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Update: New York PSC Lowers Near-Term LSE (ESCO) Renewable Compliance Obligations

November 16, 2017

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

Update, 11/17: The PSC yesterday generally approved a NYSERDA Phase 2 implementation plan which includes the revised LSE Tier I compliance obligations listed below. A written order from the PSC was not yet available.

Earlier (11/16):

The New York PSC is scheduled to consider at its meeting today a reduction in the renewable energy compliance mandates for LSEs for several near-term years.

Specifically, a draft order to be considered by the PSC at today's meeting would lower LSE's annual compliance obligation for Tier I resources as follows:

Tier I LSE Compliance
(Proportion Of LSE's Load)

Year  Original    Proposed
       Mandate    Revised
                  Mandate
2018    1.1%        0.15%
2019    2.0%        0.78%
2020    3.4%        2.84%
2021    4.8%        4.20%

The draft changes to the LSE obligations would not affect the procurement targets established by the Commission in the CES Framework Order or the overall 50 by 30 goal, the draft order stressed

The revisions, "reflect realistic expectations regarding availability of Tier 1 RECs as the RES [renewable energy standard] program ramps up," the draft notes

Specifically, the revisions to the 2018-2021 targets were proposed to account for a Commission clarification regarding the mandated targets, which are separate from activity in the voluntary market or from non-Tier 1 BTM facilities. Additionally, the proposed changes adjust the annual LSE target obligations to account for delays in the available Tier 1 RECs from projects contracted under the now expired Renewable Portfolio Standard (RPS) Main Tier Solicitations conducted through 2016, but have yet to enter commercial operation as of January 1, 2015, the date authorized for Tier 1 eligibility.

The Phase 2 Proposal notes that changes in the annual LSE obligations are more significant in the early years of the RES program when solar PV projects installed through the NY-Sun program and not eligible for Tier 1 comprise the majority of the renewable attribute supply.

The draft also noted that, "It is anticipated that increasingly larger obligations for the year 2022 through 2030 will be adopted with sufficient lead time for LSE’s to incorporate changes into their planning process."

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