NRG Retail Suppliers Seek New York Waiver To Offer Carbon Offset Natural Gas Product

Also Seek Approval To Offer Pending Green Gas Programs Proposed By Direct Energy

May 26, 2020

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Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Green Mountain Energy Company ('Green Mountain'), Reliant Energy Northeast LLC d/b/a NRG Home and d/b/a NRG Business Solutions, Energy Plus Holdings LLC, Energy Plus Natural Gas LLC, Independence Energy Group LLC d/b/a Cirro Energy, XOOM Energy New York, LLC, and Stream Energy New York, LLC (collectively, the 'NRG Retail Companies') requested that the New York Public Service Commission ('Commission') waive the provisions of the December 2019 retail market reset order in order for Green Mountain, and other NRG suppliers, to offer Green Mountain's existing natural gas carbon offset plan, as well as the green gas programs proposed by Direct Energy

As previously reported, for natural gas, ESCOs under the reset order are limited to providing mass market customers with a guaranteed savings (versus the utility) plan, or a fixed rate product that is limited in price to a 12-month trailing average utility supply rate plus a 5% premium. The compliance deadline for such product limits has been extended to August 10, 2020

Green Mountain currently offers to its New York customers a Carbon Conscious Plan which offsets 100% of the customer’s natural gas usage by purchasing certified carbon offset credits. An offset credit is generated for each ton of carbon dioxide equivalent that is reduced or removed as part of a verified greenhouse gas reduction project that captures and uses landfill gas (methane) to generate clean electricity.

"The NRG Retail Companies request that the Commission waive the provisions of the Reset II Order limiting the types of natural gas products that can be sold to mass-market customers so that Green Mountain can continue to market and serve its Carbon Conscious Plan to its customers," NRG said

Green Mountain currently offers this product at an introductory fixed price for three months; thereafter customers receive month-to-month variable rate service. Green Mountain cannot and does not guarantee savings compared to the default utility rate for its Carbon Conscious Plan.

The NRG Retail Companies also noted that they do not charge customers a cancellation fee for the Carbon Conscious Plan

The NRG Retail Companies said that they also support Direct Energy’s Petition for several green gas programs, "and believe that not only should Direct Energy’s proposed green gas product offerings be approved, but that any ESCO who can offer the products under the same terms and conditions should be allowed to do so without seeking a waiver from the Commission."

The specific details of Direct Energy's various proposed green gas programs had been first reported by EnergyChoiceMatters.com (details here)

"The NRG Retail Companies have reviewed Direct Energy’s proposed green gas product offerings and are equipped and able to offer identical products to their own New York mass market customers, ideally under the Green Mountain brand. By pairing either a RGGI Gas product or a Cleaner Heat product with one of Green Mountain’s renewable electricity offerings, Green Mountain customers can ensure that all of their energy consumption, electric and gas, is targeted towards the support of decarbonization and renewable energy generation. These products are primed for consideration and approval by the Commission," NRG said

"Moreover, the NRG Retail Companies believe the Commission should allow ESCOs to offer combinations of these products to their customers (e.g., Green Mountain’s Carbon Conscious Plan, offsetting 100% of the customer’s CO2 emissions from their natural gas consumption through the purchase and retirement of carbon offsets, plus a RGGI Gas product, offsetting 50% of the customer’s CO2 generated from natural gas through the RGGI auction mechanism, for a total of 150% offset of the customer’s CO2 produced by natural gas consumption)," NRG said

"The Commission should also allow ESCOs to offer similar products that exceed the percentages outlined in the Direct Energy Petition, such as an RGGI Gas Product that offsets 100% of the customer’s CO2 generated through the RGGI auction mechanism – or any amount in between the minimum 50% expressed in the Direct Energy Petition," NRG said

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