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Group Of New York ESCOs Petition For Approval Of Several Green Gas Programs For Mass Market, Not Subject To Price Cap
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A group of New York ESCOs have petitioned the New York PSC to authorize several green gas natural gas programs developed by the certain members of the NY Subgroup participating in Track II of the retail market reset proceeding, with such programs not being subject to the price cap otherwise applicable to mass market service
As previously reported, several individual ESCOs have earlier petitioned for adoption of various types of green gas programs that would not be subject to the mass market price limits
While not a consensus product from the Track II subgroup, petitioning ESCOs said that their proposals are informed by such group, and that the subgroup met multiple times and worked together collaboratively to
identify products that should be permitted to allow environmental attributes bundled with
natural gas supply to help meet the State’s climate goals and provide mass market customers with
additional, environmentally-friendly natural gas choices. The subgroup also focused on
the need to establish minimum standards for several green gas products, as well as tracking and
verification methodologies that ensure that product offerings are transparent and properly
disclosed to customers, petitioners said
The petitioners' Industry Proposal contemplates three types of green gas products that could be offered
to mass market customers
• A carbon offset product;
• A Regional Greenhouse Gas Initiative
(RGGI) product, and
• A Renewable Energy Certificate (REC) based green gas product.
The carbon offset product would have a minimum standard of: (1) At least 50% of the
customer’s load is offset; (2) the offset must be purchased and retired using a verifiable registry
such as, but not limited to, the ones mentioned below; and (3) the customer is provided with
transparent information and accurate product disclosures.
The RGGI product would have a minimum standard of: (1) At least 50% of the customer’s
actual usage or (2) A set number of RGGI allowances equal to at least 50% of the average annual
usage of the customer class. For each such product the RGGI allowances must be purchased and
retired, and the customer is provided with transparent information and accurate product
disclosures.
Under a REC-based green gas product, an ESCO will purchase and retire on the customer’s
behalf an amount of RECs corresponding to the customer’s natural gas usage. The customer could
select a percentage (i.e., 50%, 75%, 100%) of their natural gas usage. The amount of RECs would
be determined by a conversion factor. The ESCO would purchase and retire the requisite number of RECs on an annual basis
through the New York Generation Attributes Tracking System
Petitioners said that the Commission identified specific methods by which ESCOs can purchase environmental
attributes to support a voluntary renewable electricity product. Petitioners said that those methods should be permitted
to be used for REC-based green gas products as well. The methods identified by the Commission
include:
1. Purchasing RECs from eligible renewable generators through NYGATS;
2. Purchasing Tier 1 RECs from NYSERDA;
3. Procuring RECs from eligible renewable generators through bilateral contracts;
4. Making Alternative Compliance Payments (ACP) to NYSERDA; or
5. Entering into bundled energy and REC purchase agreements with eligible renewable
generators
Petitioners said, "ESCOs should be provided the flexibility to offer natural gas products with varying content
levels, subject to the minimum standard discussed herein. For instance, an ESCO can design a
RGGI-backed green gas product based on a volumetric amount of natural gas per year that is
equivalent to at a minimum 50% of a customer’s load (e.g., 50 MMBtus, 100 MMBtus) or a
percentage of the customer’s natural gas usage (e.g., 50%, 100%). A carbon offset product could
match 100% of a customer’s load or can be some other percentage that meets or exceeds the 50%
standard to meet the customer’s preferences. The REC product could offset 100% or 50% or some
other percentage of a customer’s natural gas usage as long as it meets the approved product
standard. These market-based solutions provide customers with options based on their interest and
desired price points."
Further details concerning the petition will be provided in a later updated story to follow
Petitioners include American Power & Gas, Constellation NewEnergy – Gas
Division, LLC, Family Energy, Just Energy, Kiwi Energy NY, LLC, Marathon Energy, the NRG Energy Inc.
retail companies operating in New York which include Direct Energy Business, LLC, Direct Energy
Business Marketing, LLC, Direct Energy Services, LLC, and Gateway Energy Services Company in addition
to Green Mountain Energy Company, 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, and Viridian
Energy PA, LLC.
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July 6, 2022
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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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