New York Gov. Andrew Cuomo formally asked the New York Department of Public Service to create a "Clean Energy Standard" that would meet, "the State's long term goal is to provide 50% of its electricity from renewable resources by 2030."

Cuomo did not propose any specifics, such as how the standard would be implemented, and which entities would be subject to compliance

Cuomo also directed the DPS to ensure that upstate nuclear plants remain operational

"In developing the Standard, additional attention needs to be given to ensure emissions free sources of electricity remain operational. Specifically, elimination of upstate nuclear facilities, operating under valid federal licenses, would eviscerate the emission reductions achieved through the State's renewable energy programs, diminish fuel diversity, increase price volatility, and financially harms host communities. This support should be separate and distinct from the renewable energy goal," Cuomo said

A proposal is to be brought before the PSC by June 2016

See Cuomo's letter to the DPS here

See a news release here

As previously noted by RetailEnergyX.com, huge questions for the retail market under the clean and/or nuclear standards include:

• Will utilities be required to directly procure the renewable energy, or will the centralized RPS be retained?

• If utilities themselves are required to meet certain renewable obligations, will this same obligation be imposed on ESCOs? Or will utilities assume the obligation for all distribution customers?

• Will utilities and/or ESCOs be required to contract with specific plants (similar to the former Illinois clean coal proposal)?

• Will utilities be purchasing bundled supply and renewable attributes, or just the renewable attributes?

• If utilities purchase bundled power supply, how will the underlying power supply be used -- will it be used for default service, or sold into the market with a cost/credit applied to all distribution customers?

• If utilities purchase bundled power supply and it is used for default service, how does that interact with the current default service procurement and rate-setting mechanisms?

• What cost recovery mechanism will be used for the procurements, and will it be bypassable or nonbypassable?

• Will the utilities be required to enter into long-term contracts for any power, and how will such supply be treated?

• Will ESCOs be placed at a competitive disadvantage as a result of any mandates?

It goes without saying that, even if utilities and ESCOs are charged with identical obligations under Cuomo's proposal, the proposal could, depending on mechanics, still put ESCOs at a competitive disadvantage in that utilities may contract with the knowledge of a guaranteed cost recovery regardless of any customer migration -- a luxury unavailable to ESCOs.

Tags:
New York   Long-Term Contracts   Default Service   Nuclear  

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