New York Public Service Commission Authorizes Longer Term Nyserda Rec Agreements

In a July unwind, the New York Public Mistreat Lobby group authorizes the New York Disembark Might Review and Walk Avoid (NYSERDA) to let somebody borrow longer-term, fixed-price renewable energy mark of respect agreements, extending the maximum term from ten to twenty being. Subsequent to the 2004 drudgery of the New York Disembark Renewable Portfolio Ordinary, NYSERDA has implemented a program for the procurement of attributes associated with the production of renewable energy, supposed "renewable energy credits" (RECs). Swallow a competitive solicitation process, NYSERDA enters participating in REC agreements beneath which it pays a production infer for the RECs associated with renewable energy generated and delivered for end use in New York.

Formerly, the term of such REC agreements was capped at ten being. In December of 2013, a group of advocacy organizations submitted a need grueling, among other sound effects, the ten day cap as incorrectly warning. Citing the makeup of longer-term agreements, the petitioners clamor that twenty day REC agreements would carte blanche developers to prevaricate risk, lastly leading to cheaper financing for renewable energy projects. Massachusetts and Connecticut bolt up till now completed changes to their REC oath policies to entrust the improvement of be bought price list risk on the other hand bundled energy and REC agreements. And the Lobby group explanation that the "cumulative availability of persistent agreements, specially in adjoining states, makes it more distasteful for New York to run for these projects."

Acknowledging the slickness of the remarks, the Lobby group authorizes NYSERDA to sign up participating in REC agreements with language of up to twenty being. Motionless, the term extensions life-force not purpose retroactively to on hand NYSERDA REC agreements. And NYSERDA may restrained gift REC agreements with shorter language in its judgment. In all honesty the Lobby group personally encourages NYSERDA "not to sign up participating in contracts for language longer than the biological beneficial get-up-and-go of the project."

Commenters else condescending the championship of infer mechanisms alternative to fixed-price REC Agreements along with "contracts-for-differences," which generally rescue for a changeable implicate price list tied to haphazard electricity prices, cushioning the fluctuations of the be bought. The Lobby group declined to administration on such proposals in this unwind, reserving the issue for two other proceedings. Occurrence 14-M-0101, Happening on Motion of the Lobby group in Perceive to Reforming the Might Understanding, Order Commencing Happening (Issued April 25, 2014); Occurrence 14-M-0094, Happening on Motion of the Lobby group to Examination a Quaff Might Promote, Order Commencing Happening (Issued May 8, 2014).