operations by
municipalities and the commonwealth in meeting the needs of consumers across
the
commonwealth. In conducting such investigation and study, said director shall
consult with municipal officials, consumer organizations and
representatives, cable operators, and any other interested parties. Said
director shall report his findings, along with any recommendations for
legislation, with the joint committee on government regulations of the general
court, by no later than September 1, 1998.

SECTION 317.
No later than January 1, 2002, the department of
revenue shall commence an investigation and study of the viability and
effectiveness of the provisions of paragraph (3) of the clause Sixteenth of
section 5 of chapter 59 of the General Laws and section 38H of said
chapter 59 including the payment in lieu of taxes agreements authorized
pursuant to subsection (a) of said section 38H of said chapter 59, in
alleviating any undue fiscal hardships suffered by cities and towns as a result
of reduced property tax revenues from either the devaluation of
property on which is located electricity generation facilities or the sale by
electric or generation companies of such property and the subsequent
termination of generation activities thereon. Said department shall also study
and analyze the fiscal implications of applying the exemption
provided therein to facilities over 30 megawatts. Said department shall also
monitor the implementation of subsection (c) of said section 38H of
said chapter 59 and analyze the fiscal implications which arise from such
provisions. Said department shall, by May 1, 2002, file its
recommendations and findings, including a determination as to whether or not
such provisions relative to payments in lieu of taxes should be altered
in any manner, with the joint committees on taxation and government
regulations, respectively, and the house and senate committees on ways and
means.

SECTION 318.
The department of revenue shall, within 30 days of the
effective date of this act, commence an investigation and study as to
the potential fiscal implications to the revenues of the commonwealth,
including any potential impacts arising from out-of-state occurrences, for the
following two proposed amendments to the state tax code as follows:

(1) Amending section 6 of chapter 62 of the General Laws by inserting the
following two subsections:-

(j) Any individual who contracts with a retail electricity supplier to
purchase renewably-generated electricity in excess of minimum requirements
under any renewables portfolio standard established by law, shall be entitled
to take an income tax deduction equivalent to 50 per cent of the above-market
price. The determination of above-market price shall be performed and
certified by the department based on an analysis of current market
conditions. The department may promulgate any rules, regulations, or
procedures necessary to make such a determination.

(k) Any individual who purchases company qualifying energy efficiency
equipment shall be entitled to an income tax deduction equivalent of 20 per
cent
of the cost up to a maximum of $10,000 annually. The division of energy
resources shall, through a public hearing process, determine a level of
efficiency necessary to qualify a product for the deduction. Systems to be
considered shall include high-efficiency lighting and ballasts,
residential and commercial refrigerators and freezers, electric and gas water
heating systems, ground-source or high efficiency heat pumps,
horizontal-axis washing machines, and high-efficiency furnaces. The division
shall set
the minimum qualifying efficiency standard based upon achieving
significant improvements over federal appliance efficiency standards and with
the intent of creating incentives to purchase equipment consuming less
energy than 75 per cent of similar products on the market. The division shall
have the authority to add or alter qualifying products based upon
changes in technology and federal standards.

(2) Amending section 31A of chapter 63 of the General Laws by inserting
the
following two subsections:-

(n) Any business which contracts with a retail electricity supplier to
purchase renewably-generated electricity in excess of minimum requirements
under any renewables portfolio standard established by law, shall be entitled
to take a business tax deduction equivalent to 25 per cent of the above-market
price. The determination of above market price shall be performed and
certified by the department based on an analysis of current market
conditions. The department may devise any rules or procedures necessary to
make such a determination.

(o) Any business purchasing qualifying energy efficiency equipment shall be
entitled to an income tax deduction equivalent to 10 per cent of the cost
up to a maximum of $50,000 annually. The division of energy resources shall,
through a public hearing process, determine a level of efficiency
necessary to qualify a product for the deduction. Systems to be considered
shall include high-efficiency lighting and ballasts, residential and
commercial refrigerators and freezers, electric and gas water heating systems,
ground-source or high efficiency heat pumps, horizontal-axis washing
machines, and high-efficiency furnaces. The division shall set the minimum
qualifying efficiency standard based upon achieving significant
improvements over federal appliance efficiency standards and with the intent of
creating incentives to purchase equipment consuming less energy than
75 per cent of similar products on the market. The division shall have the
authority to add or alter qualifying products based upon changes in
technology and federal standards.

Upon the completion of its investigation and study, the department of revenue
shall file a report, detailing its findings and recommendations, with
the joint committees on taxation and government regulations, respectively, and
the house and senate committees on ways and means.

SECTION 319.
Notwithstanding any general or special law, rule, or
regulation to the contrary, the department of telecommunications and energy
and the division of energy resources shall submit any rules and regulations
promulgated under the provisions of this act to the joint committee on
government regulations for its review at least 30 days prior to the effective
date of said regulations.

SECTION 320.
Any petition or other matter pursuant to said
chapter 166A of the General Laws before the community antenna television
commission, established by section 1 of chapter 1103 of the acts of 1971,
which
is pending on January 1, 1998, shall be deemed to constitute a
petition to or other matter within the jurisdiction of the department of
telecommunications and energy.

SECTION 321.
All employees of the community antenna television
commission,
established by section 1 of chapter 1103 of the acts of 1971, transferred by
this act to the department of telecommunications and energy, who
immediately prior to January 1, 1998, either hold permanent appointment in
positions classified under chapter 31 of the General Laws or have tenure
in their positions by reason of section 9A of chapter 30 of the General Laws,
are hereby transferred to the department of telecommunications and
energy, every such transfer to be without impairment of civil service status,
seniority, retirement, or other rights of the employee and without
interruption of service within the meaning of said chapter 31 or said
section 9A and without reduction in compensation or salary grade,
notwithstanding any change in title or duties resulting from such transfer,
subject to the provisions of said chapter 31 and the rules and
regulations adopted thereunder; provided, however, that the position of
executive director of said community antenna television commission and said
division of community antenna television, established by section 2 of said
chapter 166A, shall become a managerial position of the department,
classified in accordance with section 45 of chapter 30, and the salary shall
be
determined in accordance with section 46C of said chapter 30.

All employees of said community antenna television commission who,
immediately prior to July 1, 1998, neither hold permanent appointment in such
positions nor have such tenure, are hereby transferred to the department of
telecommunications and energy, every such transfer to be without
impairment of seniority, retirement, or other rights of such employees, and
without interruption of services within the meaning of said section 9A of
chapter 30 and without reduction in compensation or salary grade,
notwithstanding any change in title or duties resulting from such transfer.

Nothing in this section shall be construed to confer upon any employee any
rights not held immediately prior to the effective date of this act or to
prohibit any reduction of salary or grade, transfer, reassignment, suspension,
discharge, layoff, or abolition of
position not prohibited prior to said July 1, 1998.

SECTION 322.
All petitions, hearings, and other proceedings duly
brought before
and all prosecutions and legal and other proceedings duly begun by the
community
antenna television commission, established by section 1 of chapter 1103 of the
acts of
1971, prior to January 1, 1998, shall continue unabated and remain in force
notwithstanding the passage of this act and shall thereafter be completed
before or by the department of telecommunications and energy.

All orders, rules, and regulations duly made, and all licenses or other
approvals granted, and all legal and decisional precedents established by
said community antenna
television commission shall continue in force under said department and the
provisions thereof shall be enforced, until superseded, revised,
rescinded, or canceled in accordance with law by said department.

All questions regarding the identification of such petitions, hearings,
prosecutions, proceedings, orders, rules, regulations, licenses, and other
approvals, and regarding the
completion or enforcement of matters so transferred, shall be determined by the
chairman
of said department.

SECTION 323.
All books, papers, records, property, documents,
equipment, lands,
interests in land, buildings, facilities, and other property, both personal and
real, which,
immediately prior to January 1, 1998, are in the custody of the community
antenna television commission, established by section 1 of chapter 1103 of
the acts of 1971, are hereby transferred to the department of
telecommunications and energy. All questions regarding the identification and
disposition of such property shall be determined by the chairman of said
department in accordance with applicable law.

SECTION 324.
All existing contracts, memoranda of understanding,
leases and
obligations of the community antenna television commission, established by
section 1 of
chapter 1103 of the acts of 1971, which are in force immediately prior to
January 1, 1998, shall thereafter be performed by the department of
telecommunications and energy, in accordance with applicable law and as the
chairman of said department may determine. No existing right or remedy
of any character shall be lost, impaired, or affected by the provisions of this
act.

SECTION 325.
All monies heretofore appropriated for the community
antenna
television commission, established by section 1 of chapter 1103 of the acts
of
1971, remaining unexpended on the effective date of this act are
hereby transferred to the department of telecommunications and energy and shall
be available for expenditure by said department for the purposes for
which such funds were originally appropriated. All questions regarding the
identification and use of such monies shall be determined by the chairman
of said department.

SECTION 326.
Wherever the name of the community antenna television
commission, established by section 1 of chapter 1103 of the acts of 1971,
appears in any general or special law, or in any order, rule, regulation,
or other document, such name shall mean and shall be construed as referring to
the department of telecommunications and energy.

SECTION 327.
The regulations of the community antenna television
commission,
established by section 1 of chapter 1103 of the acts of 1971, codified in 207
Code of Massachusetts Regulations shall remain in full force and effect
until such time as the department of telecommunications and energy may amend or
rescind such regulations or adopt new regulations.

SECTION 328.
Wherever in any general or special law or in any rule or
regulation
there is provided a right of appeal to the community antenna television
commission,
established by section 1 of chapter 1103 of the acts of 1971, a right of
appeal
to the commissioners of the department of telecommunications and
energy shall exist, and such appeal shall be made pursuant to the provisions of
any applicable law, rule, or regulation or amendments thereto or, in
the absence of such applicable law, rule, or regulation, pursuant to
chapter 30A of the General Laws.

SECTION 329.
All functions, rights, obligations, powers, duties, and
statutory
provisions which, prior to January 1, 1998, were assigned to or exercised by
the community antenna television commission, established by section 1 of
chapter 1103 of the acts of 1971, shall continue to be exercised and performed
by, and to be assigned to, the department of telecommunications and
energy, except as such powers, duties, or other statutory duties are modified
by this act.

SECTION 330.
Notwithstanding the provisions of any general or special
law to the contrary, the secretary of administration and finance
is hereby authorized and directed to commence, in conjunction with the division
of energy resources and the division of operational services, an
investigation and report concerning the viability, effectiveness, and cost of
requiring all state agencies and facilities to enter into contracts for
the purchase of electricity that include a minimum 10% of kilowatt-hour sales
derived from reliable renewable energy generating sources which are
available in the commonwealth on the effective date of this act. Said report
shall also project the increase in such renewable energy sources likely
to be developed as a result of any of the provisions of this act, the costs to
the commonwealth of procuring new renewable energy from such sources
over a ten year horizon, and the benefits to such renewable energy providers of
the commonwealth’s preferred purchase from such sources. Said
report shall be submitted to house and senate committees on ways and means by
March 1, 2000, and such report shall be updated annually thereafter.

SECTION 331.
(a) Notwithstanding the provisions of any general or
special law to the contrary, the secretary of administration and
finance, in consultation with the commissioner of the division of capital
planning and operations, shall require any state agency that initiates,
after the effective date of this act, the construction of a new facility, or
substantial renovation of an existing facility that includes the
replacement of systems, components, and other building elements which affect
energy or water consumption, and which is either owned or operated by
the commonwealth, shall design and construct such facility to minimize the
life-cycle cost of the facility by utilizing energy efficiency, water
conservation, or other renewable energy technologies pursuant to the following
criteria:

(i) State agencies shall conduct a life-cycle cost analysis of any such
facility’s proposed design that evaluates the short-term and long-term
cost and technical feasibility of using a passive or active solar energy
system, wind-powered energy system or other renewable energy system to
provide lighting, heat, water heating, or electricity. State agencies shall
utilize solar or wind-powered systems when the life-cycle cost analysis
has determined that such systems are economically feasible;

(ii) Each new educational facility, including any municipal educational
facility financed through the school building assistance bureau, for which
the projected demand for hot water exceeds 1,000 gallons per day, or which
operates a heated swimming pool, shall be constructed, whenever
economically and physically feasible, with a solar or other renewable energy
system as the primary energy source for the domestic hot water system or
swimming pool of the facility;

(iii) Each such state agency shall attempt, in the design, construction,
equipping and operation of such facilities, to coordinate these efforts with
the division of energy resources in order to maximize reliance and benefits of
renewable energy research and investment activities promoted by this
act; and

(iv) Each such state agency shall file with said division a report detailing
its compliance with the provisions of this section with respect to each
such facility.

(b) Notwithstanding the provisions of section 11C of chapter 25A of the
General Laws, the division of capital planning and operations may procure
energy management services jointly with a state agency or building authority
that is procuring energy or related services. The provisions of said
section 11C shall apply to the extent determined feasible by the commissioner
of the division.

(c) For purposes of this section, the term “economically-feasible” shall
mean providing a payback period of not more than 10 years, as
determined by a life-cycle cost analysis. The division of capital planning and
operations shall establish, by no later than January 1, 1999, a
methodology for use by agencies in assessing life-cycle costs. The division of
energy resources shall issue an annual report to the general court
detailing the compliance record of all state agencies with the construction and
renovation provisions in this section.

SECTION 332.
The division of energy resources shall conduct a study
and analysis in order to determine to what extent the renewable
portfolio standard, so-called, as established pursuant to section 11F of
chapter 25A of the General Laws, shall create a process for awarding
certified renewable energy credits to renewable energy generators or retail
suppliers. In developing said process, the division is shall create a
mechanism for assessing fines and penalties for violations of said process. In
order to implement such a certified renewable energy credits process,
upon a determination of said division, said division shall file
recommendations, including drafts of legislation, with the general court, and
such
program shall not be implemented until provided for by law.

SECTION 333.
The division of energy resources shall
conduct a study and analysis in order to determine whether standards for the
energy-efficiency of residential buildings financed in whole or in part
by the department of community affairs, the Massachusetts Housing Finance
Agency, or by the Massachusetts Home Mortgage Finance Agency should be
implemented and enforced. The study shall consider (i) a prohibition of the
use of electric resistance heat unless the building is superinsulated
pursuant to standards established by the commissioner, or unless the building
has a heat pump that meets energy-efficiency standards established by
the commissioner, (ii) whether the department of community affairs, the
Massachusetts Housing Finance Agency, and the Massachusetts Home Mortgage
Finance Agency should finance projects which do not meet the standards set by
the commissioner of energy resources pursuant to this section, (iii)
whether owners, managers, landlords or tenants of the aforementioned
residential buildings are able or enabled to access, and implement demand side
management information and materials, (iv) whether the competitive electricity
market is including or excluding residential buildings so financed,
such that those buildings are receiving and able to participate in the same or
similar energy conservation opportunities that have become available
to other residential buildings not mentioned, herein, (v) any other short term
or long term energy efficiency projects and economic feasibility and
life-cycle costs as it relates to the above residential buildings. The
division of energy resources shall issue a report to the general court
detailing the results of the study and recommendations by March 1, 2001.

SECTION 334.
Notwithstanding any general or special law, rule or
regulation to the contrary, there is hereby created a special commission,
which is hereby authorized and directed to investigate and study the role of
the Massachusetts Municipal Wholesale Electric Company, hereinafter
called MMWEC, in the deregulated market created by a restructured electric
utility industry as provided in this act. Said commission shall file its
report with the clerks of the house and senate, and the joint committee on
government regulations on or before February 15, 1998. Said committee
shall be comprised of three members of the senate, two of whom shall be
appointed by the senate president, and one of whom shall be appointed by the
leader of the minority, but which appointments shall include a senator from the
MMWEC community where the generation facility is located; three
members of the house, two of whom shall be appointed by the speaker of the
house and one of whom shall be appointed by the minority leader, but which
appointments shall include the representative from the MMWEC community where
the generation facility is located; two ratepayers from the MMWEC
communities appointed by the governor; a member of the MMWEC board of directors
to be appointed by the board; a member of the commission of the
department of telecommunications and energy to be appointed by the commission;
the commissioner of the division of energy resources; and a member of
the Massachusetts Municipal Association.

SECTION 335.
Notwithstanding any general or special law, rule, or
regulation, to the contrary, the operation in rental housing of an energy
monitoring system installed prior to July 1, 1997, whereby the cost of heat or
air conditioning is allocated or charged by the owner to the tenant
based upon measurements made by a computerized monitoring system and pursuant
to a rental agreement shall be permitted. Upon request of an affected
tenant, the consumer division of the department of telecommunications and
energy shall have jurisdiction to determine whether the allocation of cost
to such tenant was substantially correct.

SECTION 336.
The executive office of environmental affairs, the
department of environmental protection, and the energy facilities siting
board shall, in cooperation with each other, develop a report to analyze the
environmental benefits accruing pursuant to the implementation of
generation performance standards in section 142N of chapter 111 of the
General
Laws. Said study shall explore whether or not said department shall
promulgate regulations to establish uniform performance standards for any
additional pollutants other than the previously established standard
established pursuant to said section 142N of said chapter 111 prior to May 1,
2003. Said report shall include any recommendations, together with
proposed legislation, designed to implement the recommendations, including any
expansion of said generation performance standards.

SECTION 337.
The commissioners of the department of public utilities
appointed and sworn to said positions on October 1, 1997, are hereby
authorized to remain in said positions for the statutorily authorized initial
term of one year that is established for the expanded department of
telecommunications and energy commission pursuant to section 2 of chapter 25
of
the General Laws. Notwithstanding the provisions of said section 2,
the said commissioners shall be eligible for reappointment to subsequent
three-year terms at the discretion of the governor. In the event that the
said commissioners decline or are not nominated to said three-year extended
appointments, they are hereby declared exempt from the provisions of
section 8B of chapter 268A of the General Laws.

SECTION 338.
Notwithstanding any general or special law, rule, or
regulation to the contrary, no property of the Holyoke Water Power Company
which is used in the manufacture and generation of electricity, except
pollution control equipment operated and maintained by said company, shall be
exempt from taxation pursuant to the provisions of paragraph (3) of the clause
Sixteenth of section 5 of chapter 59 of the General Laws.

SECTION 339.
Notwithstanding any general or special law, rule, or
regulation to the contrary, the department of telecommunications
and energy and the division of energy resources shall establish a pilot program
to implement the provisions of section 134 of chapter 164 of the
General Laws. Said pilot program shall consist of four initial aggregation
programs, which shall consist of two municipal aggregation programs and
two aggregation programs by a county or a regional government which has voted
prior to the effective date of this act to pursue the creation of a
county administered aggregation program; provided, however, that a county or
regional government which votes to pursue the creation of an aggregation
program administered by such county or regional government after the effective
date of this act may submit an aggregation plan to said department,
after consultation with said division, which may, during the pilot program
established herein, approve such plan and the implementation of such plan
prior to the conclusion of the pilot program if said department determines that
such approval is in the best interest of the ratepayers of the county
or the regional government.

SECTION 340.
There is hereby created a special commission on the
deregulation and convergence of industry, which shall study the
ramifications of past and future efforts to restructure the major regulated
businesses and industries serving the commonwealth’s consumers,
including, but not limited to, the electric utility industry, telephone and
telecommunications industry, including the Internet system, the gas
industry, the transportation industry, and the cable television industry. Said
commission shall consist of: the co-chairs of the joint committee on
government regulations and four additional members of the general court,
including two from the minority party, one selected by the minority leader
of the house of representatives and one selected by the minority leader of the
senate, who among them will elect a chairman; the secretary of
administration and finance or his designee; a commissioner of the department of
telecommunications and energy; the attorney general, or his designee;
the director of the office of consumer affairs and business regulation; one
representative from each of the five aforementioned major regulated
industries; one consumer protection advocate; two members representing the
interests of industry employees, one of whom shall be a representative of
organized labor, and one person who shall be a member of the Massachusetts
municipal association. Said commission shall study and make
recommendations on the potential convergence of these industries in merged or
joint projects or activities and the future regulatory role of the
commonwealth over these industries, including, but not limited to, requiring
the department of telecommunications and energy to promulgate model
rules and regulations governing the conduct, operation, and rate structure of
merged regulated industries, including, but not limited to, merged
electric and cable television companies, merged electric and gas companies, and
merged telephone and cable television companies, and the impact on
consumers of said merged industries. Said commission shall issue an initial
report to the joint committee on government regulations on or before July
1, 1999.

SECTION 341.
Notwithstanding any general or special law or regulation
to the contrary, an
electric company shall not be required to divest or otherwise include within
its transition cost calculation, a generation facility that ceased to
generate electricity as of January 1, 1993 and that is retired from rate base;
provided that said facility and the property on which it is located is
subject to a long-term lease to a non-profit, educational entity.

SECTION 342.
The provisions of sections 200, 202 to 205, inclusive,
and 207 to 226, inclusive, of
this act shall take effect 90 days after the effective date of this act.

SECTION 343.
The provisions of section 71I of chapter 151A of the
General Laws, as inserted by section 119 of this act, shall expire on
December 31, 2005.

SECTION 344.
The provisions of section 273 of this act shall expire
on December 31, 2001.

Approved November 25, 1997.