Regulator Adopts Decision To Move Forward With New Rule Requiring Retail Suppliers To Maintain Additional Security To Cover RPS Obligations -- EnergyChoiceMatters.com

Regulator Adopts Decision To Move Forward With New Rule Requiring Retail Suppliers To Maintain Additional Security To Cover RPS Obligations

June 6, 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

The Connecticut PURA had adopted a decision to move forward with proposed revised RPS rules which include a new requirement that retail electric suppliers must maintain separate security specific to their RPS obligations

The proposed new rules now move through the state's administrative process, outside of PURA, for new rules

The final proposed rule provides, "Renewable Energy Portfolio Standards Security. (1) In addition to the security required by section 16-245-4 of the Regulations of Connecticut State Agencies, each electric supplier shall maintain a renewable energy portfolio standards security with the Authority equal to the full alternative compliance payment that the electric supplier would be required to pay to the Authority pursuant to section 16-245(k) of the Connecticut General Statutes based on the forecast year load."

Under the final proposed rule, "The forecast year load shall be the amount of the full load served by the electric supplier during the previous calendar year, unless the Authority determines for good cause shown that the forecast year load should be a different amount."

Under the proposed rules, "security" means a bond, letter of credit, guarantee, or other appropriate financial instruments approved by the Authority from a creditworthy financial institution

The final proposed rule provides that a new supplier that was granted a license by the Authority pursuant to section 16-245 of the Connecticut General Statutes during the previous calendar year shall maintain a renewable energy portfolio standards security in the amount of twenty five thousand dollars ($25,000) or in an amount equal to the full alternative compliance payment for such electric supplier’s projected load for its first year of operations, whichever is greater.

The final proposed rule requires that, annually, an electric supplier shall review the amount of its security.

If the amount of the electric supplier’s security is insufficient to pay at least ninety percent of the electric supplier’s full alternative compliance payment that the electric supplier would be required to pay to the Authority pursuant to section 16-245(k) of the Connecticut General Statutes based on the forecast year load, the electric supplier shall increase the security maintained to an amount sufficient to pay the full alternative compliance payment obligation due for the forecast year load, the final proposed rule provides

The above-described requirements to maintain a security shall not apply to wholesale suppliers providing generation supply to electric distribution companies for standard service load

The final proposed new rule also alters the RPS banking language

The final proposed rule states, "An electric distribution company or electric supplier may bank renewable energy certificates in the current year to comply with the renewable energy portfolio standard requirements in either of the following two years, provided the electric distribution company or electric supplier, respectively, has complied with the renewable energy portfolio standard requirements in the year in which it wants to bank the renewable energy certificates."

The existing banking percentage limits remain

However, the final proposed rule provides that the Authority, after conducting a proceeding and determining such action to be in the public interest, may increase or reduce the amount of allowable banking in future compliance years or terminate banking altogether.

With respect to other new provisions, the final proposed rule provides that an electric supplier shall be responsible for independently managing its NEPOOL GIS renewable energy certificate accounts throughout the year. "The Authority shall not accept or review a request from an electric supplier to reallocate renewable energy certificates into or out of the electric supplier’s NEPOOL GIS accounts or subaccounts, or both," the final proposed rule states

The final proposed rule provides that, "Electric distribution companies shall make available to electric suppliers monthly load settlement data. Electric distribution companies shall submit to the Authority and each electric supplier, on or before the date published by the Authority in its annual notice of the renewable energy portfolio compliance docket, a report on a form prescribed by the Authority that summarizes the electric supplier’s monthly and total load settlement data for the previous calendar year."

Consistent with recent statutory changes, the final proposed rule eliminates the provisions that allowed electric distribution companies and electric suppliers to make up a deficiency in an annual renewable portfolio standard (RPS) obligation in the first three months of the following calendar year

Docket No. 19-10-26

Email This Story

HOME