Dalton Select Board Turns Down Citizens' Energy Credit Offer
DALTON, Mass. — The Select Board voted last week to decline a proposal from Citizens Enterprises Corp. for a solar alternative on-bill credit agreement under the Solar Massachusetts Renewable Target program.
Citizens Energy, a non-profit energy company, is planning a 13-acre solar farm off Bridle Road.
The town already has sufficient net metering credits for its current electricity supply through Rockwood and would not be able to absorb the credits offered by Citizens, Town Manager Thomas Hutcheson’s preliminary report said.
The net metering and on-bill crediting are largely the same in that they allow for excess energy generation from one account to be credited on another account, although there are differences in how the credits are calculated and reported. The state has phased out net metering for new large solar projects.
The Rockwood agreement is for 10 years at a 17.5 percent discount.
The Citizens agreement offered a 20-year 215,000 kilowatt per year contract with a 15 percent fixed discount that could accumulate $48,000 a year of credit on the town's Eversouce bill.
The contract value is $215,000 in year one. Right now, Eversource's basic service rate, also referred to as the "alternative on bill credit rate," is 22.5 cents.
Citizens would have to "dedicate half of the production to 'anchor' customers, such as municipalities, and half to low-income residents, as defined by Eversource's R-2 and R-4 ratepayer designations," Town Manager Thomas Hutcheson's preliminary report stated.
Although Citizens typically tries to find customers in neighboring communities, there isn't a limit as to where it can bring low-energy cost savings.
According to the preliminary report, Pittsfield currently has 4,300 R-2 households and North Adams has about 1,400 so citizens should be able to find local customers but they are not required by the state to limit their low-income distribution to local households.
"We will certainly try to work with the Town boards and agencies to find local customers, and give them priority when signing up, but we will not be in a position to limit our outreach efforts as filling the array efficiently with LMI customers is typically a difficult and time consuming process," Citizens said in a statement.
During the meeting on June 12, the board expressed that it wanted to ensure that the benefits from the solar energy project would help Western Mass residents and not go to the east side of the state if not enough residents applied.
"The SMART program has recently shifted and allows for credits on Eversource to cross load zones …So Eversource eastern Massachusetts residents, low-income residents would take advantage of this project as well," Byrne said at that meeting.
Prior to starting construction, Citizens Energy will still be paying outstanding back taxes and has been in discussion with the town tax assessor and treasurer. It would also negotiate a payment in lieu of taxes with the town or through the assessed value of a personal property.
Citizens have worked with KP Law in the past and are familiar with their approach. The town has already begun the process of reviewing the PILOT's form.
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