New York ESCO Seeks One-Year Extension Of Deadline For PSC's Retail Reset Order's Renewable Delivery Requirement, For Specific Compliance Mechanism

January 13, 2022

Email This Story
Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The following story is brought free of charge to readers by EC Infosystems, the exclusive EDI provider of EnergyChoiceMatters.com

CleanChoice Energy, Inc. ('CleanChoice' or the 'Company') filed a petition with the New York PSC seeking a one-year extension of the implementation date for compliance with the retail market reset order that adopted modifications to the renewable energy products that can be offered to mass-market customers, specifically, the requirement that all Renewable Energy Certificates ('REC') purchased comply with the locational and delivery requirements of the Clean Energy Standard ('CES') Tier 1, as CleanChoice, "requests that it be given an additional year to comply with the EDD [Energy Delivery Delayed] method," for compliance

CleanChoice, "asserts that compliance with the Retail Access Order is not feasible for the Company to adhere to during the 2022 Compliance Year, which commences on January 1, 2022."

"Accordingly, CleanChoice respectfully requests that the Commission extend the effective date as it applies to CleanChoice for a one-year period to become effective January 1, 2023," CleanChoice said in the petition

Effective April 1, 2021, the retail market reset order held that, "all voluntary renewable electricity purchases made by ESCOs will be subject to the same locational and delivery requirements as Tier 1 eligible RECs purchases."

CleanChoice said that, "Pursuant to the NYGATS Operating Rules, an ESCO may import certificates into the system to support EDP claims. There are two available methods to import energy into the NYGATS: the Energy Scheduled and Delivered ('ES&D') method, or the Energy Delivery Delayed ('EDD') method. When utilizing the ES&D method, the energy being imported into the New York Control Area ('NYCA') must be scheduled and delivered from a transaction in the New York Independent System Operator, Inc.’s ('NYISO') wholesale market. Notably, to be eligible for CES Tier 1, the energy must be delivered using the ES&D method. In contrast, the EDD mechanism does not require scheduling in the NYISO’s wholesale market. While certificates imported using the EDD method had been eligible for the EDP because they demonstrate verifiable energy flow into the NYCA, they are not eligible Tier 1 RECs because they do not comply with the locational and delivery requirement."

CleanChoice said that, "On July 27, 2021, the New York State Energy Research & Development Authority ('NYSERDA') and Staff hosted a Load Serving Entity ('LSE') Summer Update EDP/Voluntary REC Webinar ('Summer Update Webinar'). At the Summer Update Webinar, and for the first time, NYSERDA and Staff delineated the requirements for LSEs to comply with the Commission’s Retail Access Order. Prior to the Summer Update Webinar, no details had been provided to ESCOs as to the mechanics of complying with the new requirements. Staff indicated that they would begin conducting compliance audits to ensure ESCOs are transferring the correct number of RECs to their EDP subaccounts to substantiate their voluntary load. NYSERDA and Staff confirmed that because the EDD method does not meet the locational and delivery requirements for Tier 1 REC purchases, it would no longer be an allowable importation method. However, attendees were informed that they may continue to purchase non-Tier 1 compliant RECs using the EDD method through the 2021 Compliance Year."

CleanChoice said that, "Following the Summer Update Webinar, CleanChoice commenced aligning its procurement practices with the Commission’s directive in the Retail Access Order. This included ascertaining the availability of RECs from eligible resources. The Company found that the new requirements make voluntary procurements of compliant wind and solar RECs very difficult. The reason is that there are a limited number of wind and solar resources registered within NYGATS. Indeed, CleanChoice has not had much success securing commitments to purchase RECs from those resources in the volume that would be necessary to support service to its existing customers."

CleanChoice said that, "This experience is consistent with findings recently reported to the Commission by NYSERDA and Staff. The Divergence Report disclosed an increasing reliance on Alternative Compliance Payments ('ACPs') due to the unavailability of a sufficient quantity of Tier 1 RECs to satisfy CES Tier 1 purchase obligations. Because of this problem, NYSERDA and Staff recommended to the Commission that the Tier 1 purchase obligations for 2023 and 2024 be lowered."

CleanChoice said that, "CleanChoice will continue to make diligent efforts to purchase Tier 1-compliant wind and solar RECs. While CleanChoice understands the availability of ACPs as an alternative, it is worth noting that CleanChoice’s value proposition to customers is the support of wind and solar through the purchase of RECs. The Company is concerned that while the use of ACPs is permissible, ACPs are fundamentally inconsistent with its customers’ expectations for service."

"Due to the same problems experienced by NYSERDA and LSEs across the State, CleanChoice respectfully requests that it be given an additional year to comply with the EDD method so that it can continue serving customers who have already enrolled to purchase renewable energy products that exclusively include wind and solar RECs," CleanChoice said

"If granted an extension, CleanChoice would use the extra time to continue negotiating with owners and developers of qualifying renewable resource projects to adhere to its 100% renewable energy promise to its customers," CleanChoice said

CleanChoice said, "It also is worth noting that CleanChoice’s business model is consistent with and in furtherance of the State’s energy policy goals set forth in the Climate Leadership and Community Protection Act. Indeed, upon information and belief, CleanChoice is the only ESCO in New York sourcing only 100% renewable energy from wind and solar for all of its customers."

CleanChoice said, "CleanChoice has continued to acquire and serve customers in New York because it provides a valuable and in-demand product, and it is responsive to customers’ preference for regional wind and solar energy. If CleanChoice does not receive the extension requested in this Petition, it likely will not be able to continue to provide an exclusively wind and solar product to its New York customers, thereby depriving them of their choice to support State policy and preferred renewable resources."

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Digital Marketing Manager -- Retail Supplier
• NEW! -- Operations Manager -- Retail Supplier
• NEW! -- Marketing Manager
• NEW! -- PJM Program Manager
• NEW! -- Sr. Margin Optimization Analyst - Retail Energy -- Houston
• NEW! -- Pricing Analyst -- Retail Supplier
• NEW! -- Senior Sales Executive -- Retail Supplier
• NEW! -- Power Analyst
• NEW! -- Financial Analyst
• NEW! -- Environmental Commodity Analyst
• NEW! -- Gas Analyst
• Energy Pricing Analyst -- Retail Supplier
• Senior Account Operations Analyst -- Retail Supplier
• Energy Procurement Manager

HOME

Copyright 2010-21 Energy Choice Matters.  If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.