Legislation, part 2

SECTION 101. Section 68 of said chapter 92, as so appearing, is hereby amended by striking out, in line 6, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 102. Section 24 of chapter 93 of the General Laws, as so appearing, is hereby amended by striking out, in lines 10 and 11, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 103. Section 8 of chapter 110C of the General Laws, as so appearing, is hereby amended by striking out, in lines 3 and 4, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 104. Section 5K of chapter 111 of the General Laws, as so appearing, is hereby amended by adding the following subsection:-

(E) The department is hereby authorized to make an assessment against the operator of each existing and proposed nuclear power plant in the commonwealth in an amount equal to the costs incurred in the prior fiscal year by the department's radiation control program in the performance of its duties under this section. The department is hereby further authorized to make a collection, based on that assessment, of monies from said operators of nuclear power plants to defray the cost of such activities. Said amount shall not exceed $90,000 per annum, per facility, which shall be expended for any such facility, including, but not be limited to, a facilities located in the town of Rowe and in the town of Plymouth, and in Seabrook, New Hampshire. The department shall send notice of its assessment to the individual company against which the assessment is made, and said company shall pay such assessment within 30 days of the notice of the assessment; provided, however, that such company shall have a reasonable opportunity to submit objections concerning said assessment to the department for review. If, after completion of such review, the department determines the assessment is valid, the department shall issue a demand for such assessment, and the company against which such assessment is made shall pay such assessment immediately. If a company subject to assessment under this section fails to pay the assessment within 30 days of the notice of the assessment, or fails to pay the demand for assessment upon completion of the final review, whichever occurs later, the department may refer such matter to the department of revenue for the collection of the assessment in accordance with applicable enforcement provisions pursuant to chapter 62C. The amount so collected shall be deposited into the General Fund and credited to the department.

SECTION 105. Said chapter 111 is hereby further amended by inserting after section 142M the following section:-

Section 142N. For the purpose of preventing, mitigating, or alleviating impacts on the resources of the commonwealth and to the health of its citizens from pollutants emitted by fossil fuel-fired electric generation facilities serving retail customers in the commonwealth, the department of environmental protection shall, in consultation with the office of the attorney general and the department of telecommunications and energy, promulgate rules and regulations to adopt and implement for fossil fuel-fired electric generation facilities uniform generation performance standards of emissions produced per unit of electrical output on a portfolio basis for any pollutant determined by the department of environmental protection to be of concern to public health, and produced in quantity by electric generation facilities. The department of environmental protection shall have said uniform performance standards for at least one pollutant in effect on, but not before, May 1, 2003, unless three or more other northeastern states enact similar standards before that date, in which case the department of environmental protection may adopt such standards prior to May 1, 2003. The department of environmental protection shall issue annually, by March first of each year, an annual report detailing the implementation and compliance of said program, its standards, and its companion rules and regulations.

SECTION 106. Section 81R of chapter 112 of the General Laws, as so appearing, is hereby amended by striking out, in lines 82 and 83, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 107. Section 34A of chapter 132 of the General Laws, as so appearing, is hereby amended by striking out, in line 13, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 108. Said section 34A of said chapter 132, as so appearing, is hereby further amended by striking out, in line 25, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 109. Said section 34A of said chapter 132, as so appearing, is hereby further amended by striking out, in line 35, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 110. Said section 34A of said chapter 132, as so appearing, is hereby further amended by striking out, in line 37, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 111. Section 16 of chapter 132A of the General Laws, as so appearing, is hereby amended by striking out, in line 15, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 112. Section 7 of chapter 141 of the General Laws, as so appearing, is hereby amended by striking out, in line 18, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 113. Section 14 of chapter 142A of the General Laws, as so appearing, is hereby amended by striking out, in line 37, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 114. Section 71S of chapter 143 of the General Laws, as so appearing, is hereby amended by striking out, in lines 4 and 5, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 115. Section 57 of chapter 147 of the General Laws, as so appearing, is hereby amended by striking out, in line 18, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 116. Section 26E of chapter 148 of the General Laws, as so appearing, is hereby amended by striking out, in line 30, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 117. Section 148 of chapter 149 of the General Laws, as so appearing, is hereby amended by striking out, in line 26, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 118. Section 71F of chapter 151A of the General Laws, as so appearing, is hereby amended by inserting after the word "amount", in line 30, the following words:- ; provided, however, that.

SECTION 119. Said chapter 151A is hereby further amended by inserting after section 71H the following section:-

Section 71I. (a) Any employee of a generation facility, an electric company, or a gas company, each as defined in section 1 of chapter 164, who is terminated after July 1, 1997, through no fault of his own as a result of the restructuring of the electricity or gas industries in the commonwealth, and is otherwise eligible for unemployment benefits, shall receive reemployment assistance benefits, as provided pursuant to section 71F of this chapter, and health insurance benefits, as provided pursuant to section 71G of this chapter. No such employee shall be denied or be determined to be ineligible for any such benefits if the employer has provided notice of the cessation of employment. Such benefits shall be in addition to any benefits any employee may receive pursuant to the provisions of an agreement resulting from collective bargaining by the owners of electric companies, generation facilities, who owned such facilities as of July 1, 1997, or a gas company and an organization or organizations representing such employee in any such negotiations of said agreement.

(b) Any employer at a generation facility, an electric company, or a gas company where such eligible employee had been terminated shall be billed an amount equal to 100 per cent of the amount of reemployment assistance benefits paid under said section 71F and an amount equal to 100 per cent of the amount of health insurance benefits paid under said section 71G, and shall otherwise be subject to section 71H.

SECTION 120. Section 4 of chapter 155 of the General Laws, as appearing in the 1996 Official Edition, is hereby amended by striking out, in line 3, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 121. Section 5 of said chapter 155, as so appearing, is hereby amended by striking out, in line 1, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 122. Section 5A of said chapter 155, as so appearing, is hereby amended by striking out, in line 1, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 123. Section 16 of chapter 158 of the General Laws, as so appearing, is hereby amended by striking out, in line 7, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 124. Section 39 of said chapter 158, as so appearing, is hereby amended by striking out, in line 8, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 125. Section 40 of said chapter 158, as so appearing, is hereby amended by striking out, in line 4, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 126. Section 10 of chapter 159 of the General Laws, as appearing in the 1996 Official Edition, is hereby amended by striking out, in line 1, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 127. Section 59 of said chapter 159, as so appearing, is hereby amended by striking out, in lines 11 and 12, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 128. Said section 59 of said chapter 159, as so appearing, is hereby further amended by striking out, in line 15, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 129. Said section 59 of said chapter 159, as so appearing, is hereby further amended by striking out, in line 26, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 130. Said section 59 of said chapter 159, as so appearing, is hereby further amended by striking out, in line 28, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 131. Section 65 of said chapter 159, as so appearing, is hereby amended by striking out, in line 5, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 132. Said section 65 of said chapter 159, as so appearing, is hereby further amended by striking out, in line 18, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 133. Said section 65 of said chapter 159, as so appearing, is hereby further amended by striking out, in lines 23 and 24, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 134. Said section 65 of said chapter 159, as so appearing, is hereby further amended by striking out, in line 27, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 135. Said section 65 of said chapter 159, as so appearing, is hereby further amended by striking out, in line 28, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 136. Said section 65 of said chapter 159, as so appearing, is hereby further amended by striking out, in line 37, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 137. Section 70 of said chapter 159, as so appearing, is hereby amended by striking out, in line 21, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 138. Said section 70 of said chapter 159, as so appearing, is hereby further amended by striking out, in line 51, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 139. Said section 70 of said chapter 159, as so appearing, is hereby further amended by striking out, in line 63, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 140. Said section 70 of said chapter 159, as so appearing, is hereby further amended by striking out, in line 65, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 141. Section 73 of said chapter 159, as so appearing, is hereby amended by striking out, in line 5, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 142. Section 74 of said chapter 159, as so appearing, is hereby amended by striking out, in line 4, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 143. Said section 74 of said chapter 159, as so appearing, is hereby further amended by striking out, in line 17, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 144. Said section 74 of said chapter 159, as so appearing, is hereby further amended by striking out, in line 21, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 145. Said section 74 of said chapter 159, as so appearing, is hereby further amended by striking out, in line 46, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 146. Section 78 of said chapter 159, as so appearing, is hereby amended by striking out, in line 19, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 147. Section 79 of said chapter 159, as so appearing, is hereby amended by striking out, in lines 5 and 6, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 148. Section 80 of said chapter 159, as so appearing, is hereby amended by striking out, in line 23, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 149. Said section 80 of said chapter 159, as so appearing, is hereby further amended by striking out, in lines 34 and 35, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 150. Said section 80 of said chapter 159, as so appearing, is hereby further amended by striking out, in lines 35 and 36, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 151. Said section 80 of said chapter 159, as so appearing, is hereby further amended by striking out, in line 40, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 152. Section 1 of chapter 159A of the General Laws, as appearing in the 1996 Official Edition, is hereby amended by striking out, in line 32, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 153. Section 2 of said chapter 159A, as so appearing, is hereby amended by striking out, in line 3, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 154. Section 3 of said chapter 159A, as so appearing, is hereby amended by striking out, in line 6, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 155. Section 2 of chapter 159B of the General Laws, as so appearing, is hereby amended by striking out, in lines 21 and 22, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 156. Said section 2 of said chapter 159B, as so appearing, is hereby further amended by striking out, in line 38, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 157. Said section 2 of said chapter 159B, as so appearing, is hereby further amended by striking out, in line 88, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 158. Section 6B of chapter 159B, as so appearing, is hereby amended by striking out, in lines 29 and 30, the words "of public utilities".

SECTION 159. Section 1 of chapter 160 of the General Laws, as appearing in the 1996 Official Edition, is hereby amended by striking out, in line 7, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 160. Section 104 of said chapter 160, as so appearing, is hereby amended by striking out, in line 15, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 161. Said section 104 of said chapter 160, as so appearing, is hereby further amended by striking out, in line 20, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 162. Section 127A of said chapter 160, as so appearing, is hereby amended by striking out, in line 1, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 163. Section 134A of said chapter 160, as so appearing, is hereby amended by striking out, in lines 30 and 31, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 164. Said section 134A of said chapter 160, as so appearing, is hereby further amended by striking out, in line 35, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 165. Section 145 of said chapter 160, as so appearing, is hereby amended by striking out, in line 3, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 166. Section 147A of said chapter 160, as so appearing, is hereby amended by striking out, in lines 3 and 4, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 167. Section 1 of chapter 161 of the General Laws, as appearing in the 1996 Official Edition, is hereby amended by striking out, in line 8, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 168. Section 82 of said chapter 161, as so appearing, is hereby amended by striking out, in line 9, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 169. Section 85 of said chapter 161, as so appearing, is hereby amended by striking out, in line 16, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 170. Said section 85 of said chapter 161, as so appearing, is hereby further amended by striking out, in lines 19 and 20, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 171. Said section 85 of said chapter 161, as so appearing, is hereby further amended by striking out, in line 21, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 172. Said section 85 of said chapter 161, as so appearing, is hereby further amended by striking out, in line 26, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 173. Section 3 of chapter 161A of the General Laws, as so appearing, is hereby amended by striking out, in lines 72 and 73, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 174. Section 5 of said chapter 161A, as so appearing, is hereby amended by striking out, in line 184, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 175. Section 11A of said chapter 161A, as so appearing, is hereby amended by striking out, in line 7, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 176. Section 22 of said chapter 161A, as so appearing, is hereby amended by striking out, in line 2, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 177. Said section 22 of said chapter 161A, as so appearing, is hereby further amended by striking out, in line 4, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 178. Section 6 of chapter 161B of the General Laws, as appearing in the 1996 Official Edition, is hereby amended by striking out, in line 61, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 179. Section 8 of said chapter 161B, as so appearing, is hereby amended by striking out, in line 82, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 180. Said chapter 161B is hereby further amended by striking out section 16, as so appearing, and inserting in place thereof the following section:-

Section 16. In the event of any conflict between the regulatory powers and duties of the department of telecommunications and energy in respect to mass transportation service within an area, the department of telecommunications and energy shall resolve such dispute and exercise such powers as it deems required in the particular instance.

SECTION 181. Section 1 of chapter 162 of the General Laws, as so appearing, is hereby amended by striking out, in line 2, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 182. Section 1 of chapter 163 of the General Laws, as so appearing, is hereby amended by striking out, in line 2, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 183. Section 1 of chapter 164 of the General Laws, as so appearing, is hereby amended by inserting before the definition of "Alternative energy producer" the following definition:-

"Aggregator", an entity which groups together electricity customers for retail sale purposes, except for public entities, quasi-public entities or authorities, or subsidiary organizations thereof, established pursuant to the laws of the commonwealth.

SECTION 184. Said section 1 of said chapter 164, as so appearing, is hereby further amended by inserting after the definition of "Alternative energy producer" the following definition:-

"Ancillary services", those functions which support generation, transmission, and distribution, and shall include the following services: (1) reactive power/voltage control; (2) loss compensation; (3) scheduling and dispatch; (4) load following; (5) system protection service; and (6) energy imbalance service.

SECTION 185. Said section 1 of said chapter 164, as so appearing, is hereby further amended by inserting after the definition of "Cogeneration facility" the following definition:-

"Contract termination fee", the fees owed by the distribution company to its wholesale power supplier, as determined and approved by the department.

SECTION 186. Said section 1 of said chapter 164, as so appearing, is hereby further amended by striking out, in line 59, the words "public utilities" and inserting in place thereof the following words:- telecommunications and energy.

SECTION 187. Said section 1 of said chapter 164, as so appearing, is hereby further amended by inserting after the definition of "Department" the following six definitions:-

"Default Service", the electricity services provided to a retail customer upon either the (i) failure of a distribution company or supplier to provide such electricity services as required by law or as contracted for under the standard service offer, (ii) the completion of the term of the standard service offer, or (iii) upon the inability of a customer to receive standard service transition rates during the term of the standard service offer pursuant to section 1B.

"Distributed generation", a generation facility or renewable energy facility connected directly to distribution facilities or to retail customer facilities which alleviate or avoid transmission or distribution constraints or the installation of new transmission facilities or distribution facilities.

"Distribution", the delivery of electricity over lines which operate at a voltage level typically equal to or greater than 110 volts and less than 69,000 volts to an end-use customer within the commonwealth. The distribution of electricity shall be subject to the jurisdiction of the department.

"Distribution company", a company engaging in the distribution of electricity or owning, operating, or controlling distribution facilities; provided, however, a distribution company shall not include any entity which owns or operates plant or equipment used to produce electricity, steam, and chilled water, or any affiliate engaged solely in the provision of such electricity, steam, and chilled water, where the electricity produced by such entity or its affiliate is primarily for the benefit of hospitals and non-profit educational institutions, and where such plant or equipment was in operation prior to January 1, 1986.

"Distribution facility", plant or equipment used for the distribution of electricity and which is not a transmission facility, a cogeneration facility, or a small power production facility.

"Distribution service", the delivery of electricity to the customer by the electric distribution company from points on the transmission system or from a generating plant, at distribution voltage.

SECTION 188. Said section 1 of said chapter 164, as so appearing, is hereby further amended by striking out the definition of "Electric company" and inserting in place thereof the following four definitions:-

"Electric company", a corporation organized under the laws of the commonwealth for the purpose of making by means of water power, steam power or otherwise and selling, or distributing and selling, or only distributing, electricity within the commonwealth, or authorized by special act so to do, even though subsequently authorized to make or sell gas; provided, however, that electric company shall not mean an alternative energy producer; and provided further, that a distribution company shall not include any entity which owns or operates a plant or equipment used to produce electricity, steam, and chilled water, or any affiliate engaged solely in the provision of such electricity, steam, and chilled water, where the electricity produced by such entity or its affiliate is primarily for the benefit of hospitals and non-profit educational institutions, and where such plant or equipment was in operation prior to January 1, 1986.

"Electric service", the provision of generation, transmission, distribution, or ancillary services.

"Energy efficiency", the implementation of an action, policy, or measure which entails the application of the least amount of energy required to produce a desired or given output.

"FERC", the federal energy regulatory commission.

SECTION 189. Said section 1 of said chapter 164, as so appearing, is hereby further amended by striking out the definition of "Gas company" and inserting in place thereof the following seven definitions:-

"Gas company", a corporation organized for the purpose of making and selling, or distributing and selling, gas within the commonwealth, even though subsequently authorized to make or sell electricity; provided, however, that gas company shall not mean an alternative energy producer.

"Generation", the act or process of transforming other forms of energy into electric energy, or the amount of electric energy so produced.

"Generation company", a company engaged in the business of producing, manufacturing, or generating electricity for retail sale to the public.

"Generation facility", plant or equipment used to produce, manufacture, or otherwise generate electricity and which is not a transmission facility.

"Generation service", the provision of generation and related services to a customer.

"Horizontal market power", a situation in which one or a few market participants combined have undue concentration in the ownership of facilities at the same level in the chain of production resulting in the ability to influence price to his or their own benefit.

"Mitigation", all actions or occurrences which reduce the amount of money that a distribution company seeks to collect through the transition charge, including those amounts resulting from both matters within the company's control and from matters not wholly within the company's control. Mitigation shall, in accordance with the provisions of section 1G, include, but not be limited to, the following: (1) sales of capacity, energy, ancillary services, reserves, and emission allowances from generating facilities that are wholly or partly owned by the company; (2) sales of capacity, energy, ancillary services, reserves, and emission allowances from generating facilities with which the company has a power purchase agreement; (3) adjustments to the company's minimum obligations under purchase power agreements that decrease such obligations, such as those that may be obtained through contract buy-out or renegotiation; (4) residual value; (5) sales and voluntary write downs of company generation-related assets; (6) any market value in excess of net book value associated with the sale, lease, transfer, or other use of the assets of the company unrelated to the provision of transmission service or distribution service at regulated prices, including, but not limited to, rights-of-way, property, and intangible assets when the costs associated with the acquisition of those assets have been reflected in the company's rates for regulated service; provided, however, that the department shall determine their market values based on the highest prices that such assets could reasonably realize after an open and competitive sale; and (7) any allowed refinancing of stranded assets or other debt obligations as provided by law.

SECTION 190. Said section 1 of said chapter 164, as so appearing, is hereby further amended by inserting after the definition of "Primary energy source" the following six definitions:-

"Renewable energy" or "renewables", either (i) resources whose common characteristic is that they are nondepletable or are naturally replenishable but flow-limited, or (ii) existing or emerging non-fossil fuel energy sources or technologies, which have significant potential for commercialization in New England and New York, and shall include the following: solar photovoltaic or solar thermal electric energy; wind energy; ocean thermal, wave, or tidal energy; fuel cells; landfill gas; waste-to-energy which is a component of conventional municipal solid waste plant technology in commercial use; naturally flowing water and hydroelectric; and low-emission, advanced biomass power conversion technologies, such as gasification using such biomass fuels as wood, agricultural, or food wastes, energy crops, biogas, biodiesel, or organic refuse-derived fuel. The following technologies or fuels shall not be considered renewable energy supplies: coal, oil, natural gas except when used in fuel cells, and nuclear power.

"Residual value", the value of electric company assets, not including the income which may be obtained through generation facility operation.

"Retail access", the use of transmission and distribution facilities owned by a transmission company or a distribution company to transmit or distribute electricity from a generation company, supplier, or aggregator to retail customers.

"Retail customer", a customer who purchases electricity for its own consumption.

"Securitization", the use of rate reduction bonds to refinance debt and equity associated with transition costs pursuant to section 1H.

"Service territory", the geographic area in which a distribution company provided distribution service on July 1, 1997.

SECTION 191. Said section 1 of said chapter 164, as so appearing, is hereby further amended by inserting after the definition of "Small power production facility" the following definition:-

"Supplier", any supplier of generation service to retail customers, including power marketers, brokers, and marketing affiliates of distribution companies, except that no electric company shall be considered a supplier.

SECTION 192. Said section 1 of said chapter 164, as so appearing, is hereby further amended by adding the following nine definitions:-

"Transition charge", the charge that provides the mechanism for recovery of an electric company's transition costs.

"Transition costs", the embedded costs as determined pursuant to section 1H which remain after accounting for maximum possible mitigation, subject to determination by the department.

"Transmission", the delivery of power over lines that operate at a voltage level typically equal to or greater than 69,000 volts from generating facilities across interconnected high voltage lines to where it enters a distribution system.

"Transmission company", a company engaging in the transmission of electricity or owning, operating, or controlling transmission facilities. A transmission company shall provide transmission service to all generation companies, municipal lighting plants, suppliers, and load aggregators in the commonwealth, whether affiliated or not, on comparable, nondiscriminatory prices and terms, pursuant to provisions of federal law and regulation.

"Transmission facility", plant or equipment used for the transmission of electricity, as determined by the federal energy regulatory commission pursuant to federal law and regulation.

"Transmission service", the delivery of electricity to a retail customer, supplier, distribution company, or wholesale customer by a transmission company.

"Unbundled rates", rates designed to separate the costs of providing generation, the costs of transmission and distribution services, and transition and general access charges.

"Vertical market power", a situation in which one or a few market participants, having joint ownership of facilities at differing levels of the chain of production, such as generation, transmission, and distribution, possess the ability to use such joint ownership to influence price to the participants' own benefit.

"Wholesale generation company", a company engaged in the business of producing, manufacturing, or generating electricity for sale at wholesale only.

SECTION 193. Said chapter 164 is hereby further amended by inserting after section 1 the following eight sections:-

Section 1A. (a) The department is hereby authorized and directed to require electric companies organized pursuant to the provisions of this chapter to accommodate retail access to generation services and choice of suppliers by retail customers, unless otherwise provided by this chapter. Such companies shall file plans that include, but shall not be limited to, the provisions set forth in this section.

On or before January 1, 1998, each electric company organized under the provisions of this chapter, which has not filed a plan prior to the enactment of this section, shall file with the department a detailed plan for restructuring its operations to allow for the introduction of retail competition in generation supply in accordance with the provisions of this chapter. The department shall review each plan and make an express finding to determine whether such plan is consistent or substantially complies with the provisions of this chapter. An electric company that has filed a plan which substantially complies or is consistent with this chapter as determined by the department shall not be required to file a new plan, and the department shall allow such plans previously approved or pending before the department to be implemented. Approval of such previously filed or approved plans shall be deemed to satisfy the requirements contained in section 1G including for the department to conduct an audit of previously incurred costs and find reasonable mitigation of transition costs, and shall allow the department to approve charges for transition costs, provided that the department shall audit, review and reconcile the difference between projected transition costs and actual transition costs by March 1, 2000, and every 18 months, thereafter and provided that such approved plans provide a reduction of 10% for customers choosing the standard service transition rate from the average of undiscounted rates for the sale of electricity in effect during August 1997 or such other date as the department may determine. Each plan shall be designed to implement a restructured electric generation market by March 1, 1998. Each electric company shall offer retail access to all customers as of said date. The department may issue an initial order prior to March 1, 1998, approving any plan filed pursuant to this section subject to further review and reconciliation in order to allow implementation of retail access for all customers after March 1, 1998.

Each restructuring plan shall include, without limitation, the following: an estimate and detailed accounting of total transition costs eligible for recovery pursuant to subsection (b) of section 1G; a description of the company's strategies to mitigate such transition costs; unbundled prices or rates for generation, distribution, transmission, and other services; proposed charges for the recovery of transition costs; proposed programs to provide universal service for all customers; proposed programs and recovery mechanisms to promote energy conservation and demand-side management; procedures for ensuring direct retail access to all electric generation suppliers; and discussions of the impact of the plan on the company's employees and the communities served by the company.

The department shall review the restructuring plan filed by each electric company and shall issue an order accepting, modifying, or rejecting such plan at the earliest date possible. If the department rejects a restructuring plan, the department shall state the specific reasons for rejection and direct the company to file an alternative plan addressing these objections within 30 days of the department's order rejecting the plan. The department shall review this alternative plan and issue a final order within 60 days of the filing of the revised plan.

(b)(1) If an electric company chooses to divest itself of its existing non-nuclear generation facilities, such electric company shall transfer or separate ownership of generation, transmission, and distribution facilities into independent affiliates of the electric company or functionally separate such facilities within 30 business days of federal approval. The transmission facilities owned by the electric company, including all rights-of-way, property, fiber optic cable, and other tangible or intangible assets used directly or indirectly by the utility in the transmission of electricity, as of December 31, 1996, or acquired thereafter, shall be transferred to a transmission company at a price that shall equal the book value of said transmission facilities on the electric company's accounts net of depreciation as of the date of transfer. The distribution facilities owned by an electric company, including all rights-of-way, property, fiber optic cable, and other tangible or intangible assets used directly or indirectly by the utility in the distribution of electricity, as of December 31, 1996, or acquired thereafter, shall be transferred to a successor distribution company at a price that shall equal the book value of the distribution facilities on the electric company's accounts net of depreciation as of the date of transfer. The newly created distribution companies shall be prohibited from selling electricity at retail, except as provided in sections 1B to 1F, inclusive, and shall be prohibited from directly owning, operating, or controlling transmission facilities, generating facilities, or marketing affiliates, and shall be prohibited from selling, leasing, renting, or otherwise transferring all or a portion of any assets it obtains from the utility pursuant to this section without the expressed approval of the department. In providing such approval, the department shall conduct evidentiary hearings and must issue a finding that such transfers will mitigate to the maximum extent possible the total amount of transition costs of the utility and will minimize the impact of recovery of transition costs on ratepayers in the commonwealth. Except as otherwise provided in this section, an electric company divesting existing non-nuclear generation facilities shall be in no way disadvantaged by virtue of the fact that it has or plans to divest its existing electricity generating facilities. In the event that an electric company chooses to divest its existing generation facilities, such electric company shall demonstrate to the department that the sale process is equitable and maximizes the value of the existing generation facilities being sold.

(2) For the purposes of this section and sections 1B to 1H, inclusive, the requirement to divest generation facilities shall be deemed satisfied if an electric company divests its non-nuclear generation facilities by (i) selling such non-nuclear facilities in a competitive auction or sale in a process approved by the department which shall ensure complete, uninhibited, non-discriminatory access to all data and information by any and all interested parties seeking to participate in such auction or sale; provided, however, that an affiliated company may participate and bid in such competitive auction or sale; or (ii) transferring such non-nuclear generation facilities and purchase power contracts to an affiliated company at a value determined to be reasonable and appropriate by the department including but not limited to a value based on the sale value of comparable plants through prior divestiture actions; provided, however, that in no instance shall such minimum price be lower than the highest price per kilowattage of capacity for any capacity sold in New England, as determined by the department; provided, further, that in the case of the divestiture of any non-nuclear generation facility currently containing only combustion turbine generation capacity of less than 50 megawatts but situated on a site containing free standing retired or unused structures formerly containing steam electric generating units of greater than 200 megawatts capacity, the electric company so divesting shall cause, either through its own efforts prior to said divestiture or through assignment of such obligation to the purchaser of each facility in an agreement approved by the department, said unused structures to be appropriately removed and decommissioned, which may be subject to a re-use plan. The minimum price for the transfer of such assets pursuant to this paragraph shall be determined and approved by the department prior to any such proceeding.

(3) All proceeds from any such divestiture and sale of generation facilities pursuant to paragraphs (1) and (2), net of tax effects and less any other adjustments approved by the department that inure to the benefit of ratepayers, shall be applied to reduce the amount of the selling electric company's transition costs.

(c) If an electric company chooses not to sell its existing non-nuclear generation facilities, then the electric company's recovery of transition costs shall be net of any market value in excess of book value of the non-divested non-nuclear facilities, as determined in this section and in accordance with section 1G, and it shall transfer all of its non-nuclear generation facilities and purchased power contracts to an affiliate that is a generating company at a price to be determined and approved by the department herein prior to any such proceeding; and in accordance with subsection (b). Such generation company affiliate shall exist separate from and independent of the distribution and transmission operations of such electric company. There shall exist strict separation between such generation affiliate and the distribution and transmission operations of such electric company. Both nuclear and non-nuclear generation facilities and the electric company's purchased power contracts shall be subject to a valuation by the department where such facilities are either sold or assessed by an assessor independent of the electric company or otherwise valued pursuant to the provisions of this chapter, to determine the maximum market value of such assets that could reasonably be realized after an open and competitive sale, and the electric company's recovery of transition costs shall be net of any market value in excess of book value as determined in this section in a competitive market. A generation company formed pursuant to this section shall be prohibited from acquiring new generation facilities as of March 1, 1998. If an electric company chooses not to divest all of its non-nuclear generating facilities, then the electric company's recovery of transition costs shall be net of any market value in excess of book value of the non-divested non-nuclear facilities, as determined in this section and in accordance with section 1G. Such electric company shall not be assessed or charged any costs through its rates established by the department to transfer such generation facilities to an unregulated affiliate or subsidiary or as a consequence of transferring such generation facilities to an unregulated affiliate or subsidiary; provided, however, that should any generation facility so transferred to an unregulated subsidiary be further sold, transferred to, or disposed of, to a third party within 48 months of the generation facility's transfer to an unregulated affiliate or subsidiary of the electric company, then any amount recovered in such a sale, transfer, or disposition in excess of the remaining net book value of the generation facility shall be applied to reduce the amount of the selling electric company's transition costs. Except as otherwise provided in this section, an electric company retaining all or a portion of its existing generation facilities shall be in no way disadvantaged by virtue of the fact that it is so retaining existing generation facilities.

(d) In the event that (i) an electric company with generation facilities in the commonwealth owns, or has an affiliate that owns, generation facilities in another state in the New England region, and (ii) an electric company or its affiliate continues to operate one or more generation facilities in another state in the New England region, then the electric company, should it choose not to divest its existing fossil-fuel fired generation facilities and its existing hydroelectric generation facilities, shall be allowed for purposes of efficiency and local ownership of local generation facilities, to retain any such facilities as set forth in subsection (c); provided, however, that an electric company not divesting its existing fossil-fuel fired and hydroelectric generation facilities shall not recover through rates, charges, or elsewhere any amount of transition costs associated with the retained existing fossil-fuel fired generation facilities and existing hydroelectric generation facilities. Each reference to existing generation facilities in this section shall include, without limitation, existing generation facilities, regardless of size, and associated property. The department should determine a value for any facilities retained pursuant to this subsection and reduce the amount of the electric company's transition costs by such value in accordance with subsection (b).

(e) A generation company shall not be subject to regulation as a public utility or as an electric company, except as specifically provided in this chapter. A wholesale generation company shall be subject to regulation only as specifically provided in this chapter.

Section 1B. (a) The department shall define service territories for each distribution company by March 1, 1998, based on the service territories actually served on July 1, 1997, and following to the extent possible municipal boundaries. After March 1, 1998, until terminated by effect of law or otherwise, the distribution company shall have the exclusive obligation to provide distribution service to all retail customers within its service territory, and no other person shall provide distribution service within such service territory without the written consent of such distribution company which shall be filed with the department and the clerk of the municipality so affected.

(b) Each distribution company shall provide a standard service transition rate to those customers who are within said company's service territory and who choose not to purchase electricity from a non-affiliated generation company after March 1, 1998. A distribution company shall provide a standard service transition rate which, together with the transmission, distribution, and transition charges, produces for such a service package for all retail customers including the facilities on Deer island operated by the Massachusetts Water Resources Authority, prior to the implementation of securitization pursuant to section 1H and the application of a residual value credit pursuant to section 1A or the deduction of the market value of generation facilities pursuant to said section 1A, a rate reduction of at least 10 per cent beginning on March 1, 1998. Said reduction shall be applied against the average of the undiscounted rates for the sale of electricity in effect during August 1997 or such other date as the department may determine to be representative of 1997 rates for such company, but excluding customers with contracts for electricity sales that provide for percentage discounts below cost-based or tariffed rates executed and approved by the department prior to January 1, 1997. Upon the approval by the department of (i) a financing order to implement securitization pursuant to section 1H or (ii) the residual value credits from divestitures or market valuations for such a company, the distribution company shall apply the net proceeds from the divestiture and the net savings from the securitization. The total rate reduction, net proceeds from the divestiture and the net savings from securitization, in combination with the rate reduction implemented by or on March 1, 1998, shall be 15 per cent on or before September 1, 1999, applied against the rate adjusted for inflation from August 1997 or such other date as the department may determine to be representative of 1997 rates for such company, which was the benchmark for the March 1, 1998, rate reduction; provided, however that a company unable to meet the rate reduction required under this section shall be subject to the provisions of paragraph (3) of subsection (c) of section 1G. The standard service transition rate shall be offered for a transition period of seven years at prices and on terms approved by the department and shall require a distribution company to purchase electricity after a competitive bid process that is reviewed and approved by the department. Any customer who has chosen retail access from a non-affiliated generation company but who otherwise requires electric service due to said generation company's failure to provide contracted service shall be eligible for service through the distribution company's default service provided pursuant to the provisions of subsection (d).

(c) Effective March 1, 1998, no electric company regulated by the department and no affiliate of such electric company shall be allowed to use the distribution system of another electric company or make sales, either directly or indirectly through third parties, to end-use customers in another electric company's service territory unless the department has approved a restructuring plan for the supplying electric company which provides for comparable direct access to end-use customers within its own distribution service territory or the supplying electric company has entered into an agreement, on or before January 1, 1997, for direct access to an end-use customer located on the border of its service territory, in which event the department shall authorize service by an electric company to such end-use customer. No electric company and no affiliate of such electric company shall be allowed to prohibit sales of electricity or restrict such sales through non-comparable distribution charges to end-use customers in its service territory by another electric company or its affiliate operating under a restructuring plan approved by the department.

(d) Beginning on March 1, 1998, each distribution company shall provide its customers with default service and shall offer a default service rate to its customers who have chosen retail electricity service from a non-utility affiliated generation company or supplier but who require electric service because of a failure of such company or the supplier to provide contracted service or who, for any reason, have stopped receiving such service, and to all customers at the end of the term of the standard offer. The distribution company shall procure such service through competitive bidding; provided, however, that the default service rate so procured shall not exceed the average monthly market price of electricity; and provided, further, that all bids shall include payment options with rates that remain uniform for periods of up to six months. Any department-approved provider of service, including an affiliate of a distribution company, shall be eligible to participate in the competitive bidding process. Notwithstanding the actual issuer of a ratepayer's bill, the default service provider shall be entitled to furnish a one-page insert accompanying the ratepayer's bill. The department may authorize an alternate generation company or supplier to provide default service, as described herein, if such alternate service is in the public interest. In implementing the provisions of this section, the department shall ensure universal service for all ratepayers and sufficient funding to meet the need therefor.

(e) As of March 1, 1999, the total, average rates for all of the distribution company's customers purchasing electricity under said standard service transition rate, shall be subject to an inflation cap through the remainder of the standard offer period. The calculation and implementation of the rate reduction and the inflation cap shall be subject to adjustment, review, and approval in accordance with procedures in the rules and regulations promulgated by the department, which shall require that, the economic value of the rate reduction required under this section, be maintained during the standard service transition rate period.

(f) The department is hereby authorized and directed to promulgate rules and regulations necessary to carry out the provisions of this section, including the procedure for default service procurement and governing a customer's ability to return to the standard service after choosing retail access from a non-utility affiliated generation company.

Section 1C. Any marketing company formed by an electric company shall be in the form of an affiliate of the electric company and shall be separate from any generation, transmission, or distribution company affiliate of the electric company. The department shall promulgate standards of conduct which shall ensure the separation of such affiliates and which shall be consistent with the following provisions: (i) a distribution company shall not give any affiliates any preference over non-affiliated suppliers or customers thereof in matters relating to any product or service; (ii) all products, services, discounts, rebates, and fee waivers offered by a distribution company shall be available to all customers and suppliers simultaneously, to the extent technically possible, on a comparable basis; (iii) a distribution company shall process all same or similar requests for any product, service, or information in the same manner and within the same period of time; (iv) a distribution company shall not condition or tie the provision of any product, service, or rate agreement by the distribution company to the provision of any product or service to which an affiliate is involved; (v) a distribution company shall not share with any affiliate any market information acquired or developed by the distribution company in the course of responding to requests for distribution service or any proprietary customer information without the prior written authorization by the customer; (vi) a distribution company shall refrain from presenting that any advantage accrues to customers or others in the use of its services as a result of that customer or others dealing with any such affiliate; (vii) a distribution company shall not engage in joint advertising or marketing programs with any affiliate; and (viii) employees of a distribution company shall not be shared with, and shall be physically separated from those of, any generating or marketing affiliate.

Section 1D. Beginning January 1, 1998, all electric and gas bills sent to a retail customer shall be unbundled to separately reflect the rates charged for generation, transmission, and distribution services, as well as any other charges, as added pursuant to any provision of law, contained in the total retail price. Any transition charge, if so allowed to be assessed, shall be reflected separately on bills as of March 1, 1998. Electric and gas bills may reflect the total costs of services, without breakdown for type of service, in addition to, but not instead of, separately itemized rates for generation, transmission, and distribution services and transition charges as of March 1, 1998. Not later than six months after said March 1, in order to promote customer choice and convenience in a restructured electricity and gas market, distribution companies shall create and send bills to retail customers pursuant to either of the following billing options: (1) single bill from the distribution company that shows such charges; or (2) two bills: one from the non-utility supplier that shows energy-related charges, and one from the distribution company that shows distribution-related charges; provided, however, that all bills shall contain information concerning the quantity of gas or electricity consumed by said customer during the same billing period for the previous year. Costs for such inserts shall be apportioned accordingly between the parties. The department is hereby authorized and directed to determine whether any additional information shall be required to be disclosed on the bills and to promulgate rules and regulations to implement the provisions of this subsection. Rules and regulations relative to the appeals process for billing disputes or damage claims made by customers shall be published and distributed to customers as part of an education and outreach program.

Section 1E. (a) The department is hereby authorized to promulgate rules and regulations to establish and require performance based rates for each distribution, transmission, and gas company organized and doing business in the commonwealth pursuant to the provisions of this chapter. In promulgating such performance based rate schemes, the department shall establish service quality standards each distribution, transmission, and gas company, including, but not limited to, standards for customer satisfaction service outages, distribution facility upgrades, repairs and maintenance, telephone service, billing service, and public safety provided, however, that such service quality standards shall include benchmarks for employee staff levels and employee training programs for each such distribution, transmission, and gas company.

(b) In complying with the service quality standards and employee benchmarks established pursuant to this section, a distribution, transmission, or gas company that makes a performance based rating filing after the effective date of this act shall not be allowed to engage in labor displacement or reductions below staffing levels in existence on November 1, 1997, unless such are part of a collective bargaining agreement or agreements between such company and the applicable organization or organizations representing such workers, or with the approval of the department following an evidentiary hearing at which the burden shall be upon the company to demonstrate that such staffing reductions shall not adversely disrupt service quality standards as established by the department herein. Nothing in this paragraph shall prevent reduction of forces below the November 1, 1997 level through early retirement and severances negotiated with labor organizations before said date.

(c) Each distribution, transmission, and gas company shall file a report with the department by March first of each year comparing its performance during the previous calendar year to the department's service quality standards and any applicable national standards as may be adopted by the department. The department shall be authorized to levy a penalty against any distribution, transmission, or gas company which fails to meet the service quality standards in an amount up to and including the equivalent of 2 per cent of such company's transmission and distribution service revenues for the previous calendar year.

(d) The department is authorized and directed to promulgate regulations relative to an alternative dispute resolution process for the handling of damage claims by customers in an amount under $100. The department shall establish a 60 day timeline for the resolution of all mediation claims. The department shall issue a biannual report to the house and senate clerks and the joint committee on government regulations which shall include, but not be limited to, the following information: nature of consumer claims, number of consumer claims and resolutions of consumer claims reviewed by the department during the previous six months. Said report shall be available for public review at the department.

Section 1F. The department is hereby authorized and directed to require electric companies organized pursuant to this chapter to accommodate retail access to generation services and choice of suppliers by retail customers, unless otherwise provided by this chapter. The department shall promulgate rules and regulations to provide retail customers with the utmost consumer protections contained in law, including, but not limited to, the following provisions:

(1) The department shall license to do business in the commonwealth all generation companies, aggregators, suppliers, energy marketers, and energy brokers in accordance with the provisions of subparagraphs (i), (ii), and (iii). The department shall maintain a list of all licensed generation companies, aggregators, energy brokers, energy marketers, and suppliers, which shall be available to any consumer requesting such information through the department for a reasonable fee.

(i) All generation companies shall submit a license application to the department for approval to sell electric power or provide generation services within the commonwealth. Such application shall include the following: the company's technical ability, as defined pursuant to regulations promulgated by the department, to generate or otherwise obtain and deliver electricity and provide any other proposed services; documentation of financial capability of the applicant to provide the proposed services; a description of the company's form of ownership; and documentation regarding any valid purchase power contracts between the company, the company's affiliates, or the company's parent or subsidiary, and any electric company formed pursuant to the provisions of this chapter. A license shall not be granted unless and until all of the above information is provided with the payment of a fee, the amount to be determined by the department.

(ii) All private, non-profit, or co-operative aggregators established pursuant to sections 135 and 136 seeking to do business in the commonwealth shall submit a license application to the department, subject to rules and regulations promulgated by the department and subject to the payment of a fee, the amount to be determined by the department.

(iii) All energy brokers, energy marketers, and other suppliers seeking to do business in the commonwealth shall submit a license application to the department, subject to rules and regulations promulgated by the department and subject to the payment of a fee, the amount to be determined by the department.

(2) Pursuant to this paragraph, the department shall promulgate rules and regulations which shall include, but not be limited to, the following provisions: (i) a requirement that all distribution companies, generation companies, aggregators, marketers and suppliers notify their customers in writing of the terms of their agreement to provide service at the time service is initiated, a formal procedure allowing a customer to file a complaint against a distribution or generation company, aggregator, or supplier; and (ii) a formal dispute resolution procedure developed in consultation with the Massachusetts office of dispute resolution, which shall include options for mediation, arbitration, facilitation or other dispute resolutions methods. Under such procedure, the department or a professional neutral provided by the Massachusetts office of dispute resolution and approved by the department will assist in resolving disputes between any customer and a distribution or generation company, aggregator, or supplier against which a complaint is issued, subject to a penalty determined by the department, including any fines authorized by paragraph (7). No distribution or generation company may disconnect or discontinue service to a customer for a disputed amount if that customer has filed a complaint which is pending with the department.

(3) The department is hereby authorized and directed to establish rules and regulations to (i) promote effective competition; (ii) to investigate disputes; (iii) to institute a complaint mechanism for the resolution of disputes, including, but not limited to, those arising from alleged vertical or horizontal market power abuses; (iv) to hear such disputes in the first instance at an informal level and, if requested, at a formal hearing before the department; (v) to refer complaints to the attorney general where appropriate; and (vi) to impose fines or penalties, including when appropriate a reduction in return on equity of a regulated distribution company, for violations of any regulations establishing the corporate rules of conduct.

(4)(i) The department shall require that distribution companies provide discounted rates for low income customers comparable to the low-income discount rate in effect prior to March 1, 1998. Said discount shall be in addition to any reduction in rates that becomes effective pursuant to said subsection (b) of said section 1B on March 1, 1998, and to any subsequent rate reductions provided by a distribution company after said date pursuant to said subsection. The cost of such discounts shall be included in the rates charged to all other customers of a distribution company. Each distribution company shall guarantee payment to the generation supplier for all power sold to low-income customers at said discounted rates. Eligibility for the discount rates established herein shall be established upon verification of a low-income customer's receipt of any means tested public benefit, or verification of eligibility for the low-income home energy assistance program, or its successor program, for which eligibility does not exceed 175 per cent of the federal poverty level based on a household's gross income. Said public benefits may include, but are not limited to, assistance which provides cash, housing, food, or medical care, including, but not limited to, transitional assistance for needy families, supplemental security income, emergency assistance to elders, disabled, and children, food stamps, public housing, federally-subsidized or state-subsidized housing, the low-income home energy assistance program, veterans' benefits, and similar benefits. The division of energy resources shall make available to distribution companies the eligibility guidelines for said public benefit programs. Each distribution company shall conduct substantial outreach efforts to make said low-income discount available to eligible customers and shall report to said division, at least annually, as to its outreach activities and results. Outreach may include establishing an automated program of matching customer accounts with lists of recipients of said means tested public benefit programs and based on the results of said matching program, to presumptively offer a low-income discount rate to eligible customers so identified; provided, however, that the distribution company, within 60 days of said presumptive enrollment, informs any such low-income customer of said presumptive enrollment and all rights and obligations of a customer under said program, including the right to withdraw from said program without penalty.

Not later than March 1, 1999 the department shall conduct an investigation and report to the joint committee on government regulations regarding the cost and benefits of expanding eligibility for the discount rates established in clause (i) of subparagraph (4) of the first paragraph of section 1F to any low-income customer who is eligible for any means tested public benefit for which eligibility does not exceed 175 per cent of the federal poverty level based on gross household income. The department shall further provide to said committee any legislative recommendations necessary to implement this section.

(ii) Prior to the termination of the seven year period of the standard service transition rate, the department shall, in consultation with said division, evaluate the effects of electricity restructuring on the affordability of electric power for low-income customers. The department shall make recommendations to the general court relative to the continuation of the low-income discount rate authorized pursuant to this subsection or to make modifications thereto. The department shall, in its recommendations, consider whether or not to modify said discount by establishing a sliding scale low-income discount program.

(iii) A residential customer eligible for low-income discount rates shall receive the service on demand and may return to standard offer service at any time including from default service. Each distribution company shall periodically notify all customers of the availability of and method of obtaining low-income discount rates and standard offer service. An existing residential customer eligible for low-income discount on the date of start of retail access who orders service for the first time from a distribution company shall be offered standard offer service by that distribution company. A residential customer eligible for low-income discount receiving standard offer service shall be allowed to retain standard offer service upon moving within the service territory of a distribution company.

(iv) There shall be no charge to any residential customer for initiating or terminating low-income discount rates, default service, or standard offer service when said initiation or termination request is made after a regular meter reading has occurred and the customer is in receipt of the results of said reading. A distribution company may impose a reasonable charge, as set by the department through regulation, for initiating or terminating low-income discount rates, default service, or standard offer service when a customer does not make such an initiation or termination request upon the receipt of said results and prior to the receipt of the next regularly scheduled meter reading. For purposes of this subsection, there shall be a regular meter reading conducted of every residential account no less often than once every two months. Notwithstanding the foregoing, there shall be no charge when the initiation or termination is involuntary on the part of the customer.

(5)(i) Before service is initiated by a generation company, aggregator, or supplier to any customer, the generation company, aggregator, or supplier shall disclose information on rates and other information to a customer in a written statement which the customer may retain. The department shall promulgate rules and regulations prescribing the form, content, and distribution of such information to be disclosed, which shall include, but not be limited to, the following: the disclosure of the rate to be charged; whether the generation company or supplier operates under collective bargaining agreements and whether such generation company or supplier operates with employees hired as replacements during the course of a labor dispute; any charges, fees, penalties, or other conditions imposed upon a customer should he or she choose to purchase power from another generation company, aggregator, or supplier during the term specified in the contract; the fuel mix and emissions of the generation sources; whether a credit agency will be contacted; deposit requirements and the interest paid on deposits; due date of bills and all consequences of late payment; consumer rights where a bill is estimated; consumer rights of third-party billing and like arrangements; consumer rights to deferred payment arrangements; low-income rates; limits, if any, on warranty and damages; the applicable provisions of this section; the provisions for default service; a toll-free telephone number for service complaints; any other fees, charges, or penalties; and the methods by which a consumer shall be notified of any changes to any of these items. A generation company, a supplier, or an aggregator licensed by the department to do business in the commonwealth pursuant to this section shall prepare an information booklet describing a customer's rights under the provisions of this chapter. Such company, supplier, or aggregator shall annually mail this booklet to its customers.

(ii) A generation company, an aggregator, or a supplier shall be allowed to advertise the percentage of its power or energy portfolio that is generated by employers that operate under collective bargaining agreements or that operate with employees hired as replacements during the course of a labor dispute or that connotes or signifies to the ratepayer the relative environmentally beneficial effects of the power or energy sold by said generation company, an aggregator, or a supplier pursuant to rules and regulations promulgated by the department.

(iii) In addition to the disclosure requirements provided for in subparagraphs (i) and (ii), the department shall promulgate such rules and regulations prescribing information to be disclosed by a generation company in any advertising or marketing of electricity rates, which regulations shall include, but not be limited to, disclosure of the rate to be charged in bold print in the case of print advertisements or through clear spoken language in the case of television or radio advertisements and on any monthly billing materials. The department shall coordinate with the attorney general to avoid duplication and to ensure consistency with the attorney general's regulations.

(6) The department shall promulgate uniform labeling regulations which shall be applicable to all suppliers as a condition of licensure pursuant to paragraph (1). Such information to be required by regulation in said labeling shall include price data, information on price variability, and customer service information and information about whether the generation company or supplier operates under collective bargaining agreements and whether such generation company or supplier operates with employees hired as replacements during the course of a labor dispute, fuel sources, and air emissions of sulfur dioxide, nitrogen dioxides, carbon dioxide, heavy metals, and any other emission which the department may determine causes significant health or environmental impact and for which sufficiently accurate and reliable data is available. The department shall require that such an electricity information label provide prospective and existing customers with adequate information by which to readily evaluate power supply options available in the market. Electricity suppliers shall be required to present such information, including information about the environmental characteristics of the sale of electric power products and services and whether the generation company or supplier operates under collective bargaining agreements and whether such generation company or supplier operates with employees hired as replacements during the course of a labor dispute to customers, in conformance with department requirements as to form and substance, and shall comply with federal and state laws governing unfair advertising and labeling.

(7) The department shall establish a code of conduct applicable to the provision of distribution and transmission services and the retail sale of electricity to all customers, including, but not limited to, rules and regulations governing the confidentiality of customer records, metering, billing, and information systems, and conformance with fair labor practices. The department is authorized and directed to oversee quality and reliability of service and to require that quality and reliability are the same as or better than levels that exist on November 1, 1997. The department is authorized and directed to retain or make increasingly protective of retail ratepayers the rules adopted by the department and codified at Title 220 of the Code of Massachusetts Regulations, sections 25, 27, 28, and 29, and the policies reflected in the department's adjudication of customer complaints, and, notwithstanding anything in this chapter to the contrary, shall continue to apply them to generation and thus to all generation companies, generation facilities, aggregators, and suppliers. The department is authorized and directed to promulgate rules and regulations to establish service quality standards for each distribution, transmission, and gas company, including, but not limited to, standards for universal service, customer satisfaction, service outages, telephone service, billing service, and public and employee safety. Any person, firm, electric or generation company, supplier, or other corporation doing business in the commonwealth who violates any provisions of said code or of any rule or regulation promulgated by the department pursuant to sections 1A to 1H, inclusive, or any provision of chapter 93A, pursuant to authority established by section 102C, shall be subject to a civil penalty not to exceed $25,000 for each violation for each day that the violation persists; provided, however, that the maximum civil penalty shall not exceed $1,000,000 for any related series of violations. Any such civil penalty shall be determined by the department after a public hearing. In determining the amount of the penalty, the department shall consider the following: the appropriateness of the penalty to the size of the business of the person, firm, or corporation charged; the gravity of the violation; and the good faith of the person, firm, or corporation charged in attempting to achieve compliance after notification of a violation.

(8)(a) Each customer choosing a generation company or its affiliate, subsidiary, or parent company, or a supplier or aggregator shall be required to affirmatively choose such entity. It shall be unlawful for a generation company, supplier, or aggregator to provide power or other services to such a customer without first obtaining said affirmative choice from the customer. For the purposes of this section, the term "affirmative choice" shall mean the signing of a letter of authorization, third party verification, or the completion of a toll-free call made by the customer to an independent third party operating in a location physically separate from the telemarketing representative who has obtained the customer's initial oral authorization to change to a new electricity provider. For the purposes of this section, the term "third party verification" shall mean an appropriately qualified and independent third party operating in a location physically separate from the telemarketing representative who has obtained the customer's oral authorization to change to a new electricity service provider, such authorization to include appropriate verification data, such as the customer's date of birth and social security number; provided, however, any such information or data in the possession of the third party verifier or the marketing company shall not be used, in any instance, for commercial or other marketing purposes, and shall not be sold, delivered, or shared with any other party for such purposes. Such authorization shall include appropriate verification data, such as the customer's date of birth and social security number; provided, however, any information or data in possession of the independent third party verifier or the marketing company shall not be used, in any instance, for commercial or other marketing purposes, and shall not be sold, delivered, or shared with any other party for such purposes.

For the purposes of this section, the term "letter of authorization" shall mean, (i) a separate document, an easily separable document containing only the authorizing language described in paragraph (d), whose sole purpose is to authorize a generation company, aggregator, or supplier to initiate a primary generation company, aggregator, or supplier change. The letter of authorization must be signed and dated by the consumer requesting the primary generation company, aggregator, or supplier change.

(ii) The letter of authorization shall not be combined with inducements of any kind on the same document.

(iii) At a minimum, the letter of authorization must be printed with a readable type of sufficient size to be clearly legible and must contain clear and unambiguous language that confirms:

(1) The consumer's billing name and address;

(2) The decision to change electricity service from the current generation company, aggregator, or supplier to the prospective generation company, aggregator or supplier;

(3) That the consumer understands that only one generation company, aggregator, or supplier may be designated as the consumer's electric company; and

(4) That the consumer understands that any primary generation company, aggregator, or supplier selection the consumer chooses may involve a charge to the consumer for changing the consumer's primary generation company, aggregator, or supplier.

(iv) Letters of authorization shall not suggest or require that a consumer take some action in order to retain the consumer's current generation company, aggregator, or supplier.

(v) If any portion of a letter of authorization is translated into another language, then all portions of the letter of authorization must be translated into that language.

Each customer choosing a generation company or its affiliate, subsidiary, or parent company, a supplier or aggregator shall have the right to rescind, without charge or penalty, his or her choice of generation company, aggregator, or supplier no later than midnight on the third day following the customer's receipt of a written confirmation of an agreement to purchase electricity. Upon the switching of a customer's service provider, there shall be included in the customer's first bill an acknowledgment to be completed by the customer agreeing to the service switch. Such bill shall also include all information mandated under clause (i) of subparagraph (5).

Each customer choosing a generation company or its affiliate subsidiary, or parent company, a supplier or aggregator shall have the right to rescind, without charge or penalty, the choice of generation company, aggregator, or supplier no later than midnight on the third day following the customer's receipt of a written confirmation of an agreement to purchase electricity and a statement of the terms and conditions of service as described in subsection (5)(i). Upon switching of a customer's service provider, there shall be included in the customer's bill for distribution service an acknowledgment of the service switch, along with information on how to file a complaint regarding an unauthorized switch.

(b) A customer may initiate a complaint that his retail electricity service has been switched by or to another service provider without his prior authorization. Said complainant shall file the complaint with the department within 30 days after the statement date of the notice indicating that the customer's retail electricity service has been switched. The department shall, within 10 business days of receiving the complaint, request from the customer a copy of the customer's electricity bill, the name of the original service provider, the name of the new service provider, and any other information the department may deem relevant. The customer shall, within 15 business days of the department's notifying the customer, submit to the department the requested information. Within 15 business days of receiving the request of information from the customer, the department shall send (i) to the customer, a letter acknowledging receipt of the information; (ii) to the original service provider, a letter informing it of the pending complaint and requesting it to provide information relevant to the service switch; and (iii) to the new service provider, a letter informing it of the pending complaint, requesting the proof of the customer's affirmative choice to switch his service provider, and requesting it to provide other information the department deems relevant. The original service provider and the new service provider shall, within five business days of the department's request, return the requested information to the department. Within 25 business days after receiving a copy of the customer's third party verification and all relevant information as required herein, the department shall determine if the customer authorized the new service provider to switch the customer's service.

(c) If the department determines that the new service provider does not possess the required proof of the customer's affirmative choice, the department shall calculate and require the new service provider to refund the following: (i) to the customer, the difference between what the customer would have paid to the previous service provider and actual charges paid to the new service provider; (ii) to the customer, any reasonable expense the customer incurred in switching back to the original service provider; and (iii) to the original service provider, any lost revenue, which shall consist of the amount of money the original service provider would have received for the service used by the customer during the time the customer received services from the new service provider if the customer's service had not been switched. This amount shall gross, irrespective of expenses, what the original service provider would have reasonably incurred providing the services to the customer. The department shall promulgate rules and regulations for the implementation of this subsection.

(d) Any generation company, supplier, or aggregator determined by the department to have switched any customer's service provider without proper authorization from the customer one or more times in a 12 month period shall be subject to a civil penalty not to exceed $1,000 for the first offense and not less than $2,000 nor more than $3,000 for any subsequent offense per customer. In determining the amount of the civil penalty, the department shall consider the nature, circumstances, and gravity of the violation, the degree of the respondent's culpability, and the respondent's history of prior offenses.

(e) Any generation company, supplier, or aggregator determined to have switched any customer's service provider without proper authorization more than 20 times in a 12 month period may, after a full hearing and determination by the department that such generation company supplier or aggregator intentionally, maliciously or fraudulently switched the service or more than 20 customers in a 12 month period, be prohibited from selling electricity in the commonwealth for a period of up to one year. In determining the length of suspension, the department shall consider the nature, circumstances and gravity of each violation and the degree of the culpability of the generation company, supplier or aggregator.

(f) The department shall track instances in which a generation company, supplier, or aggregator switched a customer's electricity service without the customer's prior authorization. The department shall keep a record of all unauthorized switches which occurred during a calendar year. Beginning with calendar year 1999, the department shall, by March 31 of each year, file an annual report with the joint committee on government regulations and the house and senate committees on ways and means detailing the total number of unauthorized switches, enforcement procedures undertaken by the department against such slamming tactics, so-called, the total amount of dollars returned to customers, the total amount of dollars collected in civil penalties pursuant to subsection (c), and the overall impact of the provisions of this section.

(9) Distribution companies which have at any time in the past three years billed their commercial or industrial customers, including institutional customers, in part on a demand basis, shall, in response to a customer's written request, provide such customers with a complete and accurate historic record of monthly demand profiles. Distribution companies shall be required to exercise best efforts to furnish such data to the customer on a timely basis. At a distribution company's election, the data may be provided in written form or electronically; provided, however, that, in the case of an electronic response by the distribution company, the distribution company shall be allowed to bill the customer for the out-of-pocket cost of providing such electronic record. The historic record of monthly demand shall be for a period not less than the most recent 12 months and shall include, at a minimum, the highest demand level observed over the month as well as the average monthly demand sustained over the month. To the extent deviations in the definition of the month are consistent with the distribution company's prior billing practices, such adjustments shall be permitted and so noted. To the extent the distribution company has imputed a demand usage profile in any or all prior periods, the distribution company shall indicate where prior measurements have not been based on actual recorded usage. In those instances where a distribution company has applied an imputed method for purposes of estimating a customer's demand profile, such distribution company shall describe the method used to define monthly demands.

Section 1G. (a)(1) The department shall, in accordance with the provisions of this section, identify and determine, upon application by a distribution company and the applicable electric company, those costs and categories of costs for generation-related assets, investments, and obligations, as determined pursuant to subsection (b), which may be allowed to be recovered through a non-bypassable transition charge authorized to be assessed and collected in accordance with the provisions of subsection (e). The department shall conduct a comprehensive audit of each distribution company and applicable electric company in order to assure substantial compliance with the provisions of this section; provided, however, that said audit shall be conducted in an expeditious manner. The department shall be authorized to contract for such services through an auditing or accounting company or organization which is fully independent of any such distribution company or applicable electric company. The department shall make a finding that any agreement filed by a company under this section is substantially consistent with an initial audit before allowing the recovery of transition costs by an electric company doing business in the commonwealth to commence. For electric companies without an agreement, transition costs shall not be reviewed or approved by the department until the department completes an initial audit of electric company records maintained on file at the department. Such audit shall include an accounting of all costs eligible for recovery in accordance with the provisions of this section. The department shall complete the comprehensive audit no later than December 31, 1998. No amount shall be collected by a distribution company through such non-bypassable transition charge unless such amount has been approved by the department in accordance with the provisions of this section.

(2) Notwithstanding any other provision of this section, the department shall review a financing order periodically, at a minimum not less than every 18 months from the inception of the original financing order, to determine if the amount of reimbursable transition costs amounts proved to be accurate. Such review shall be limited to a comparison of assumed costs and assumed mitigation to the actual costs determined through actual mitigation. If the amount of reimbursable transition costs amounts previously included in a financing order exceeds the correct amount of the reimbursable transition costs amounts, then the electric company shall provide ratepayers with a uniform rate credit based on usage that in total equals the amount of the excess including carrying costs or pay to the financing entity an amount equal to such excess and, provided that all reserve funds are fully funded, the financing entity shall use or escrow such funds to redeem or otherwise reduce the amount of the principal of the electric rate reduction bonds; provided, however, that any such transfers or adjustments shall not affect the rate of transition charges, the collection of such charges, or the transfer to the bondholder trustee of the charges which have been collected.

(b)(1) The department may allow a distribution company, which qualifies pursuant to the requirements of subsection (c), and upon the commencement of mitigation efforts as required by subsection (d), to collect a charge for net, non-mitigable past investment commitments incurred prior to January 1, 1996, by the applicable investor-owned electric company during its operations within a regulated electricity system which, subject to the conditions included in this section, are classified to be transition costs in accordance with the provisions of this section. The department shall develop guidelines and parameters to identify and determine which transition costs may be recovered by collection of a transition charge, which shall include only the following:

(i) the amount of any unrecovered fixed costs determined by the department for those costs and categories of costs for generation-related assets and obligations to have been prudently incurred and associated with producing electricity from existing generation facilities which were being collected in department-approved rates on January 1, 1997, and that become uneconomic as a result of the creation of a competitive generation market, in that these costs may not be recoverable in market prices in a competitive market;

(ii) the department-authorized recovery for nuclear entitlements by those electric companies which have divested their non-nuclear generation facilities pursuant to section 1A and those previously incurred or known liabilities incurred for post-shutdown and decommissioning costs associated with nuclear power plants which are not recoverable from the decommissioning fund as administered by the federal nuclear regulatory commission; provided, however, that the department shall monitor the amount to be recovered to assure that it shall not exceed the actual total costs necessary to effect shutdown and decommissioning;

(iii) the unrecovered amount of the reported book balances of existing generation-related regulatory assets, as approved by the department; provided, that, for the purposes of this clause, the term "regulatory assets" shall refer to the unrecovered balance of deferred costs that otherwise would have been recognized in the period in which they were incurred but have been specifically approved for deferral and later recovery by the department; and

(iv) the amount by which the costs of existing contractual commitments for purchased power exceeds the competitive market price for such power, upon the reaffirmation, restructuring, renegotiation, or termination of such contracts, or the liquidated payments associated with the disposal of these contracts in a department-approved divestiture plan, as determined in accordance with the provisions of paragraph (2) of subsection (d) of this section.

(2) In addition to the aforementioned amounts of transition costs allowed to be recovered pursuant to clauses (i) to (iv), inclusive, a distribution company may be allowed to recover through the transition charge certain costs incurred after January 1, 1996, which shall include only the following:

(i) in order to mitigate potential negative impacts on utility personnel directly affected by electric industry restructuring, costs associated with employee-related transition costs for personnel performing services in connection with services provided by electric utilities, as approved by the department, including costs incurred and projected for severance, retraining, early retirement, outplacement, supplemental unemployment benefits, and related expenses for the personnel; provided, that said costs result either from the execution of agreements reached through collective bargaining for union personnel or from the company's programs and policies for non-union personnel; provided, however, that there shall be no recovery for employee-related transition costs associated with officers, senior supervisory employees, and professional employees performing predominantly regulatory functions; and provided, further, that these costs so incurred and approved by the department shall be eligible for recovery only until March 1, 2005;

(ii) any payments or payments in lieu of taxes made pursuant to section 38H of chapter 59; and

(iii) any costs to remove and decommission retired structures at fossil fuel-fired generation facilities required pursuant to paragraph (2) of subsection (b) of section 1A.

(3) To the extent that the department does allow a distribution company to collect a transition charge under this subsection (b), for purposes of the computation of any carrying costs that the department may determine to allow, the cost of equity component of any such computation shall be determined as follows:

(a) to the extent that the cumulative average of the transition charge is no more than $0.01 per kilowatt-hour, the company may collect total revenue under that transition charge sufficient to provide for carrying charges computed with a cost of equity capital no more than one hundred basis points above the cost of common equity capital determined by the department in the most recent adjudicated base rate proceeding under section 94 of this chapter prior to December 31, 1996 that involved an electric company;

(b) to the extent that the cumulative average of the transition charge is more than $0.01 but not more than $0.02 per kilowatt hour, the company may collect total revenue under that transition charge sufficient to provide for carrying charges computed with a cost of equity capital no more than the rate set forth in subsection (a), less one basis point for each one tenth of one mil by which the cumulative average transition charge is more than $0.01; and

(c) to the extent that the cumulative average of the transition charge is more than $0.02 the company may collect total revenue under that transition charge sufficient to provide for carrying charges computed with a cost of equity capital no more than the rate set forth in subsection (a), less 100 basis points, and less an additional two basis points for each one tenth of one mil ($0.0001) by which the cumulative average transition is more than $0.02 above the market rate for power provided under comparable terms.

(d) provided that in no event shall the department determine to allow any carrying costs for any period beyond the year 2009 on any unamortized balance of costs allowable as transition costs under clauses (i) and (ii) of paragraph (1) of subsection (b).

(c)(1) The department may, in accordance with the provisions of this subsection, authorize a distribution company to recover eligible transition costs if the following conditions are met:

(i) the company has filed on or before March 1, 1998, a plan to provide all of its retail customers the ability to purchase electricity from an alternative supplier or generation company as of March 1, 1998;

(ii) the distribution company, through the applicable electric company, has developed and will implement a plan to divest itself of its portfolio of all non-nuclear generation assets by August 1, 1999, pursuant to subsection (b) of section 1A;

(iii) the applicable electric company, pursuant to subsection (d) of this section, has developed and will implement a plan for all required, necessary, and reasonable mitigation methods to reduce potential transition costs; and

(iv) the plan formulated pursuant to clause (i) herein provides a standard service transition rate and rate reduction as required pursuant to section 1B.

(2) A distribution company is hereby authorized to attain the additional rate reduction required pursuant to said section 1B through the use of securitization, subject to the provisions of section 1H. A distribution company's use of securitization shall be approved by the department and shall be subject to the achievement of mitigation efforts satisfactory to the department pursuant to subsection (d); provided, that if a company chooses to achieve any such required rate reduction through securitization, the company shall demonstrate to the department that said rate reduction is not financially viable without the use of securitization.

(3) If, after the submittal of a restructuring plan to the department pursuant to section 1A, a distribution company claims that it is unable to meet a price reduction of 10 per cent reduction pursuant to subsection (a) of section 1A and subsection (b) of section 1B it shall petition the department to explore any and all possible mechanisms and options within the limits of the constitution which may be available to the department to achieve compliance with the provisions of this section, including, but not limited to, the department may authorize an alternate generation company or supplier to provide the standard offer service package as set forth in subsection (b) of section 1B if said alternate service is determined by the department to be in the public interest and necessary to achieve said required rate reductions for its consumers.

(4) If, after the submittal of a restructuring plan to the department pursuant to section 1A, a distribution company claims that it is unable to meet a price reduction of 15 per cent reduction pursuant to subsection (b) of section 1B it shall petition the department to explore any and all possible mechanisms and options within the limits of the constitution which may be available to the department to achieve compliance with the provisions of this section, including, but not limited to, the department may authorize an alternate generation company or supplier to provide the standard offer service package as set forth in subsection (b) of section 1B if said alternate service is determined by the department to be in the public interest and necessary to achieve said required rate reductions for its consumers; provided, however, that the department may, upon petition of a company unable to comply with the rate reduction required under subsection (b) of section 1B, certify that the petitioner is eligible to receive funds from the Ratepayer Parity Trust Fund, established pursuant to section 62 of chapter 10. The department shall, in cooperation with the secretary of administration and finance, promulgate regulations to establish a procedure to disburse monies appropriated from said trust fund. The department shall consider and may adopt proposals submitted by other parties, including but not limited to the office of the attorney general, outlining means and mechanisms by which a company could further mitigate its assets in order to comply with said rate reduction of 15 per cent as referenced in subsection (b) of section 1B; provided, however, in the event a company claims that it is unable to meet at least the 15 per cent reduction as set forth in subsection (b) of section 1B, the department shall work with said company to explore and implement all methods to achieve the required 15 per cent reduction; and provided, further, that said company shall be excluded from the provisions of paragraph (2) of subsection (b) of section 1A or subsection (c).

(d)(1) Any electric company seeking to recover transition costs pursuant to this section shall, in accordance with the provisions of this subsection, mitigate any such transition costs. Prior to the approval by the department of any plan allowing for such recovery, the department shall issue an order finding that the electric company has taken all reasonable steps to mitigate to the maximum extent possible the total amount of transition costs that will be recovered and to minimize the impact of recovery of such transition costs on ratepayers in the commonwealth. Mitigation efforts which an electric company shall engage in shall include, but not be limited to, the following: (i) the divestiture of non-nuclear generation facilities in accordance with the provisions of section 1A; provided, however, that all net proceeds from such divestiture pursuant to said section 1A shall be dedicated to reducing such company's total transition cost amount and the transition charge allowed to be assessed and collected by a distribution company pursuant to this section; (ii) the electric company, in accordance with the provisions of paragraph (2), shall engage in good faith efforts to renegotiate, restructure, reaffirm, terminate, or dispose of existing contractual commitments for purchased power which exceed the competitive market price for such power as determined in accordance with said paragraph (2); provided, however, that the department shall not begin to review a registration application filed pursuant to paragraph (1) of section 1F until such company with a purchased power contract with a price determined to be above-market commences such good faith efforts with such electric company as required herein; and provided further, that the department shall promulgate rules and regulations which shall establish a standard for good faith; (iii) an examination and analysis of the historic level of performance over the life of such contractual commitments for purchase power, regardless of whether or not they exceed the competitive market price; (iv) upon the determination of an amount of transition costs, further mitigation shall include netting against such above-market costs any below market assets other than those associated with distribution or transmission which are owned by the company; (v) except to the extent that such matters are provided for in collective bargaining agreements or asset purchase agreements negotiated prior to this act, or amendments to such previously negotiated asset purchase agreements, by obtaining written commitments that purchasers of divested operations will offer employment to the impacted employees who were employed in non-managerial positions to provide services for the divested operations at any time during the three month period prior to the divestiture, at levels of wages and overall compensation not lower than the employees' prior levels for a period of six months; and (vi) any other mitigation and analytical activities which the department determines to be reasonable and effective mechanisms for reducing identifiable transition costs.

(2)(i) In order to mitigate any costs in excess of the projected market value of power associated with purchased power contracts approved by the department on or by December 31, 1995, except with respect to facilities which burn trash to generate electricity, electric companies and the sellers under such contracts shall make good faith efforts to renegotiate those contracts which contain a price for electricity which is above-market as of March 1, 1998, in order to achieve reductions in the transition charges, authorized to be assessed pursuant to subsection (e), which are attributable to any such contract, as determined by the department. For the purposes of this chapter, the standard of good faith shall not require either party to agree to a proposal or require the making of concessions, but shall require active participation in negations and a willingness to make reasonable concessions in order to equitably mitigate stranded costs, and to provide justification for proposals, and a sincere effort to reach agreement. Beginning July 1, 1998, and at least annually thereafter, the department shall continue to review said aforementioned purchased power contracts in order to determine if such contracts contain a price for electricity which is above-market as of the date of review. If such contract is determined to be above-market, the electric company and the seller under such contract shall, in accordance with the provisions of this chapter, attempt to make a good-faith effort to renegotiate such contract in order to achieve further reductions in the transition charge. If an electric company has as a part of a department-approved divestiture plan assigned such contract to a buyer having adequate financial resources, the electric company shall have met its obligations under this paragraph. Furthermore, if a seller under such contract has consented to assignment of the existing contract to the buyer and has agreed to release the electric company from its obligations under such contract, the seller shall have met its obligations under this paragraph.

(ii) Upon a finding by the department that a negotiated contract buyout or other modification to the terms and conditions of such contracts is likely to achieve savings to the ratepayers and is otherwise in the public interest, the remaining amounts in excess of market value associated with such contract shall be included in the transition charges, which are authorized to be assessed pursuant to said subsection (e) and upon commencement of mitigation efforts as required herein. Upon a finding by the department that a seller has made a bona fide offer for a contract buyout or modification which is likely to achieve ratepayer savings and is otherwise in the public interest, which offer has been refused by the purchasing electric company, only those amounts in excess of market value associated with such contract that would not have been mitigated by such offer shall be included in the transition charges authorized pursuant to said subsection (e), and the seller shall be deemed to have met its obligation to negotiate in good faith. In order to compel such negotiations, (a) electricity companies are hereby authorized to use securitization, only to the extent allowed pursuant to section 1H, to finance the costs of buydowns or buyouts of said contracts, and (b) the department shall not begin to review a licensure application filed pursuant to paragraph (1) of section 1F until such time as the seller under a purchased power contract with a price determined to be above-market has commenced good faith efforts in accordance with the standard for good faith set forth in subparagraph (i) of paragraph (2). The department is hereby authorized to approve the recovery of such costs associated with such contract buydowns or buyouts. At least every 30 days, said companies shall report the status of such renegotiations to the department.

(3) An electric company which fails to commence and complete the divestiture of its non-nuclear generation assets shall not be eligible to benefit from the securitization provisions and the issuance of electric rate reduction bonds pursuant to section 1H, subject to determination by the department. An electric company, which chooses under section 1A not to divest all of its non-nuclear generation facilities shall subject its nuclear and non-nuclear generation facilities and purchased power contracts to a valuation pursuant to said section 1A under which the department shall determine the market value of such generation facilities and contracts. The department shall require a reconciliation of projected transition costs to actual transition costs by March 1, 2000, and for every 18 months thereafter through March 1, 2008, or the termination date of any transition charge allowed to be assessed pursuant to subsection (e).

(4) Securitization shall not be made available pursuant to section 1H unless the electric company proves to the satisfaction of the department the following: (i) it has fully mitigated, as defined in section 1, the related transition costs, including but not limited to, as applicable, divestiture of its non-nuclear generation facilities pursuant to section 1A, renegotiation of existing power purchase contracts, and the valuation of assets of the company, including, but not limited to, rights-of-way, property, and intangible assets; (ii) savings to ratepayers will result from securitization; (iii) all such savings derived from securitization shall inure to the benefit of ratepayers; (iv) except to the extent that such matters are provided for in collective bargaining agreements or asset purchase agreements negotiated prior to this act, or amendments to such previously negotiated asset purchase agreements, it has obtained written commitments that purchasers of divested operations will offer employment to the impacted employees who were employed in non-managerial positions to provide services for the divested operations at any time during the three month period prior to the divestiture, at levels of wages and overall compensation no lower than the employees' prior levels; and (v) the electric company demonstrates that it has established, with the approval of the department, an order of preference for use of bond proceeds such that transition costs having the greatest impact on customer rates will be the first to be reduced by those proceeds.

(e) The department is hereby authorized and directed to allow any approved transition costs to be recovered from ratepayers through a non-bypassable transition charge collected by the distribution company providing transmission or distribution service to such ratepayers. For each electric company submitting requests to the department for the recovery of transition costs, the department shall impose a cap upon the level of the transition charge, which shall remain in effect until altered upon action by the department; provided, however, that in no instance shall such charge be adjusted to reflect inflation. Any transition charge collected shall be used for the specific purposes of paying for transition costs as identified pursuant to the provisions of subsection (b) of this section. Amortization of transition cost recovery may be accelerated relative to recovery of such costs assumed in current rates, but in no case shall such amortization result in an increase in rates for any class of customer of an electric company over rates in effect as of December 31, 1997, for that company. The department shall, on a case by case basis, determine the date upon which there shall be no allowance for transition cost recovery in any rate charged by any transmission or distribution company.

(f) The department shall, in writing, notify the joint committee on government regulations of the general court within one business day upon the approval and initiation of a transition charge to any electric company pursuant to the provisions of this section. Subsequent to such notification, said committee may conduct a public hearing or hearings on such a determination for the purpose of updating the general court on the methodology used by the department to determine allowable transition cost recovery and the results of mitigation measures agreed to by electric companies to lower their transition costs.

(g) Effective as of March 1, 1998, if the utility and the department have received at least a six months notice of the customer's plans to install on-site cogeneration equipment, renewable energy technologies, fuel cells, or to purchase electricity through cogeneration equipment, a customer that reduces purchases of electricity through the operation of, or purchases from, on-site generation or cogeneration equipment, shall not be subject to an exit charge if (i) such customer provided less than or equal to 10 per cent of the annual gross revenues collected by its previous service provider in the year prior to the customer leaving the system after the retail date established in this bill; provided, however, that in the event that two or more customers who, at any time within a 36-month time period, leave such system, after the retail access date established in this bill, and represent together the aggregate of greater than or equal to more than 10 per cent of the annual gross revenues collected by such previous service provider in the year prior to the initial exit from the system, all such customers shall be subject to an exit charge based upon that portion of the annual gross revenues which is over the 10 per cent limit; and provided, further, that such fee shall be prorated amongst such customers who have left or are leaving on the system based upon the proportion of annual gross revenues each customer represented within the total amount of gross revenues being subtracted from the service provider's system; or (ii) the customer reduces purchases through the operation of, or purchases from, on site renewable energy technologies, fuel cells, or cogeneration equipment with a combined heat and power system efficiency of at least 50 per cent, based upon the higher heating value of the fuel used in the system; or (iii) the customer reduces purchases through the operation of, or purchases from, an on site generation or cogeneration facility of 60 kilowatts or less which is eligible for net metering. Except as provided in existing contracts or tariffs, the department and the utility shall not require more than six months notice of the customer's plans to install said equipment. Any such exit charge shall be payable to the customer's distribution company for the benefit of other customers. Such exit charge may be equal to but no greater than the expected value of the access charge payments the customer would have paid out but for the operation of such equipment and shall be determined by the department based upon federal and state law, any applicable judicial determinations, and criteria promulgated by the department through rules and regulations. Notwithstanding clauses (i) to (iv), inclusive, if the total kilowatt hour usage in any service territory falls below usage levels following the installation of such on-site generation or cogeneration equipment, and the department determines that the aggregate reduction in future purchases of electricity and transition charge payments resulting from customers' installing such equipment will have a significant adverse impact on electric bill to be paid by other customers in said distribution company's territory during the remaining period of transition cost r