Administration cites Citizens’ transmission projects as model for a Non-Utility Distribution, Transmission, and Thermal Investment Program

Boston, MA –Nonprofit Citizens Energy Corporation today applauded Governor Maura Healey and the Healey-Driscoll Administration for advancing energy affordability efforts through proposed legislation that features Citizens Energy’s transmission investment model—an innovative approach that is already delivering tens of millions of dollars in benefits to customers and communities.

“Governor Healey’s commitment to tackling energy affordability through innovative, community-focused solutions is exactly the kind of leadership we need at this moment,” said Joe Kennedy III, President of Citizens Energy. “As we face a rapidly growing demand for energy and the urgent need to build a more resilient grid, we are honored that our investment model has been recognized in this legislation. We stand ready to help the Commonwealth deliver real savings, strengthen grid infrastructure, and support families and communities across the state; and look forward to partnering with utilities on these much needed infrastructure investments.”

In the Energy Affordability, Independence, and Innovation Act’s policy briefing, Powering Innovation & Smart Growth, the Healey Administration specifically cites Citizens Energy’s model and work as examples of successful co-investing projects:

“The growing cost of distribution and transmission investments needed to meet increasing electric demand driven by housing, economic development, and electrification is expected to drive rate increases. The pace required for new grid infrastructure development will require significant capital investment needs.

The Bill introduces a tool being used in California and previously proposed by National Grid in New England to provide benefits of these capital investments back to ratepayers and communities. It permits non-utility, non-profit entities to collaborate with utilities and co-invest in various types of utility infrastructure projects. These non-profit entities would be required to return a significant portion of the revenues they earn from investing in these projects to benefit ratepayers by funding programs that provide direct financial benefits to ratepayers or to local communities hosting the infrastructure. Using this model, Citizens Energy is currently partnering with California utilities on transmission projects and returning hundreds of millions of dollars in benefit back to customers.

 As an example, a specific deal between PG&E and Citizens Energy is projected to provide $450 million in benefits to PG&E customers at no added cost to ratepayers via support to low-income programs.”

In California, where utility rates have soared, Citizens has proposed a $1 billion investment in Pacific Gas & Electric’s grid improvements, with more than $450 million of profits going toward a bill assistance program to help low- and moderate-income families manage rising home energy costs. The proposal is structured so that customers don’t pay any more for electric system upgrades than they otherwise would absent Citizens’ investment. Similar investments in the high voltage grid are already underway with San Diego Gas & Electric and the Imperial Irrigation District, where Citizens’ partnerships have helped finance $170 million of critical new transmission projects and upgrades, with the profits used to fund energy assistance and clean energy projects in underserved communities.

Since 1979, Citizens has helped low-income families and disadvantaged communities meet their basic needs, including utility bills. It has provided over $600 million in charitable benefits since its founding, including administering winter heating grants to over 300 homeless shelters in 17 states.

About Citizens Energy Corporation

Citizens Energy Corporation is a Boston-based nonprofit founded in 1979 by former U.S. Congressman Joseph P. Kennedy II. Under his leadership as chairman, Citizens Energy has compiled a 45-year history of channeling revenue from successful energy ventures in oil, natural gas, electricity trading, energy efficiency and conservation, transmission, wind power, solar arrays, energy storage and microgrids to programs that help the underprivileged.

Citizens Energy owns and operates the largest low-income, community-shared solar project in the country, located in California’s Imperial Valley, as well as the largest program of its kind in Massachusetts, in keeping with its goal to make the renewable energy revolution accessible for all.

For more information, visit citizensenergy.com.

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