Massachusetts approves contracts for hydro project
The Massachusetts Department of Public Utilities approved long-term contracts with clean energy companies for the New England Clean Energy Connect 100 Percent Hydro project (NECEC Hydro).
The contracts for 9,554,940 megawatt hours (MWh) annually of clean energy are with H.Q. Energy Services Inc. and the Commonwealth’s Electric Distribution Companies.
These contracts stem from an initiative by Gov. Charlie Baker to promote energy diversity, enhance reliability and resiliency, and reduce greenhouse gas emissions.
This project is the largest procurement of clean energy in Massachusetts’ history. It will increase Massachusetts’ electricity supply with nearly half coming from clean energy resources.
“Moving forward with these hydroelectricity contracts is an important next step toward providing Massachusetts ratepayers with additional clean energy resources that will reduce monthly energy bills, cut greenhouse gas emissions and improve winter reliability,” Baker said.
The state looked at a variety of factors in evaluating the proposals and found that these contracts are cost-effective and in the public interest.
“This approval by the Department of Public Utilities ensures access to clean energy sources that will both benefit the environment and provide cost-effective, reliable energy for Massachusetts’ residents and businesses,” Energy and Environmental Affairs Secretary Kathleen Theoharides said. “With our historic procurements of hydropower and offshore wind energy, our administration is continuing its commitment to a clean, affordable, and resilient energy future.”
This project is expected to provide approximately 2-4 percent savings on customer’s monthly energy bills. The total net benefits to Massachusetts ratepayers over the 20-year contract are expected to be roughly $4 billion.
“These contracts will diversify energy sources available to the consumer and are focused on protecting the ratepayers.” Department of Public Utilities Chairman Matthew Nelson said. “We look forward to seeing the Commonwealth continue to be a leader in providing clean and reliable sources to meet our energy needs.”
