Pa. PUC Grants, In Part, Retail Supplier Request To Extend RPS True-up Due To Change In Law
August 28, 2018 Email This Story Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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In a Secretarial Letter the Pennsylvania Public Utility Commission (Commission) granted, in part, the Petition of AEP Energy, Inc. (AEP) to extend the 90-day true-up period to demonstrate compliance with the Alternative Energy Portfolio Standards Act (AEPS Act) for the current reporting period of June 1, 2017 – May 31, 2018.
On August 21, 2018, AEP had filed a Petition Docket No. P-2018-3004223 seeking an extension to the AEPS Act true-up period. AEP requested an extension of the 90-day true-up period to demonstrate compliance with the current AEPS Act reporting period requirements pending resolution of its Petition (jointly filed with an affiliate) to Certify Electric Production from Five Out-of-State Solar Facilities from November 1, 2017 Through the Life of Each Facility as Eligible to Satisfy Tier I Solar Photovoltaic Shares Alternative Energy Credits Requirements Consistent with Existing Contracts filed at Docket No. P-2018-3004218 (AEP Certification Petition). AEP noted that pursuant to 52 Pa. Code § 75.61(e), EGSs must demonstrate their compliance with the AEPS Act requirements for the current reporting period by September 1, 2018. AEP asserted that the resolution of the AEP Certification Petition will determine how it will elect to demonstrate its compliance. Specifically, AEP stated that it could elect to satisfy its AEPS Act solar alternative energy credit requirements by reliance on solar production from the out-of-state facilities pursuant to Section 2804(2)(ii) of Act 40, 71 P.S. § 714(2)(ii), but cannot do so without Commission approval of the AEP Certification Petition.
AEP also asserted that the delay in finalizing its decision is not due to any action on the part of AEP, but rather due to the change in law that occurred effective October 30, 2017, and the ten months that have passed for the final direction from the Commission on how EGSs could qualify solar production from out-of-state facilities. Upon receiving final direction from the Commission, AEP stated that it acted as expeditiously as possible to prepare this petition as well as the AEP Certification Petition. For these reasons, AEP requested that the Commission enter an order either granting the AEP Certification Petition or, if necessary, the Extension Petition pending the resolution of the AEP Certification Petition.
The Commission granted AEP’s request to extend the AEPS Act current reporting period true-up period for their Tier I AEPS Act requirements to 20 days after the Commission enters a final order in the AEP Petition proceeding at Docket No. P-2018-3004218.
However, the PUC did not grant an extension to the AEPS Act true-up period for AEP’s AEPS Act Tier II requirements for the current reporting period, the Secretarial Letter said
"The Commission agrees with AEP that the October 30, 2017, Act 40 change in law, as well as the associated Commission proceeding to determine how to implement that change in law has created some uncertainty as to how AEP can comply with the AEPS Act Tier I requirements for the 2017-2018 reporting period. As noted above, the AEPS Act was amended by Act 40 on October 30, 2017, five months into the reporting period. In addition, it was not until August 2, 2018, after an extensive proceeding that involved multiple orders and input from more than 90 interested parties that the Commission issued a decision on the process to qualify credits associated with the contract provision of Section 2804(2)(ii) of the Admin. Code, 71 P.S. § 714(2)(ii)," the PUC noted
"The Commission further recognizes that AEP has legitimate and reasonably prudent business decisions that may be affected by the outcome of the AEP Certification Petition relating to the alternative energy credits (AECs) they use for their AEPS Act 2017-2018 reporting period Tier I compliance obligations. The Commission notes that, as determined in the Act 40 Final Implementation Order, any AECs generated by an out-of-state solar photovoltaic (solar PV) facility after October 30, 2017 may be used for compliance with an EGS’s Tier I non-solar requirement or, if approved by the Commission pursuant to Section 2804(2)(ii) of the Admin. Code, for their Tier I solar requirements. As such, the outcome of the AEP Certification Petition will impact how AEP complies with both their Tier I non-solar and Tier I solar requirements for the AEPS Act 2017-2018 reporting period," the PUC said
"The Commission, however, finds that the AEP Certification Petition will have no impact on AEP’s ability to comply with the Tier II requirements for the AEPS Act 2017-2018 reporting period. In fact, AEP has presented no evidence, nor asserted that it needs an extension for meeting the Tier II requirements," the PUC said
"Accordingly, the Commission will grant AEP’s request, but only in relation to its Tier I (Tier I solar PV and Tier I non-solar) requirements for the current 2017-2018 AEPS Act reporting period. Specifically, the Commission will grant an extension of the true-up period to 20 days after a final Commission Order is entered in the AEP Certification Petition at Docket No. P-2018-3004218 for AEP’s Tier I (Tier I solar and Tier I non-solar) compliance requirements. This extension of the true-up period does not apply to AEP’s Tier II requirements, which must be met by September 1, 2018," the PUC said
Separately, NRG on behalf of its retail providers sought to certify certain out-of-state solar facilities for use in their AEPS compliance. NRG initially requested also an extension of the true-up period similar to AEP, but later withdrew the extension request, stating that it had made other business arrangements obviating the need for the extension. The withdrawal of the extension request did not impact NRG's request to certify the out-of-state facilities.