Skip to Main Content
Services Talent Knowledge
Site Search
Menu

Alert

Our attorneys stay on top of changes in legislation, agency regulations, case law, and industry trends—then craft timely legal alerts to keep clients up to date on legal developments important to their business.

January 22, 2020

PSC to NYSERDA: Offer Renewable Developers REC Bidding Flexibility to Meet Governor's Clean Energy Standard

On January 16, 2020, the New York State Public Service Commission (PSC) issued an order directing the New York State Energy Research and Development Authority (NYSERDA) to offer renewable energy developers increased bid flexibility in its solicitations for renewable energy credits (RECs). Specifically, the Order requires that NYSERDA offer indexed RECs in addition to traditional fixed-price RECs.

The Order adopts the request made by the American Wind Energy Association (AWEA) and the Alliance for Clean Energy New York (ACE-NY) in a March 12, 2019, petition to allow for the use of indexed REC contracts for Tier 1 of New York State’s Renewable Energy Standard (RES) program, which would mirror the option provided in NYSERDA’s offshore wind REC solicitations.

The Order requires NYSERDA to offer both fixed-price RECs and indexed RECs as options in its 2020 request for proposals (RFP) for Tier 1 RECs, anticipated in April, and in all future Tier 1 REC solicitations. An indexed REC price is based on a reference market index that will change monthly over the life of a REC contract; in contrast, fixed-price RECs provide a fixed as-bid REC price throughout the contract lifetime.

Under the Order, NYSERDA and the Department of Public Service staff must file a proposed implementation plan for PSC action within 90 days that will propose a number of implementation changes to the RES program.

As the PSC stated in the Order, providing the indexed price option will “give developers more flexibility to adapt their bidding behavior to their financing and operational needs” and “should also reduce the risk premiums that developers account for in their bids to accommodate for uncertainty in power market revenues, thereby lowering ratepayer costs on a per-REC basis.” The PSC expects the indexed pricing option will likely expand the pool of bidders in future procurements and provide a boost to competition as well as additional downward pricing pressure on REC bids.

Barclay Damon’s regulatory and project development attorneys have significant experience guiding and supporting renewable energy clients through all stages of New York State’s permitting processes, including both Article 10 and the State Environmental Quality Review Act (SEQRA), as well as guiding and advising clients at all stages of project development and related transactions. If you have questions on how the above-referenced Order may affect your business or project, contact Ivan Zajicek, associate, at izajicek@barclaydamon.com; Ekin Senlet, partner, at esenlet@barclaydamon.com; or another a member of our Regulatory or Project Development Practice Areas.

Subscribe

Click here to sign up for alerts, blog posts, and firm news.

Subscribe

Sign up to receive our latest news via email

Practice Areas

Featured Industries

New & Emerging Industry Practice Areas

Other

View our Privacy Policy

Featured Media

Alerts

COVID-19: Updated Guidance Issued on NYS Construction Industry Workforce Reduction Requirements

Alerts

COVID-19: President Trump Signs $2.2 Trillion Economic Stimulus Package

Alerts

COVID-19: US Economic Stimulus Bill Includes Employee Retention Credit for Employers

Alerts

COVID-19: USDOL Issues Updated Guidance on Compliance With Families First Coronavirus Response Act

Alerts

COVID-19: US EPA Issues Policy to Regulated Entities

Alerts

COVID-19: DOJ and Other Regulators Warn of Hoarding, Price Gouging Amid Crisis

This site uses cookies to give you the best experience possible on our site and in some cases direct advertisements to you based upon your use of our site.

By clicking [I agree], you are agreeing to our use of cookies. For information on what cookies we use and how to manage our use of cookies, please visit our Privacy Statement.

I AgreeOpt-Out