On June 26, 2008, the Massachusetts legislature sent Governor Deval Patrick a very complex, comprehensive energy bill (S.B. 2768) for signature. Section 78 of this law establishes net metering. In brief, there are three classes of net metering facilities and each has its own complex formula for calculating the net metering payment. The aggregated capacity of net metering shall not exceed one percent of a distribution company’s peak load. If the Governor enacts this legislation, we will provide more detail in next month’s Connecting to the Grid. Other provisions include the following. The bill also permits electric and distribution companies to own and operate solar facilities up to 25 MW for the first year after enactment, and up to 50 MW thereafter. A 5-year pilot will also be established for electric companies to enter into long-term (10-15 year) contracts with renewable generators. This bill also establishes a smart grid pilot program. And, Section 32 amends the state’s RPS, although the existing percentages appear to remain as before.