65- 407 C.M.R. ch. 316, § 6

Current through 2024-51, December 18, 2024

Section 407-316-6 - CONTRACTING

A.Utilities

The Commission may direct investor-owned transmission and distribution utilities to enter into long-term contracts as agents for their customers for capacity resources and any available energy associated with capacity resources contracted for under this Chapter. The investor-owned transmission and distribution utilities shall, at the Commission's request, assist in the negotiation of the terms of long-term contracts. The investor-owned transmission and distribution utilities shall be responsible for administering contracts entered into pursuant to this provision.

B.Commission

The Commission may enter into long-term contracts for interruptible, demand response or energy efficiency capacity resources.

C.Contract Term

A contract entered into pursuant to the Chapter may not be for more than ten years, unless the Commission finds that a contract for a longer term to be in the ratepayers' interest.

D.Contract Payments

Contracts for capacity, associated energy, and renewable energy credits entered into pursuant to this Chapter must provide that payments will be made only after contracted amounts of capacity, available energy, or renewable energy credits have been provided.

1. Contracts with the Efficiency Maine Trust established in Title 35-A, section 10103 for energy efficiency capacity resources and related energy entered into pursuant to this Chapter may provide that up to 20% of the total payment be made at the start of the contract. Such contracts must provide that the remaining payments will be made only after the supplier has demonstrated, according to measurement and verification protocols specified in rules adopted by the Efficiency Maine Trust Board pursuant to Title 35-A, section 10105(5), that physical installations have been completed and contracted amounts of capacity resources and related energy have been substantiated.

2. Contracts with any entity other than the Efficiency Maine Trust established in Title 35-A, section 10103 for energy efficiency capacity resources and related energy must provide that payments will be made only after the supplier has demonstrated, according to measurement and verification protocols specified in rules adopted by the Efficiency Maine Trust Board pursuant to Title 35-A, section 10105(5), that physical installations have been completed and contracted amounts of capacity resources and related energy have been substantiated.

E.Commercial Reasonableness

Contracts entered into pursuant to this Chapter shall be commercially reasonable and commit all parties to commercially reasonable behavior.

65- 407 C.M.R. ch. 316, § 6