Another ESCO Seeks Adjustment To New York ZEC Obligation, Citing Significant Drop In Load

AP Gas & Electric (NY), LLC, AP Gas & Electric (TX), LLC and AP Gas & Electric (NJ), LLC submitted to the New York PSC a request for the acceleration of an adjustment to their zero emissions credit obligation.

APG&E stated in its petition that it was informed by NYSERDA that its required payment for ZECs during the period from April 1, 2017 to March 31, 2018 would be based on APG&E’s sales during the period from April 1, 2015 to March 31, 2016.

"APG&E has experienced a material drop, greater than 50%, in its retail load in New York State since April of 2016. As a result, the payments that APG&E was required to make to NYSERDA pursuant to the November 17 Order exceeded its actual ZEC obligation for the twelve-month period ending March 31, 2018 by more than $500,000. In addition, APG&E is expecting its obligation for the twelve-month period ending March 31, 2019 to be 90% higher than our actual NYISO load share ratio would suggest it should be," APG&E said in its petition

"While APG&E recognizes that this over-payment will ultimately be refunded in September 2018 and that the NY PSC is considering a pay-as-you-go ZEC obligation methodology going forward this over-payment represents a substantial burden to a competitive LSE such as ourselves. The over-payments for the first 2 compliance periods create actual interest expense to APG&E that will not be recoverable and put a significant strain on our cash flow and liquidity," APG&E said in its petition

"APG&E respectfully requests that the Commission accelerate an adjustment to our obligation based on actual or more recent sales data and immediately refund the overpayment for the twelvemonth period ending March 31, 2018 and reduce our obligation by up to 50% for the twelve-month period ending March 31, 2019," APG&E said in its petition