Bill > S1772

This bill amends existing Massachusetts law to define and regulate "on-site combined heat and power facilities," which are systems that produce both electricity and heat (like steam or hot water) for use by customers located on or adjacent to the facility's property. Specifically, the bill clarifies that these facilities, and certain entities that produce electricity, steam, and chilled water primarily for hospitals and non-profit educational institutions, are not considered "distribution companies" or "electric companies" under current law. It also defines what constitutes "contiguous" property for these facilities, allowing for properties separated by easements or public thoroughfares if thermal energy is being purchased and used. Furthermore, the bill permits owners of these facilities to distribute and sell electricity directly to nearby end-use customers, requiring regulatory oversight to ensure safety and reliability standards are met, and obligating traditional distribution companies to provide non-discriminatory delivery services and backup power when needed, while generally preventing distribution companies from interfering with these on-site operations unless a waiver is granted in the public interest.