State, TransCanada reach partial settlement in lawsuit
The state has agreed to a partial settlement in a lawsuit challenging the validity of regulations meant to spur the clean energy industry in Massachusetts.
TransCanada Power, a Canadian energy company with operations in Westborough, sued five state officials last month.
The complaint questioned a mandate for utilities to buy renewable power from Massachusetts facilities, and a requirement that retail electricity suppliers buy a certain amount of power from local solar energy providers. Under the US Constitution's Commerce Clause, TransCanada argued, the state's efforts to favor in-state renewable energy providers is discriminatory, and therefore, unconstitutional.
According to Massachusetts officials, the settlement does not address the question of constitutionality. However, TransCanada plans to drop its claims against the solar incentive program, because state officials agreed to grandfather in electricity supply contracts signed before January 1, meaning those suppliers will not have to pay higher fees for being out-of-compliance with the state's renewable energy goals.p>
"This settlement removes the cloud from the Commonwealth's Solar Credit program and allows this innovative financing mechanism to go forward," Bowles said. "As to the issues that were not resolved, I am confident that we will prevail."
Robert M. Buchanan, lead attorney for TransCanada, declined to comment on the settlement.
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