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New York PSC Orders NYSERDA To "Suspend" 35% Of ESCO's Monthly ZEC (Nuclear) Compliance Obligation Payments

PSC Directs Staff To Review Process of Calculated LSE Loads For ZEC Compliance

July 17, 2017

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The New York PSC issued an order directing NYSERDA, "to temporarily suspend, beginning with the August 2017 payment, 35% of Liberty’s [Liberty Power Holdings LLC] monthly ZEC [zero emissions credits] compliance obligation payments for the compliance period beginning April 1, 2017 and ending March 31, 2018."

As previously reported, Liberty had sought certain relief from the PSC concerning its ZEC obligations due to the fact the obligations were based on historic 2015-16 load, and Liberty reported a material decrease in load versus such historic period.

"While it is anticipated that some load loss and load gain would be experienced among the LSEs, Liberty’s load loss is substantial," the PSC said "A review of the monthly transactional load data transferred from the NYISO into NYGATs for the calendar year 2016, indicates that Liberty’s load decreased approximately 35% from its reported load for the May 1, 2015 through April 30, 2016 base period that was used by NYSERDA to calculate monthly ZEC payments," the PSC said

"In support of its request, Liberty has submitted information to indicate that its anticipated load for the compliance period may be even lower than its actual calendar year 2016 load, by as much as an additional 50%. This change to Liberty’s anticipated load for the April 1, 2017 through March 31, 2018 ZEC compliance period is very substantial and its request for monthly ZEC payment relief due to its material decrease in load it serves is reasonable," the PSC said

Liberty's actual 2017-2018 compliance obligation amount will be trued-up during the ZEC reconciliation period, which is to occur in September 2018, the PSC noted

"While the calendar year 2016 load decrease is a material change to Liberty, it only represents approximately 0.25% of the statewide load. Also, Liberty is the only LSE to seek relief of its 2017-2018 ZEC obligation as a result of a material drop in the load it served. Therefore, at this time, the Commission is providing relief to only Liberty for a material change in its load due to the administrative burden of recalculating every LSEs’ ZEC obligation and the potential marketplace confusion that could result from changes in customers’ bills," the PSC said

"Staff is, however, required to consult with NYSERDA following the completion of the first ZEC reconciliation period to see if any programmatic changes in calculating LSE loads for future compliance periods are warranted," the PSC said

"Lastly, Liberty’s proposal to fund shortfalls in ZEC revenues, from LSEs that experience load loss, via a delivery surcharge in non-bypassable delivery rates of EDC’s customers is rejected," the PSC said

"The Joint Utilities appropriately note that such action would be inconsistent with the overall strategy to collect CES [clean energy standard] charges via the supply portion of customer bills. Because these revenue shortfalls are temporary in nature, NYSERDA, through its cash balances, should be able to provide this bridge funding to the ZEC generators. Therefore, NYSERDA is directed to absorb the ZEC revenue shortfall that will result from the suspension of a portion of Liberty’s 2017-2018 ZEC obligation until the ZEC reconciliation occurs in September 2018," the PSC said

Case 15-E-0302

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