New York ESCO Seeks Reduction In ZEC Compliance Obligation
January 25, 2019 Email This Story Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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BlueRock Energy, Inc. petitioned the New York PSC to adjust BlueRock's ZEC (zero emissions credits) compliance obligation for the remaining months in the 2018-2019 compliance period, beginning in February 2019, to account for a reduction in load.
BlueRock noted that, "In October 2018, BlueRock entered into an agreement to assign all of its [New York] customer contracts to another ESCO. The actual customer transfers began in late November 2018. The last few remaining customer contracts are expected to transfer to the other ESCO by February 28, 2019, at the latest. As a result, BlueRock has experienced a material drop in its customer load in New York and will have no customer load as of March 1, 2019."
"Without the relief requested herein, BlueRock will be required to pay NYSERDA approximately $185,000 per month for ZECs when it has no actual load. Although this overpayment will ultimately be refunded when NYSERDA adjusts BlueRock’s obligations during the subsequent reconciliation period, BlueRock will experience a substantial financial burden in paying for these costs up front, without any method for recovering the costs in the interim. In addition, the expected over-payments will create actual interest expense to BlueRock that will not be recoverable," BlueRock said in its petition
BlueRock also requested the Commission reduce BlueRock’s ZEC compliance obligation for the impending 2019-2020 compliance period since BlueRock will have no load as of March 1, 2019.