Texas PUC Staff Make Recommendations On Retail Provider RPS Obligations, Given Sunset

August 18, 2023

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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Texas PUC Staff recommended that the PUC direct the Electric Reliability Council of Texas (ERCOT) to: suspend allocating renewable portfolio standard obligations to retail entities effective August 31, 2023; establish a modified 2023 compliance period; and maintain an accreditation and banking system to award and track renewable energy credits (REC).

Due to the previously reported repeal of PURA §39.904 [the RPS], "the mandatory renewable portfolio standard obligations imposed on retail entities under 16 TAC §25.173 lack statutory support," Staff noted

While the existing RPS program was repealed, as previously reported, a solar-only RPS shall be maintained, for a period of only two years (see details here)

"Accordingly, effective August 31, 2023, ERCOT must cease allocating renewable portfolio standard obligations to retail entities until the Commission updates its rule to implement the new solar-only goal established by HB 1500 §53," Staff said

"Furthermore, consistent with HB 1500, ERCOT must continue to maintain an accreditation and banking system to award and track RECs," Staff said

"To account for the one month disconnect between the September 1, 2023, repeal of PURA §39.904 and the current program’s quarterly approach to the generation and tracking of RECs, each retail entity should be permitted to use RECs generated during September 2023 to satisfy its 2023 compliance year obligations. Preserving this aspect of the current program’s quarterly approach will reduce the complications associated with discontinuing the current mandatory statewide goal while maintaining an ongoing accreditation and banking system for voluntary RECs," Staff said

To comply with statute, pending the amendment of 16 TAC §25.173, Commission Staff recommends the Commission direct ERCOT to:

1. Suspend allocating renewable portfolio standard obligations to retail entities after August 31, 2023.

2. Establish January 1, 2023, through August 31, 2023, as the compliance period for the 2023 calendar year.

3. Calculate each retail entity’s renewable portfolio standard obligation for the 2023 calendar year using 5,832 hours, rather than the 8,760 hours that would have been used if the 2023 compliance period covered the entire calendar year.

4. Permit retail entities to use RECs (solar derived or otherwise) generated in the month of September 2023 for the 2023 compliance period established in directive two.

5. Maintain an accreditation and banking system to award and track RECs

Project No. 55323

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