Massachusetts’ Higher Clean Energy Standard Adds New Costs to Electricity Bills
February 08, 2018
ENGIE supported Massachusetts’ approval of a supplemental Clean Energy Standard in August 2017. Although the new regulation committed the state to further reductions in carbon emissions, it results in new charges to customers that are important to understand.
Through the new standard, Massachusetts aims to reduce carbon emissions by 16 percent in 2018 and an additional 2 percent every year afterward until reaching an 80 percent reduction by 2050.
To achieve these goals, utilities and competitive suppliers are now required to procure increasing amounts of clean energy in a manner similar to the Massachusetts Renewable Portfolio Standard. Suppliers are solely responsible for contracting with existing renewable energy producers and passing these costs on to all consumers through a distribution service charge based on consumption.
These changes went into effect on January 1, 2018; however, all contracts signed with ENGIE after August 11, 2017 are subject to the new standards.
As a leading retail load serving entity in Massachusetts and as part of our commitment to ensuring price transparency, ENGIE Resources believes it’s important to keep customers informed of these regulatory changes and provide information on key customer options to consider in the future.
Because Massachusetts is making stronger commitments to the environment through 2050, customers are wise to adjust their budgets accordingly.
All customers who signed contracts after August 11, 2017, will begin seeing this distribution service charge (per MWh) immediately as a separate line item on their utility bills marked “Clean Energy Standard.” For customers who signed contracts prior to the August 11, 2017 deadline, this distribution cost is fixed in the agreement through calendar years 2018 and 2019 and will not appear as a separate line item on their utility bills until January 1, 2020.
Over the long term, ENGIE encourages all Massachusetts commercial and industrial customers to explore strategically aligning commodity procurement with alternatives such as information services and energy efficiency projects that can reduce expected load, lower the overall obligation of the existing generation fleet, and cut carbon emissions.
Talk to your ENGIE Resources sales representative today about identifying solutions that best meet your specific organizational and sustainability priorities. For more information on the Clean Energy Standard, view this fact sheet.