posted on Tuesday, August 22, 2006 4:24 PM by Andrea Kells

Massachusetts Governor Issues Energy Plan Long on Conservation and Renewables

Massachusetts Governor Mitt Romney has issued a "Next-Gen" long-term energy plan that calls for a "negawatts" market in which utilities would pay customers for increased efficiency and reduced energy use when those payments are cheaper than constructing new power generation facilities.  In addition, the plan advocates market-based retail prices ― consumers would pay more for running appliances and other electrical devices at peak periods, while paying less at off-peak times.  Real-time pricing would apply to industrial consumers, while small business and residents would pay time-of-day rates.  The plan would also create a conservation lottery that would award prizes to customers who purchase energy-efficient equipment.   In addition, public buildings will become subject to new heightened efficiency standards, and tax incentives will be offered to encourage purchases of fuel-efficient vehicles. 

To promote renewable energy, the plan focuses on biomass energy, clarifying biomass's qualification under Massachusetts' Renewable Portfolio Standard, and expediting select wind project permitting (the plan supports several specific wind projects, but does not include the controversial Cape Wind project).   

To address lack of infrastructure, the plan seeks to encourage on-site generation by reducing the "standby" rates charged by utilities for backup service for companies that install their own on-site generation facilities, with a goal of 250 MW of new peak demand supplied by on-site generation by 2010 and 500 MW by 2014.   

Massachusetts' energy demands are projected to exceed supply by 2013, and the state faces the prospect of paying federally mandated subsidies to encourage power plant construction.  The Next-Gen plan now goes to the state agencies charged with its implementation: the Department of Telecommunications and Energy, the Office of Environmental Affairs, and the Office of Economic Development.