State agency approves RPS implementation plan

ALBANY, New York, US, April 27, 2005 (Refocus Weekly)

Electric utilities in the state of New York must develop a consumer education program that will explain the benefits of a renewable portfolio standard.

The state Public Service Commission has approved a detailed implementation plan for the Renewable Portfolio Standard that will increase the share of green power for retail consumers to at least 25% by 2013. The plan establishes many of the specific processes and protocols that the state will use to implement the RPS.

“Just seven months ago, following an open collaborative proceeding involving more than 150 parties and a series of public hearings, we determined that a Renewable Portfolio Standard would be in the public interest, and adopted the broad policy framework for the state's program," says PSC chair William Flynn. "Now, thanks to the hard work of Department of Public Service Staff, NYSERDA and numerous parties, we've laid out a detailed road map and specific protocols for increasing the use of renewable sources of generation to meet our growing demand for electricity.”
Two notable features of the plan are its recognition that flexibility by the PSC and the continued involvement of stakeholders are “absolutely essential,” he explains. A reliability report by the Independent System Operator recently concluded that a significant amount of wind generation could be integrated into the state's grid with only minor changes to existing planning, operation and reliability practices.

The PSC order of September 2004 set annual incremental targets for renewables from 2006 to 2013, and required the use of financial incentives to encourage development and operation of eligible green power facilities. It also directed the use of a non-by-passable wires surcharge to raise the revenue necessary to support to program.

The RPS established two tiers of eligible resources: medium- to large-scale generation facilities and another for smaller customer-sited on-site technologies. Renewable currently eligible for the main tier include wind, hydro, biomass, biogas, liquefied biofuel, and ocean or tidal power facilities. The customer-sited tier includes fuels cells, solar PV and wind technologies.

When the federal Congress extended a tax incentive for resources that could be in operation by the end of 2005, the PSC authorized an expedited process for the initial procurement of RPS resources and the New York State Energy Research & Development Authority (NYSERDA) issued a request for proposals. Twenty-two proposals were submitted by the deadline in January deadline and, after evaluation, seven were selected to receive RPS funding. The seven projects will generate 821,000 MWh per year of renewable energy starting in 2006, and a second round of RPS project solicitations is expected later this year.

The details of the RPS implementation plan and administrative protocols include the criteria and procedures to certify facilities as eligible to participate in the RPS and the procedures to be used by NYSERDA for procuring RPS resources. It also explains the criteria and procedures to be used to establish RPS eligibility of certain existing facilities with financial hardships, and development of a mechanism for allocation of RPS renewable power to the retail customers paying the surcharge.

To inform consumers about the RPS, investor-owned electric utilities and NYSERDA must develop a state-wide consumer education program that will include an explanation of the expected benefits of the RPS, the billing and pricing impacts associated with renewable energy choices, and modifications to the state's environmental disclosure label.


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