A clause in Burgess BioPower’s Power Purchase Agreement (PPA) is putting the facility’s future at risk. This mechanism, known as the Cumulative Reduction Factor, or CRF, compares Burgess’s long-term fixed price against the fluctuating day-ahead market price and tracks any difference between the two.
Eversource has a first right of refusal to purchase Burgess at the end of the PPA. The CRF total is essentially a lien on the property, offsetting the purchase price. There is a cap on the CRF of $100 million, which has been reached. The current balance is roughly $150 million.
Whether the CRF balance is an accurate reflection of actual costs to ratepayers is highly questionable. The CRF compares Burgess’s stable energy price against a market price consumers do not pay.
As things currently stand, the accumulated balance over the CRF cap—about $50 million right now—would be withheld from Burgess’s energy payments over 12 months beginning in December 2023. That’s not financially feasible for Burgess.
House Bill 142 would grant Burgess financial relief from repaying the roughly $50 million balance—funds that have already been collected.
The House Science, Technology and Energy Committee voted 18-2 in favor of HB 142 on March 13. The bill now goes to the full House of Representatives for a vote next week, possibly March 22.
Burgess BioPower’s ongoing operation is critical:
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