Millions in Renewable Energy Funding Freed in Massachusetts

On April 19, the Massachusetts Supreme Judicial Court cleared the way for the Massachusetts Renewable Energy Trust Fund to begin operations with a unanimous ruling that the funding mechanism is constitutional. Between 1998 and 2003, the Trust, managed by the Massachusetts Technology Collaborative, will receive about $150 million to accelerate the use of cleaner sources of electricity and to invest in the development of the renewable energy industry in Massachusetts. In subsequent years, the Trust will receive about $20 million a year.

As an outgrowth of electric utility deregulation, the Trust was created in 1998 by the legislature to promote the development of renewable energy in the Commonwealth through a series of initiatives that exploit the advantage of renewable energy in a more competitive marketplace. The Massachusetts Technology Collaborative was selected by the legislature to lead this effort.

The ability to ramp up to full operation was initially constrained by a lawsuit challenging the Trust’s funding mechanism, a monthly charge on customer electric bills known as a systems benefit charge. For residential customers, it represents about $0.50 a month or roughly $6 a year.

MTC will now finish the strategic direction and operational plan for the Trust. Also a 15-member Advisory Committee for the Trust will be appointed by the Governor. More information can be found at http://www.mtpc.org