65- 407 C.M.R. ch. 301, § 8
The Commission shall establish the process and procedures to solicit and evaluate bids to provide standard offer service. The process and procedures shall be designed to maximize participation from qualified bidders. The Commission may establish a process whereby the non-price portions of proposals are evaluated for conformance prior to the submission of bid prices.
The Commission shall develop and issue a request for standard offer bids for each applicable transmission and distribution utility service territory. The request for standard offer bids shall specify the standard offer bid process and procedures and shall include a copy of the standard form contract between transmission and distribution utilities and standard offer service providers approved pursuant to section 5(D). The request shall prominently state the deadline for the submission of bids.
Transmission and distribution utilities shall provide the information required under section 6 of this rule as determined by the Commission. All information shall be made available to each interested standard offer bidder at the same time.
The Commission shall establish reasonable timeframes for the issuance of the requests for standard offer bids, the submission of bids, and the evaluation and selection of the winning bidders.
The Commission shall establish the allowed durations for standard offer service proposals in the request for standard offer bids. The Commission may allow bidders to submit proposals for differing durations.
The Commission may reject any bid that does not substantially comply with the requirements of this Chapter or the requests for standard offer bids.
For each transmission and distribution utility service territory:
The Commission, by order, shall select the standard offer provider or providers for each standard offer class on a selection date as determined by the Commission.
The Commission shall select the standard offer provider or combination of standard offer providers for each standard offer class based on the objectives of obtaining the lowest price for standard offer service for each standard offer class, the lowest cost for standard offer service overall, the stability of standard offer prices, and the establishment of standard offer prices that track changes in the regional wholesale market. In the event there are bids for a standard offer class or portion of a standard offer class that reflect different rate structures or rate designs, the Commission shall compare the bids by applying the bid prices to the usage of the standard offer class as reflected in the information provided pursuant to section 6(A).
In the event that two or more acceptable bids are identical, the Commission shall establish a reasonable means to determine the standard offer provider or providers that may include, but not be limited to, an agreed-upon arrangement with bidders, or a required re-bid by the tied bidders.
If the selection of standard offer providers in accordance with section 8(C)(2) does not result in at least three providers in the transmission and distribution service territory, the Commission shall consider further bids. The Commission shall select further providers for a standard offer class in a manner that minimizes any increase to the total cost of standard offer service in the transmission and distribution utility's service territory. The Commission shall select at least three standard offer providers in each transmission and distribution utility service territory unless such a selection increases the standard offer prices in any standard offer class by more than 1.5%. If at least three standard offer providers cannot be selected without increasing the standard offer prices in a standard offer class by more than 1.5%, the Commission shall select two standard offer providers unless such a selection increases the standard offer prices in a standard offer class by more than 1.5%.
Each selected standard offer provider will receive its accepted bid price for the standard offer requirements it serves, adjusted by its allocated share of uncollectible accounts pursuant to section 4(D), notwithstanding the rate averaging requirement of section 2(A)(4) if more than one provider is selected.
In the event the Commission receives no bids for a standard offer class, it will either select a standard offer provider for that class through alternative means or issue an order directing the transmission and distribution utility to provide standard offer service to that class through purchases from the regional wholesale bulk power markets, contracts with wholesale suppliers or other appropriate arrangements, as specified by the Commission, until the selection of a standard offer provider is made through a new bid process.
The Commission may reject standard offer bids for any standard offer class if it finds that the bids are unreasonably high and acceptance would not be in the public interest. In the event the Commission rejects standard offer bids, it will either select a standard offer provider for the applicable standard offer class(es) through alternative means or issue an order directing the transmission and distribution utility to provide standard offer service to the applicable standard offer class(es) through purchases from the regional wholesale bulk power markets, contracts with wholesale suppliers or other appropriate arrangements, as specified by the Commission, until the selection of a standard offer provider is made through a new bid process.
In the event the Commission acts pursuant to paragraphs 1 or 2 above, it shall establish the standard offer rates for the applicable standard offer class(es). The standard offer rates shall reflect the costs of the supply arrangement(s) made pursuant to this section and the incremental administrative costs of the transmission and distribution utility to procure and manage the supply arrangements. The Commission shall, through full reconciliation, ensure recovery by the transmission and distribution utility of all costs of providing standard offer service pursuant to this section, including, but not limited to, the costs of the supply arrangement(s), any incremental administrative costs of procuring and managing the purchases and all applicable carrying costs. After an appropriate period, which period will not exceed one year, the Commission shall make appropriate adjustments in standard offer rates or other rates charged by the transmission and distribution utility to allow recovery of any difference between the actual costs incurred by the transmission and distribution utility to provide standard offer service and actual revenue from standard offer service in that period.
A consumer-owned transmission and distribution utility may conduct a competitive bidding process to select one or more standard offer service providers for its territory, in accordance with the Commission's rules on selection of a standard offer service provider. If a consumer-owned transmission and distribution utility chooses to select a standard offer provider pursuant to this subsection, the Commission will not conduct a competitive bidding process or select a standard offer service provider for that utility's service territory. A consumer-owned transmission and distribution utility's selection of a standard offer provider in accordance with this subsection is not subject to Commission approval.
Notwithstanding any other provision of this Chapter, a consumer-owned transmission and distribution utility may choose a single standard offer provider for its service territory.
A consumer-owned transmission and distribution utility must notify the Commission of its intent to have a standard offer provider(s) selected pursuant to a Commission administrated process no later than 90 days prior to the beginning of the term of standard offer service.
65- 407 C.M.R. ch. 301, § 8