In Authorizing Pricing Of NYSERDA-Procured RECs Using Index, New York PSC Defers LSE-Related Issues To Implementation Plan

The New York PSC adopted a revision to pricing paid by NYSERDA to renewable energy developers under the Tier 1 renewable energy standard, and, in doing so, deferred consideration of several LSE issues to an implementation plan

In brief, under the change, Tier 1 renewable developers may elect to be compensated by NYSERDA based on a reference market index that will change monthly over the life of the contract (Index REC), beginning in 2020. Previously, only fixed-price REC contracts were available

NYSERDA acts as the central procurement administrator for Tier 1. LSEs may purchase RECs from NYSERDA, another source, or pay an ACP

The PSC noted in its order that the adoption of an Index REC structure will require a number of implementation changes to the RES Program, including revisions to the methodology for calculation of its annual Tier 1 REC price associated with its sales to LSEs for both Fixed-Price and Index REC payments

Additionally, the Joint Utilities had during the proceeding pointed to several additional potential implementation issues associated with the proposed Index REC structure, including changes to the current process of setting market prices, performance of auctions and managing REC vintages, changes to calculating ACPs, unintentional impacts on the market for RECs imported to or exported from New York, and impacts to the Value Stack Environmental Value tariffs.

"Each of these issues will require careful planning and attention from the Commission, but these issues are not critical to the Commission’s decision of whether to adopt the Index REC. Implementation issues relating to compliance, including those raised in the comments, shall be addressed through the filing of an implementation plan for review and approval, as appropriate, by the Commission," the PSC said

NYSERDA and DPS Staff are therefore directed to file an implementation plan within 90 days

Case 15-E-0302