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PSC Adopts Order Extends ZEC Program Through 2049
The New York PSC announces that the PSC has issued an order extending zero-emissions credit program.
The approved zero-emissions credit program (ZEC) extension proposal provides the necessary financial certainty for New York’s existing fleet of upstate nuclear power plants to ensure that they continue to operate.
The PSC press release states “[e]xtending the ZEC program through 2049 will help provide the upstate nuclear generators with the financial support they need to continue operating,” said Commission Chair Rory M. Christian. “Failing to extend the ZEC program creates a risk of these plants closing, which could have significant impacts on reliability, resource adequacy, and achievement of Statewide clean energy goals.”
The press release also notes that [“i]n its decision, the Commission made some minor changes to the ZEC program, most notably with some updated formulae such as the Social Cost of Carbon (SCC) and revenues related to the Regional Greenhouse Gas Initiative (RGGI). The Commission opted to continue the current ZEC 1.0 program structure and cost recovery methodology whereby NYSERDA assesses each New York load-serving entity (LSE) a uniform wholesale per-MWh charge that is applied to the LSE’s actual wholesale load, to calculate their monthly ZEC obligation payments.”
“Further, the Commission decided that the extension of the ZEC program (ZEC 2.0 program) should be administered in two-year tranches, with an initial bridge tranche to align the program with the calendar year.”
In terms of Cost Allocation and Cost Recovery:
“The Commission finds that Staff’s proposal to continue the existing cost allocation and cost recovery methodology for the ZEC 2.0 Program is both reasonable and appropriate.”
“Maintaining the existing cost allocation and cost recovery methodology (which has been administered by NYSERDA since the inception of the ZEC 1.0 Program) will ensure a smooth transition from the current ZEC program to the new, ZEC 2.0 Program.”
“The Commission directs each LSE to enter into a contractual relationship with NYSERDA that aligns with the duration of the ZEC 2.0 Program to periodically purchase ZECs during a program year based on initial forecasts and a balancing of reconciliation at the end of each program year. After the reconciliation process, each LSE will have purchased the correct proportion of ZECs on an annual basis. ZECs will continue to not be tradable except between NYSERDA and the LSEs during this balancing process.”
15-E-0302
(Proceeding on Motion of the Commission to Implement a Large-Scale Renewable Program and a Clean Energy Standard)
