Section 23.04 - Methods for Soliciting and Entering into Long-term Contracts(1) In developing the provisions of Long-term Contracts, Distribution Companies shall consider Long-term Contracts for renewable energy certificates (RECs) for energy or for a combination of RECs and energy, if applicable.(2) The Distribution Companies, in coordination with DOER, shall consult with the Attorney General regarding the choice of solicitation methods. The Distribution Companies and DOER shall jointly propose a timetable and method for solicitations of Long-term Contracts using a competitive solicitation process. Prior to initiating a solicitation, the Distribution Companies' timetable and methods for solicitation and contracting shall be subject to review and approval by the Department.(3) The Distribution Companies shall, in any filing with the Department regarding the timetable and methods for soliciting and contracting consented to by DOER, describe the proposed methods reviewed and selected.(4) A solicitation may be coordinated and issued jointly with other New England states or entities designated by those states.(5) The Distribution Companies may conduct one or more competitive solicitations through a staggered procurement schedule developed by the Distribution Companies and DOER, provided that the schedule shall ensure the Distribution Companies enter into cost-effective Long-term Contracts for offshore wind energy generation equal to 1,600 megawatts of aggregate nameplate capacity not later than June 30, 2027, and provided further that individual solicitations shall seek proposals for no less than 400 megawatts of aggregate nameplate capacity of Offshore Wind Energy Generation resources. A staggered procurement schedule developed by DOER, if applicable, shall specify that a subsequent solicitation shall occur within 24 months of a previous solicitation. The Department will not approve a Long-term Contract that results from a subsequent solicitation and procurement period if the levelized price per megawatt hour, plus associated transmission costs, is greater than or equal to the levelized price per megawatt hour plus transmission costs that resulted from the previous procurement.(6) DOER and the Attorney General shall jointly select, and DOER shall contract with, an independent evaluator to monitor and report on the solicitation and bid selection process in order to assist DOER in determining whether a proposal is reasonable and to assist the Department in its consideration of Long-term Contracts filed for approval.(7) A Distribution Company may, subject to Department approval, decline to pursue Long-term Contract proposals having terms and conditions that the Distribution Company determines would place an unreasonable burden on its balance sheet, provided that the Distribution Company takes all reasonable actions to structure the Long-term Contracts, pricing, or administration of the products purchased to prevent or mitigate an impact on the balance sheet or income statement of the Distribution Company or its parent company; and provided further that such mitigation shall not increase costs to ratepayers.(8) To ensure an open, fair and transparent solicitation and bid selection process that is not unduly influenced by an affiliated company, the independent evaluator shall: (a) Have access to information and data related to the competitive solicitation and bid selection process, provided that the independent evaluator ensures that proprietary information remains confidential;(b) Issue a report to the Department analyzing the timetable and method of solicitation, and the solicitation process implemented by the Distribution Companies and DOER under 220 CMR 23.04, and include recommendations, if any, for improving the process; and(c) Upon the Department's review of a proposed Long-term Contract, file a report with the Department that summarizes and analyzes the solicitation and the bid selection process, and provides the independent evaluator's assessment of whether all bids were evaluated in a fair and objective manner.(9) Proposals received pursuant to a solicitation shall be subject to review by DOER. If DOER, in consultation with the Distribution Companies and the independent evaluator, determines that reasonable proposals were not received pursuant to a solicitation, DOER may terminate the solicitation, and may require additional solicitations.(10) DOER shall give preference to proposals that demonstrate a benefit to low-income ratepayers in Massachusetts, without adding cost to the project.(11) If the Distribution Companies are unable to agree on a winning bid following a solicitation, the matter shall be submitted to DOER, which shall, in consultation with the independent evaluator, issue a final, binding determination of the winning bid, provided that the final contract shall be subject to review by the Department, per 220 CMR 23.00 and Department precedent.(12) If a Distribution Company deems all proposals to be unreasonable, the Distribution Company shall, within 20 days of the date of its decision, submit a filing to the Department. The filing shall include full and complete documentation supporting the Distribution Company's decision to decline the proposals. The Department will approve or reject the Distribution Company's decision within four months of the date of filing, and may order the Distribution Company to reconsider any proposal.Adopted by Mass Register Issue 1335, eff. 3/24/2017.