Another Renewable Energy PPA For Default Service Terminated
June 26, 2023 Email This Story Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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Duquesne Light Company (Company) reported to the PUC that a Solar Power Purchase Agreement (PPA) between the Company and Pine Gate Renewables, LLC (Pine Gate) has been terminated
The PPA was to procure certain
energy and solar Alternative Energy Credits (SAECs) for default service customers. Specifically, under its current default service plan, Duquesne Light was authorized to conduct competitive procurement for a long-term solar PPA, with a term of four to 20 years, to
support a utility-scale solar project of up to 7MW in Pennsylvania. Duquesne Light explained that
it would use the SAECs acquired through such PPA to meet a portion of its Alternative Energy
Portfolio Standards (AEPS) requirements, and to sell the remaining attributes into the PJM
market, and credit the resulting revenues back to default service customers
Duquesne Light received approval for the Pine Gate PPA in May 2022
Duquesne Light noted that PPA Section 20.3 provides for the parties to enter into re-negotiations where certain project development milestones were not met, and to terminate the PPA where such re-negotiations did not succeed.
Duquesne Light stated, "On December 31, 2022, Pine Gate failed to meet a project development milestone that triggered PPA Section 20.3. The parties attempted to renegotiate the PPA, but these negotiations were not successful, and Pine Gate subsequently terminated the PPA."
Duquesne Light said in a June 23 letter to the PUC that, "The Company is developing a new Request for Proposals ('RFP') for one or more solar power purchase agreements to replace the PPA with Pine Gate. The Company currently anticipates issuing that RFP as soon as June of 2023."
Although each is governed by unique orders and sought different products, the failure of the Duquesne Light solar PPA follows the recent failure of a renewable energy PPA for a portion of SOS load at Pepco in D.C. (see story here)