New Jersey BPU Proposes Rule On Offshore Wind Funding Mechanism, Responsibility For Suppliers
July 26, 2018 Email This Story Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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The New Jersey Board of Public Utilities (NJBPU) announced in a news release that it has, "proposed a rule that would establish an offshore wind funding mechanism known as an Offshore Wind Energy Certificate (OREC)."
"The OREC program will help the state reach its immediate goal of 1,100 megawatts of offshore wind capacity and will pave the way to meeting Governor Murphy’s ultimate goal of 3,500 megawatts," the BPU said
"The OREC rule would establish the processes by which an offshore wind project receives funds and how revenues earned from the project flow back to ratepayers," the BPU stated
Specific proposed rule language and specific details on what monetary and compliance obligations certain market participants would have were not immediately available. Proposed rule language will not be available until published in the state register
The BPU said that, "the [proposed] rule describes the roles and responsibilities of each of the parties in the offshore wind development process. These include the state’s electric companies, qualified offshore wind developers, suppliers, and the OREC administrator."
"The [proposed] OREC funding mechanism requires the electric companies to designate funds based on the Board approved number of megawatt hours and the OREC price. Companies would then make a monthly payment to OREC developers based upon the number of megawatts generated by the project. After the developers receive payment, they would transfer ORECs to suppliers and then the developers would refund all revenues to ratepayers through the electric companies. Additionally, all suppliers would be required to retire a sufficient number of ORECs each year to meet the offshore wind renewable portfolio standard set by the Board," the BPU stated