Citing Decreased Load, New York ESCO Seeks Reduction In ZEC Compliance Payments
October 3, 2017 Email This Story Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
Astral Energy, LLC petitioned the New York PSC for a reduction of its ZEC compliance payments as set by NYSERDA
"Astral has experienced a significant drop in its retail load in New York State since April of 2016, equaling a nearly 43% reduction. As a result, the ZEC payments that Astral is currently required to make to NYSERDA will exceed its actual ZEC obligations for the twelve-month period ending March 31, 2018 (i.e., the 'Compliance Year') by a significant amount," Astral said in its petition
"These over-payments currently, and will continue to, unjustly discriminate against Astral as it is being required to bear an actual interest expense not required of other LSEs. Furthermore, the overpayments represent a zero-interest loan subsidy that benefits other LSEs. While Astral recognizes that over-payments will ultimately be refunded, this over-payment requirement represents a substantial and costly burden to Astral, which as a competitive LSE, has no captive customers from whom to recover these additional costs. For the reasons listed above, Astral submits reducing its ZEC payment requirement for the April 1, 2017 –March 31, 2018 Compliance Year is just and reasonable," Astral said in its petition
Astral noted that the PSC previously adjusted downward by 35% the compliance obligation of Liberty Power after Liberty filed a similar petition
Astral asked the PSC to:
• Issue a temporary order suspending Astral’s obligation to make ZEC compliance payments while the instant request is pending.
• Order NYSERDA to reduce Astral’s April 1, 2017 through March 31, 2018 ZEC compliance obligation by 43% in total, and adjust the remainder of its monthly payments for the current compliance year accordingly.
• Order NYSERDA to absorb the ZEC revenue shortfall that will result from the suspension of this portion of Astral’s ZEC obligation until the ZEC reconciliation occurs in September 2018.