Retail Supplier Seeks Two Clarifications On New Renewable Energy Marketing Rules

January 30, 2024

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

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Several NRG retail suppliers requested that the Connecticut Public Utilities Regulatory Authority (Authority) clarify PURA's recently adopted new renewable energy marketing rules

A prior PURA decision adopted new requirements and standards for voluntary renewable electricity supply offers (VRO) from retail electric suppliers

As previously reported, the VRO order prohibits suppliers from using the term "renewable energy" for REC-based VRO products. Under the order, a supplier may not market the product as "renewable energy" unless the offer is supported by an ownership interest in or PPA for a renewable resource used to serve the contract.

The order also established certain universal standards for REC-only and suppliers' VRO offers, including geographic limitations

See more details on the new rules here

Specifically, NRG requested that PURA clarify that, "(a) any agreement for the purchase of both energy and renewable energy certificates ('RECs') from a facility that is used to supply a voluntary renewable offer ('VRO') can be marketed as 'renewable energy'; and (b) entities selling RECs to Connecticut businesses unrelated to the sale of electricity are not required to obtain an electric supplier license."

NRG noted that PURA's Decision states that an offer may only be identified as "renewable energy" if, "the offer is supported by an ownership interest in or PPA for a renewable resource used to serve the contract."

NRG noted that the term PPA is not defined in the Decision, and that there are a myriad of contractual arrangements available in the market pursuant to which a buyer can purchase the energy and RECs from a single facility that are not called PPAs

"These agreements (even though not called PPAs) could be used by suppliers to supply the energy and RECs for a VRO," NRG said

"Therefore, the NRG Retail Companies request that the Authority clarify that, if a supplier has an agreement (even if the agreement is not called a PPA) with a renewable resource for the purchase of both energy and RECs and is using both that energy to supply the electricity and those RECs to satisfy its obligations to support a VRO that the supplier is permitted to market that product as 'renewable energy' in Connecticut," NRG said

On the second issue, NRG said that REC-only offers are identified in the Decision as offers made by a supplier to sell RECs equal to a percentage of the customer’s consumption to customers that receive the actual energy supply from an electric distribution company (EDC) or another electric supplier

However, NRG said that, in the market, there are entities that sell RECs to businesses that are unrelated to the sale of electricity.

"For example, businesses may enter into transactions to buy RECs unrelated to the amount of electricity they consume in order to satisfy corporate sustainability goals, improve their sustainability ratings, or support renewable energy development," NRG said

"The NRG Retail Companies request that the Authority clarify that entities that sell RECs to Connecticut businesses that are unrelated to the sale of electricity are not required to be licensed as an electric supplier because they do not provide electric generation services using the transmission and distribution facilities of an EDC."

"[T]he NRG Retail Companies request that the Authority clarify that entities selling RECs to Connecticut businesses unrelated to the sale of electricity are not required to obtain an electric supplier license," NRG said

Docket 16-12-29

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