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Retail Supplier Seeks Emergency Clarification Of RPS Rules From Regulator Due To Recent Legislative Changes

March 27, 2018

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

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NRG Retail submitted to the Connecticut PURA an emergency motion for clarification of effect of certain legislative changes during the 2017 session related to Connecticut renewable portfolio standard compliance.

NRG said that Connecticut General Statutes (Conn. Gen. Stat.) § 16-245a(a)(12) provides that Load Serving Entities may use Class I RECs to satisfy the Class II obligations: "On and after January 1, 2017, not less than fifteen and one-half per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources." (emphasis added)

In addition, Public Act 17-144 (the Act), effective July 1, 2017, revised Conn. Gen. Stat. § 16-1(a)(21) to change the criteria concerning eligibility of Connecticut Class II resources. In October 2017, the Authority reopened numerous dockets (Revocation Dockets) in which it promptly revoked Class II certifications that were no longer eligible under the revised statute. The Final Decisions in the Revocation Dockets specify that, "facilities may earn RECs for generation produced through June 30, 2017, and that the last day that generation data may be submitted to the NEPOOL-GIS for RECs creation is October 10, 2017."

NRG requested that the Authority clarify the permitted use of RECs affected by Public Act 17-144 and the Revocation Dockets. Specifically, NRG seeks confirmation of the following:

A. That Load Serving Entities are permitted to use RECs from the associated projects for their entire 2017 compliance obligation and not just for the compliance obligation existing prior to the Act’s effective date; and

B. That Load Serving Entities may bank Class II RECs created before the Act’s effective date for use in 2018.

NRG further asked: "Connecticut law permits the use of Class I RECs for purposes of Class II compliance with Connecticut’s renewable portfolio standard. NRG asks that the Authority clarify whether Class I RECs may be banked when intended for future use in Class II compliance. Moreover, NRG asks that the Authority clarify the amount of Class I RECs that may be banked for future Class I and Class II compliance, in light of the 30% banking limitations specified in Regulations of Connecticut State Agencies § 16-245a-1(e). For instance, may a Load Serving Entity bank Class I RECs 30% in excess of its Class I obligations in a given year to satisfy future Class I obligations, and bank additional Class I RECs that same year to satisfy future Class II obligations?"

Docket 17-06-23

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