Section 17.06 - Use of Energy and RECs Obtained through Long-term Contracts(1) After purchasing renewable energy, or RECs, or both, a distribution company may: (a) Sell the energy to its basic service customers, and retain RECs for the purpose of meeting the applicable annual RPS requirements;(b) Sell the energy into the wholesale electricity spot market, and sell the purchased RECs through a competitive bid process; or(c) Select an alternative transactional approach, in consultation with DOER and subject to review and approval of the Department.(2) If the distribution company sells both the energy and RECs as in 220 CMR 17.06(1)(b), it shall: (a) Calculate the net cost of payments made under the long-term contracts against the proceeds obtained from the sale of energy and RECs;(b) Credit or charge all distribution customers the difference between the contract payments and proceeds through a uniform, fully-reconciling annual factor in distribution rates, subject to review and approval by the Department; and(c) Design a reconciliation process that allows the distribution company to recover all costs incurred under such contracts, subject to review and approval by the Department.