NYSERDA Seeks Extension Of Due Date For ESCOs, LSEs To Contract With NYSERDA For Offshore Wind
March 7, 2019 Email This Story Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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NYSERDA filed at the PSC a request for an extension of the due date on which load-serving entities (LSE) are required to provide the New York State Energy Research and Development Authority (NYSERDA) with executed contracts (LSE Contracts) for the purchase of offshore wind renewable energy certificates (ORECs) by LSEs from NYSERDA.
The PSC’s July 12, 2018 "Order Establishing Offshore Wind Standard and Framework for Phase 1 Procurement" (Order), in Case 18-E-0071, set March 31, 2019 as the due date for the submission of those contracts.
Specifically, in such June Order the PSC had directed that, "Every Load Serving Entity (LSE) in New York State shall invest in new offshore renewable generation resources to serve their retail customers, as described in the body of this order and evidenced by the procurement from the New York State Energy Research and Development Authority (NYSERDA) of qualifying ORECs, acquired in quantities that satisfy mandatory minimum percentage proportions of the total load served by the LSE for the applicable calendar year. All LSEs are directed to provide NYSERDA with executed copies of standard contract OREC agreements (to be modeled largely on the existing standard ZEC contracts) by March 31, 2019."
The Order also envisioned the Commission providing guidance on the methodology for calculating the LSE OREC obligation.
NYSERDA said that the bids for NYSERDA’s first OREC Request for Proposals (RFP) were received by NYSERDA on February 14, 2019. "Development of an OSW project will be a multiple year undertaking. As the LSE Contracts concern the purchase of ORECs produced by one or more OSW projects, no transactions can occur, and the LSE Contracts will not be active, until after the project(s) enter commercial operation," NYSERDA said
"NYSERDA therefore requests an extension of the due date for LSEs to provide executed copies of the LSE Contracts to NYSERDA by four months -- until July 31, 2019. Given the project development timeline, this requested four-month extension will not interrupt NYSERDA’s administration of the program or its administration of the LSE contracts. The proposed extension will also provide the opportunity for the Commission to address the methodology for how LSEs will remit payments to NYSERDA. Also, the requested extension will also provide LSEs and NYSERDA the opportunity to more effectively develop the LSE contracts," NYSERDA said