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The Massachusetts Department of Public Utilities (DPU) has again turned down a request by a cogeneration developer (QF) to collect capacity payments for the entire 20-year term of a purchased-power contract with Commonwealth Electric (CE), despite conflicting advice from the state supreme court.
Last year, in remanding a similar DPU ruling, the Massachusetts Supreme Court had suggested that a contract price violates the Public Utility Regulatory Policies Act (PURPA) if it does not include any capacity payments for most of its term. See, Plymouth Rock Energy Associates v. DPU, 648 N.E. 2d 752, 161 PUR4th 440 (Mass. 1995).
The latest case involved Plymouth Rock En-ergy Associates, L.P., a QF formed to construct a
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